Measuring Sponsorship ROI in the Automotive Industry


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The automotive industry are significant investors in sponsorship in most countries and certainly at global events. This presentation has a specific focus on understanding the needs of the automotive business in relation to measurement of sponsorship ROI and provides an example of a consumer based ROI based model.

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Measuring Sponsorship ROI in the Automotive Industry

  1. 1. Measuring Sponsorship ROI for the Automotive Industry Capturing Passion Outcomes from Your Sponsorship!Wednesday, February 2, 2011
  2. 2. Industry Challenge? Property View Sponsor View How can I justify the investment to the sponsor? Does our sponsorship create more car sales? Ok. Just send them something with sponsorship ROI on it.... Does it improve our brand loyalty Logo measurement & Scorecard systems with existing owners? equivalent media value An independent agency rates a sponsorship on several Are car buyers more likely to visit one the criteria based on judgement car dealerships based on the sponsorship? What’s the financial ROI? Clearly the sponsors have many questions that properties will struggle to know the answer Does it improve our brand image? Does it help with our dealer satisfaction? Does it assist with larger corporate sales? THESE ARE MARKETING QUESTIONS FOR THE SPONSOR TO ANSWER THEMSELVESWednesday, February 2, 2011
  3. 3. Sponsor driven or Property Driven? Property Driven Sponsor Driven Sponsorship objectives not provided by sponsor Sponsorship objectives taken from the sponsors marketing objectives and serve as the basis of ROI Property asked to provide ROI without involvement of the sponsor Sponsor involved in ROI approach Property takes an off-the shelf solution that does not require a sponsors involvement ROI approach based on market based the sponsors market metrics Scorecard systems Logo measurement & An independent agency rates ROI based on several measures not just equivalent media value a sponsorship on several one but they are all based on the target criteria based on judgement market. Feedback is obtained based on market information and surveys. ROI not based on sponsor’s business objectives or marketing objectives with a target market. Sponsorship ROI is easier to justify because it has been linked to a sponsor’s original market driven objectives. Measurements more difficult to use. Eg., How does logo exposure tell me if I will sell more cars? Measurements can be linked to brand and sales performance. Sponsorship critics use the lack of market driven measurements to question investment.Wednesday, February 2, 2011
  4. 4. Sponsors need to ensure the ROI they need is sponsor driven.Wednesday, February 2, 2011
  5. 5. Media Exposure Methods • Largely discredited today in the context of ROI • This old school method was simply based on media exposure or logo counting and placing a value on each exposure • ROI was not based on sponsor results • No regard to the objectives of the sponsorship • Disconnected from the actual objectives of a sponsorship such as improving brand equity or generating sales.Wednesday, February 2, 2011
  6. 6. Current Sponsorship ROI Principles • Driven by the sponsorship objectives • Based on what a sponsorship actually delivers. • Driven by the sponsors not the properties • Sponsorship ROI is ‘fan centric’, meaning it is based on actual target customer attitudes and behaviourWednesday, February 2, 2011
  7. 7. Measuring Sponsorship Effectiveness - The Basics The Measurement Sequence 1. 2. 3. Define the sponsorship Survey the target Report the findings. objectives to be audience. measured. To measure the effectiveness of a sponsorship, we need to measure outputs not inputs with the target audience. These may include some of the following: - High sponsor recall - Increased sponsor brand loyalty - Improved sales leads To measure sponsorship ROI we need to measure Attention (audience reach), Understanding (sponsor - Improved brand image ratings recall), Engagement (Passion Index) and Sponsor Appreciation (Gratitude Index). Each of these impact on - Improvements in goodwill towards the sponsor how well a sponsor’s objectives can be achieved and also identify areas where the sponsorship itself can be improved. This is obtained by surveying the target audience of a sponsorship or the fans. Brand shift is based on what the sponsorship itself has shifted in terms of target audience perceptions, attitudes and buyer behavior. Achievement of a sponsor’s objectives is what we measure with Other information that can be used in a SponsorMap evaluation are media SponsorMap, whether it is to generate additional sales and leads, improve brand positioning or the coverage (TV & print), social media (blogs, Facebook etc.) and sales reputation of the sponsor with a target audience. information that can be sourced separately. Inter-relationships The Research Methodology The selection of the survey sample is dependent on the target audience Sponsor for a sponsorship. Match the survey sample to the intended target audience. National Inter-relationships between a sponsor, We require a sample that we can project nationally so we can claim for property and customer/target audience are example, 35% of mobile phone subscribers can recall sponsor X. what are measured using the SponsorMap methodology. Regional Sample is taken from a regional level and projected to a regional level. Event Sample is taken from the event audience. With this sample we can claim for example that 48% of the 20,000 people that attended the event were delighted with the sponsors involvement and 65% (13,000) were Property Customer considering buying their next motor vehicle from the sponsor. Various methods can be used for data collection ranging from on-line panels, telephone surveys or face-to-face interviews. Each have there own advantages and disadvantages but the trend is towards on-line surveys.Wednesday, February 2, 2011
  8. 8. Return on Objectives 1. 2. 3. Define the sponsorship Survey the target Report the findings objectives to be audience. against the measured. sponsorship objectives Often we can find a direct relationship between a sponsorship specific metric such as the Gratitude Index and brand advocacy. This is what we would expect to see if the sponsorship was working as intended. Most often there is a direct relationship between the passion for the property and sponsorship performance with the target segment. It is important to measure performance against what were the objectives for individual sponsors. SponsorMap takes this into consideration and has the flexibility to demonstrate effectiveness for all different types of sponsors. Pre and post sponsorship measurement is the ideal way to demonstrate sponsorship’s contribution. In this case there were significant increases on brand health metrics for this particular sponsor of NASCAR. The sponsors objectives were to increase purchase intent, brand advocacy and brand image with the adult spirt drinkers that follow NASCAR. Clearly, the sponsorship in our example can be determined to have achieved those objectives.Wednesday, February 2, 2011
  9. 9. Passion - Sponsorshipʼs Powerhouse A SponsorMap study involves a survey of the target audience to Sponsor Recall Sponsorship Fit Demographics obtain key sponsorship performance metrics. PassionIndex Gratitude Index Return on Objectives Passion Index - Emotional Engagement The Measurement Sequence Property Sponsor “Passionates” Extreme sports Fashion 81% Formula One Team Telco 70% Property A Sponsor X 69% Broadcast Telco 59% Music Festival Telco 54% Football Utility 54% Horse Race Beer 53% Property B Sponsor X 46% European Football Finance 43% Art/Entertainment Utility 34% SponsorMap measures the level of passion towards properties by the target audience and segments a property by the strength of its fan base. A strong property will have a high proportion of ‘Passionates’ (Fanatics + Great Fans). The most valuable properties are those that have the largest number of Passionates, In the example above, for the mobile phone market the LA Lakers can be considered more valuable than the US Open Golf Championship with that particular target audience. SponsorMap can match the property that best fits the passions of a target segment using the PassionIndex.Wednesday, February 2, 2011
  10. 10. Sponsor Recall - A Key Requirement to Measure Sponsorship Effectiveness Spontaneous Sponsor Recall Unaided Spontaneous Recall Prompted Sponsorship Recall Source of Sponsor Awareness - First mention- -Total- SPONSOR X 68% From friends 78% Sponsor X Sponsor X Bank of America 53% Bank of America Information on a 22% Nike 25% website Bank of America Nike Buick 19% From Internet Forum 14% BuickAmerican Express American Express 35% From magazines/ American Express 5% newspapers FedEx 21% FedEx FedEx Banners on Internet 5% Sony 13% Sony Other Posters 3% Accenture Dole 8% Dole TV 3% Accenture 3% Accenture Pepsi Pub 3% Target Target 4% Flyers and postcards 2% Coca Cola/Coke Capital One Capital One 1% Posters in the street 1% Citibank Citibank 1% Citibank Internet other 1% Coca Cola/Coke Coca Cola/Coke 1% From organisers 1% Miscellaneous Pepsi Pepsi 1% On the radio 1% Miscellaneous Exxon Mobil 8% Dont Know/None Online Game 1% Dont Know/None Williams 3% Yahoo! Match 1% IBM 1% ERA Ticket 1% Miscellaneous 4% SMS 1%Recall of sponsors from the event showing percentage of visitors that can recall the Dont Know/None 53%sponsors at both a spontaneous (unprompted) and prompted (aided) level. This measures Forget 1%how well the sponsor’s involvement is remembered. For a sponsorship to be effective itfirst needs to be recalled by the target audience, this is not measured by logo countingmeasurement systems.Wednesday, February 2, 2011
  11. 11. Sponsor Appreciation - Do People Appreciate a Sponsors Involvement? Sponsor appreciation is mainly impacted by the level of sponsorship activation to enhance the brand experience of the consumer or the choice of the property itself. Those sponsors that work to provide an enjoyable brand experience for consumers do achieve higher levels of sponsor appreciation (Gratitude Index) compared to those that just focus on providing logos. Cause related properties also generally achieve higher appreciation levels. Sponsor appreciation by itself can deliver significant ROI to sponsors and is driven by sponsorship activation. Benchmarks - Other Events and Sponsorships Property Sponsor “Gratefuls” Arts Utility 74% Formula One Team Telco 61% Property X Sponsor X 59% Music Festival Telco 52% Extreme sports Fashion 52% Horse Race Beer 47% Broadcast Telco 38% European Football Finance 24% European Football Utility 12% Measuring sponsorship fit helps ensure the correct alignment between sponsor and property. Benchmarks - Sponsorship Fit Property Sponsor Dislike Like Extreme sports Fashion 2% 88% Property X Sponsor X 2% 82% Formula One Team Telco 7% 66% Arts Utility 6% 65% Music Festival Telco 12% 52% Horse Race Beer 13% 38% Broadcast/Entertainment Telco 14% 37% European Football Finance 11% 47% European Football Utility 9% 34%Wednesday, February 2, 2011
  12. 12. Now for automotive sponsors with survey based information market based models can be constructed based on car buyers.Wednesday, February 2, 2011
  13. 13. Sponsor Evaluation Case Study - Sponsorship ROI for Automotive Sponsor A car company applied SponsorMap to assess the ROI for their investment in motor racing. A national research of car buyers was conducted in order to gauge the effectiveness of the sponsorship in key market segments. The key sponsorship objectives were as follows: - To improve brand advocacy (Recommendation) Stage 2 - Return on Sponsorship KPIs - To improve car loyalty Market Analysis KPIs (Pre and Post Market Assessment) - To improve positioning as the car for high performance - Generate sales leads for dealers Total Market (13,560,000) Pre Post Gain % Weighted Gain Customers Base - Recall Sponsor 0% 23% +23% +3,118,000 Stage 1 - Sponsorship Engagement Loyalty to Sponsor 23% 31% +8% +249,000 Market Analysis Reach & Engagement Brand Advocacy 26% 36% +10% +311,800 % Total High performance car’ 25% 39% +14% +436,520 Total Market (Car buyers) 13,560,000 Delighted with Sponsor 0% 64% +64% +1,996,300 Passion for Property 28% 3,796,800 (“Passionates”) PassionIndex Prompted Recall of Sponsor 23% 3,118,000 Stage 3 - Sponsorship Driven ROI - Loyalty Example Recall Sponsor Pre and post measurement to demonstrate how the key sponsorship objectives are fulfilled. In this Delighted with Sponsor 64% 1,996,300 example, there is increased loyalty to the car company from 249,000 car buyers based on the (Gratitude Index) research findings. By weighting the survey results to project the total market Market Analysis - Improvements on Sponsorship Objectives we can conclude that nearly 3.8 million car buyers are passionate about the sponsored motor racing property. Just % Total over three million (3,118,000) can recall the car maker as a Base - Increase in Bank Loyalty 249,000 motor racing sponsor and close to 2 million car buyers are delighted that the car company is sponsoring the motor Prompted Recall of Sponsor 87% Recall driven racing. (“Passionates”) PassionIndex 79% Passion driven Delighted with Sponsor (Gratitude Index) 82% Sponsor Appreciation Driven We are able to use SponsorMap to analyze the increased number of car buyers stating they are more loyal to the car company. There is high correlation to sponsorship based measures of recall, passion and sponsor appreciation. These are all indications that the sponsorship was driving increases in loyalty. In summary we can estimate that at least a quarter of million car buyers are more likely to buy a car in the future and therefore put a financial figure on the return to the sponsor in terms of car sales.Wednesday, February 2, 2011
  14. 14. SponsorMap Clients, Market Coverage & Testimonials Global Sponsors "SponsorMap™ is an excellent tool for measuring the effectiveness and value of sponsorship. I believe it is a great improvement over traditional sponsorship awareness measures, giving us deeper insights into how we enhance the experience for our customers." Heba Habashy Market Research Manager, Vodafone SponsorMap has been used in more than 24 countries and is available in more than 80 today. Australia New Zealand United Kingdom China Switzerland Taiwan Russia Malaysia France Germany Greece Philippines Romania India Turkey Indonesia Singapore Hong Kong United Arab Emirates Thailand Canada United States VietnamWednesday, February 2, 2011
  15. 15. Further Details Contact Us SponsorMap is available in more than 80 countries across the globe. To speak to us directly call and leave a voicemail on our US number 24/7 on +1 (917) 675-3403. Otherwise email Resources Visit for !!Free webinars on measuring sponsorship !!Free e-books on measurement for sponsors and properties !!Sign-up for our mailing list on some of the latest insights in this areaWednesday, February 2, 2011