A Whole New GameThe NFL Scores a Touchdown withLeague-Sponsored ROIMeasurementAlicia Rankin              Darren MarshallHe...
Background – The ROI Model• U.S. sponsorship market worth $10BN• “ROI” measures focused largely on  impressions/awareness•...
ROI Model – Key Assumptions• Only NFL fans can be influenced• Only people in the sponsor’s target  market matter• Only tho...
Overview of the ROI Model• Test vs. Control approach• Test Group = NFL fans aware of sponsor X on an  unaided basis• Contr...
Assessing Impact on Brand Share• Brand share compared between Test and  Control Groups  − In this example, the sponsorship...
How can we be sure of the causality?Proof points• Case studies conducted for Miller  – Over time where brand marketing foc...
Sizing the Prize• How big is the Test Group with the 10pt  higher share?• To find out, we take a third “Benchmark” sample ...
Projecting Share Gains to theMarket Level• Benchmark tells us                               Non Fan                       ...
ROI Calculation
Challenges for the NFL• Measure not just one sponsor, but 22 of our  sponsors and 5 of other major leagues• Sponsors have ...
NFL Sponsor Case Study                         ROI Calculation                              NFL Sponsor ROIa) Industry Cat...
Summary of ROI11.4                                              Average NFL                                               ...
Key Learnings• Clear relationship between activation and ROI
Clear Relationship Between Activationand ROI• Since rights package the same for most  sponsors, activation was the key var...
Key Learnings• Clear relationship between activation and ROI• Ability to demonstrate that company is a sponsor• “Early war...
A Variety of Uses• Measure ROI• Help sponsors improve• Inform pricing and negotiation• Set benchmarks• Help close new sales
In Summary• This approach is a clear step forward from other  proxies on the market• NFL able to establish a leadership po...
Upcoming SlideShare
Loading in …5
×

A Whole New Game The NFL Scores a Touchdown ith League-Sponsored ROI Measurement

1,114 views

Published on

At the Advertising Research Foundation’s (ARF) 2011 annual re:think convention, a key issues forum presentation was held entitled A Whole New Game The NFL Scores a Touchdown ith League-Sponsored ROI Measurement. The presentation gave a background and overview of the ROI model. It also discussed ways to show causality and how to project share gains to the market level. An example of a case study and it’s key learnings was shown. The presentation was given by Alicia Rankin, Head of Research & Fan Insights at the National Football League(NFL) & Darren Marshall, Executive Vice President of Consulting and Research at rEvolution.

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,114
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

A Whole New Game The NFL Scores a Touchdown ith League-Sponsored ROI Measurement

  1. 1. A Whole New GameThe NFL Scores a Touchdown withLeague-Sponsored ROIMeasurementAlicia Rankin Darren MarshallHead of Research & Executive Vice President,Fan Insights Consulting & ResearchNational Football League rEvolution
  2. 2. Background – The ROI Model• U.S. sponsorship market worth $10BN• “ROI” measures focused largely on impressions/awareness• 2005 Knowledge Networks developed ROI model – Goal to measure incremental sales due purely to a sponsorship – Effort sponsored by MillerCoors – Multiple pilots• Model now marketed exclusively by rEvolution• Clients include The Home Depot, Samsung, Shell
  3. 3. ROI Model – Key Assumptions• Only NFL fans can be influenced• Only people in the sponsor’s target market matter• Only those fans aware of the sponsorship on an unaided basis can be influenced
  4. 4. Overview of the ROI Model• Test vs. Control approach• Test Group = NFL fans aware of sponsor X on an unaided basis• Control Group = NFL fans unaware of sponsorship on an unaided basis – Control Group demographics weighted to match the Test Group Test Group Control Group Fans aware of the Fans unaware of sponsorship on an the sponsorship unaided basis
  5. 5. Assessing Impact on Brand Share• Brand share compared between Test and Control Groups − In this example, the sponsorship doubles brand share• Only difference between the Test and Control groups is awareness of the sponsorship Sponsor Brand Share 20% 10% Test Control Sponsorship Sponsorship Aware Fans Unaware Fans
  6. 6. How can we be sure of the causality?Proof points• Case studies conducted for Miller – Over time where brand marketing focused primarily on a particular sponsorship showed very close correlation between model’s predicted and actual share gains• Direct diagnostic questioning – “Does the fact that x sponsors y make you more likely to buy?”• Regression analysis• In some cases, there is no difference in share – If causality reversed (brand loyalists more likely to be aware of sponsorship), sponsor’s Test share would always be higher
  7. 7. Sizing the Prize• How big is the Test Group with the 10pt higher share?• To find out, we take a third “Benchmark” sample of everyone in the sponsor’s target market Benchmark Group
  8. 8. Projecting Share Gains to theMarket Level• Benchmark tells us Non Fan 50% – How many of the target market are Fan NFL fans? 50% – How many of these fans are aware of the sponsorship? 80%• In this example – 50% are fans and 20% are aware 20% – This is the true size of the Test Group with the 10pt higher brand share Aware of Unaware of – The sponsor is raising brand share by 10pts in 10% of the market – or by 50% × 20% = 1pt overall 10%
  9. 9. ROI Calculation
  10. 10. Challenges for the NFL• Measure not just one sponsor, but 22 of our sponsors and 5 of other major leagues• Sponsors have very different target markets, ways of measuring brand share• Need to keep to a reasonable budget
  11. 11. NFL Sponsor Case Study ROI Calculation NFL Sponsor ROIa) Industry Category Sales $ US $50,000,000,000b) % of Market Reached by Aware NFL Fans 7.0%c) Industry Category Sales Accounted for by Aware Fans = a x b $3,500,000,000d) Sponsor Share Among Aware NFL Fans =23% $805,000,000e) Sponsor Share if No NFL Sponsorship (Sales to Unaware Fans) =17% $595,000,000f) Additional Sales Due to NFL Sponsorship (d - e) $210,000,000g) Estimated Profit Margin on Sales 17%h) Additional Profit Due to Sponsorship (f x g) $35,700,000i) Cost of Sponsorship $15,000,000j) ROI (h/i) 2.38:1
  12. 12. Summary of ROI11.4 Average NFL Sponsor Generates Over 2:1 ROI 4.3 3.6 3.1 2.9 2.3 1.6 1.2 0.9 0.2 0.1 0
  13. 13. Key Learnings• Clear relationship between activation and ROI
  14. 14. Clear Relationship Between Activationand ROI• Since rights package the same for most sponsors, activation was the key variable in ROI• Gives us hard data to encourage sponsors to activate ROI Activation
  15. 15. Key Learnings• Clear relationship between activation and ROI• Ability to demonstrate that company is a sponsor• “Early warning” of sponsors that may not be realizing benefits• Some categories are more able to be influenced by sponsorship than others
  16. 16. A Variety of Uses• Measure ROI• Help sponsors improve• Inform pricing and negotiation• Set benchmarks• Help close new sales
  17. 17. In Summary• This approach is a clear step forward from other proxies on the market• NFL able to establish a leadership position in delivering an accurate ROI proxy• Year two of measurement recently completed

×