About SponsorMap™ A market research tool developed to better measure the impact of sponsorship. Focused on measuring outputs not inputs Used in 18 countries with more than 80 projects Partnered with Taylor Nelsen Sofres the world’s largest market research company with offices in more than 80 markets Integrated approach for measuring sponsorship in conjunction with media, on-line and sales information. Importantly, integrating sponsorship into the total measurement framework for brands. Not in isolation, demonstrating the business value of sponsorship is critical.
Growth in Sponsorship Slowing Major focus on measurement at present.
Sponsorship has Grown Faster Than Advertising and SalesPromotion
Accountability for Sponsorship Investments ING ends Formula One sponsorship Public opinion ends Wells Fargo golf sponsorshipUBS to end Hong Kong golf sponsorship Bank of America Defends Sponsorship Deals RBS cuts back sports sponsorship
The Context of the Sponsor and Property Relationship
For Sponsors… The purpose of sponsorship research is to: Make better strategic sponsorship decisions Invest in properties that will deliver against objectives Achieve sales, financial and non-financial targets Refine and improve activation mechanics to drive response Negotiate great rights acquisition fees and set activation budgets Deliver long-term brand equity and value
For Properties or Rights Holders… For rights holders too there are important benefits from sponsorship measurement and evaluation. Justify healthy rights fees Better understand and work with brand sponsors Expand the pool of brands who can use sponsorship effectively Successfully renew sponsorship partnerships Properties that can show they deliver for brands will continue to be successful at attracting sponsors
The Sponsorship ROI challenge is also theMarketing ROI Challenge
Defining Marketing ROI (Return on Investment) Global corporations do not have an "industry-wide standard" in their respective sectors. Most of them seem to measure marketing ROI in diverse ways, some of them strikingly similar… September Issue 2004 Chief Marketing Officer Magazine in an article titled ‘Metrics Revolution”
Sponsorship ROI Needs to be Measured Against BusinessGoals to Establish its Value Unless you can demonstrate the potential value of the property in delivering against your brand and business objectives, why would a marketing director look at it and spend millions of on it? It is no different from any other marketing activity.
Sponsorship Cycle Sponsorship objectives and measurement must be aligned with the sponsor’s own brand and communication objectives and the overall strategic plan. Strategy and Operation Plan Updated
Typical Sponsorship Objectives (Example 1)TV sponsorship for women’s deodorant 1 To increase brand penetration (Additional 5 million users) 2 To build brand awareness focusing on credentials of protection and care 3 To encourage trial and switching from other brands 4 To communicate invisible protection (deodorant).
Typical Sponsorship Objectives (Example 2)Music sponsorship (Mobile phone sponsor) 1 To achieve high levels of awareness for brand A 2 To provide a significant increase in brand preference for brand A 3 To enhance brand A’s image attributes 4 To create a unique brand experience
Typical Sponsorship Objectives (Example 3)Golf SponsorshipThe objectives of the sponsorship are to deliver for the Brand: 1 High-quality brand awareness 2 Increase customer loyalty 3 Improvement in attitudes and reputation.This evaluation involves measurement of event sponsorship usingseveral metrics from different sources to measure these sponsorshipobjectives
Understanding Sponsorship• Sponsorship is a dynamic three-way relationship. Sponsor Property Customer• Sponsorship works through harnessing the emotional connection between a property and its audience and converting this into a desired response for a sponsor.• Sponsorship operates through different cognitive processes than advertising. Advertising communicates directly to the customer through essentially an interruption mode whereas sponsorship communicates indirectly via a property in a passion mode.
Understanding SponsorshipSponsorship cognitive process involves attention, recall, engagement and appreciationto influence brand commitment.It very important to understand how sponsorship works to demonstrate ROI. Each of these elements impacts on sponsorship effectiveness.
Understanding Sponsorship….• In order to apply an effective sponsorship evaluation methodology, it is important to be clear what such methodology should be measuring. (Our SponsorMap™ approach is based on a framework for understanding the impact of sponsorship on attitude and behavioural change). A useful model for understanding the components of sponsorship effectivenesss is based on the foundations of Heider’s Balance Theory and the recent research from the Advertising Research Foundation.• People move through five key stages as they move from initial exposure to a sponsorship towards a behavioural change as a result of the sponsorship experience. These are: – Attention: The point of sponsor exposure to an audience whilst the audience is enjoying an event/property. – Understanding: The levels to which people are able to recall sponsors of an event/property. – Engagement: The passion an audience has for an event/property. – Appreciation: the gratitude or appreciation people may feel towards sponsors for the sponsors involvement with an event/property. – Commitment: The change in attitudes or behavior people may feel towards a sponsor/brand that is a direct result of the sponsorship.
Media Measurement of Sponsor Logos (TV) Logo presence is 50% greater at this venue. Analysis of exposure for the Bank of Scotland. Various systems available, all measuring signage.
Media Measurement of Sponsor Logos (TV) After Before Exposure analysis can assist in driving sponsor recall and there are good solutions available.
Online Discussion Analysis of Exposure & Blogging This is an example of on-line monitoring from Cymfony, a TNS company. They conducted an analysis of online discussion focusing on the favorability and key characteristics of the event and players as they relate to the sponsors. Coverage quality components such as brand prominence, title mention, message penetration and tonality were weighted and combined with Reach (% of stature list publications) to get the benchmark Verismo Score. Online monitoring is highly beneficial. Sponsorship Volume at a Glance (Dec 1 - Dec 28, 2008) Total PR Coverage 1,551 articles Volume* Total Social Media 415 posts Volume Sponsors Tracked Sponsor A Sponsor B Sponsor C Sponsor D Etc. 27
Measurements of Exposure are Measures of Inputs NOTReturn on Investment at ALL. Weak amongst Strong amongst Early Adopters Adoption Index Early Adopters
Unaided Awareness of Sponsors An example of the survey research to determine sponsor recall. Top of Mind Total Unaided SPONSOR Sponsor Bank of America Bank of America Nike Buick American Express American Express FedEx FedEx Sony Accenture Dole Accenture Pepsi Target Coca Cola/Coke Capital One Citibank Citibank Coca Cola/Coke Miscellaneous Pepsi Miscellaneous Dont Know/None Dont Know/NoneBase: Total Asked (n=150)Q3a. Talking about the X , what SPONSORS were represented at this event?Q3b. What other SPONSORS were represented at the X event?
Sponsor Recall is Important but Not an End to Itself
Increasing Sponsorship Recall is not Always Best There are natural limits on sponsor recall as an objective for sponsors.
Not All Properties are Equal for Sponsors The level of engagement (passion) depends on audience and property type. This is a simple example from the US with a specific sample. The impact of a sponsorship for a sponsor is higher with properties that have higher levels of engagement. This depends Base: n=351 on target audience a great deal.
Not All Properties are Equal for Sponsors… Some properties have a strong base of fans (“Passionates”) whilst others can have a less strong support base. Useful information to determine sponsorship impact. Property Sponsor “Passionates” Extreme sports Fashion 81% F1 Team Telco 70% Dance Party Tobacco 60% Broadcast Telco 59% Music Festival Telco 54% Football Utility 54% Horse Race Beer 53% Football Finance 43% Arts Utility 34%
Sponsorship Recall is Directly Related to Engagement… Sponsor Prompted Recall (Vodafone) Team Ferrari Team Ferrari PassionBreak %Respondents Unaware of Passive Base Property Disinterested Enthusiast Spectator Great Fan Fanatic Base Unweighted 673 77 337 52 101 43 63 Weighted 680 76 338 51 102 45 68V Sponsor TeamFerrari Yes 25% 2% 16% 31% 34% 45% 60% No 75% 98% 84% 69% 66% 55% 40% Sponsor Recall is directly related to passion (engagement) therefore traditional aware vs.unaware results can be misleading unless passion is included. (Example from Advertising Festival Case Study 2005)
Improvements in Sponsor Purchase Intent are often alsodirectly related to Passion for the Sponsored Property… Sponsor Unaware Sponsor Aware PASSION 10 Purchase Intent 9 8 8.2 7.6 8 7.1 7.2 6.7 6.4 6.8 7 6 5 4 3 2 1 Disinterested Enthusiast Ambivalent Unaware Spectator Great Fan Fanatic UnAware Property Sponsor Passive
Brand Advocacy also has a Strong Relationship to SponsorGratitude/Appreciation) Sponsor Unaware Sponsor Aware GRATITUDE 10 9.2 9 8.3 Brand Advocacy 8 7 6.1 6.4 5.6 6 5.2 5 4 3 2 1 No Gratitude Ambivalent Delighted UnAware Appreciatiive Thankful Sponsor Very
Gratitude Index Ratings - Benchmarks (Categories)) Sponsor appreciation generally depends on the level of activation and also the type of sponsored property. Property Sponsor “Gratefuls” Arts Utility 74% F1 Team Telco 61% Dance Party Tobacco 53% Music Festival Telco 52% Extreme Fashion 52% sports Horse Race Beer 47% Broadcast Telco 38% Football Finance 24% Football Utility 12%
Pre and Post Survey Measurement Recommended Methodology & Sample Survey research allows for a better understanding of sponsorship impact. In the case above it is the same people interviewed before a sponsorship and then following it. Sponsorship impact can more easily be gauged with a pre and post treatment and often in conjunction with other tools.
Demonstrating How a Sponsorship is Achieving Objectives Shifts in Sponsor’s Brand Performance Indicators Solid increases in the brand KPIs as a direct result of the event itself with source of business drinkers. ✔ * +13 % +6% * +4 % * Base: n=300 Source of Margin of error (4%) at 95%CI statistically significant Business
Sponsorship Related Brand Image Enhancement Sponsorship example FMCG industry where the health attributes of the sponsor’s brand are much higher with the segment of the markets that engaged with the sponsorship. 1 6 10 UnAware Sponsor Sponsor Unaware Unaware 6.1 Property Healthy 5.8 Disinterested For Growing Bodies 5.5 PAASION Ambivalent Passive 5.9 Sponsor Aware Enthusiast 6 Spectator 5.9 Great Fan 7.1 Fanatic 8.1
ROI Based on Financial Valuations Needs Lots of Data
Last Brand Purchased and Estimate of Increased Spend with Sponsor Sponsor purchases increased by 3% points post-event. Last Brand Purchased Avg. Spend Increased Spend with Sponsor $41.52 At 3% point increment in last purchased brand from the event would Pre-Event result in $622,000 additional sales from sponsor outlets per Total Event retail outlet visit Audience At the Venue 3,000 Post-Event Media Audience 497,000 Note: Calculation is based on total audience (reach measurement from in conjunction with pre and post survey information from the fan survey.Base: Total Asked (n=500)Prefanq8/Q17. Thinking about the last time you purchased X, what brand or company did you use?