creating win-win partnerships...more activation = higher roi source: ieg sponsorship report...
TRANSCRIPT
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CREATING WIN-WIN
PARTNERSHIPS
FEBRUARY 7, 2014
Presented by Dan Kowitz Executive Vice President, IEG Consulting Group
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About IEG
Creators of the analytics
for selecting, valuing,
optimizing and measuring
partnerships and non-
traditional media
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A GLOBAL LOOK AT
SPONSORSHIP
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Total North American Sponsorship Spending
* Projected
Source: IEG Sponsorship Report
$17.2 BILLION
2010 2011 2012 2013 2014*
$18.1 BILLION
$18.9 BILLION
$19.8 BILLION
$20.6 BILLION
5.5
%
4.4
%
4.5
%
4.3
%
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Projected 2014 Shares of North American
Sponsorship Market
Source: IEG Sponsorship Report
ENTERTAINMENT
SPORTS 70%
CAUSES
FESTIVALS/FAIRS AND
ANNUAL EVENTS
ARTS
ASSOCIATIONS
AND MEMBERSHIP
ORGANIZATIONS
10%
9%
4%
4%
3%
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North American Sponsorship Spending:
Sports
* Projected
Source: IEG Sponsorship Report
$12 BILLION
$3 BILLION
$6 BILLION
$9 BILLION
$15 BILLION $13.01 BILLION
$13.68 BILLION
$14.35 BILLION
2014* 2012 2013
5.1
%
4.9
%
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North American Sponsorship Spending:
Festivals, Fairs and Annual Events
* Projected
Source: IEG Sponsorship Report
$200 MILLION
$800 MILLION
$400 MILLION
$600 MILLION
$1000 MILLION $825 MILLION
$839 MILLION
$853 MILLION
1.7
%
2014* 2012 2013
1.7
%
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Market Intelligence
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Product And Service Development
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Sales, Digital And Content
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009
2010
2011
2012
2013
Channels Used To Activation Sponsorships
Compared Over 5 Years
Source: IEG/Performance Research 2009-2013 Sponsorship Decision-Makers Survey
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Sponsorship Trends: Media Landscape
Is Changing
PROPERTIES ARE USING SOCIAL MEDIA TO ENGAGE FANS
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
TOTAL
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THE POWER OF
SPONSORSHIP
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Partnership Today
VISIBILITY
Eyeballs
Media Equivalencies
AWARENESS
Aided
Category- Prompted
Unaided
ATTITUDE
Brand Image, Relevance
Propensity to Purchase
BEHAVIOR
Recruit: Staff, Customers
Retain
Repurchase
Recommend
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The Sponsorship Value Equation
REACH PASSION ENGAGEMENT
+ +
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How Has Your Company’s Need
For Validated Results Changed?
Source: IEG/Performance Research 2013 Sponsorship Decision-Makers Survey
INCREASED 87%
13%
STAYED THE SAME
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More Activation = Higher ROI
Source: IEG Sponsorship Report
RECOGNIZED MEAN FEE
MAJOR SPONSORS 144 $200,000+
Miller Lite 146
Coca-Cola 144
MID-LEVEL SPONSORS 81 $30,000
Ochsner 106
Louisiana Office Products 56
MINOR SPONSORS 87 $10,000
Safari Car Wash 119
5 Minute Oil Change 55
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STRATEGICALLY
STRUCTURE AND SELL
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Sponsorship Solicitation Process
PACKAGE
STRATEGICALLY
ESTABLISH
WHAT YOU
ARE WORTH
IDENTIFY
BEST
PROSPECTS
RESEARCH
PROSPECT’S
BUSINESS
SELL
EFFECTIVELY
SERVICE
CORPORATE
PARTNERS
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Translate Assets Into Benefits
PROPERTY ASSETS MARKETABLE BENEFITS
ACCESS
PROPRIETARY PLATFORM
PROMOTIONAL RIGHTS
AUDIENCE
COLLATERAL
SIGNAGE/DISPLAY ADVERTISING
SOCIAL MEDIA, WEB SITE & DATABASE
CONTENT, EVENTS & VENUE AREAS
IMPRESSIONS
VISIBILITY
EXTENDED REACH
MARKS/LOGOS
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Sponsorship Does Not Stand Alone
IT SHOULD BE THE PLATFORM FOR INTEGRATED MARKETING COMMUNICATIONS
AT RETAIL ADVERTISING/
PR CAMPAIGN
SPONSORED
PROPERTY
PROMOTIONAL
GIVEAWAYS CONTENT
ONLINE
PROMOTIONS
DATABASE
COLLECTION
STAKEHOLDER
ENGAGEMENT SOCIAL MEDIA
EMPLOYEE
VOLUNTEERISM
PROPRIETARY
PROGRAM
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Package Strategically
• Reserve most valuable benefits for highest level sponsors
• Create customized marketing platforms:
– Integrated opportunity for a sponsor to present content, an event,
program or initiative within a larger sponsorship opportunity.
– Positions sponsor to break through clutter and resonate with the
audience
• Look for alternatives to cash
– In-kind products or services
– Promotion of brand, mission and specific messages
– Fundraising outlets
– Sponsor provided employee volunteers
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Price Based On Value Vs. Need
• Sponsorship is not based on cost; it’s based on marketing value
• Most valued sponsor benefits:
– Access to stakeholders
– At Retail/Literature distribution
– Content development
– Social media
– Face-to-face access to audiences
• Focus groups
• Board representation
• Signage and other impression based benefits are typically lower
in value and not likely to drive changes in behavior
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Ensure Fit
LITMUS TEST FOR FIT:
• Is partnership relevant to your audience?
• Will it add value for the stakeholder or event attendee?
• Will it enhance, not interrupt, the stakeholder/event attendee
experience?
• Is there brand/business alignment?
• Will it drive return for the sponsor?
• Will it be not overly commercial or based on visibility?
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Researching Your Prospects’ Business
DOING YOUR HOMEWORK
• Category trends and hot buttons
• Company intelligence:
– Sales/distribution channels
– Customer demos/psychographics
– Marketing campaigns/sponsorships
– Geographic priorities
– Agencies of record
• Identify contacts and utilize existing relationships
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Researching Your Prospects’ Business
RETAIL CATEGORY OVERVIEW
SPONSORSHIP HOT BUTTONS MEASUREMENT METRICS
• Drive store traffic • Incremental store traffic
• Involve vendors • Amount of sponsorship-themed merchandise sold
• Support shopper loyalty programs • Interest and number of vendors participating
• Access online sales rights • Sales during promotional period among participating
stores vs. those not or vs. same period sales in prior years
• Reward frequent shoppers
• Promote private label brands
• Showcase community involvement
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SELLING
EFFECTIVELY
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FIRST QUARTER
(JAN. – MARCH) 24%
SECOND QUARTER
(APRIL – JUNE) 9%
THIRD QUARTER
(JULY – SEPT.) 22%
When Does Your Company Determine Its
Sponsorship Budget?
Source: IEG/Performance Research 2013 Sponsorship Decision-Makers Survey
24% FOURTH QUARTER
(OCT. – DEC.) 45%
9%
24%
45%
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Initial Goal Is To Secure A Meeting
INITIAL MEETING
• 30% presentation/70% listening
• What are prospect’s priorities?
• What’s worked, what hasn’t?
• Who is the ultimate decision-maker?
• BE DIFFERENT
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Effective Sales Pitch Components
• Capture Attention
– Not a data dump
– Concise and to the point
– Be fascinating
• Highlight Benefits
– Not a list of the property’s features
– Translation of features to benefits
• Be Relevant
– Not generic/“search and replace”
– Customized to the sponsor’s objectives
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Effective Sales Pitch Components (cont.)
• Be Proactive
– Does not leave thinking up to prospect
– Includes activation ideas
• Be Specific
– Does not include vague descriptions of audience, etc.
– Includes deliverables that reduce risk
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Five Key Sales Takeaways
• Sell solutions, not sponsorship
• Make it about them, not you
• Help deliver ROO, ROI
• Be willing to go beyond terms of the contract
• Service, service, service
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PARTNERSHIP CASE
STUDIES
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Sponsorship: Case Study
COLUMBUS ZOO AND FIFTH THIRD BANK
• Fifth Third Bank is the Official Bank of the Columbus Zoo
• Presenting Sponsor of Jack Hanna’s Fall Festival, one of the Zoo’s largest events of the year
• Co-created the Fifth Third Pronto Pass Patrol, a team wearing co-branded uniforms and armed with PC tablets, who perform ticket transactions for guests waiting in line
• Fifth Third Bank offers a Columbus Zoo checking account and credit card for customers in the Columbus community
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Sponsorship: Case Study
LEXUS AND AT&T PERFORMING ARTS CENTER
• Official vehicle and valet sponsor
• Title sponsor of two parking garages
• Branded priority parking spaces for Lexus owners
• Lexus owners receive special advance ticket purchase offers
• On-site vehicle displays
• Title sponsor of Broadway Series
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Sponsorship: Case Study
AMERICAN EXPRESS & BARCLAYS CENTER
• Founding Partner & Official Credit Card
• Exclusive rights in the payment category
• Naming rights to the 40/40 restaurant on the suite level and to the arena’s box office
• Early access to tickets and merchandise for events
• Exclusive amenities and access to private events for cardholders
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Sponsorship: Case Study
MOFA BOSTON AND MEDIA PARTNER
WFNX radio station created an acoustic
concert series performed at the museum
Concerts were held in different galleries
of the museum and musicians
occasionally played rare instruments from
MFA’s collection
Performances were recorded as both
audio and video and broadcasted on
WFNX and posted to their website
The series was promoted on MFA’s
Facebook page and through on-air ads
and prompts on WFNX
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QUESTIONS & ANSWERS
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