Measuring Sponsor ROI in Europe

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A presentation of several key approaches to measuring sponsorship ROI with a several European case studies.

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Measuring Sponsor ROI in Europe

  1. 1. Webinar Series
  2. 2. Accountability is the Mantra Today
  3. 3. Accountability for Sponsorship Investments Exposure valuations are no longer considered valuable to sponsors. We can measure them but they cannot be “banked”.
  4. 4. 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
  5. 5. Sponsorship Theory Impacts on How We Measure
  6. 6. 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.
  7. 7. Understanding Sponsorship Sponsorship cognitive process involves attention, recall, engagement and appreciation to influence brand commitment. It very important to understand how sponsorship works to demonstrate ROI. Each of these elements impacts on sponsorship effectiveness.
  8. 8. Several methods can be used. These are based on the overall sponsors objectives   Media impressions   Social media measurement   Surveys   Sales measurement - Eg., Bounce-back coupons Choice of methods based on the overall sponsorship objectives and cost. Most affordable are usually sales measurement and surveys.
  9. 9. Measuring Understanding (Sponsor Recall)
  10. 10. 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 Don't Know/None Don't Know/None Base: 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?
  11. 11. Measuring Engagement (Passion)
  12. 12. Measuring The Strength of Properties Example Looking at the various passion levels for several properties with weighted results – estimates against the total adult population. Example from with three main competitors sponsoring different properties. Survey data allows us to talk about the passion for each property. This is the value of properties. Event Sponsored Fun Run Music Tour F1 Grand Prix Dance Festival Fringe Festival Pop. Pop. Pop. Pop. Pop. % % % % % Project. Project. Project. Project. Project. Fanatic - - 1% 48k 1% 48k - - - - Great Fan 1% 48k 1% 48k 2% 97k 2% 97k - - Spectator 1% 48k 3% 145k 8% 387k 4% 194k 1% 48k Passive Enthusiast 3% 145k 7% 339k 14% 677k 3% 145k 1% 48k Disinterested 8% 387k 22% 1,065k 55% 2,661k 21% 1,016k 5% 242k Unaware 87% 4,210k 67% 3,242k 20% 968k 70% 3,387k 93% 4,500k Conversion Rate : Conversion Rate : Conversion Rate : Conversion Rate : Conversion Rate : 8% 6% 4% 7% 0% Passionates 1% 48k 2% 97k 3% 145k 2% 97k - - Event Awareness 13% 629k 34% 1645k 80% 3871k 30% 1452k 7% 339k Conversion Rate is the proportion of Passionates among those who are aware of the event. Please indicate whether you have HEARD of the following events? Please indicate whether you have an INTEREST in the following events? Please indicate whether you would MAKE AN EFFORT TO GO to the following events? Please indicate whether you WOULD CONSIDER YOURSELF A GREAT FAN of the following events? Please indicate whether you WOULD BE DEVASTATED WITHOUT any of the following events? Base: Total Population: 4.839M
  13. 13. Improvements in Sponsor Purchase Intent are often also directly 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
  14. 14. Brand Attribution through Sponsorship
  15. 15. 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
  16. 16. Measuring Engagement (Appreciation)
  17. 17. Brand Advocacy also has a Strong Relationship to Sponsor Gratitude/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
  18. 18. Measuring Commitment (Brand Response)
  19. 19. European TV Sponsorship ROI Example TV sponsorship for women’s deodorant   To increase brand penetration (Additional 5 million users) - Survey reveals an additional 7,162,000 product trials - Sponsorship themed products tracked with unique sales codes sales 240% higher than non-themed   To communicate invisible protection (deodorant). - Image ratings showed significant improvements based on survey data   To encourage trial and switching from other brands - 84% of trial from source of business competitors brands
  20. 20. Arts Sponsorship ROI Example – Use of On-line Survey
  21. 21. European Music Event Sponsorship ROI Example Music Event Sponsorship in Russia – FMCG Company   Increase brand preference - Trial, Occasional, Substitute brand (This is the language the sponsor used for marketing performance so it is already accepted as a good performance measure to use)   Examine ‘multiplier effect’ of increased reach beyond the immediate event audience - 2,500 at event x 16 (Multiplier effect) = 40,000 consumers touched from the event
  22. 22. 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.
  23. 23. Russian Music Properties – Passion Ratings
  24. 24. 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
  25. 25. Discussion
  26. 26. 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.
  27. 27. Thank-you Nicholas Cameron Sponsorship Research Specialist Nicholas.Cameron@sponsormap.com Resources: Visit www.sponsormap.com for more details.

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