4 a brent barootes sponsorships in todays world

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4 a brent barootes sponsorships in todays world

  1. 1. An Industry Update and Trending Report
  2. 2. Session Overview Who we are and our qualifications to speak to you Defining Sponsorship and Philanthropy Industry Trending Enhancing a Property’s Social Mission and Opportunity Copyright 2011 2
  3. 3. Session Overview Determining ROI for brands and sponsors through measurable asset valuation and activation Do some story telling Making it all work together Questions Copyright 2011 3
  4. 4. Defining Philanthropy• A gift with nothing in return• Based on the cause, the linkage, wanting to help• Delivers a feeling of doing good• CRA compliance Copyright 2011 4
  5. 5. Defining Philanthropy You give because you care You have Corporate Social Responsibility (CSR) strategy or policy Have a relationship You get nothing in return (officially by CRA) other than a tax receipt Copyright 2011 5
  6. 6. Defining Philanthropy Charities get the money, stewardship required but no additional work beyond that… unlike sponsorship which is labor intensive Gifts can be ongoing but often change with senior management changes and “charities of choice” Copyright 2011 6
  7. 7. Defining Sponsorship B2B or B2C Transaction Not Philanthropy Looking for an ROI or ROO Many companies confuse it with sponsorship (as do properties or charities) Copyright 2011 7
  8. 8. Defining Sponsorship Our Definition: A cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for the exploitable commercial potential associated with that property. Copyright 2011 8
  9. 9. Defining Philanthropy Sponsorship can involve many approaches It is a form of marketing Integrated into a multi- faceted plan – not just a stand alone sign at an event nor a gift Copyright 2011 9
  10. 10. Industry Trending Canadian Sponsorship Industry* is a: $1.55 Billion industry (Fees and activation) Up 8.5% from 2010 study Up 40% from 2006 study *(Reported by the preliminary 2011 Canadian Sponsorship Landscape Study and produced by SMCC, University of Ottawa and Canadian Sponsorship Forum) Copyright 2011 10
  11. 11. Industry TrendingCanadian Sponsorship Revenue Allocation:35% Sport (down from 2010 at 51%)20% Causes8.5% Arts16% Festivals, Fairs and Annual Events20% (Other including parks and recreation,municipalities, educational institutions, conferences)(Reported by the preliminary 2011 Canadian Sponsorship Landscape Study and produced by SMCC, University of Ottawa and Canadian Sponsorship Forum) Copyright 2011 11
  12. 12. Industry Trending23% of brands Marketing / PR /Communications budget now goesto sponsorship and event marketing/experiential marketing – 10 yearsago this was less than 5%On average sponsors have 45properties they sponsor per year(Reported by the preliminary 2011 CanadianSponsorship Landscape Study and produced by SMCC,University of Ottawa and Canadian SponsorshipForum) Copyright 2011 12
  13. 13. Industry Trending Edelman Good Purpose Survey 2010 released this year looked at the relationship of causes (charities) to brands. Some of the key findings were: 64% of Canadians will recommend a brand they have tried or heard about to friends and family when it is for a good cause they believe in. This is up from 52% in the previous year study Copyright 2011 13
  14. 14. Industry TrendingEdelman Good Purpose Survey 2010 67% of Canadians said they would switch brands that are comparable in quality and price if the brand supports a cause they believe to be worthy 71% of Canadians said brands should spend less money on "advertising" and more on causes. This number is up by 10% over the pervious years study Copyright 2011 14
  15. 15. Industry Trending The 2010 Canadian Fundraising & Philanthropy / Innovative Research Group Economic Pulse of the Not For Profit Sector showed: 46% of non profits and charities not presently engaging in sponsorship revenue generation are likely to undertake it in the coming year 40% expect such sponsorship revenue to increase this year Copyright 2011 15
  16. 16. Industry Trending The 2010 Canadian Fundraising & Philanthropy / Innovative Research Group Economic Pulse of the Not For Profit Sector showed: 57% of those surveyed indicated sponsorship was part of their mix with Arts and culture indicating 62% and Education 64% Another 25% indicated cause marketing was part of their revenue mix overall Copyright 2011 16
  17. 17. Industry Trending IMAGINE Canada study showed: • 56% of Canadian corporations are engaging in sponsorship that used to be philanthropy • 26% engaging in cause marketing Copyright 2011 17
  18. 18. Industry Trending 2011 Canadian Consumer Sponsorship Rankings Being released at the Western Sponsorship Congress 2011 Some preliminary findings…. Copyright 2011 18
  19. 19. Industry Trending Majority of Canadians prefer to conduct business with sponsors of favourite events and causes 63% agreed that all other things being equal, they would prefer to do business with sponsors of favourite causes By comparison, 57% agreed to same statement regarding arts/cultural events and 50% regarding sports Copyright 2011 19
  20. 20. Industry Trending Approximately half of Canadians would switch brands if sponsor made meaningful contribution Overall, 55% would likely switch brands if sponsor made meaningful contribution to favourite charity or cause 47% agreed to similar statement regarding arts/culture and 44% for sports Copyright 2011 20
  21. 21. Industry Trending Millions of Canadians participate in types of activities sponsored by corporations 32% attended an arts festival or cultural event; 31% attended amateur sport; 31% attended a gala or fundraiser Copyright 2011 21
  22. 22. Industry Trending Giving cash, providing volunteers or staff most appealing sponsorship methods Canadians were asked to rate the appeal of 10 common sponsorship methods Giving cash, providing volunteers/staff ranked highest overall; providing guest speakers and executives rated lowest Copyright 2011 22
  23. 23. Enhancing A Property’s SocialMission and Opportunity Why is / should sponsorship important to a property (charity, cause, non profit)?  An alternate revenue channel  No restrictions on how you spend the cash  Opens doors for corporate employee rank and file giving once relationship is made Copyright 2011 23
  24. 24. Enhancing A Property’s SocialMission and Opportunity Why is / should sponsorship important to a property (charity, cause, non profit)?  Opens the door for corporate executive giving  Ongoing if you can deliver business results Copyright 2011 24
  25. 25. Enhancing A Property’s SocialMission and Opportunity How can this help the mission of the organization?  Unencumbered revenue  Opportunity to increase exposure of your organization’s mission  Partnerships work better than supplier agreements Copyright 2011 25
  26. 26. Enhancing A Property’s SocialMission and OpportunityDoes it restrict the organization based on sponsors? No, you partner with whom you feel comfortable You partner with like minded organizations You can have multiple brands from an industry if you segregate the assets You are selling assets you own Copyright 2011 26
  27. 27. Enhancing A Property’s SocialMission and Opportunity This is revenue to apply to your mission It needs to be a partnership though Properties need to look differently at the sponsorship model versus the philanthropic model A paradigm shift is necessary Copyright 2011 27
  28. 28. Enhancing A Property’s SocialMission and Opportunity The paradigm shift is from: “Please help, here is what we need and here is how it will impact our community” To… Copyright 2011 28
  29. 29. Enhancing A Property’s SocialMission and Opportunity…To“How as a charity can I help yousucceed better as brand or acorporation?”It is all about the sponsor andnot about your mission thoughyour mission will benefit Copyright 2011 29
  30. 30. ROI and ROO Measurementfor the Brand or Sponsor Can success be measured? Sponsors need to see results, can properties / charities / non profits deliver results? What is ROI? What is ROO? Copyright 2011 30
  31. 31. ROI and ROO Measurementfor the Brand or SponsorCan success be measured? Yes it can! Metrics for values – industry standards  1/3 of a cent X number of unique users to your web site  Impressions / eyeballs  5 cents per sample / $5 per sample  Email blast Copyright 2011 31
  32. 32. ROI and ROO Measurementfor the Brand or SponsorCan success be measured? Before outcomes can be measured the objectives need to be determined at the front end Like a brand asks charities for “societal impact”; properties should be asking what the brand’s goals and objectives are to deliver on them Copyright 2011 32
  33. 33. ROI and ROO Measurementfor the Brand or SponsorSponsors need to see results, can properties /charities / non profits deliver results? Driving traffic Brand development Engaging / retaining employees Share price Recruitment Camelot sales Sales Image / PR / IR Copyright 2011 33
  34. 34. ROI and ROO Measurementfor the Brand or Sponsor What is ROI?  Return on investment  What is the sponsor getting in return based on their objectives of sales, employee engagement, PR etc  Does not have to be dollars and cents… but it is always about dollars and cents Copyright 2011 34
  35. 35. ROI and ROO Measurementfor the Brand or Sponsor What is ROO?  Return on objectives  Return on opportunity  Social return  London Benchmarking  Sponsorium Copyright 2011 35
  36. 36. Story TellingTo deliver results for sponsors (brands / donors /corporations) and properties (charities and non profits)there must be true partnershipsPhilanthropy is clear, the donor (company or individual)gives because they care and want to move the missionforwardNot really true for sponsors Copyright 2011 36
  37. 37. Story TellingThere must be a mutual win – win – winThe brands must be open and honest about what theirobjectives are to ensure the property can help themThe properties need to understand that sponsorship isnot about them… it is about the sponsor Copyright 2011 37
  38. 38. Story Telling Copyright 2011 38
  39. 39. Story Telling Copyright 2011 39
  40. 40. Story Telling Copyright 2011 40
  41. 41. Story Telling Copyright 2011 41
  42. 42. Story Telling Copyright 2011 42
  43. 43. Story Telling Copyright 2011 43
  44. 44. Story Telling Copyright 2011 44
  45. 45. Story Telling Copyright 2011 45
  46. 46. Story Telling Copyright 2011 46
  47. 47. Story Telling Copyright 2011 47
  48. 48. Story Telling Copyright 2011 48
  49. 49. Story Telling Copyright 2011 49
  50. 50. ConclusionSponsorship today is more than hanging a bannerIt is more than philanthropyIt is about results and outcomes for both partiesIt is about partnerships Copyright 2011 50
  51. 51. Copyright 2011 51

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