SPONSORSHIP TODAY     INDUSTRY OVERVIEWTRENDING AND IMPACT ON PR AND      COMMUNICATIONS      CPRS EDMONTON          Janua...
Mobile Devices Staying connected in the session  Twitter: #partnershipgrp#sponsorship@partnershipgrp
BRENT BAROOTESPresident and CEOPhone:   403-255-5074Fax:     888-486-3407Toll Free: 888-588-9550Email:   brent@partnership...
SPONSORSHIP TODAYThe plan for this session Discuss recent trends and updates in the industry Discuss national sponsorshi...
Canadian Sponsorship Landscape Study 2012Thanks to:     Norm O’Reilly and Benoit Seguin     University of Ottawa     Sp...
Canadian Sponsorship Landscape Study (CSLS) 2012Since the CSLS was undertaken in 2006 the industry hasgrown 43%   Again t...
Canadian Sponsorship Landscape Study 2012 Diversity in sponsorship mix – on average over 100  properties per sponsor (In ...
Canadian Sponsorship Landscape Study 2012 30% of brands marketing budgets last year were spent in  sponsorship and experi...
Canadian Sponsorship Landscape Study 2012 For in-kind sponsorships, about 18% are in-kind product  and 13% are in-kind se...
Canadian Sponsorship Landscape Study 2012 The 2012 report showed clearly that properties still are  failing to provide re...
Canadian Sponsorship Landscape Study 2012 Almost 55% of properties have operating budgets of  less than $1M The average ...
Canadian Sponsorship Landscape Study 2012 20% of property sponsorship revenues come from  financial institutions and 15% ...
Canadian Sponsorship Landscape Study 2012Sponsorship Investment Allocation:  1.   Professional sport                   19%...
Canadian Sponsorship Landscape Study 2012   40% of organizations that used an agency to    assist them in sponsorship use...
Canadian Sponsorship Landscape Study 2012 The biggest growth areas for activation in the 2012  study are:   Ancillary ev...
Canadian Sponsorship Landscape Study 2012     The brands that epitomized      sponsorship passion from an industry      p...
Canadian Sponsorship Landscape Study 2012      The industries that best epitomize       sponsorship as selected by indust...
Canadian Sponsorship Landscape Study 2012 Most influential consumer trends were (almost  75% of areas of influential tren...
Consumer Sponsorship Rankings (CSR) 2012
Consumer Sponsorship Rankings 2012 This research was done by Enigma Research 1000 respondents in the 2012 study, all tel...
Consumer Sponsorship Rankings 2012       Canada’s Most Supportive Industry Categories1. Soft drink companies2. Restaurants...
CONSUMER SPONSORSHIP           RANKINGS 2012Canada’s Most Supportive Sponsors by Industry Categories 1. McDonalds within t...
CONSUMER SPONSORSHIP           RANKINGS 2012Canada’s Most Supportive Sponsors by Industry Categories   6. TD/Canada Trust ...
CONSUMER SPONSORSHIP         RANKINGS 2012Canada’s Most Important Annual Events / Properties    1.   Carnaval du Quebec – ...
Getting in the Game… CSR         2012 Canada’s Most Important Annual Events / Properties1. Sport ranked #22. Cancer relate...
Getting in the Game… CSR            2012 Why do brands get involved in sponsorship according             to Canadian consu...
Getting in the Game… CSR             2012    Who influences brand loyalty?• 69% of Canadians said they would prefer to do ...
Consumer Sponsorship Rankings 2012Who influences brand loyalty? 35% of Canadians said they pay more for brands that  supp...
CONSUMER SPONSORSHIP            RANKINGS 2012  Consumers thoughts on sponsorship methods• 2/3 of consumers felt donating p...
CONSUMER SPONSORSHIP      RANKINGS 2012How active are the consumers?   • 76% frequently or occasionally watched     sports...
Trending and Impact• Shift in percent of what sport“owns” – margin used to 50% ofall revenues – it is falling• We are seei...
Trending and Impact       • Other major growth area according to       CSLS is entertainment – more an more       trade sh...
Trending and Impact• Continued shift of corporatephilanthropic dollars to corporatesponsorship• Ongoing shift and growth (...
Trending and Impact           Both IEG and The           Sponsorium Report have           shown a move towards           i...
Trending and Impact•Brands are starting (slowly) tomaking more demands on theirpartners (charities or not) andbecoming acc...
Trending and Impact•The properties who willcontinue to grow in this sectorare getting “the paradigm shift”• They understan...
Trending and Impact             • Digital media and social             media and assets             continue to grow and  ...
Trending and Impact•Properties are undertakingIAV work specifically for digitaland social media for theirsponsorship progr...
Trending and Impact• Digital media and social media andassets continue to grow and become afocus•Both properties and brand...
Trending and Impact IMAGINE Canada study shows 56% of  Canadian corporations switched  from philanthropy to corporate  sp...
Trending and Impact Sponsorship is now a fully integrated  marketing and communications vehicle It integrates PR, GR, IR...
How It Works               42
Industry happenings that should not have happened KFC blundered in 2010  with their double down fat   In 2011 they did it...
How It Works               44
SPONSORSHIP TODAYQUESTIONS?
Thank YouPlease visit our websitefor more information
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Cprs edmonton luncheon presentation january 18 2013

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Sponsorship marketing is a growing, multi-million-dollar aspect of public relations in Canada, a key tool in the practitioner's toolbox. What is happening in the sponsorship marketing world? How can we best leverage our investments in sponsorship?

Brent Barootes, President and CEO of Partnership Group - Sponsorship Specialists, provides an overview of what is happening in the Canadian sponsorship marketing world, and how these trends are affecting public relations and communications.
The presentation includes highlights of 2012 research on industry activity and consumer feedback as well as critical and professional analysis of these outcomes and how they are impacting our organizations. Brent also focuses on how PR professionals should be utilizing the medium of sponsorship as they do other communications tools and media.

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Cprs edmonton luncheon presentation january 18 2013

  1. 1. SPONSORSHIP TODAY INDUSTRY OVERVIEWTRENDING AND IMPACT ON PR AND COMMUNICATIONS CPRS EDMONTON January 18, 2013
  2. 2. Mobile Devices Staying connected in the session Twitter: #partnershipgrp#sponsorship@partnershipgrp
  3. 3. BRENT BAROOTESPresident and CEOPhone: 403-255-5074Fax: 888-486-3407Toll Free: 888-588-9550Email: brent@partnershipgroup.ca
  4. 4. SPONSORSHIP TODAYThe plan for this session Discuss recent trends and updates in the industry Discuss national sponsorship surveys and the analysis of that information How all these affect the PR and communications world
  5. 5. Canadian Sponsorship Landscape Study 2012Thanks to:  Norm O’Reilly and Benoit Seguin  University of Ottawa  Sponsorship Marketing Council of Canada  TrojanOne  Canadian Sponsorship Forum  IMI International
  6. 6. Canadian Sponsorship Landscape Study (CSLS) 2012Since the CSLS was undertaken in 2006 the industry hasgrown 43%  Again the industry grew by over 2% since last year – now $1.59 billion  Brands were investing almost 75% of their sponsorship investment dollars within Canada  Almost 22% of spends are on local sponsorships  About 35% of that spend was with “for profit properties” and 65% with “non profits and charities”
  7. 7. Canadian Sponsorship Landscape Study 2012 Diversity in sponsorship mix – on average over 100 properties per sponsor (In a range of 0 to 1100!) Decrease in spending on activation – now at $0.57 / dollar) (2011 was $0.62/dollar and at 75 cents per dollar in 2010) Both Professional Sport and Fairs/Festivals and Events had the greatest number of largest sponsorship rights fees in the 2012 study (25% each) Naming rights accounted for only 6% of the sponsorships in Canada last year
  8. 8. Canadian Sponsorship Landscape Study 2012 30% of brands marketing budgets last year were spent in sponsorship and experiential marketing – up by almost 1/3 over the 2011 study and up over 75% over the last 7 years Cause marketing and professional and amateur sport sponsorships have seen a declining trend over the past several years Greatest continuous growth has been with fairs, festivals and annual events Entertainment-Tours – Attractions and the Arts have also continued to see growth trending
  9. 9. Canadian Sponsorship Landscape Study 2012 For in-kind sponsorships, about 18% are in-kind product and 13% are in-kind services and 69% cash Average sponsorship rights fee investment in Canada for 2012 was $4M (ranged from $0 to $25M for total brand investments) Sponsors when evaluating ROI the top three areas to measure were: 1. Brand perception 2. Brand value 3. Brand Knowledge / profile  Revenue ranked 6th
  10. 10. Canadian Sponsorship Landscape Study 2012 The 2012 report showed clearly that properties still are failing to provide resources for activation programs and this is a major issue for sponsors The report also showed that sponsors are not receiving a comprehensive wrap up report and this is critical for them Also sponsors noted that properties need to be better at providing sponsor recall statistics as well as audience loyalty statistics
  11. 11. Canadian Sponsorship Landscape Study 2012 Almost 55% of properties have operating budgets of less than $1M The average property had 25 sponsors On average properties received about $740,000 in sponsorship revenue It is important to note that 72% of properties receive less than $100,000 in sponsorship revenue and 92% receive less than $1M
  12. 12. Canadian Sponsorship Landscape Study 2012 20% of property sponsorship revenues come from financial institutions and 15% from crown corporations Food and Beverage sponsors account for 12.5% and oil and gas accounts for 9.5% Provincial lotteries account for about 8% The balance (35%) comes from auto, professionals organizations like law firms, communications, retail, travel, agriculture
  13. 13. Canadian Sponsorship Landscape Study 2012Sponsorship Investment Allocation: 1. Professional sport 19% 2. Amateur sport 19% 3. Cause Marketing 5% 4. Fairs, Festivals and Annual Events 24% 5. Arts 12% 6. Education 8% 7. Attractions, Entertainment, Tours 8% 8. Other 5%
  14. 14. Canadian Sponsorship Landscape Study 2012  40% of organizations that used an agency to assist them in sponsorship used specifically a sponsorship agency  There continues to be a six year downward slide on post evaluation of sponsorships – now only 2.3% of total sponsorship budgets are spent on evaluation of outcomes  41% of sponsors invested in pre-sponsorship evaluation
  15. 15. Canadian Sponsorship Landscape Study 2012 The biggest growth areas for activation in the 2012 study are:  Ancillary events  Internal marketing (employees)  Social media The biggest “losers” in activation dollars were:  Product sampling  Trade allowances – distribution incentives  Advertising
  16. 16. Canadian Sponsorship Landscape Study 2012  The brands that epitomized sponsorship passion from an industry perspective were:  Tim Horton’s  Loto Quebec (1/3 of study responses from Quebec)  Kraft  CIBC  TELUS
  17. 17. Canadian Sponsorship Landscape Study 2012  The industries that best epitomize sponsorship as selected by industry people are:  Financial Institutions  Restaurants  Consumer Packaged Goods  Sports Apparel  Alcohol / Lotteries
  18. 18. Canadian Sponsorship Landscape Study 2012 Most influential consumer trends were (almost 75% of areas of influential trends)  Technology  Consumers shift to healthier lifestyles and the environment  Cause based marketing issues The top areas of concern for sponsors and properties going forward are:  Showing ROI  Budget concerns  Activating
  19. 19. Consumer Sponsorship Rankings (CSR) 2012
  20. 20. Consumer Sponsorship Rankings 2012 This research was done by Enigma Research 1000 respondents in the 2012 study, all telephone conversations from random Canadians On average 12-15 minutes with each interview (French and English) Cross section from every region of Canada The 2012 study also has four detailed supplementary studies available for subscription purchase on the financial industry, the telecoms, sport and charities
  21. 21. Consumer Sponsorship Rankings 2012 Canada’s Most Supportive Industry Categories1. Soft drink companies2. Restaurants and fast food3. Banks and financial 6. Media companies institutions 7. Auto Manufacturers4. Telecommunication 8. Large Retail companies 9. High Tech companies5. Breweries 10.Lottery corporations
  22. 22. CONSUMER SPONSORSHIP RANKINGS 2012Canada’s Most Supportive Sponsors by Industry Categories 1. McDonalds within the restaurant sector and highest scoring among all industries 2. Coca- Cola 3. Air Canada in airlines 4. Ford – Lincoln in auto category 5. Molson for brewery
  23. 23. CONSUMER SPONSORSHIP RANKINGS 2012Canada’s Most Supportive Sponsors by Industry Categories 6. TD/Canada Trust 7. Shell for energy or petroleum company 8. CN for railway 9. Apple for technology 10.WalMart for large retailer 38% of Quebec felt BMO was the most supportive FI
  24. 24. CONSUMER SPONSORSHIP RANKINGS 2012Canada’s Most Important Annual Events / Properties 1. Carnaval du Quebec – (Winter festival) 2. Stanley Cup Playoffs (Annual sport event) 3. Montreal Canadiens (Sports team) 4. Montreal Jazz Festival (Music festival) 5. Cancer (Health causes) 6. Terry Fox Run (Run, Walk or Bike) 7. CNE (Exhibition or fair) 8. Terry Fox Run (Fundraising)
  25. 25. Getting in the Game… CSR 2012 Canada’s Most Important Annual Events / Properties1. Sport ranked #22. Cancer related causes rank highest amongst Canadians3. Red Cross and Heart and Stroke seen also as very important fundraisers by Canadians4. Hospital related causes are more important amongst higher income earners in Canada
  26. 26. Getting in the Game… CSR 2012 Why do brands get involved in sponsorship according to Canadian consumers? Others are:1. 92% of Canadians believe it • Support causes, athletes is for people to see their • Sample product brand name • Entertain clients2. Majority say it is to enhance • Obtain sales leads their brand image as good • Differentiate themselves corporate citizens3. Canadians know it is to create brand loyalty
  27. 27. Getting in the Game… CSR 2012 Who influences brand loyalty?• 69% of Canadians said they would prefer to do business with a brand who supports their favorite causes• 53% said the same for arts / cultural events• 45% said the influence is there for sportInteresting CSR Insight: Higher income Canadians are more likely to conduct business with sponsors of their favorite properties
  28. 28. Consumer Sponsorship Rankings 2012Who influences brand loyalty? 35% of Canadians said they pay more for brands that supported their arts and cultural organization, 57% said the same when the sponsorship is related to a cause and only 32% would do so in regards to sports Arts and Cultural Sponsorship Cause Sponsorship Sports Sponsorship Interesting CSR Insight: More than 2/3 of higher income Canadians would pay more if a favorite cause is supported
  29. 29. CONSUMER SPONSORSHIP RANKINGS 2012 Consumers thoughts on sponsorship methods• 2/3 of consumers felt donating prizes to a cause or sport was an appealing or very appealing approach• Giving cash actually ranked second!• Providing volunteers and staff was also important as was handing out samples and marketing of the eventInteresting CSR Insight: Signage at events ranked in bottom of top ten and “naming of an event” ranked last overall!
  30. 30. CONSUMER SPONSORSHIP RANKINGS 2012How active are the consumers? • 76% frequently or occasionally watched sports on TV • Almost 50% of Canadians attended alive amateur sport event in the last year • 36% participated in a walk or run • 50% of Western Canadians attended fairs or agricultural events
  31. 31. Trending and Impact• Shift in percent of what sport“owns” – margin used to 50% ofall revenues – it is falling• We are seeing other sectors getbetter at the game – inevitable• Municipalities are really growingand getting in the game
  32. 32. Trending and Impact • Other major growth area according to CSLS is entertainment – more an more trade shows, concerts and festivals are understanding sponsorship and beginning to do it right • Fairs and exhibitions and related festivals are growing – we are seeing Ag Societies / Fairs and Exhibitions
  33. 33. Trending and Impact• Continued shift of corporatephilanthropic dollars to corporatesponsorship• Ongoing shift and growth (asillustrated by the CSLS) ofsponsorship marketing dollars inbrand budgets from traditionalmarketing
  34. 34. Trending and Impact Both IEG and The Sponsorium Report have shown a move towards integrating, internal employee relations, public relations and government relations into their sponsorship activation and investment programs
  35. 35. Trending and Impact•Brands are starting (slowly) tomaking more demands on theirpartners (charities or not) andbecoming accountable for theirROI• ROI has become a majorfactor for brands today
  36. 36. Trending and Impact•The properties who willcontinue to grow in this sectorare getting “the paradigm shift”• They understand the need to becreative in partnerships – andthis does not just mean withideas on activation, but how theycan integrate the brand into theirtheirs and more
  37. 37. Trending and Impact • Digital media and social media and assets continue to grow and become a focus •Sponsors are now questioning the value of the property social media offerings
  38. 38. Trending and Impact•Properties are undertakingIAV work specifically for digitaland social media for theirsponsorship programs•This is a critical step into thefuture for properties andbrands and must be undertaken
  39. 39. Trending and Impact• Digital media and social media andassets continue to grow and become afocus•Both properties and brands looking toconfirm values and understand how tomeasure success, activate and leverage• Shift to sponsorship agencies workingin conjunction with digital agencies
  40. 40. Trending and Impact IMAGINE Canada study shows 56% of Canadian corporations switched from philanthropy to corporate sponsorship in the preceding year
  41. 41. Trending and Impact Sponsorship is now a fully integrated marketing and communications vehicle It integrates PR, GR, IR, marketing, advertising, digital and social media, HR and more BP has invested hundreds of millions into tourism sponsorship in Florida and Louisiana as part of their PR recovery 41
  42. 42. How It Works 42
  43. 43. Industry happenings that should not have happened KFC blundered in 2010 with their double down fat In 2011 they did it again chicken burger at the same with Mega Jug of Pepsi time as the breast cancer for just $2.99 with $1 of launch for pink buckets of that going to Juvenile chicken Diabetes (800 calories and 56 spoonfuls of sugar)
  44. 44. How It Works 44
  45. 45. SPONSORSHIP TODAYQUESTIONS?
  46. 46. Thank YouPlease visit our websitefor more information

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