9th annual canadian sponsorship landscape study
TRANSCRIPT
9th ANNUAL CANADIAN SPONSORSHIP LANDSCAPE STUDYNORM O’REILLY OHIO UNIVERSITY & TROJANONEELISA BESELT & ADAM DEGRASSE TROJANONE
Research Partners
2
CSLSAbout, History & Method
9th Annual Results Findings & Trends
Sponsorship in 2015Key Lessons from the 9th CSLS
THIS REPORT
3
Canadian Sponsorship Landscape StudyABOUT, HISTORY & METHOD
METHOD
4
DesignPerspectives, Industry
ProcessOnline, Partners, Streamline
AnalysisTrends, Comparative
OriginsIndustry Need, Share
CSF, Vancouver
SMCC Annual Conference, Toronto
CSF, Halifax
HISTORY
5
2007
CSF, Toronto
2008 2009 2010 2011
2013 2014
CSFX, Ottawa
Festivals & Events Ontario, Toronto
2012
CSF, Quebec City CSF, Montreal
SMCC Annual Conference, Toronto
CSF, Montreal
SMCC Annual Conference, Toronto
SMCC West, Calgary
Infopresse: RDF Commandite, Montreal
CSF, Saskatoon
CSTA Sport Event Congress, Ottawa
SMCC Annual Conference, Toronto
SMCC West, Calgary
Infopresse: RDF Commandite, Montreal
Canadian Association of Fairs & Exhibitions, Ottawa
2015
CSFX, Edmonton
SMCC Annual Conference, Toronto
6
9th Annual ResultsFINDINGS, TRENDS & WHAT’S NEXT
Historical CSLS Survey Respondents
RESPONDENTS
7
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015
117132152
238218
294
145167
247
31334852
73123
6561
86
3445748111614267109
171
Num
ber o
f Res
pond
ents
SponsorsAgenciesProperties
Note: Survey is open until June 30th, 2015. Visit www.sponsorshiplandscape.ca to enter responses.
2015 Profile182 Responses
34 Sponsors117 Properties31 Agencies
90% English10% French [*↓]
RESPONDENTS
8
Respondent Profile
14.6%
22.0%
29.3%
14.6%
19.5%
CEO/President
VP, Marketing/Sponsorship
Other
Coordinator, Marketing/
Sponsorship
Director/Manager,Marketing/ Sponsorship
Head Office Location
14.6% 14.6%
43.9%
7.3%
9.8%
Note: Other includes events, and sales directors/managers, as well as development officers, member services, etc.
9
Sponsorsn = 34 (29 ENGLISH; 5 FRENCH)
$681,342average largest sponsorship of
resopndent
Investment mix:
83.3% Cash16.7% Value In-kind
49.0% For-Profit51.0% Not-For-Profit
Average # of Sponsorships: 84.4 (range 1 to 1,000)
Range in size from 10 staff to 45,000 employees.
Average of 5 staff spend more than 25% of time on
sponsorship
SPONSOR SUMMARY
10
2015 Sponsor
Respondents(n = 34)
Investment mix:
49.5% For-Profit50.5% Not-For-Profit
Average # of sponsorships:
35.5 (range 1 to 200)
Average # of FT Sponsorship employees:
4.25 (range 1 to 10)
Investment mix:
85.1% Cash14.9% Value In-kind
$891,505 average activation spend
(range $0 to $2.8MM)
Largest sponsorship property:
69% Pro sport
23% Olympic/Amateur
8% Festivals, Fairs, Events
Average company budget:
$987MM$2.17MM
Average rights fee spend($20MM highest)
Investment reach:
1.0% International24.4% Canada
6.6% Multi-Province18.1% Provincial22.0% Regional
27.8% Local
MARKETING COMMUNICATIONS BUDGET
11
BudgetMarketing
As a % of overall marketing communications budget
Sponsorship
20132012201120102009200820072006
16.7%15.5%22.5%15.4%
22.3% 29.6%
21.9%23.1%
25.4%
2014
Approximately 1 in every 4 marketing communications dollars are spent on sponsorship.
GEOGRAPHICAL FOCUS
12
International 1.0% National 24.4% Multi-Provincial 6.6%
Local 27.8%Regional 22.0%Provincial 18.1%
LARGEST INVESTMENT
13
0%
10%
20%
30%
40%
50%
2007 2008 2009 2010 2011 2012 2013 2014
Perc
ent I
nves
tmen
t
Pro Sport Amateur Sport Festivals, fairs, annual events
CauseEntertainment
69.0%
23.0%
8.0%
Historical Property Category of Sponsor’s Largest Investment
14
Propertiesn = 117 (110 ENGLISH; 7 FRENCH)
PROPERTY SUMMARY
15
Total rights fee range from
$10K to $21M
$681,342average largest sponsorship of
resopndent
Investment mix:83.3% Cash
16.7% Value In-kind
49.0% For-Profit51.0% Not-For-Profit
Range in size from 10 staff
to 45,000 employees. $1,442,650
average activation spend
2015 Property
Respondents(n = 117)
Property reach:26.8% International
26.8% Canada2.4% Multi-Province
24.4% Provincial14.6% Regional
4.9% Local
$236,000 average activation spend per property
Average # of sponsors:
20.3 (range 2 to 75)Revenue mix:77.9% Cash
23.1% Value In-kind
88.9% For-Profit11.1% Not-For-Profit
Sponsorship revenue average:$2.4MM
(range $5,000 to $25MM)
$441,800average largest sponsorship
(max. was $6MM)
Average annual budgets:
$1.04B(2.3% from sponsorship)
Average # of FT sponsorship employees:
4.85 (range 0 to 100)
Volunteer workforce:Male 36% vs. Female 64%
11.6%of properties believe their
sponsors are very satisfied with their ROI
REVENUE TYPE
Cash vs. VIK Sponsorship Revenue
16
0%
20%
40%
60%
80%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014
22.1%23.6%30.8%33.6%32.3%34.8%33.0%39.0%30.0%
77.9%76.4%69.2%66.4%67.7%65.2%67.0%
61.0%70.0%
Perc
ent o
f Res
pond
ents
Cash VIK
CATEGORY OF PROPERTIES’ LARGEST SPONSOR
17
15.9% Finance
6.8% Public Administration
20.5% Retail Trade
6.8% Manufacturing
20.5% Communications
9.1% Services
$(22.1% in 2013)
(12.9% in 2013)
(12.3% in 2013)(6.5% in 2013)
(11.5% in 2013) (3.1% in 2013)
18
Agenciesn = 31 (25 ENGLISH; 6 FRENCH)
AGENCY SUMMARY
19
$681,342average largest sponsorship of
resopndent
Range in size from 10 staff
to 45,000 employees. $1,442,650
average activation spend
Average of 5 staff spend more than 25% of time on
sponsorship
2015 Agency
Respondents(n = 31)
75% of sponsorship divisions fall
under Marketing & Communications
13.8 average # of sponsorships worked
on in 2014
Sponsorship billings:
58.5% For-Profit41.5% Not-for-profit
Source of billings:
Sponsors 27.2% Properties 67.5% Agencies 5.3%
Largest sponsorship client:17% Sponsor
83% Properties$585,000
average sponsorship billings
Sponsorship billings account for52%
of total billings
Sponsorship billing by gender targets:
27% Female31% Male
42% Non-specific
Area of billings:
Causes 21.2%Olympic Sport 18.6%
Pro sport 16.1%Festivals 12.6%
Entertainment 10.2%
Historical Sponsorship Billings as Percentage of Total Billings
AGENCY BILLINGS BREAKDOWN
20
0%
20%
40%
60%
80%
2006 2007 2008 2009 2010 2011 2012 2013 2014
45.8% 47.1%
55.9%52.5% 52.8% 54.2%
68.8%62.3%
52.0%
Perc
ent I
nves
tmen
t
AGENCY BILLINGS SOURCE
21
Source of Billings (2014)
5.3%
67.5%
27.2%
Agencies
Sponsors
Properties
4.5%
59.5%
36.0%
Source of Billings (2013)
Agencies
Sponsors
Properties
Area of Agency Billings (Properties)
AGENCY BILLINGS
22
0%
9%
18%
26%
35%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Perc
ent I
nves
tmen
t
Pro Sport Amateur Sport Festivals, fairs, annual events
CauseEntertainment Others?Arts
?
23
Activation & EvaluationRESULTS
ACTIVATION RATIO
24
2006 2007 2008 2009 2010 2011 2012 2014
40¢
50¢
60¢
70¢
80¢
43¢46¢
2013
71¢76¢
62¢57¢
75¢
62¢
41¢
Activ
atio
n (C
ents
on
Dolla
r)
Historical Activation Ratio (Canada & US)
$1.70 $1.90 $1.50 $1.40 $1.40 $1.60 $1.70 $1.70 $1.70US (IEG):
ACTIVATION TACTICS
25
0%
5%
10%
15%
20%
2010 2011 2012 2013 2014
Perc
ent o
f Act
ivatio
n Sp
end
Historical Sponsor Activation Spend by Tactic
Advertising Branded content
Social mediaProduct sampling
PR
Hosting/hospitality
EVALUATION
26
2006 2007 2008 2009 2010 2011 2012 2014
2.0%
4.0%
6.0%
8.0%
2013
Perc
ent S
pend
on
Evalu
atio
n
7.8%
4.5%
6.0%
4.1%
2.6%2.3% 2.7%
3.0%
1.1%
Historical Sponsorship Evaluation
PRE-EVALUATION
27
20%
40%
60%
80%
Perc
enta
ge o
f Eva
luatio
n
68%
Percentage of Evaluation Budget on Pre-Evaluation
2006 2007 2008 2009 2010 2011 2012 20142013
13%3%
1%
15%
80%
Note: The question wasn’t included until 2009.
0%
14%
28%
42%
56%
70%
Perc
ent o
f Res
pond
ents
ROI SATISFACTION
28
Not at all satisfied
SomewhatDissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
38.5%46.2%
62.8%
0.0%4.7%
18.6%7.0%
11.6%
0.0%0.0%
Sponsors
Properties (perception of their sponsor’s satisfaction)
Note: 1 in 10 respondents indicate they do not know their satisfaction with ROI from sponsorship.
Sponsor Satisfaction with Sponsorship ROI
Sponsorship in 2015KEY LESSONS FROM THE 9TH ANNUAL CSLS
29
The industry halted its growth - both in fees and in activation. This is not suprising given the large growth in 2013. However, this comes in conjunction with “smarter” spending.
1. THE INDUSTRY CALIBRATES
30
CANADIAN INDUSTRY SIZE
31
Expected Change for 2015
$
Industry SizeIndustry Spending-6.7%
$
2013 $1.77B2014 $1.66B
2012 $1.57B2011 $1.59B
2010 $1.55B2009 $1.43B
2008 $1.39B2007 $1.22B
2006 $1.11B
20.0%73.3%6.7%
from 2013-6.7% from 2013
+49.6% from 2006
TOTAL INDUSTRY SPENDING
32
0
1.0
2.0
3.0
2006 2007 2008 2009 2010 2011 2012 2013 2014
$1.59$1.78
$2.38$2.52 $2.51 $2.50
$2.75 $2.85
$2.34
Amou
nt ($
Billi
ons)
Historical Total Spend Trends ($B)
Rights Fees
Activation Spend
Total Industry Spend
$1.66 (↓)
$0.68 (↓)
(↓)
0%
10%
20%
30%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Perc
ent I
nves
tmen
tSPONSORSHIP MIX
33
Historical Sponsorship Investment in Major Areas 39.7%
19.1%16.3%
7.3%5.2%3.6%
Pro Sport Amateur Sport Festivals, fairs, annual events
CauseEntertainment Education Other Arts?
?
8.9%
0.5%
34
For the first time, branded content is the most invested in activation tactic by sponsors and properties. It is also considered by sponsors, properties and agencies to be the activation tactic that best drives business results.
2. BRANDED CONTENT INCREASES
GROWTH OF BRANDED CONTENT
35
0%
4.25%
8.5%
12.75%
17%
2010 2011 2012 2013 2014
Perc
ent o
f Act
ivatio
n Sp
end
Historical Sponsor Activation Spend on Branded Content
ACTIVATION TACTICS
36
SponsorsCreating Branded Content (25%)
Public Relations (25%)
Broadcast (25%)
Sales/Consumer Promotions (25%)
PropertiesCreating Branded Content (34%)
Hosting/Hospitality (14%)
Co-Promotions (14%)
AgenciesCreating Branded Content (44%)
Athletes (16%)
Product Sampling (15%)
Sales/Consumer Promotions (14%)
Other (11%)
What activation tactic best drives business results?
37
Sponsors target their sponsorships and investment in both gender-specific and not gender-specific properties (e.g., adults).
Compared to 2012, there appears to be a positive change in the role of women in sponsorship.
3. BETTER GENDER BALANCE
SPONSORSHIP INVESTMENT TARGET MARKETS
38
17.3%of investments
targeted at females
30.0%of investments
targeted at males
52.7%of investments
not gender specific
DEMOGRAPHIC FOCUS OF PROPERTY
39
4.8% Women and/or Girls
4.8% Men and/or Boys
38.1% Adults
26.2% Children and Youth
?26.2% Other
SPONSORSHIP BILLINGS BY TARGET MARKETS
40
27.0%of investments
targeted at females
31.0%of investments
targeted at males
42.0%of investments
not gender specific
WOMEN AND SPONSORSHIP
41
MetricMetric 2012 20142014Women Women Men
Sponsorships that target 4.8% 18.0% 43.0%
Sponsorship investment that targets 17.2% 17.3% 30.0%
Working in sponsorship 58.8% 74.5% 25.5%
Sponsorships that target 35.0% 27.0% 31.0%
Working in sponsorship 15.6% 29.3% 70.7%
Focus of property’s target market 6.3% 4.8% 4.8%
Volunteers 66.3% 64.0% 36.0%
Primary sponsorship decision maker 29.8% 53.7% 46.3%
Spon
sors
Agen
cies
Prop
ertie
sAl
l
4. SERVICING FALLS SHORT
Servicing of sponsorships by properties continues to fall short of sponsor’s expectations.
42
SPONSORSHIP (DIS)SERVICE
43
0 1 2 3 4 54.38
4.05
4.79
4.17
3.68
4.24
4.09
3.86
4.24
3.45
3.08
3.75
3.13
2.54
2.89
2.70
2.45
2.64
Likert Scale
ProvidedImportance2013
0 1 2 3 4 54.54
3.85
3.77
4.77
3.62
3.23
3.92
3.69
3.85
3.54
2.77
4.23
2.08
2.31
2.15
2.85
2.00
1.85
Likert Scale
2014
Recall stats
Loyalty stats
Target profile
Ambush protection
Activation w/ sponsors
Activation resources
Exclusivity protection
Activation w/ properties
Concluding report
Recall stats
Loyalty stats
Target profile
Ambush protection
Activation w/ sponsors
Activation resources
Exclusivity protection
Activation w/ properties
Concluding report
People seem to be sleeping better. In particular, the top concerns of the past - demonstrating ROI, getting the right fit of HR and expertise, and securing targets - have made way for greater budget and activation concerns.
5. PROGRESS IS BEING MADE
44
SLEEPLESS NIGHTS
45
0%
5%
10%
15%
20%
25%
30%
Perc
ent o
f Res
pond
ents
2012 2013 2014
Demonstrating ROI
Budget Concerns
ActivationHR & Expertise CompetitionSecuring & Targets
Other
Historical Sponsorship Concerns Facing the Industry
SLEEPLESS NIGHTS
46
“How do we monetize social media and content? The cost of creating engaging content is a challenge [and] we have to be able to see an ROI on these investments in new content and properties.”
“A qualified next ‘generation’ of industry professionals lack training and support.”
“Working with sponsors who ‘want the world’ in terms of benefits, but aren’t willing and don’t see the value of paying.”
“Corporate Canada is far behind sister companies in the US as it relates to how far ahead of an event they decide if they may sponsor/partner and secondly, that they make many decisions on activaiton too close to an event to do it effectively.”
ASK THE AGENCIES
47
“Work with agencies who leverage this [HR] expertise in-house - you don't need the resource exclusively, but rely on it when you do.”
“I think the reduction in percentage [of social media spend] demonstrates lower costs to activate, not fewer activations. Social media is still relevant.”
“Ensure that expectations and measurement systems are confirmed at the front end and written into the contracts.”
“Higher wages. Not-for-profits are notorious for under paying event staff. Lower the burn out rate (events are notorious for long hours and too little recognition [for the staff]).”
HR?
HR?
ROI?
Social?
6. CHANGE IS LOOMING
Most industry professionals are expecting to see some changes to sponsorship in the next few years. Largely related to technological changes and flexibility.
48
BIGGEST OPPORTUNITIES
49
Sponsorship in the Next 3 Years
0%
5%
10%
15%
20%
6.8%7.9%8.4%8.4%
10.0%
13.2%14.2%
17.9%
Perc
ent o
f Res
pond
ents
Technology New Properties Relationships/Partnerships
Sports Activation Measurement Branding & Promotions
Knowledge/Education
Note: Respondents share what they considered to be the three biggest opportunities in sponsorship. Responses were grouped according to theme.
BIGGEST OPPORTUNITIES
50
“Continued growth in social and digital media integration into sponsorship.”
“The momentum behind Canada’s 150th Anniversary celebrations.”
“Building partnerships that are not defined by a finite period of time; creating opportunities for a longer shelf life.”
“There’s more than hockey in Canada...why don't we start working more with other properties and expose Canadians to more sports/music/events?”
CHANGES COMING
51
0%
5%
10%
15%
20%
5.6%5.6%6.4%8.0%8.0%8.0%
9.6%9.6%
18.4%20.8%
Perc
ent o
f Res
pond
ents
Digital & Technology
Activations Measurement Tools
Collaborations Branding Strategies
New Properties
Competitions Budget Fluctuations
Sponsorship Terms &
Ownership
No Change
Expected Changes to Traditional Sponsorship Model
Note: Respondents share what they considered to be expected changes to traditional sponsorship. Responses were grouped according to theme.
CHANGES COMING
52
“Multi-year agreements with assets that are flexible rather than set for the duration of the contract.”
“Sponsoring public figures or major events will change in light of public groundswell against environmental or social disgrace.”
“More onus on properties to create and develop the sponsorship program for clients.”
“More investment in the development of content for distribution through a variety of public (e.g., Facebook, YouTube) and private (e.g., corporate internal) digital channels.”
SUMMARY
53
The Industry Calibrates$1.66B in Rights Fees
Increased Branded ContentBest Return for Respondents
Better Gender BalancePrimary Decision Makers (53% Women)
Servicing Falls ShortExcept for Exclusivity
Progress is Being MadeROI, HR and Target Concerns ↓
Change is LoomingEspecially in Technology
123
456
THANK YOU!
54
Dr. Norm O’Reilly | [email protected]
Elisa Beselt | [email protected]
Adam DeGrasse | [email protected] www.sponsorshiplandscape.ca or www.sondagecommandite.ca to enter responses.
Note: Survey is open until June 30, 2015.
CLIENTLOGO
Visit www.sponsorshiplandscape.ca or www.sondagecommandite.ca to enter responses.