Repucom Guest Lecture April 2014 (Thomas More & EHSAL)

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Adapted version of my Repucom guest lectures at Thomas More College (Sponsoring Program) and HUB/EHSAL Management School (Final Seminar on Marketing & Communication).

Adapted version of my Repucom guest lectures at Thomas More College (Sponsoring Program) and HUB/EHSAL Management School (Final Seminar on Marketing & Communication).

More in: Marketing , Business
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  • 1. 1 WE ARE REPUCOM GLOBAL LEADERS IN SPORTS MARKETING RESEARCH WIM MATHUES BELGIUM I APRIL 2014
  • 2. 2 INTRODUCTION
  • 3. 3 WE UNDERSTAND THE BUSINESS OF SPORT AND HOW FANS ENGAGE WITH IT TO HELP CLIENTS: WE ARE REPUCOM » MAKE BETTER INFORMED DECISIONS » TRACK COMPETITORS MORE EFFECTIVELY » REACH THEIR COMMERCIAL OBJECTIVES
  • 4. 4 WE VALUE SPORTS MARKETING OPPORTUNITIES & ADD VALUE TO YOUR SPONSORSHIP INVESTMENT THIS IS WHAT WE DO ASSESS » Sponsorship fit and renewals » Predictive asset valuation » Negotiation support EVALUATE » Property health » Portfolio benchmarking » Sponsorship optimization MEASURE » Monitoring » Measurement frameworks » Activation diagnostics SPONSORSHIP INSIGHTS LIFECYCLEMEASURE EVALUATE ASSESS
  • 5. 5 WE DELIVER THE INSIGHTS THAT LET YOU MAKE TRULY INFORMED DECISIONS THIS IS WHAT WE DO » COMPREHENSIVE » ADVANCED » INDEPENDENT » VALUABLE » FOCUSED MEDIA EVALUATION Analyzing brand impact in media around the world. COMMERCIAL AUDITING Protecting your global brand and asset rights. CONSULTANCY Insights around your needs to grow Return on Assets and Objectives. MARKET INTELLIGENCE Comprehensive market and competitor analysis. MARKET RESEARCH Understanding target markets through focused research.
  • 6. 6 WHEREVER YOU ARE WHEREVER SPORTS FANS ARE LEADING THE WAY AMSTERDAM BANGALORE BARCELONA BRUSSELS BUENOS AIRES CHARLOTTE, NC COLOGNE COLUMBIA DUBAI JOHANNESBURG KANSAS CITY, MO KARLSRUHE LONDON MELBOURNE MILAN NEW YORK PARIS SAO PAULO SINGAPORE SYDNEY TOKYO VANCOUVER AMERICAS MIDDLE EAST AFRICA ASIA PACIFIC EUROPE
  • 7. 7 BRANDS RIGHTS HOLDERS AGENCIES MEDIA TRUSTED ADVISOR TO THE INDUSTRY´S KEY PLAYERS MAXIMIZING VALUE FOR RIGHTS HOLDERS, BRANDS, MEDIA AND AGENCIES » »
  • 8. » » TRUSTED ADVISOR TO THE INDUSTRY´S KEY PLAYERS MAXIMIZING VALUE FOR RIGHTS HOLDERS, BRANDS, MEDIA AND AGENCIES
  • 9. 9 SPONSORSHIPS IN THE MARKETING MIX
  • 10. 10 SPONSORSHIP IS BECOMING A KEY PART OF THE MARKETING MIX: MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE • 63% of brands say sponsorship is now integrated into their marketing strategy • 58% feel that this will lead to better quality sponsorships Source: Repucom Outlook PERFORMANCE SELECTION EVALUATION VALUATION
  • 11. 11 MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT MEASURING PERFORMANCE PERFORMANCE SELECTION EVALUATION VALUATION MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE
  • 12. 12 ACCOUNTABILITY MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE Requirement and expectation to justify actions or decisions Needs to be independently evaluated Source: Repucom Outlook PERFORMANCE SELECTION EVALUATION VALUATION 71% of industry professionals believe that it is essential to have independent evaluation of the effectiveness of sponsorships, only 5% disagree.
  • 13. 13 MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT PERFORMANCE SELECTION EVALUATION VALUATION MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE
  • 14. 14 BRANDS STATE THEIR KEY OBJECTIVES FOR… …SPORTS SPONSORSHIP 1 = Increase brand awareness 1 = Brand Impact/Image 3. Entertainment of clients & prospects …CAUSE RELATED SPONSORSHIPS: 1. Brand Loyalty 2. Brand Credibility MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE of brands say that pre-analysis to justify involvement is becoming more important72% Source: Repucom Outlook
  • 15. 15 AND THEN EVALUATE USING: » Viewing data » Media exposure » Brand trackers » Attendance numbers » Media value DECISIONS TO SPONSOR ARE MOST LIKELY TO BE BASED ON: 1. Brand exposure 2. TV audiences MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE BUT A DISCONNECT ON HOW Source: Repucom Outlook of brands say that pre-analysis to justify involvement is becoming more important72%
  • 16. 16 ANALYSIS OF SPONSORSHIPS Brand Fit Target Group / Audience Fit Fit with overall marketing strategy & other Engagements in the portfolio Competitive Context Business Fit (Transactional aspect / CRM) Geographic Fit MATRIX OF CRITERIA All of these elements should be considered in tandem with any ROI analysis
  • 17. 17 PROPERTY SELECTION – ANALYSIS FRAMEWORK IDENTIFICATION AND EVALUATION OF APPROPRIATE PROPERTIES Platform PropertyCategory REPUCOM‘S SPONSORSHIP EVALUATION FRAMEWORK BRAND FIT AUDIENCE FIT BUSINESS FIT A shortlist of properties best suited to your brand
  • 18. 18 PASSION CATEGORY SCORECARD EXPLANATION » An objective and data driven approach to ranking all Categories » A tool designed specifically to facilitate informed commercial decisions Scores indexed out of 10
  • 19. 19 PLATFORM SCORECARD EXPLANATION Top 2 Box HH income Art Galleries / Exhibitions Comedy Opera Ballet Musicals x.xWithin Category Top 2 box % score (‘Regularly’ / ‘Sometimes’) for each activity. The most frequently visited / watched / performed activity within each category is fixed to 10 Across Category An analysis of each activity in the context of all the other activities – across Categories. Only the most regularly performed activity - across Categories - will receive an index of 10 for this measure Total An average of the ‘Within Category’ & ‘Across Category’ score x.x x.x
  • 20. 20 PROPERTY SCORECARD - EXPLANATION Brand Fit Audience Fit Business Fit Awareness of event / property Effect on brand Preference Indirect Property Fit Direct Property Fit TV Viewership Attendance Social Media interaction Sponsor-Target Fit Geographic relevance B2B Interaction B2C Interaction Simple awareness of property Does sponsoring an event / property makes you feel better about [BRAND] What does the property / event lend to your brand in terms of desirable image traits How well the event / property and [BRAND] fit together TV Audience & viewership figures – indexed vs. other events / properties A measure of social media activity surrounding each property / event using: At event attendance – indexed vs. other events / properties Potential to activate the sponsorship rights (sales promotion opportunities / Hospitality opportunities, networking potential, linking to other partners) What degree of relevance does this property have in your brand’s key territories? Fan profile: Level of product category affinity, brand loyalty Scores indexed out of 10
  • 21. 21 DUMMY DATA
  • 22. 22 WHAT IS SPONSORGLOBE? FULL ACCESS TO THE WORLD‘S LARGEST SPONSORSHIP DATABASE SPONSORGLOBE [UNIQUE] » SPONSORGLOBE forms an important part of the analysis in that information can be gleaned to inform market specific recommendations, in each category amongst any relevant competitor brands
  • 23. 23 SPONSORSHIP SUMMARY FIGURES 45% 16% 4% 14% 4% 4% 7% SPORTS ARTS & CULTURE ATTRACTIONS DINING MUSIC SHOPPING THEATRE TRAVEL NUMBER OF ENGAGEMENTS BY PASSION CATEGORY TOTAL NUMBER OF ENGAGEMENTS: 73 PROPORTION OF OVERALL SPONSORSHIP INVESTMENT BY PASSION CATEGORY TOTAL SPONSORSHIP SPEND: €31.05m 71% 10% 2% 5% 3% 2% 6% SPORTS ARTS&CULTURE ATTRACTIONS DINING MUSIC SHOPPING THEATRE TRAVEL 5 Biggest Sponsorships NBA/USA Basketball/WNBA €4 Mil p.a. PGA of America €3.1 Mil p.a. United States Golf Association (USGA) €3 Mil p.a. US Open €3 Mil p.a. Barclays Center €1.6 Mil p.a. SPONSORGLOBE [EXAMPLE OUTPUT]
  • 24. 24 WHAT DOES SPONSORGLOBE CONTENT LOOK LIKE? SPONSORGLOBE [EXAMPLE OUTPUT] SCUDERIA FERRARI Brand Company Contract start Contract end Industry Sponsor origin Sport Sponsorship object origin Official sponsorship title Value per season in USD Marlboro Philip Morris International 1983 2015 Tobacco USA Formula One Italy Sponsor >75,000,000 Santander Banco Santander 2009 2017 Finance Banking Spain Formula One Italy Sponsor 40,000,000 – 49,999,999 Shell Royal Dutch Shell 1996 2015 Energy / Fuel / Oil Netherlands Formula One Italy Sponsor 30,000,000 – 39,999,999 … SEASON 2013 EXAMPLE ON FURTHER OUTPUT YOU CAN GENERATE: SPONSOR ORIGIN 32% 18%14% 9% 27% Italy USA Germany Switzerland Others
  • 25. 25 MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP MEASURING PERFORMANCE PERFORMANCE SELECTION EVALUATION VALUATION MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE
  • 26. 26 MEASURING PERFORMANCE 60% of brands felt that the importance placed on ROI would increase MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE 84% of brands agreed that they needed to place more importance on ROI 83% felt that the importance placed on ACCOUNTABILITY was greater than ever
  • 27. 27 BENEFITS OF MEASURING PERFORMANCE MAXIMIZE the return of sponsorship campaigns IDENTIFY key areas of improvement UNDERSTAND how to reallocate your sponsorship budget effectively REPORT fact-based insights to report internally MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE
  • 28. 28 BEFORE YOU MEASURE PERFORMANCE YOU NEED TO KNOW: » Benchmarks MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE » Letting the assets do the work » Activating the assets » Full leverage campaign » What are your objectives WHERE YOU ARE WHERE YOU ARE GOING HOW YOU ARE GOING TO GET THERE
  • 29. 29 Most Economical Leverage Assets Activate Sponsorship MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE
  • 30. 30 WHAT PERFORMANCE TO MEASURE? MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE ROI ROO ROIROA ROIROL
  • 31. 31 WHAT PERFORMANCE TO MEASURE? Return on Leverage » Added Return – Earned Return on Assets » Utilisation » Asset Performance Index Return on Objectives » KPIs » Sponsorship Performance Index Return on Investment » $ return/ Ratio of return » Assets – Paid For » Activation/Leverage – Earned MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE
  • 32. 32 MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE Print Online Ambient Collateral TV Additional Components Sponsorship Attributes Status Exclusivity Clutter Timing Geographic Reach Audience Profile Track Record Association Benefits Awareness Image Activation (B2B, B2C, B2E) TANGIBLES INTANGIBLES RETURN COSTS ROI $ + = ÷ ROI RATIO Assets Paid For Earned Activated+ = TOTAL RETURN ARE YOU GETTING THE BEST RETURN: FROM THE ASSETS? FROM YOUR OWN ACTIVATION?
  • 33. 33 IS THE SPONSORSHIP MEETING ITS OBJECTIVES? Do people know about it? Is it saying the right things? Has it changed opinions/ considerations? Has it led to sales? Add PR Change branding Add Channels Add CSR Change Message Add Retail Push Brand being shown/ mentioned? SPONSORSHIP MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE
  • 34. 34 MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP SELECTING THE BEST FIT & MEASURING PERFORMANCE KPIs TARGET ACTUAL SPONSORSHIP PERFORMANCE INDEX (SPI) HOW TO FIND OUT WHAT IS WORKING AND WHAT IS NOT. RETURN ON OBJECTIVES TV exposure is not achieving target. Is this poor branding, positioning or not enough coverage? TOM is over target and maybe at peak levels. Time to shift to more focus on changing image through print articles and messaging – add a new KPI Social media is reaching target numbers Next step is engagement – re-tweets, dwell time, sentiment, messaging
  • 35. 35 ONE NUMBER FOR RETURN ON OBJECTIVES 120 2 : 1 ONE $/RATIO FOR RETURN ON INVESTMENT
  • 36. 36 THANK YOU
  • 37. 37 THANK YOU GET IN TOUCH REPUCOM BELGIUM Drève Richelle 161/37 Building G 1410 Waterloo Belgium @REPUCOM AMERICAS MIDDLE EAST AFRICA ASIA PACIFIC EUROPE » WIM MATHUES » Phone: +32 2 346 42 10 » Mobile: +32 494 606 456 » wmathues@repucom.net » @wimmathues » be.linkedin.com/in/wimmathues