8th Annual Canadian Sponsorship Landscape Study (Elisa Beselt, TrojanOne)
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8th Annual Canadian Sponsorship Landscape Study (Elisa Beselt, TrojanOne)

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Investment in sponsorship has continued to grow since the inaugural Canadian Sponsorship Landscape Study in 2006, reaching $1.57 billion in 2012. In this session, Elisa Beselt from TrojanOne's ...

Investment in sponsorship has continued to grow since the inaugural Canadian Sponsorship Landscape Study in 2006, reaching $1.57 billion in 2012. In this session, Elisa Beselt from TrojanOne's Consulting Group will present a first look at the results from the 2014 Canadian Sponsorship Landscape Study, the 8th annual version of the nationwide analysis of sponsors, properties and agencies. In the 2014 study, delegates will hear about recent trends in experiential marketing, take a closer look at music sponsorship, and review the rise of 'festivalization' over the last few years. Reporting on findings from the 2013 year, Elisa will share the newest information on the sponsorship industry and key lessons on what this all means for sponsorship professionals.

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8th Annual Canadian Sponsorship Landscape Study (Elisa Beselt, TrojanOne) 8th Annual Canadian Sponsorship Landscape Study (Elisa Beselt, TrojanOne) Presentation Transcript

  • ’Dr. Norm O’Reilly Ohio University & TrojanOne Elisa Beselt & Adam DeGrasse TrojanOne
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS 1 CSLS About, History & Method 2 3 8th Annual Results Findings & Trends Sponsorship in 2014 Key Lessons from the 8th CSLS TODAY 2
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS3 1CSLS About, History & Method
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS4 Design Perspectives, Industry Process Online, Partners, Streamline Analysis Trend, Comparative Origins Industry Need, Share HISTORY & METHOD
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS5 28th Annual Findings, Trends & What’s Next
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS6 0 100 200 300 400 500 600 2006 2007 2008 2009 2010 2011 2012 2013 132 152 238 218 294 145 167 247 33 4852 73 123 65 61 86 45 7481 116 142 67 109 171 NumberofRespondents Sponsors Agencies Properties CSLS Survey Respondents 210 Responses 45 Sponsors 132Property 33Agencies About 90.5% English 9.5% French Note: Survey is open until August 15th. Visit www.sponsorshiplandscape.ca to enter responses. RESPONDENTS
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS7 Primary Decision Maker 14% 12% 37% 14% 23% CEO/President/ ED VP, Marketing/ Sponsorship Director/Manager, Marketing/Sponsorship Other Coordinator, Marketing/ Sponsorship 46.5% 14.6% 11.5% Head Office RESPONDENTS
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS8 Sponsors n=45
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS9 ABOUT THE SPONSORS 2014 Sponsor Respondents (n = 45) Total rights fee range from $10K to $21M 30.9% of largest sponsorships invested in pro sport Largest sponsorship property: 22.9% Festivals, Fairs, Events 19.2% Olympic/Amateur 11.5% Education $681,342 average largest sponsorship of resopndent Investment mix: 83.3% Cash 16.7% Value In-kind 49.0% For-Profit 51.0% Not-For-Profit Average # of Sponsorships: 84.4 (range 1 to 1,000) Range in size from 10staff to 45,000 employees. $1,442,650 average activation spend 75% of sponsorship divisions fall under Marketing & Communications Average of 5 staff spend more than 25% of time on sponsorship
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS10 ABOUT THE SPONSORS 16.7% 2006 15.5% 2007 22.5% 2008 15.4% 2009 22.3% 21.9% 21.9% 2010 29.6% 2011 2012 2013 Sponsorship Budget Marketing As a % of overall marketing communications budget 34.5% 44.8% 20.7% Expected Change for 2014
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS11 LARGEST INVESTMENT Category of Largest Investment 15.5% 11.5% 22.9% 19.2% 30.9% Pro Sport Festivals, Fairs & Annual Events Education Amateur Sport In Depth $681,342 Average Size $2.5K to $5.8M Range > Mix than in previous years 5 of the last 6 years pro sport has been the most popular category for largest sponsorship investment Others
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS12 SPONSORSHIP FOCUS International 13.0% National 23.3% Multi-Provincial 11.8% Local 16.3%Regional 15.6%Provincial 19.1% Note: In 2012, International was 1.0%.
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS13 Properties n=133
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS14 ABOUT THE PROPERTIES 2014 Property Respondents (n = 133) Annual budgets range from $50K to $110M $178,078 average largest sponsorship Largest sponsorship range from $2K to $1.5M2.3 staff spend more than 25% of time on sponsorship Property Reach: 15.8% International 29.8% Canada 3.5% Multi-Province 24.6% Provincial 12.3% Regional 14.0% Local Range in size from 1staff to 19,000employees. $51,570 average activation spend per property Believe sponsors on average are 3.57 sastified with sponsorship marketing programs Average # of Sponsorship Categories: 33.2 (range 1 to 750)
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS15 SPONSORSHIP REVENUE 0% 13.3% 26.7% 40.0% 2006 2007 2008 2009 2010 2011 2012 2013 1.6% 1.1% 2.6% 1.2% 35.4% 14.0% 19.3% 28.8% PercentInvestment Historical Sponsorship as Percentage of Budget
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS16 REVENUE TYPE 0% 20% 40% 60% 80% 100% 2006 2007 2008 2009 2010 2011 2012 2013 23.6%30.8%33.6%32.3%34.8%33.0%39.0%30.0% 76.4% 69.2% 66.4%67.7% 65.2%67.0% 61.0% 70.0% PercentofRespondents Cash VIK Cash vs. VIK Sponsorship Revenue
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS17 REVENUE FROM SPONSORS 12.9% Finance 6.4% Oil & Gas 27.8% Retail Trade 7.2% Manufacturing8.9% Communications 13.8% Services Note: These six categories are also the six most popular sponsor categories for the largest single sponsorship.
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS18 Agencies n=33
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS19 ABOUT THE AGENCIES 2014 Agency Respondents (n = 33) Number of Sponsorship Staff: 9.3 (range 1 to 80) Agency Types: 52.9% Sponsorship 17.6% Event Management 11.8% PR Agency 11.8% Various Other 5.9% Promotion Agencies 23.9 average # of sponsorships worked on in 2013 Agency Reach: 12.5% International 68.8% Canada 6.3% Provincial 6.3% Regional 6.3% Local $45,369 average billing per sponsorship client Range in size from 1staff to 60employees. 62.3% of total agency billings from sponsorship Sponsorship billings: Sponsors 35.3% Properties 59.2% Largest sponsorship client: 50% Sponsor 50% Property
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS20 AGENCY BILLINGS 0% 20.0% 40.0% 60.0% 80.0% 2006 2007 2008 2009 2010 2011 2012 2013 45.8% 47.1% 55.9% 52.5% 52.8% 54.2% 68.8% 62.3% PercentInvestment Historical Sponsorship Billings as Percentage of Total Billings
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS21 AGENCY BILLINGS Area 2012 2013 Change Activation Programs 20.7% 23.4% 2.7% Sponsorship Sales 20.3% 24.8% 4.5% Sponsorship Evaluation 21.1% 16.9% -4.2% Sponsorship Research 14.8% 6.6% -8.2% Contracts/Negotiation 9.1% 3.7% -5.4% Areas of Sponsorship Billing
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS22 AGENCIES FOR ALL Balanced Billings are split evenly between profits and not-for profits. Everyone Average sponsorship billing by client was $45,369. Growing See a growth in sponsorship billings by agencies in Canada.
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS23 Activation Results
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS ACTIVATION RATIO 24 2010 62 2008 71 2006 43 2007 46 2012 75 2013 60 2009 76 2011 57 40¢ 50¢ 60¢ 70¢ 80¢ $1.70 $1.90 $1.50 $1.40 $1.40United States (IEG): $1.60 2006 2007 2008 2009 2010 2011 $1.70 2012 $1.70 2013
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS ACTIVATION TACTICS 25 Tactic Sponsor Property Agency Advertising 20.0% 19.0% 14.2% Hosting/hospitality 12.9% 22.1% 8.4% Branded content 11.0% 10.0% 12.1% Product sampling 12.0% 12.0% 14.2% Social media 6.9% 6.9% 6.2% Spend by Activation Tactic (Top 5)
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS26 Evaluation Results
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS EVALUATION 27 0.0% 2.0% 4.0% 6.0% 8.0% 2006 7.8% 2007 4.5% 2008 6.0% 2009 4.1% 2010 2.6% 2011 2.3% 2012 2.7% 2013 2.7% Pre-Sponsorship Evaluation: 7.03% in 2013 Of those who evaluate, 80% invest in pre-evaluation Note: 50% of respondents spend $0 on any evaluation
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS28 Qualitative Results
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS SLEEPLESS NIGHTS 29 0% 7% 14% 21% 28% 35% 10.8% 6.6% 8.8% 11.0% 18.0% 20.4% 24.5% 9.0% 6.0% 12.4% 9.5% 27.9% 13.4% 21.4% 8.0% 3.8% 10.7% 18.6% 16.9% 18.3% 23.7% PercentofRespondents D em onstrat- ing R O I B udget C oncerns A ctivation H R & Expertise C om petition Historical Sponsorship Concerns Facing the Industry 2011 2012 2013 Securing & Targets O ther
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS Forecast 80% expect sponsorship revenues to increase in 2014. MUSIC INSIGHT 30 Hosting/Hospitality Over 50% of activation spend on hosting/hospitality. Largest Sponsors Largest sponsors are from a mix of industries, including agriculture and retail trade. Value-in-Kind 40% receive more than half of their sponsorship revenue from VIK. VIK
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS31 3Sponsorship in 2014 Key Lessons from 8th CSLS
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS 1 Keep Up With Change Mix, Technology 2 3 Fulfillment Fundamentals Activation, Servicing & Evaluation Growing Industry Global, Canada KEY LESSONS 32
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS33 Keep Up With Change
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS SPONSORSHIP MIX 34 0% 10.0% 20.0% 30.0% 2006 2007 2008 2009 2010 2011 2012 2013 PercentInvestment Historical Sponsorship Investment Areas
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS BIGGEST OPPORTUNITIES 35 0% 5% 10% 15% 20% 10.0% 4.6% 6.1% 9.7% 10.4% 11.5% 12.6% 16.9% 18.3% PercentofRespondents Te ch n o lo g y Sponsorship in the Next 3 Years S p e cific Typ e s N e w P ro p e rtie s/ In d u strie s A ctivatio n R e latio n sh ip s /P artn e rsh ip sM e asu re m e n t C o m m u n ity K n o w le d g e / E d u catio n O th e r Specific Types: Sports (6.1%), Cause Marketing (4.3%), Festivals/Fairs/ Events (4.2%), Environment (1.4%), Music (1.0%)
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS BIGGEST OPPORTUNITIES 36 “Upcoming major events in our country (e.g., Pan American Games & Women’s World Cup).” “Getting the jump on each successive trend. With the impact of social media, when something goes big, it goes big fast, complete with corresponding consumer spending...Sponsorship needs to stay ahead of the curve.”
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS SOCIAL MEDIA CHANGES 37 In-Depth 6.9% Spend for Properties 6.2% Spend for Agencies 72.2% Agencies Using Social Media 0% 5% 10% 15% 20% ActivationSpend Social Media Activation Tactic Spend for Sponsors 16.1% 2012 3.9% 2009 10.1% 2011 6.9% 2013 5.0% 2010
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS38 Fulfillment Fundamentals
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS ACTIVATION SPEND 39 0% 6.7% 13.3% 20.0% 2010 2011 2012 2013 PercentInvestment Social media Hosting/hospitality PR Advertising Branded content Product sampling Internal marketing Historical Sponsor Activation Tactic Spend
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS ACTIVATION SPEND 40 0% 10.0% 20.0% 30.0% 2010 2011 2012 2013 PercentInvestment Co-promotions Hosting/hospitality PR Advertising Other Product sampling Internal marketing Historical Property Activation Tactic Spend
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS SPONSORSHIP (DIS)SERVICE 41 0 1 2 3 4 5 4.38 4.05 4.79 4.17 3.68 4.24 4.09 3.86 4.24 3.45 3.08 3.75 3.13 2.54 2.89 2.70 2.45 2.64 Likert Scale Provided Importance 0 1 2 3 4 5 3.61 2.85 3.24 4.33 2.99 3.26 3.48 3.59 3.63 2.98 2.55 3.91 2.82 2.67 2.70 2.26 2.74 2.58 Likert Scale Services for Sponsors 2012 Recall stats Loyalty stats Target profile Ambush protection Activation w/ sponsors Activation resources Exclusivity protection Activation w/ properties Concluding report 2013 Note: All differences are statistically significant (*) Recall stats Loyalty stats Target profile Ambush protection Activation w/ sponsors Activation resources Exclusivity protection Activation w/ properties Concluding report
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS42 EVALUATION STORY Budgets Average of 2.70% of budget set aside for evaluation. No Evaluation Many sponsors (50%) spend nothing on evaluation. There is Hope! Among those that do evaluate, 80% invest in pre- sponsorship evaluation.
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS43 Growing Industry
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS GLOBAL SPONSORSHIP INDUSTRY 44 $19.8B North American Sponsorship Spending 4.3% Projected Growth in 2014 $14.5B European Sponsorship Spending 2.1% Projected Growth in 2014 $12.6B Asia Pacific Sponsorship Spending 5.6% Projected Growth in 2014 Source: IEG $53.1B Global Sponsorship Spending 4.1% Projected Growth in 2014
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS INDUSTRY SIZE IN CANADA 45 Industry Size 2006 $1.11B 2007 $1.22B 2008 $1.39B 2009 $1.43B 2010 $1.55B 2011 $1.59B 2012 $1.57B 2013 $1.78B INDUSTRY SPENDING +60% $$ 21.4% 42.9% 35.7% Expected Change for 2014
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS INCREASING INVESTMENT 46 0 1.0 2.0 3.0 2006 2007 2008 2009 2010 2011 2012 2013 $1.59 $1.78 $2.38 $2.52 $2.51 $2.50 $2.75 $2.85 Historical Total Spend Trends ($B) Findings ↑ Rights Fees ↓ Activation Ratio ↑ Total Spend 2013 Activation $1.78B Rights Fees 0.60 Activation Ratio $2.85BTotal Rights Fees Activation Spend Total Industry Spend
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS SUMMARY 47 Keep Up With Change Fulfillment Growing Fundamentals Industry
  • Canadian Sponsorship Landscape Study 8th ANNUAL CSLS48 Thank Dr. Norm O’Reilly ‣ oreillyn@ohio.edu Elisa Beselt ‣ elisa.beselt@trojanone.com Adam DeGrasse ‣ adam.degrasse@trojanone.com Survey is open until August 15th. Visit www.sponsorshiplandscape.ca to enter responses. Note: you!