Performance Research ROI

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Jed Pearsall Bill Doyle PERFORMANCE RESEARCH Our mission: To help clients measure and understand the value of sponsorship, and reveal the essential truth about sponsorship impact.

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Michael Lynch VP, Global Partnerships Visa “You can’t manage a sponsorship if you can’t measure it.”   research is too costly   fear of results   don’t know where to start

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 What SHOULD we do? How DID we do / How can we NOW what do we do? SPONSORSHIP RESEARCH OPTIMIZE what we ARE we doing? do? How DID we do / ARE we doing?

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   define the type of sponsorship   outline your objectives

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   media based   engagement based - target markets - experiences - eye balls - relevancy - cost efficiency - emotions - relationships Measurement:   cost per thousand   impressions   outputs not outcomes

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   specific   measurable   appropriate   realistic   time specific

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Not everything that can be counted counts. And not everything that counts can be counted. Albert Einstein

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   build awareness and familiarity   initiate a conversation   generate trials   drive store traffic   differentiate the brand   engage new consumers   fulfill a need   increase consideration   elevate sales   build long term loyalty

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Olympic Games Raceways America’s Cup Concert Venues   First sponsorship research firm FIFA World Cup Stadiums Rugby World Cup Theme Parks   Single focus on sponsorship NFL, NBA, NHL, MLB Ski Resorts Motorsports Beaches & lifestyle marketing Extreme Sports Bars/ Clubs Youth sports Golf Courses   750+ programs Theme parks Fairs / Festivals Cause marketing Football Stadiums   12 clients on IEG’s Top 15 sponsors Web sponsorship Basketball Arenas Music sponsorship Olympic Venues TV Sponsorship College Campuses Site-based marketing City Streets Alternative media Movie Theaters Minorities / subcultures Museums Websites Arts Venues   on-site research   online research   telephone research   focus groups   immersion studies   strategic consulting

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 “the truth is rarely pure and never simple”. Oscar Wilde

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 9 real studies… - covering 25 years of research -  hundreds of thousands of interviews -  representing millions of pages detailed statistics without showing a pie chart under 3 minutes each Taking On The World: Sony Ericsson Tries for an Ace with WTA

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   confusion of what product is   new logo, new products   hard to reach youth / young adults   active local sponsors   global considerations   don’t sell directly   on-site measurements, 8 countries   market-area online interviews   tracking through successive years

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   Business objectives   8 of 10 fell into primary target   unaided brand awareness up 20 points   correct “familiarity” driven up   attribute for “attractive brand” up 40 points   consideration rose 30 points   Sponsorship objectives   variable unaided awareness (10%-60%)   over 1 million units for every 2 pts) Meeting a Challenge: Attracting Recruits in Time of War

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   increase reach to a specific target   positive impact on imagery   personal connection to deliver information   motivate to visit a recruiting office   re-contacted visitors to activation 10 days post   compare to existing base-line measures •  change of imagery •  propensity to consider •  rank Army higher than other branches •  initiation of conversation with influencers •  reduction of concerns / fears

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   80% of visitors were males   75% connected to someone in the service   Over half had improved imagery   40% were more likely to consider   Rose to be the most preferred service   40% discussed options with parents   35% plan to investigate option further Showing it off: Powering up for Scrubbing Bubbles

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   needed platform to showcase new product   wanted interactive, educational, fun   traditional barriers to trial   on-site intercepts, 3 of 10 stops   30-day post re-contact   qualitative observations

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   quantitative findings   3/4 “enjoyed very much”   virtually all took coupons   over ½ correctly assimilated info.   positive movement in brand perception   “off the charts” post-event purchase   qualitative review   variability in events, staff, location   children increased interaction   husband decreased interaction   Scrubby rules!Hitting the Streets: Brand Engagement Teams Bring Fashion Out of the Store

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   Awareness is universal - Education about experience key to gaining customers   New Customers - Has a hurdle to initiate trials - Needs explanation to convince newbies   Existing Customers - Typically become brand evangelists - Need reasons to return and shop different departments   objectives - drive store traffic trials for new customers - increase visitation frequency among existing customers - increase “Basket” for existing customers

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   on-site intercepts of surrounding activities - test cells had engaged in activation - control cells not exposed to activation   respondents re-contacted 30 days post activation   multiple cities across the US   four unique activations tested in18 months   significant increase in… - trials and repeat visits - average “basket”   incremental sales directly attributable to program were calculated

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Making Them Sweat: Getting Kids to Get Rid of the Stink   need to encourage use   early users = long users   kids tell mom’s what to buy   peer pressure to conform

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   varied sports events   pre, during, re-contact surveys   sampling vs. non sampling respondents   high incoming brand awareness made some ROI measures questionable   “Coolness” jumped 20+ points   two-thirds received a sample   purchase intent rose 15 points among trials

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Getting Into The Cart: Encouraging Kids To Call The Shots   cereal aisle has become more and more cluttered   mature brands have difficulty standing out   needed to increase trials and relevance   kids request numbers rule

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   on-site intercepts among attending kids   control, prior to exposure of event   test, immediately following the event   stratified by current “users” and “non-users”   event covered multiple sites over 3 months   brand attribute significantly increased (test vs. control)   relevancy increased   non users- greatest increases   three quarters reported learning something “new” about the brand   overall mom “requests” were significantly up (nearly all agreed).

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Quiet Please: The (Marketing) Show is About to Start   sense of responsibility   sense of isolation   need for socialization   need to have confidence

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   pre-exposure baseline online surveys   post-event online surveys throughout summer months   strong repeat attendance (6+)   most had previously used brand   15+ point pre-to-post lift in purchase intent   15+ pre-to post drop for key competitor   significant increase in all brand health measures

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Say Cheese: Racing to Save Customers   brand leader in film (back then!)   facing new competition from low price retailers   protect against erosion, needed to keep base   especially vulnerable in the South East   signed a 4 race deal to decide if it was working

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   on-site interviews- race fans   final race of the contract   control / pre-race   test / post race   brand loyalty was quantified   aware of sponsorship were 2x as likely to purchase   exposure to the program stopped erosion

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 Speaking Through the Arts: Reaching HNWI’s in a Quite Way   worldwide cultural differences   need for consistent message   platforms resistant to branding   target traditionally insulated

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 “Arts & cultural sponsorships have two enormous advantages. First, they represent one of the last kinds of sponsorships where consumers give you credit for just showing up… Secondly, because they draw fewer sponsorship dollars, they allow you to be distinctive and win attention by doing something unexpected.” David DAlessandro Chief Executive Officer, John Hancock Insurance Author of Brand Warfare   focus Groups in U.S., Europe, Asia   pre-post telephone surveys in sponsorship markets   on-site intercepts at events

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   art is a universal language   fear of over-commercialization is unfounded   most want to be informed more about corporate support   arts are not that much different from…   Arts are not that much different from…

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011   evaluation has become more walk, less talk   interest in evaluation has moved higher up the ladder   raising the bar for success   ROO and ROI also includes ROR   ROI is NOT static- fluid and adapting   the industry is getting smarter   the challenges may be getting bigger   the learning never stops

pageSponsorship ROI in the Real WorldPresented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011 see yourself as others see you www.performanceresearch.com

PERFORMANCE RESEARCH25 MILL STREET • QUEEN ANNE SQUARE • NEWPORT, RHODE ISLAND 02840 • (401) 848-0111 • FAX (401) 848-0110 Nuts & Bolts of Sponsorship Research 28th Annual IEG Sponsorship Conference “Return on Engagement” Monday March 13, 2011 Bill Doyle -- Vice President bill@performanceresearch.com Why sponsor..... ?o At first it was “to get free publicity” -- which then evolved into -- “logo placement” -- and eventually “alignment with a property” -- Clipping services -- Media Impressions (Joyce Julius 734-971-1900 / SiS 212-736-0645) -- Event AuditsThis is now a valuable tool to analyze a means to an end and no longerjust an end result.But, sponsorship objectives can now include:o To increase awarenesso Reach my target market– DEMOGRAPHICS AND BUYER-GRAPHICS – a must for propertieso Change / Enhance Imageo Business to business / Client entertainmento Employee / Internal Motivationso On-Site Sales Opportunitieso Related Direct Sales Opportunities (Licensed Merchandise)o Sales Promotions / Incentives / Retail POPo Be an Integral Part of the Property ExperienceHow do you measure all these?

PERFORMANCE RESEARCH 25 MILL STREET • QUEEN ANNE SQUARE • NEWPORT, RHODE ISLAND 02840 • (401) 848-0111 • FAX (401) 848-0110Traditional Methods Quantitative / Surveys --- Answers the question “IF?”: - Awareness - Target Market / Demo’s - Image Enhance - Employee / Internal Motivations - Purchase intent Survey Methodologies Include: - On-site Intercepts (When sponsorship is “site” based) - On-site Intercepts / Telephone Re-Contact - Telephone RDD – LISTS AVAIL? - On-line – LISTS AVAIL?Property Pointer:You MUST be gathering data-bases of your audience, this will saveSIGNIFICANT amounts of time and money when research is needed.Common Nuts and Bolts Questions about survey research at events:-- How do you select a methodology? (Efficiency/sampling issues)-- How long can the survey be? (Think “down-time”)-- When do you need incentives & How much? (Depends on interest level)-- How do you phrase ??’s / know what to ask? (Use a pro or existing Q’s)-- How much does it cost? (Huge ranges - $5k - $50k)-- Where do I start? (Tabulations are first step!)-- Can I do this myself? (Yes and no.. see above)-- How / where do I collect the surveys? (Avoid Bias! Geo/Demo or?)-- How many surveys make a valid sample? (See chart – 200 is typical) (Remember sub-groups)

Qualitative -- Focus Groups -- Answers the question “WHY?”: - Why does it (or why does in not) change an image? - Why would purchase intent change for one sponsor and not another? - Why do you like one concept over another? Focus Group Methodologies (as they pertain to Sponsorships) - In affect, “Sit around and Talk” - Focus Groups are NOT quantitative.. don’t “count” votes or opinions. Observational Research -- Answers the question “HOW?” - How do they become aware? - What do they do with that knowledge? - How does it translate to actual behavior? Observational Research Methodologies: - Day In Life Of (DILO) - Product Inventories (Cupboard / Cooler checks / Ashtray Sift / Tire Counts) - Video Accounting - Video Intercepts - Self-Directed Videos - Purchases / Uses / Aspirations / Problems - concernsCommon Nuts and Bolts Questions about qualitative research:-- How long can a session be? (2hr MAX.)-- When do you need incentives? (How much?) (Depends – but $50-$100 common)-- How do you phrase the discussions? (Consult a pro / educator or course)-- How much does it cost? (All totaled about $6-$8k per group)-- How long does it take to schedule? (Should be min. 14-21 days notice)-- How do you recruit? (Consider sub-ing out or intercepts)-- How many groups make a valid sample? (Trick question!)

PERFORMANCE RESEARCH 25 MILL STREET • QUEEN ANNE SQUARE • NEWPORT, RHODE ISLAND 02840 • (401) 848-0111 • FAX (401) 848-0110 COMPANY PROFILEPerformance Research (Newport, Rhode Island) was organized in 1985 to provide quantitativeand qualitative evaluation of event marketing programs to corporate sponsors, properties andtheir agencies.Over the past twenty+ years, the company has conducted over 1 million, on-site, on-line, andtelephone interviews and more than 500 focus groups regarding corporate sponsorships ofsports, leisure activities and special events. As a leader in custom sponsorship evaluation,Performance Research has in-depth experience with worldwide events such as the OlympicGames, Rugby World Cup, America’s Cup, FIFA World Cup and Formula 1 Grand Prix, and U.S.professional sports such as the NFL, NBA, NHL, PGA and ATP tours. In addition they haveworked with motorsports such as NASCAR, IRL, NHRA, FIM, and IMSA series, as well asregional sponsorships and events with extensive experience in concerts, theme parks, ski resorts,museums, cinemas, zoo’s and traveling exhibits.Performance Research is a primary research partner with many of the top sports sponsors,including: Anheuser-Busch, Amoco Oil, AT&T, adidas, Coca-Cola, Citi-Financial, Coors BrewingCompany, Eastman Kodak, Exxon, Ford Motor Company, General Motors, Harley Davidson, IBM,Gillette, Honda, Kellogg’s, McDonald’s, Miller Brewing Company, Nissan, NCAA, MCI, Pepsi,Philips Electronics, R.J. Reynolds, Shell Oil, Sony-Ericsson, Subaru, Ticketmaster, TJX, UBS,VISA and WGBH / PBS.Market data presented by Performance Research has been referenced by leading publicationssuch as: Financial Times, The Wall Street Journal, The New York Times, USA Today, BusinessWeek, Financial World, Fortune, Hollis Sponsorship Report, Adweek, Advertising Age, Autoweek,BrandWeek, Marketing, MediaWeek, NewsWeek, Promo Magazine, Sport Business SportsMarketing Letter, Sports Marketing Quarterly, Smart Money, IEG Sponsorship Report, SportsMarketing and Sponsorship News.PRINCIPALSJed Pearsall is the founder of Performance Research. He holds a doctorate in sportsmanagement from Temple University, and is a former faculty member at Temple specializing inSociology of Sports. Pearsall’s pre-doctoral work was completed at Dartmouth College and TheWharton School of Finance (Univ. of Pennsylvania). Pearsall is a frequent speaker at IEG’sannual conference on Sports and Special Events, the BDS Sponsorship Conference (London), aswell as Association of National Advertisers (ANA) conferences for Financial Mgt. andSponsorship.Bill Doyle (Vice President) holds a degree in Business Management from Rutgers University andhas developed most of the event measurement criteria now standard in the industry. Doyle is thefirst and possibly the only focus group moderator in the United States specializing in the eventmarketing industry. He has lectured at the International Conference on Sports and SpecialEvents (Paris), and the AMA Conference on Sports Marketing, IEG’s annual conference onSports and Special Events as well as several other sports marketing conferences globally.

PERFORMANCE RESEARCH 25 MILL STREET • QUEEN ANNE SQUARE • NEWPORT, RHODE ISLAND 02840 • (401) 848-0111 • FAX (401) 848-0110 SAMPLE SIZE SELECTION: Internet, On-Site and TELEPHONE RESEARCHStatistical significance is only relevant to randomly selected samples and does not apply to samples collected with aninherent bias (self-selection, geographic, etc.). Increased sample sizes have no effect on legitimizing improperly selectedrespondents. (Collecting 4,000 biased surveys is far worse than collecting 100 random surveys.)Prior to the collection of data, the effect of sample size on the precision of the research can only be estimated in a + / -percentage range.The actual +/- percentage figure will depend on how extreme, or how close the final percentage of responses are to either0% or 100%.For example, with a sample size of 200 respondents, on a simple YES/NO question with 90% of the respondentsanswering YES and 10% answering NO, the data could vary by +/- 2% (at a 95% confidence level). However, if 50%answered YES and 50% answered NO, the margin of error could be as high as +/-7%. When considering sample sizes,this 7% variation would then be the "worst case scenario".Although it is extremely rare in any sponsorship-related study for the worst-case scenario to happen, it should still beconsidered as a possibility when selecting sample size.The following chart outlines the best and worst case scenarios, showing the margin of error for various sample sizes atthe 95% confidence level. Margin of error decreases as confidence level decreases. 1 BEST CASE: WORST CASE: MARGIN OF ERROR MARGIN OF ERROR 200 RESPONDENTS +/- 2% +/- 7% 300 RESPONDENTS +/- 1½% +/- 5½% 500 RESPONDENTS +/- 1% +/- 4½% 1500 RESPONDENTS +/- 1% +/- 2¼%1Statistical References:Kachigan, Sam. Multivariate Statistical Analysis, Radius Press, New York, 1982, p.81.Kinnear, T. & Taylor, J. Marketing Research: An Applied Approach, McGraw-Hill, NewYork, 1983,pp. 227-233.

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Performance Research ROI

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