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A Look Ahead | 7th Annual Canadian Sponsorship Landscape Study Norm O’Reilly & Elisa Beselt | 2013 Sport Events Congress, Ottawa
A Look Ahead | 7th Annual Canadian
Sponsorship Landscape Study
Norm O’Reilly & Elisa Beselt | 2013 Sport Events Congress, Ottawa
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TODAY’S OUTLINE
1 History | Sport, Events, Festivals | WomenCSLS
2 Sponsorship & Women in CanadaCase Studies
3 Sport Event MarketersKey Takeaways
3
1History & Summary of Findings
CSLS
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Unique Downloads (2011-12)
1,002 Respondents (2006-12)
2,456
STUDY GROWTH
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www.sponsorshiplandscape.cawww.sondagecommandite.ca
Participate NOW at:
PARTNERS
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HISTORY2007 2008 2009 2010 2011 2012
Toronto International Film Festival,
TorontoCanadian
Sponsorship Forum
Creating Opportunities,
TorontoSponsorship
Marketing Council of Canada
World Hockey Championships,
HalifaxCanadian
Sponsorship Forum
Quebec Winter Carnival, QuebecCanadian
Sponsorship Forum
Paralympics, VancouverCanadian
Sponsorship Forum
Formula One, MontrealCanadian
Sponsorship Forum
Just for Laughs, MontrealCanadian
Sponsorship Forum
Upping the Ante, Toronto
Sponsorship Marketing Council
of Canada
Trailblazing, Toronto
Sponsorship Marketing Council
of Canada
2010 2011 2012
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0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012
Sponsors AgenciesSponsees Total
504
337277
559
407371
CSLS Survey Respondents (2007-12)
RESPONDENTS
0
1
2
$1.11$1.22
$1.39 $1.43$1.55 $1.59
2006 2007 2008 2009 2010 2011
Year
8
Sponsorship Industry Size (CDN$B)
INDUSTRY SIZE
0%
7%
14%
21%
28%
35%
16.7%15.5%
22.5%
15.4%
22.3%
29.6%
2006 2007 2008 2009 2010 2011
Year
9
Sponsorship as % of Marketing Communications Budget
MARCOM BUDGET
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CONCERNS
Demonstrating ROI23.7%
Competition18.5%
HR & Expertise18.3%
Meeting Goals & Targets16.9%
Budget10.7%
Appearance & Reputation8.0%
Up At Night
2011
572010
62
2009
76
2008
71
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2006
432007
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ACTIVATION SPENDIEG (US)IEG (US)
2008 $1.502009 $1.402010 $1.402011 $1.602012 $1.70
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TACTICS 2011 Change (2010)
Hosting/hospitality 13.80% 17.90%
Advertising 13.20% -2.90%
Creating branded content/events 11.60% 12.40%
Public relations 10.60% 40.00%
Social media 10.10% 61.20%
Co-promotions 7.40% 20.40%
Sales/consumer promotions 6.40% 44.90%
Product sampling 4.20% -66.50%
Ancillary events 4.20% 76.40%
Athlete 2.10% 52.70%
ACTIVATION SPEND
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2006
7.8 %
2007
4.5 %2008
6.0 %
2009
4.1 %
2010
2.6 %
2011
2.3%
EVALUATION
Pre-evaluation (2011)0.56%
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VARIABLE IMPORTANCE PROVIDED DIFFERENCE
Resources for activation program 4.09 (1) 2.59 1.50*Concluding report/audit 3.94 (2) 3.03 0.91*Sponsor recall stats 3.88 (3) 2.52 1.36*Audience loyalty stats 3.55 (4) 2.74 0.81*Information on purchase behaviour of target group
3.50 (5)2.27 1.23*
Protection from ambush marketers 3.48 (6) 2.76 0.72*Protection of sponsorship rights/exclusivity
3.24 (7)3.70 -0.46
Partnering on sponsorship activation and activities with other sponsors
3.06 (8)2.62 0.44
Partnering on sponsorship activation and activities with the property
3.06 (8)2.56 0.50
VALUE OF SERVICES
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1Sport, Events, Festivals
CSLS
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LARGEST INVESTMENT
of sponsors’ single largest investment is in pro sport or festivals
Over half
Pro sport26%
Festivals, fairs, annual events
26%
Amateur sport17%
Entertainment, toursand attractions
11%
Arts6%
Education 3%
Naming rights6%
Conferences6%
in history of CSLS that pro sport was not alone at #1
First time
0%
10.0%
20.0%
30.0%
2006 2007 2008 2009 2010 2011
% o
f Spe
nd
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“FESTIVALIZATION”
Professional sport
Amateur/Olympic sport
Festivals, fairs, annual events
Cause marketing
Arts
Entertainment, tours, attractions
Sponsor Investment Areas (2006-11)
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WHY?
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GREY CUP FESTIVAL
Attendance300,000
Days11
Event Areas Downtown4
Ticketed Events11
Free Events7
Corporate Sponsorship$3 million
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EXTREME RUNS
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LACROSSE FESTIVAL
Launched2004
Days10
Teams550
Athletes11,000
Attendance55,000
Sponsors7
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EVENTS MATTER
Of pro sport sponsorship spending is in events
One quarter
Teams40%
Leagues12%
Unions/associations 3%
Athletes 6%
Events24%
Media12%
Other 3%
Misalignment, expensive, crowded, poor service, tough to activate
Why not sport?
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ACTIVATION PLATFORM
Advertising26.0%
Hosting/Hospitality20.8%
Publicity19.0%
Public Relations9.6%
Advertising41.0%
Hosting/Hospitality34.6%
Publicity34.6%
Public Relations32.1%
Areas Utilized Spending
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0%
10.0%
20.0%
30.0%
40.0%
50.0%
35.5%
5.0%1.8%
5.8%
42.6%
10.6%8.1%6.3%8.1%
27.5%
% o
f Age
ncy
Billi
ngs
English French
Sport FestivalsEntertainmentCause Arts
FRENCH AGENCIESPercent of Agency Sponsorship Billings
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17.2%9.9%
7.7%
7.3%
6.4%6.0%
4.3%41.2%
Digital/Mobile/TV Content
Sports
Unique Content/Activations
Grassroots
Events/Stadiums
Cause
EducationOther
GROWTH POTENTIALIdentified Areas of Growth
‣ aboriginal‣ immigrant‣ health‣ natural resources‣ arts and music‣ automobile‣ international events‣ collaborations‣ financial‣ military‣ naming rights‣ measurement‣ government and not-for-profits‣ medium size business‣ human resources‣ corporate social responsibility‣ pouring rights‣ professional development and training events
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PROVIDE SOLUTIONS
Budget Concerns22.7%
Break Through Clutter21.8%
Showing ROI19.3%
Planning Strategically14.2%
Future Challenges for Sponsors
Other8.2%
Social Media7.1%
Activating Sponsorship6.8%
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PROVIDE SOLUTIONS
Expected ROI for Festivals
26.3%Expected ROI for Pro Sport
39.0%Expected ROI for Amateur Sport
15.8%
Actual ROI for Festivals
28.9%Actual ROI for Pro Sport
26.2%Actual ROI for Amateur Sport
18.4%
Return on Investment
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CAPTURE PASSION
1 Access and provide unique experiences.
How to activate on consumer passions?
3 Create awareness of the connection.
4 Create (relevant and interesting) content.
2 Use detailed consumer research.
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1Early Results from the 7th Annual Study
CSLS
Theme Example
Managing expectations and ensuring satisfaction “Not meeting our sponsors’ expectations and not delivering”
Competition “Increased competition for sponsorships”
Finding and maintaining sponsorships “Ensuring sponsors continue to renew, which is vital to our organizations’s sustainability”
Government, ethical and social issues “Exploitation of women and children in other countries”
Human resources and expertise “Finding quality employees”
Limited financial resources “Dwindling dollars”
Activation and servicing “Coming up with sponsorship activation ideas on behalf of my sponsors”
Economy “Fluctuating currency that can dramatically affect Canada”
Demonstrating ROI “Proving the value of sponsorship through measurement”
Too much to do, too little time “Lack of time to complete all funding requests”
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PAST CSLSWhat did we learn about women and sponsorship? Almost nothing.
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Responses to Date
83 Total
19 Sponsors
42 20 Sponsees Agencies
61 English
22 French
55% For-Profit
Not-For Profit45%
EARLY RESULTS - 7TH
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Early ThemesFrom Sponsors
Increased CompetitionToo Many Events
EvaluationShowing ROI
Budget Cuts
Economy Down
EARLY RESULTS - 7TH
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Marketing CommunicationsSponsors (n=19)
28.5%of Marketing
Communications Budget
25.0%forecast “it will decrease a lot”
EARLY RESULTS - 7TH
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Women in SponsorshipOrganizational Capacity
Percentage female paid staff: 51.5%All Organization
55.4%In Sponsorship
vs.
Percentage of volunteers female: 30.8%All Organization
46.8%In Sponsorship
vs.
Percentage of part-time agency staff female: 83.4%
Primary decision maker on sponsorship in organization: 14.7%
EARLY RESULTS - 7TH
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Women in SponsorshipCSLS Questions
19.6%Of sponsorships invested
where women are the primary target market
40% highest individual respondent
63% reported 0% investment
27.8%Of overall sponsorship
marketing budget invested in sponsorships that
primarily targeted women
44.0%Of respondents expected
investment in sponsorship that primarily target women to increase
56% stated it would stay the same
0% said it would decrease
EARLY RESULTS - 7TH
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Women in SponsorshipSponsees (n=42) 47% sport, 16% festival, fair, annual event; 11% municipality
7.7%Of total sponsorships targeted
at women (73 out of 952)
3.6%Of sponsorship revenue was received from a sponsor who was primarily targeting female
consumers
20% highest individual respondent
57% reported 0% investment
EARLY RESULTS - 7TH
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Marketing CommunicationsAgencies (n=20)
EARLY RESULTS - 7TH
43.6%Of sponsorship billings to
sponsorship whose main target was women
85% highest individual respondent
6.9%Of sponsorship budget was spent through an
agency in 2011
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2 Sponsorship & Women in Canada
Cases
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CASESScotties Tournament of Hearts
\\
Attendance in 201365,286
Sponsorship Began1982
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CASES
Attendance200,000
Official Charity PartnerD.I.F.D
Jerseys & AuctionLivestrong
IIHF 2013 Women’s World Hockey Championship
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CASES
Raised in 2012$30 million
Participants170,000
National Sponsors8
CIBC Run for the Cure
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CASES
Participants2,500
Sponsors20
Toronto Women’s Run Series
Pediatric Oncology Group of Ontario
Exclusive Charity
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CASESTim Hortons Canadian Ringette Championships
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CASESBell Let’s Talk & Clara Hughes
Raised in 2013$4.8 million
Tweets & retweets1.5 million
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3For Sport Event Marketers
Key Takeaways
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KEY TAKEAWAYS
1 Festivalization
2 Events Matter
3 Activation & Events
4 Service Gap
5 Evaluate
6 Opportunity: Women
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Dr. Norm O’ReillyFaculty of Health SciencesUniversity of Ottawa
Elisa BeseltSenior Analyst, Consulting GroupTrojanOne
CONTACT
www.sponsorshiplandscape.cawww.sondagecommandite.ca
