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IEG SPONSORSHIP REPORT IEG SPONSORSHIP REPORT 1SPECIAL EDITION FOR CULTURAL INSTITUTIONS

SPECIAL EDITION FOR CULTURAL INSTITUTIONS Published by IEG, LLC

IN DEPTH

Sponsorship Spending: 2010 Proves Better Than Expected; Bigger Gains Set For 2011Industry has rebounded quickly from historic low point of 2009.

Happy New Year indeed. The dawn of 2011 marks the sponsorship industry’s return to full health.

A year ago, sponsors, properties, agencies and others in the business were lamenting the fact that less money was spent on corporate partnerships in 2009 than in the previous year, a never-before-seen circumstance.

And while we can’t say it will never happen again, ’09’s contraction in annual spending remains for now an anomaly. The 26th annual year-end industry review and forecast from IEG SR shows that sponsorship expenditures by North American companies grew 3.9 percent in 2010 to $17.2 billion. Spending globally grew 5.2 percent to $46.3 billion.

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INSIDE THIS ISSUE

SPONSORSHIP SALES RESOLUTIONS FOR THE NEW YEAR 10

SURVEY REVEALS GREAT DISPARITY IN NONPROFITS’ APPROACH TO CORPORATE PARTNERSHIPS 12

CADILLAC CONTINUES ACQUISITION MODE: SIGNS WITH VAIL RESORTS, LOCAL PROPERTIES 19

LEVELING THE PLAYING FIELD: HOW SMALLER PROPERTIES CAN COMPETE FOR SPONSORSHIP REVENUE 20

SUNDANCE FINDS SUCCESS OFFERING NEXT-GEN SPONSORSHIP BENEFITS 23

AIRLINE INDUSTRY REMAINS ON BOARD WITH SPONSORSHIPS 25

VISIT IEG ONLINE AT www.sponsorship.com/sector/cultural.aspx

IN DEPTH

Decision-makers Survey: Sponsors Favor Activation Budgets In 2011Sponsors are bullish on the medium, but lingering questions about how to measure return persist.

Corporate marketers are wasting no time putting the days of sponsorship spending cuts behind them, according to the 11th annual IEG/Performance Research Sponsorship Decision-makers Survey.

When asked about their spending this year, sponsors painted a very rosy picture, especially in terms of funding leveraging platforms.

AUTOMOTIVE

Jaguar Sets Stage For Performing Arts Sponsorships Activation

New vehicle launch provides impetus for sponsorship programs; properties should research new marques form other automakers.

Jaguar Cars North America has launched a new sponsorship initiative to promote its redesigned flagship XJ luxury sedan.

The British import is following the lead of corporate sibling Land Rover North America, Inc. While the latter is focusing on equestrian events, skiing and adventure travel, Jaguar has set its

IEG SPONSORSHIP REPORT2 SPECIAL EDITION FOR CULTURAL INSTITUTIONS

IEG – Helping Cultural Institutions Maximize Sponsorship RevenueHow do development directors from some organizations confidently increase their revenue from corporate partners each year while others struggle? The difference for many of them—including Carnegie Hall, Boston Museum of Science and Philadelphia Zoo—is the advice they get from IEG.

We are real-world problem-solvers with a single focus—helping performing arts organizations, museums, zoos, aquariums and other cultural and community institutions perform better than expected. We use our experience to help you keep (and upsell) existing sponsors...attract lucrative new relationships...negotiate win/win deals...and decide when to walk away.

To learn more—or if you have an immediate need—please contact us anytime.

Shan RiggsVice President, Client SolutionsIEG Consulting [email protected]/834-4850, ext. 287(outside the U.S. and Canada, 312/944-1727)

About IEG: Premier Consultancy For Sponsorship Strategies IEG is the premier consultancy for sponsorship known for rigor, strategy and perspective. We closely partner with leading brands and properties to impact daily decisions, maximize their opportunities, and realize return on their partnerships.

With nearly 30 years in the industry, and now part of WPP Group, we continue to lead with pioneering, metrics and talent to guide success in the world of sponsorship.

• Strategic Sponsorship Consulting & ROI Services• Evaluation• Research• Conferences, Events & Training• IEG Sponsorship Report, References & Resources

Visit IEG online at www.sponsorship.com/sector/cultural.aspx

sights on performing arts organizations, venues and related activities.

It has just completed deals with several properties, including the Hollywood Bowl and Houston Grand Opera, and is likely to seek deals with similar venues in New York City, South Florida and other key markets.

The deals represent Jaguar Cars’ first major U.S. sponsorship push since parent company Jaguar Land Rover North America, LLC was acquired by Mumbai, India-based Tata Motors Ltd. nearly two years ago.

The automaker is using the sponsorship campaign to support this month’s launch of the 2011 XJ, an all-aluminum vehicle apparently designed to take on the Mercedes CL-Class and Bentley Continental. The car is priced from $72,400 to $115,000.

The new sedan is also getting sponsorship support in its home country, with Jaguar Cars Ltd. signing a new partnership with June’s London Jewellery Week.

On both sides of the Atlantic, Jaguar is activating its ties through on-site vehicle display and ride-and-drive programs. Jaguar will leverage London Jewellery Week by transporting designers, actors, TV personalities and other VIPs in a fleet of XJ vehicles.

Additional leveraging could include the hosting of networking events with affluent arts patrons.

The U.S. program is spearheaded by national and regional Jaguar marketing execs, including Glenn Drake, western regional sales and marketing manager, and Sharon Corrigan, vice president of marketing. Corrigan began in that position in December.

Jaguar’s other U.S. sponsorships largely emanate from dealers, including The Hampton Classic Horse Show in Bridgehampton, N.Y. and the Toshiba Classic Champions Tour stop in Newport Beach, Calif.

The automaker has a lot riding on the new XJ, one of only three models it sells in the U.S.

With only the XF sports sedan (starting at $53,000 and the XK coupe and convertible (starting at $83,000) available, Jaguar

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Both sets of figures were ahead of IEG SR’s projections made a year ago. At the end of 2009, North American spending was forecast to rise 3.4 percent and worldwide budgets were predicted to grow 4.5 percent.

Based on the slightly accelerated pace of deal-making experienced in 2010 and conversations with sponsors and properties about prospects for the coming year, IEG SR forecasts significant increases in spending for 2011.

North American sponsors should increase partnership outlays by 5.9 percent to $18.2 billion in 2011, while globally spending should increase at the same rate it did in 2010—5.2 percent—bringing worldwide spending to $48.7 billion.

Total North American Sponsorship Spending 2007-2011

$15 billion

$20 billion

$10 billion

$5 billion

2007 2008 2009 2010 2011projected

$14.9$16.6 $16.5

$18.2

11.4

%

5.9%

$17.2

–0.6

%

3.9%

Total Global Sponsorship Spending 2007-2011

$40 billion

$50 billion

$30 billion

$20 billion

$10 billion

2007 2008 2009 2010 2011projected

$37.9

$43.1 $44$48.7

13.7

%

5.2%

$46.3

2.1%

5.2%

As it has in most years over the past two-plus decades, sponsorship’s growth rate will be ahead of the pace experienced by advertising and sales promotion.

North American media spending, which rose two percent in 2010, is projected to increase 3.9% in 2011, according to the worldwide media and marketing forecast produced by GroupM, the global media investment management

operation of WPP Group plc. (GroupM is the parent company of IEG SR publisher IEG, LLC.)

Consumer and business-to-business promotional spending did not increase in 2010, declining for the second year in a row—although the drop of 3.3 percent was an improvement from the decrease of 7.1 percent in 2009, according to the Communications Industry Forecast 2010-2014 published by private equity firm Veronis Suhler Stevenson. VSS projects that promotion spending will be flat in 2011 compared to 2010.

Annual Growth Of Advertising, Sales Promotion And Sponsorship

15%

10%

5%

0%

–5%

–10% 2008 2009 2010 2011projected

Advertising Sales Promotion Sponsorship

0.62.0 2.0

11.4

5.93.9

-0.6

0.03.9

-3.3

-7.1-4.6

Breaking Down North American Spending By CategoryAs forecast, North American corporate spending on cause sponsorships grew at the highest rate of the six major property sectors in 2010—6.7 percent—as marketers sought to earn goodwill from consumers and other stakeholders still recovering from the recessionary economy.

The largest segment—sports—grew 3.4 percent in 2010, as a 7.6 percent jump in spending on the four major U.S. pro sports leagues and their teams (“A-B Lawsuit Illustrates Value Of Pro Sports Sponsorships; Sector Grows 7.6 Percent,” 11/15/10) was dragged down by little or no growth among other types of sports, including auto racing.

For 2011, continued interest in major sports properties should drive category spending enough to make it the fastest-growing segment, as cause spending cools down to a still respectable growth rate of five percent.

The category that grew the least in 2010, the arts at just 2.7 percent—should improve in 2011 to a 5.1 percent increase,

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as its two largest sponsor categories—automotive and financial services—continue to see improved overall fortunes and turn the sponsorship spigot back on.

Each of the six property categories are projected to earn the same share of total North American sponsorship spending in 2011 as they did in 2010.

Projected 2011 Shares Of North American Sponsorship Market

Membership Organizations 3%

Arts 5%

Causes 9%

Festivals, Fairs and Annual Events 5%

Entertainment Toursand Attractions 10%

Sports 68%

Associations and

How The Worldwide Sponsorship Market Shakes OutSubtracting expenditures by North American companies, the rest of the world’s sponsors spent $29.1 billion on partnerships in 2010 and are projected to increase that amount 4.8 percent to $30.5 billion in 2011.

Europe will remain the largest source of sponsorship spending apart from North America, followed by the Asia Pacific region.

Growth in Central and South America during 2010 did not materialize to the extent projected—3.8 percent versus a forecast of 5.7 percent—despite the upcoming FIFA World Cup and Olympic Games in Brazil in 2014 and 2016, respectively.


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Another Week, More Auto ActivityWhile the auto category significantly cut back its sponsorship activity last year, the sector is wasting no time getting back up to speed, with a steady stream of new deals being announced this spring, plus some other signs of life.

Volkswagen AG’s Audi of America Inc. unit just took official vehicle status of Washington, D.C.’s Nation’s Triathlon.

While the event is located near Audi and Volkswagen of America, Inc. head-quarters in Herndon, Va., it is possible the company is following the lead of sibling brand VW, which recently launched a new local/regional sponsorship campaign to promote its expanding product lineup.

The deal also is unique in that it represents a new property type for Audi of America, which historically has sponsored skiing, golf and other events.

The Sept. 12 triathlon affords the brand presenting status of the D.C. Cup, an award given to the male and female Washington, D.C. residents posting the best times.

Ford Motor Co.’s Lincoln brand appears to be gearing up for a new sponsor-ship campaign to support the redesigned MKX mid-sized crossover.

Lincoln recently forged a new partnership with Boston’s Head of the Charles Regatta, with more deals presumed to be in the works.

Marketing/communication agency Team Detroit spearheaded the tie on behalf of Lincoln.

And ride-and-drive programs seem to be making a comeback.

Long seen as an effective way to put consumers in their vehicles outside of visiting a dealership, ride-and-drive programs—many of which were conducted in conjunction with sponsored properties—have been mostly garaged over the past two years as a result of the distressed economy.

But sources report some renewed test-drive activity by automakers.

Case in point: California Partnership Marketing Group, a sponsorship sales agency that also routs ride-and-drive programs on behalf of automotive marketing agency AMCI, has worked on tours for Honda North America, Inc.; Mercedes-Benz USA, LLC; and Toyota Motor Sales, U.S.A., Inc. over the past nine months.

“We didn’t see any interest until July of ’09,” said Tamara Goddard, CPMG’s director of strategic alliances.

CPMG plans tours both to automaker-sponsored events and other locations.

For example, the agency routed a Toyota Prius tour to malls that had a Best Buy and/or Whole Foods store, Goddard said, noting that Toyota research showed a demographic overlap between Prius owners and prospects and customers of the two retailers.

SourcesAudi of America, Inc., Tel: 703/364-7000Ford Motor Co., Tel: 313/322-3000California Partnership Marketing Group, Tel: 415/705-5565

sold just 896 vehicles in April, down 30 percent from the same month in ’09. Land Rover sales were up 35 percent to 2,749 units in April, resulting in an overall 10 percent sales increase for Jaguar Land Rover North America.

Tata purchased the Jaguar and Land Rover brands from Ford Motor Co. in June ’08. The company subsequently moved its North American headquarters from Irvine, Calif. to Mahwah, N.J.

The sponsorship initiative also helps breathe new life into the arts sector, a property category that has seen many defections by troubled auto companies over the past two years.

Source Jaguar Cars North America, Tel: 201/818-8500


Chart 1: How will your 2011 leveraging and activation spending compare to 2010?

The number of sponsors saying they would increase activation spending rose 16 percentage points from 2010 and is 27 points higher than 2009. Last year the majority of sponsors (52 percent) said they would keep leveraging spending the same as the year before.

The bigger commitment to activation outshines the love sponsors are showing to sponsorship rights fees, although the news is positive there as well.

Chart 2: How will your 2011 sponsorship spending compare to 2010?

Percentages do not equal 100 due to rounding

Over one-third of marketers will spend more on sponsorship deals this year, with just less than half allocating the same as they did in 2010. Last year, nearly one-third (31 percent) said they would cut spending, while only 20 percent were set to grow budgets for fees.

Some of the new money for rights fees likely will go to new partnerships, as opposed to renewals or mid-term escalation: 78 percent of sponsors said they are considering new sponsorships in 2011. Two years ago, that figure was just 60 percent.

Survey respondents reported that spending on sponsorship fees—not including activation—accounts for 19 percent of their overall expenditures on advertising, marketing and promotion.

Chart 3: What is your company’s typical promotional spending ratio?


The average ratio comparing activation spending to the amount spent to acquire sponsorship rights rose to $1.60 on leveraging for every $1 spent on rights fees from $1.40 to $1 in 2010. The survey’s high water mark for activation spending was $1.90 to $1 in 2007.

Chart 4: Which of the following marketing communication channels do you use to leverage your sponsor programs?

© 2010 IEG, LLC. All rights reserved.

IEG Survey continued from p1





Hospitality has yet to climb back into the top three most popular activation tools after falling to fifth last year in the wake of TARP-related scrutiny of financial-services sponsors.

Chart 5: Which types of agencies, if any, do you use to help leverage/support your sponsorship programs?

A significantly higher number of sponsors are seeking assistance from PR firms in helping to promote sponsorships this year. While more than half of the 2011 respondents said they work with PR agencies to support sponsorships, only 38 percent did so last year.

The number of sponsors who said they do not use any agencies to assist with sponsorship programs dropped 10 percentage points to one-third of respondents, marking the lowest proportion in the 11 years the question has been asked.

Chart 6: Over the past few years, has your return on investment from sponsorship increased, decreased or stayed the same?


The 2011 survey included more questions than ever about sponsors’ approach to evaluation and measurement of their partnerships. Charts 6 through 10 paint a familiar picture of a medium that recognizes the importance of measuring return on investment and return on objectives, but continues to struggle with finding the resources to do so and determining what the right things to measure are.

The good news is that the percentage of marketers who cannot say whether they are earning a return on their sponsorship investments has hit a low point in the survey’s history of 18 percent.

Chart 7: Over the past few years, how has your company’s need for validated results from sponsorship changed?


Sixty-one percent of sponsors said the need for good measurement had increased a lot, while another 23 percent said it had increased a little. But when asked the follow-up question, “Does your company actively measure return from its sponsorships?” a full one-third of sponsors said no.






Chart 8: What percentage of a sponsorship’s total budget is typically spent on concurrent or post-event research to measure success?

While there has been a gradual movement in the right direction, still more than seven out of 10 sponsors spend either nothing or below the minimum accepted standard of one percent of spending on evaluating whether their sponsorships are having the intended impact.

Chart 9: How valuable are the following metrics to you in evaluating sponsorships?

Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable

Sponsors’ ranking of measurement metrics implies that they are evaluating what is easiest to calculate (awareness) and not always going after the harder-to-determine impacts further down the purchase funnel.

Marketers also continue to rely on their property partners for evaluation assistance, with survey respondents ranking their dependence on rightsholders to help them measure return as a 6 on a 10-point scale.

Chart 10: How valuable are the following property-provided services?


Two-thirds of sponsors said properties generally do not meet their expectations in helping them measure their return from partnerships.

Chart 11: How valuable are the following benefits to you?


Among the top 10 benefits properties can offer, sponsors continue to value exclusivity and on-site exposure highly, while presence on a property’s Web site and the ability to “own” a portion of a property through title of a proprietary area or program have both risen dramatically, tying for fourth most popular.

Another benefit that was determined to be much more important this year was access to property content for








digital and other uses, which came from outside the top 10 to place sixth on the list.

Chart 12: How important are the following objectives when evaluating which properties to sponsor?


Chart 13: During which time period does your company determine its sponsorship budget?

The survey was conducted online in February and received 120 responses.

Source Performance Research, Tel: 401/848-0111



With the 2010 World Cup concluded, sponsorship activity should begin to heat up, thus the region is projected to be the fastest-growing source of sponsorship dollars outside of North America, with a forecast growth rate of 5.6 percent for 2011.



Happy What sales techniques do sponsorship rightsholders believe will be most successful in 2011? What practices will they put into action to gain the interest of prospects, secure meetings and close deals?

IEG SR put that question to some veteran sales professionals with successful track records. Below, they share some of their go-to sales strategies and tactics for the year ahead.

Chuck O’Connor, director of corporate partnerships, National Cherry Festival presented by Verizon Wireless

Add the personal touch. The Traverse City, Mich. event plans to complement the use of emails, attachments and other electronic outreach efforts with a more personal touch.

“Like most business folks, I have jumped on all of the online social mediums that have become so popular over the past few years,” O’Connor said, noting that those efforts have received positive feedback. “But when I was thinking how impersonal it was becoming, I started countering with more phone calls and even personal notes and cards.

“I’m sure I’ll continue to conduct business via email, but I’m going to try not to forget the importance of the personal touch where I can. I think it’s refreshing and good for business.”

Incorporate sponsor messaging into social media efforts. With more than 13,000 Facebook fans, a blog and regular email blasts, the National Cherry Festival sees an opportunity to assist sponsors in reaching people in its online network.

“I include this as a general benefit in my proposals now, and it has become a talking point in some negotiations,” O’Connor said.

“We can enhance the value of our sponsorship packages by including appropriate sponsor messaging well before and after our event, further expanding the window of exposure

beyond the eight days of the festival.” Justin Johnson, senior vice president of corporate sales and marketing, New York Islanders

Convert vendors into sponsors. The NHL has already turned roughly 30 vendors into sponsors for this season.

“We aggregated the companies we do business with into a spreadsheet, and we determined we were spending millions of dollars with them,” Johnson said. “We asked ourselves, ‘Why are we spending $50,000 to $75,000 on a limo company when they don’t spend a dime on us?’”

As a result, the company pitched sponsorship packages to vendors with whom it spends $10,000 or more annually. “We reached out to them and asked, “How can we make this a long-term agreement?’”

The team has struck deals with vendors ranging from a limousine provider—Tran-Star Executive—to a pest control service—Dial-A-Bug Pest Control, Inc.

Categories the team is considering include hotels, food and beverage providers, sports equipment manufacturers and paper companies (napkins, cups, boxes, etc.), Johnson said.

Howard Freeman, president, Promo One

Mine year-end budgets. Looking to take advantage of unspent marketing dollars, the producer of the Quick Chek New Jersey Festival of Ballooning in association with PNC ramps up sales efforts in December.

“The last two weeks of the year is one of the most prime selling times; we concentrate on use-it-or-lose-it money,” Freeman said.

Sponsorship decision-makers often are still at work during the holiday season and are frequently more accessible than other times of the year, he added.

Chris Brahe, senior vice president of partnership sales and marketing, New Jersey Nets

SELLING

Sponsorship Sales Resolutions For The New YearProperties are reinforcing fundamental customer relationship tactics as well as adopting some counter-intuitive strategies.


Target philanthropic budgets. With marketing budgets remaining tight, the NBA team is seeking to tap philanthropy and community relations dollars.

The team is attempting to accomplish that in part by developing programs that support a prospective sponsors’ charity, Brahe said.

The Nets are on the cusp of landing at least one new partner as a result of the strategy, he said.

Michael Kirschner, director of corporate partnerships, Chicago Cubs

Sell fewer, more exclusive deals. The MLB team is embarking on a “less is more” sponsorship strategy for the 2011 season.

“We are moving in a new direction with fewer but more exclusive and impactful partnerships,” Kirschner said.

The strategy runs counter to many MLB clubs, which sell multiple lower-level partners, he said.

Gail Lowney Alofsin, director of corporate partnerships, Newport Harbor Corp.

Assist sponsors with activation ideas and strategies. Alofsin has found success by demonstrating to prospects what they could do to bring a sponsorship to life and make it relevant, as well as working proactively on behalf of sponsors of the festivals and events produced at the Newport Yachting Center in Rhode Island.

“It’s best if the activation is low cost or no cost, especially when they do not have a budget,” she said. “When possible, we include an activation activity in the partnership agreement. It can be as simple as adding a face painter or balloon art specialist to their booth to attract families.”

Pat Armstrong, senior vice president, marketing & development, Kentucky Derby Festival

Be a great listener. When coaching sponsorship sales staff, Armstrong tells them to concentrate on being a great listener during the customer needs analysis portion of a client meeting.

Listening to a client or prospect’s needs has taken on greater importance as sponsors put more focus on return on investment, he said.

“Sponsorship decisions are under more scrutiny than ever to deliver ROI, and as a result properties must be willing to create promotional partnerships that speak directly to sponsor objectives.”

Sources Chicago Cubs, Tel: 773/404-2827 Kentucky Derby Festival, Tel: 502/584-6383 National Cherry Festival, Tel: 231/947-4230 New Jersey Nets, Tel: 201/935-8888 New York Islanders, Tel: 516/501-6700 Newport Harbor Corp., Tel: 401/619-1371 Promo One, Tel: 973/882-8240

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What’s in a name? Plenty if the name is sponsorship and the question is asked of nonprofit organizations.

IEG Sponsorship Report’s latest survey of nonprofits demonstrates the variety of approaches such organizations take to corporate partnerships, a situation that likely causes confusion for the companies they want to work with.

From the way they define sponsorship to how many departments have corporate relationships to what they are willing to offer donors, nonprofits have created a patchwork landscape of deals that although reflecting a similarly varied approach to partnerships on the corporate side may not be allowing them to maximize revenues.

On its own, having multiple types of agreements with corporate partners is not the issue, as many successful organizations have a variety of ways for companies to get involved—from corporate contributions and year-round marketing partnerships to event-based sponsorships, cause marketing programs and trademark licensing deals.

Problems can arise when there is a lack of distinction between the different varieties of agreements, a lack of recognition of the value of marketing-related benefits, and when responsibility for managing corporate relationships is decentralized to the point where focus on the big picture and optimization of revenue is lost.

Chart 1: Recognizing that more than one of the following statements could be applicable, please select the one that best describes your organization’s approach to sponsorship.

According to the survey, only one-third of nonprofits define sponsorship primarily as a business-driving relationship that is discrete from philanthropy, with half of respondents viewing it as a “specific type of funding related to an event, exhibit or programming.” Sixteen percent of nonprofits said they drew no distinction between corporate giving and corporate sponsorship.

CAUSE MARKETING

Survey Reveals Great Disparity In Nonprofits’ Approach To Corporate Partnerships Many nonprofits’ approach to corporate relationships continues to devalue the benefits they offer to marketing partners.


Chart 2: How many departments within your organization have corporate relationships?

Seven out of 10 nonprofits have more than one department that has relationships with corporations, with more than one-fifth of such organizations having four or more departments with some responsibility for working with companies.

Chart 3: Which of the following best describes where primary responsibility for sponsorship resides within your organization?

Only 18 percent of nonprofits have a dedicated sponsorship department, with the majority placing responsibility for such relationships within development, reflective of the fact that most organizations don’t distinguish sponsorship from other types of corporate giving. The department most often mentioned under “other” was marketing.

Survey Reveals continued from p12


Chart 4: Do you provide corporate donors with marketing-related benefits without requiring any additional payments or fees?

Refusal to give away marketing-related benefits is a key indicator of whether a nonprofit organization is protecting the value of those benefits—and thus creating a reason for companies to pay fair market fees and for corporate donors to consider tapping marketing and promotional budgets to expand their involvement.

Although six out of 10 nonprofits report they do not charge additional fees to allow donors to access marketing-related benefits, that is a marked improvement from the 2009 survey, when 79 percent of nonprofits engaged in the practice.

Chart 5: What percentage of your corporate donors requests marketing-related benefits?

In numbers similar to the 2009 survey, 92 percent of nonprofits have at least one corporate donor that seeks marketing benefits in exchange for its contribution. Forty-one percent of nonprofits report more than half or all of their donors request such quid pro quos.



Chart 6: What percentage of your corporate relationships involves the company providing a philanthropic donation and supporting the relationship with marketing, advertising or promotional efforts?

What is defined as “strategic philanthropy”—the support of corporate donations with marketing dollars—is not the norm for most nonprofits, with six out of 10 reporting that less than half or none of their donors engages in such activity.

Chart 7: What kind of marketing-related benefits are corporate donors seeking?

In terms of benefits donors most often seek, identification on printed collateral materials topped the list, as it has done in previous years’ surveys.

Interest in having company names on events, exhibits or programs rose significantly—only 36 percent of nonprofits mentioned this as a donor request in 2009 compared to 49 percent this year—while there was a corresponding decline in requests to be a category exclusive partner—from 46 percent to 37 percent.



Chart 8: Do you believe that your corporate contacts in traditional philanthropic positions/departments recognize the value of marketing benefits you offer?

\

More than half of nonprofits said corporate giving personnel did not understand the value of their property’s marketing benefits. That response was a reversal of the 2009 survey, in which 56 percent answered yes to the same question.

Chart 9: Do you have difficulty securing meetings/conversations with corporate contacts in marketing and other departments outside of corporate philanthropy?

In answering a first-time survey question, a slight majority of respondents indicated they had difficulty in getting in the door with non-philanthropic corporate contacts. Given the great deal of conversation around this issue, some in the industry might be surprised that the number of those answering “yes” was not higher.



Chart 10: In terms of number, which of the following accounts for the majority of your corporate relationships?

Less than one-third of nonprofits have more marketing-driven corporate relationships than donor relationships. Given the much longer history of corporate philanthropy compared to sponsorship, some may be surprised that those organizations reporting mostly donor relationships was not higher than 47 percent.

Chart 11: In terms of income, which of the following accounts for the majority of revenue from your corporate relationships?

On the revenue side, less than one-quarter of nonprofits earn more from sponsorships and cause marketing partnerships than they do from philanthropic contributions.



Chart 12: Do you allow sponsors to “pay” for part or all of their sponsorship commitment in the following ways?

Nonprofits were nearly evenly split on the issue of whether it is proper for a company receiving marketing-driven benefits to pay for some or all of its fee through corporate and employee fund-raising efforts, with only slightly more than half allowing the practice.

Chart 13: What challenges do you face in growing sponsorship revenue?

Most nonprofits are concerned with their ability to offer benefits of value to corporate partners, with limited resources to service those relationships and being unsure of how to value benefits following closely behind in their list of challenges.

Internal issues such as lack of support for sponsorship and competition in the form of prospect sharing and conflicting roles and responsibilities for corporate relationships were less of an obstacle, but still of concern to about a quarter and a third of respondents, respectively.



With sales on the mend and a reinvigorated product lineup, General Motors Co. (“What GM Has Learned About Sponsorship And Social Media,” 1/24/11) has returned to sponsorship in a big way.

The marque currently leading the charge: Cadillac.

Building on its much publicized return to golf last year—through a six-year, estimated low-seven-figure-per-year partnership with the World Golf Championships, a tie that includes title of this weekend’s Cadillac Championship at Doral in Florida—the brand has expanded its national sponsorship portfolio with a new four-year tie to Vail Resorts.

The luxury brand also has increased its use of sponsorship on the local level, signing a handful of new deals with arts organizations, film festivals and other types of properties, including presenting status of this month’s Dallas Int’l Film Festival and cosponsorship of last month’s BNP Paribas Showdown tennis event at New York City’s Madison Square Garden.

And like its involvement in golf, Cadillac has returned to at least one local property dropped in the wake of bankruptcy protection. The brand last year signed a new partnership with Newark’s New Jersey Performing Arts Center after a two-year absence.

Like other marques in GM’s stable, Cadillac largely uses sponsorship to accomplish three goals: update its image, promote new vehicles and reach a new generation of buyers.

Tactically, the brand uses sponsorship to engage consumers outside the showroom floor and generate leads for follow-up marketing.

Vail Resorts: Reaching Consumers Where They Live, Work And Play Cadillac partnered with the destination owner as a targeted marketing platform to promote its all-wheel-drive vehicles.

“Outside the Escalade, consumers may not be aware that the SRX and CTS both offer advanced all-wheel-drive systems, making a great choice when visiting ski destinations,” said Don Butler, vice president of Cadillac marketing, in a statement.

The partnership affords exclusive marketing and advertising opportunities as the official vehicle of Vail Resorts’ six locations: Vail, Beaver Creek, Breckenridge, Keystone, Heavenly and Northstar-at-Tahoe. The first four are in Colorado and the remaining two are in California.

Like the WGC and other ties, Cadillac will leverage Vail Resorts to get consumers into its vehicles. For example, the brand will provide courtesy cars and shuttle service at some of the lodging properties at the resorts.

Cadillac also will host ride-and-drives and other vehicle demonstration events at the resorts. It also receives a presence at key Vail Resorts events, including Vail Snow Daze, Spring Back to Vail, Beaver Creek Snow Shoe Adventure, Beaver Creek Wine and Spirits Festival, Keystone Kidtopia and Heavenly’s Spring Loaded.

Steve Haener, national sales promotions manager for Cadillac, oversees the brand’s sponsorship activity.

Regions And Dealers Get In The Sponsorship ActIn addition to national partnerships, Cadillac also is increasing sponsorship activity at the local level.

Those deals are driven by Cadillac’s five regional marketing managers and local dealer groups.

For example, Cadillac marketers in GM’s Irving, Texas-based South Central office teamed with the Dallas Fort Worth Metroplex Cadillac Dealers to sponsor the Dallas Int’l Film Festival. Cadillac will activate the 11-day event by providing transportation for VIPs and other influentials.

“When you think of film, you think of Hollywood and red carpet arrivals,” said Tom D’Angelo, South Central regional

SPONSOR PROFILE

Cadillac Continues Acquisition Mode: Signs With Vail Resorts, Local Properties Brand’s resurgence is indicative of the health of the auto category and its interest in sponsorship.

Cadillac continued on p20


Cadillac continued on p19

SELLLING

Leveling The Playing Field: How Smaller Properties Can Compete For Sponsorship RevenueTips from veteran sellers include: highlight value proposition and flexibility, partner with media and retail.

No doubt, smaller properties have their work cut out for them in securing significant levels of sponsorship. It is a challenge competing with larger, more established rightsholders that can offer bigger reach, instantaneous recognition, guaranteed media exposure and other important advantages.

Making matters worse recently, the hangover from a weakened economy and related budget cutbacks has prompted some companies to concentrate on bigger or more established properties that many consider more of a “sure thing” in terms of earning a return on investment, even if the investments are larger.

“Big acts like Justin Bieber (“Xbox Sponsors To “Kinect” With Broader Gaming Audience,” 7/23/10) always get a sponsor,” said Cary Chevat, president of Sponsorship Resources, a sales agency. “When you get down to second-tier properties, they are all struggling.”

Just getting a prospect to respond can be a challenge for small properties.

“If you are calling from the Chicago Bears, it’s going to be easier for you to get a return call than for someone from minor league baseball’s Joliet Jackhammers; even if they are not interested in becoming a Bears sponsor, they may still think they can get some free tickets,” said Jim Kenyon, vice president of strategic alliances with Intersport, which specializes in event marketing, hospitality, and content production and distribution.

So aside from touting their likely lower rights fees, what should smaller properties do?

IEG SR posed that question to a handful of experienced sponsorship sellers at properties and agencies. Below, they offer seven ways to help overcome the “bigger is better” barrier.

marketing manager for Cadillac, in a statement. “It’s a natural fit for Cadillac. More importantly, the art of film brings a concept to life with artistic design and masterful craftsmanship, and this is exactly what Cadillac stands for.”

The sponsorship marks the first time an automobile brand has served as the festival’s presenting sponsor, said Emily Hargrove, the event’s director of press and publicity.

In addition to transporting VIPs, Cadillac will run a sweepstakes at the festival dangling a 2011 CST coupe; the brand will use the sweeps to collect a targeted database for follow-up marketing.

Cadillac also activates local ties to drive dealer traffic. For example, local dealers are leveraging the New Jersey Performing Arts Center with a promotion offering a $10

discount for opening night tickets to two upcoming musicals: A Chorus Line and Monty Python’s Spamalot.

The tie also affords vehicle display in the venue’s lobby, said Peter Hansen, NJPAC’s vice president of development.

GM’s other regional offices are located in Alpharetta, Ga. (Southeast); Danbury, Conn. (Northeast); Naperville, Ill. (North Central); and Thousand Oaks, Calif. (West). The offices house marketing staff for Cadillac and other GM brands.

R*Works, General Motors’ sponsorship agency, helps develop strategy and execute ties.

Sources General Motors Co., Tel: 313/556-5000 New Jersey Performing Arts Center, Tel: 973/642-8989 Dallas Int’l Film Festival, Tel: 214/720-0555

Leveling The Playing Field: continued on p21


Their ideas can be summed up by a response from Kenyon to the above question: “Because smaller properties don’t have mass appeal or aren’t as sexy as larger properties, they need to appeal to the more logical side of the brain,” he said.

Understand and communicate your value proposition. To gain a point of differentiation from other sponsorship sellers, properties should know what they stand for as an event or organization.

“Every property is a brand, and as a property you have to have a clearly defined brand value proposition,” said Kevin Adler, president and chief solutions officer with Engage Marketing, a sponsorship consultancy and sales firm. “Once you have that, it is much easier to identify brands that may be interested in aligning with your event.”

The strategy has long been used by minor league sports teams to compete with their major league counterparts.

“If you are a minor league hockey team located in a market with a Stanley Cup champion, how do you position yourself as another hockey opportunity? You have to define your brand positioning as affordable, family entertainment,” Adler said.

For smaller properties that reach a niche demographic segment, the ability for sponsors to efficiently reach that market may be the seller’s most compelling value proposition.

Be flexible. With larger properties often less nimble when it comes to the ability to deviate from standard sponsorship packages, smaller properties should take advantage of that situation and showcase their willingness to be flexible and offer customized benefits, personalized service and other advantages to corporate partners.

“Many times smaller properties are in a better position to offer more unique packages, or are more wiling to create those packages, than larger properties,” said Armand Milanesi, president of Precision Sports Entertainment, a sponsorship sales agency. Highlight less cluttered environment. When making a pitch, small properties should play up their small sponsor roster as an asset, not a liability.

“Big properties typically have a lot of sponsors, which is unappealing to some brands,” Milanesi said. “With a smaller property, a sponsor can pay less and still be positioned as a big player.”

Expand reach through media and retail partners. A tried and true method used by properties to provide additional touchpoints: team up with media and retail partners.

Those two types of partners can provide additional exposure for the property and its sponsors by proving print, broadcast and online ad inventory and in-store promotional support in exchange for on-site and other benefits.

“When working with smaller properties, we try to create specific assets that have value for sponsors, such as bringing in a media partner that is willing to provide a special supplement or series of ads that we can pass through to a sponsor,” said Hugh Wakeham, president of Wakeham & Associates Marketing, a sponsorship sales agency.

For example, WAM created a sponsorship package for a music festival by partnering with a local TV station that offered programming that matched the festival’s. The agency marketed packages that included inventory from both the event and the broadcaster.

“That was great because it allowed us to access advertising dollars as well as sponsorship dollars,” Wakeham said.

Properties also can find success by aligning with supermarkets (“Grocery Retailers Stock Shelves With New Sponsorships,” 9/20/10) and other types of retailers that can provide exposure on shopping bags, circulars, in-store displays and other inventory that can be shared with sponsors.

That’s a key strategy of RhodyCo Productions, which produces running and cycling events in Northern California.

“With small properties, one of our goals is to keep expanding our promotional inventory,” said company president Dave Rhody. “That includes getting a supermarket to do in-store promotion, and offering that

Leveling The Playing Field: continued from p20

Leveling The Playing Field: continued on p22


up to key brands. The brands are always hungry for more point-of-sale promotion, even in small markets.”

Offer alternative payment structures. For nonprofit properties, WAM has found success with deal structures that replace up-front rights fees with donations generated through cause marketing programs.

The agency used the strategy last year in a deal between client Tree Canada and Canadian Tire Corp. The retailer donated $2 to the nonprofit for each consumer purchase from an eco-friendly line of products, up to a maximum of $250,000.

“When the economy was shot every company was saying they didn’t have sponsorship dollars,” Wakeham said. “But they did have sales incentive dollars.”

“The sponsor only had to commit to a per-transaction fee. It made it easier for them to buy the partnership, and it generated a significant amount of revenue for the property.”

Demonstrate measurable ROI. Properties can set themselves apart from larger or smaller counterparts by developing custom packages that allow sponsors to achieve return on investment or return on objectives.

“Beyond price points, the key is providing measurable ROI said Mark Gundrum, vice president of marketing and communications with the ARCA Racing Series presented by ReMax and Menards. “We have to connect the dots more than ever before.”

For example, ARCA created a vendor-driven program for Menards in 2008 that included co-presenting status of the series and primary status of a team. More importantly, the program was funded by safety glove manufacturer Ansell Ltd., which gained sales rights in Menards stores and drives traffic through driver appearances and other promotions.

“We looked past the top one or two leaders in the home improvement retailer category and provided Menards with a local market activation program it wasn’t getting from its NASCAR involvement,’ Gundrum said, noting that the retailer also serves as a primary sponsor of a NASCAR Sprint Cup Series team.

Target local companies. When identifying potential prospects, smaller properties should consider locally based companies.

“We recognize that an event that primarily impacts a specific community is of interest to business owners or managers within the community,” said Rhody.

Properties should also look for companies with a large number of employees in the community and offer packages that include tickets or discount ticket offers that can be used to engage that audience, said Kenyon.

“A company could send 500 employees to a Kane County Cougars game or offer a special seating section at a local fireworks show. Even though the events may be small, in many cases they mean more to people than larger properties.”

When working with local or regional companies, properties should provide turnkey activation programs.

“If a company is spending $50,000 to sponsor Swedish Days in Geneva, Illinois, there is a good chance they don’t have an agency to help them activate,” Kenyon noted. “Smaller properties should provide activation ideas and help to implement them.”

Sources ARCA, Tel: 734/847-6726 RhodyCo Productions, Tel: 415/759-2690 Engage Marketing, Tel: 312/981-3800 Intersport, Tel: 312/661-0616 Precision Sports Entertainment, Tel: 973/301-0770 Wakeham & Associates Marketing, Tel: 416/593-0040

Leveling The Playing Field: continued from p21


Already a popular property with attendees, media and corporate partners, the Sundance Film Festival has stepped up its game with new sponsorship inventory and secured three new sponsors.

First-time partners of the January 20-30 event include JPMorgan Chase & Co.’s Sapphire rewards credit card; Canon U.S.A., Inc.; and Cadbury Adams USA LLC’s new Trident Vitality chewing gum. In addition, Honda North America, Inc. has expanded its partnership and will bring in the luxury Acura line as its lead brand.

IEG SR spoke with Katie Kennedy, associate director of development/corporate for the Sundance Institute, about the festival’s new sponsors, its inaugural Festival Co-op program, and how it is using its new partnership with Gowalla’s social media platform to provide sponsors a new activation element.

Below are edited excerpts from the conversation.

IEG SR: Let’s start with your new partnership with JPMorgan Chase. What is Chase Sapphire’s role and how will it activate?

Kennedy: We signed Chase Sapphire as a presenting sponsor, our highest level. It replaces American Express Co., which previously sponsored the festival at the leadership level, our second-highest level.

Chase is activating the partnership with card members, such as providing travel packages and screenings that they can access by redeeming points. Cardholders also will have an exclusive access line at the main box office in Park City, as well as access to tickets to Sundance Film Festival USA screenings in nine cities.

Chase also will activate on site. For the first time, we are taking over our own venue in Park City to give sponsors a place to activate. It will be called the Festival Co-op.

There are 40,000 people who attend Sundance, and they are a very valuable, high-end demographic. Many of our

sponsors want to market to them, but the price for sponsors to obtain their own venue is astronomical.

We are taking over a great location in a heavily trafficked area, and each sponsor can have a footprint in the venue based on their sponsorship level.

IEG SR: Will every sponsor participate in Festival Co-op?

Kennedy: No, but every sponsor could if they wanted to. Some sponsors have their own venue. Bing has its own venue, and the Sundance Channel has its own venue. This is for brands that don’t have their own venue, such as Acura, Brita, L’Oreal and Timberland.

If sponsors have the budget for a presence on Main Street, that’s great. If not, we can provide them a solution.

IEG SR: Is the Festival Co-op included in sponsorship packages, or do sponsors have to pay an additional fee?

Kennedy: It’s included in their sponsorship packages. We provide security, signage and logistics; the sponsors are responsible for their build-out.

IEG SR: What are the details regarding Canon’s and Trident Vitality’s new sponsorships?

Kennedy: Canon has a new high-definition SLR camera, and it is promoting the fact that you can use a camera to shoot high-definition video. Canon ran a short film contest earlier this year called Beyond the Still and will show the final product in one of our venues.

Trident Vitality is a new sponsor at the sustaining level. The brand is focused on sampling, so it will have a fairly small footprint.

IEG SR: Sundance last week announced a new partnership with Gowalla. How will that work and will sponsors be a part of this initiative?

ONE-ON-ONE

Sundance Finds Success Offering Next-gen Sponsorship Benefits Sponsors respond to packages that include built-in leveraging platforms.

One-On-One continued on p24


One-On-One continued from p23

Kennedy: We will tag venues, events and screenings so people can have a living history of the festival experience.

We will also partner our sponsors with Gowalla to bring their on-site presence to the next level. Southwest Airlines is running a promotion with Gowalla leading up to the festival by offering customers the chance to win roundtrip tickets.

Many of our other partners are talking to Gowalla. It’s another way for sponsors to engage with consumers and get their brand message out in a new and innovative way.

IEG SR: Sundance also has a partnership with YouTube. What can you tell us about that relationship?

Kennedy: We will simultaneously screen shorts on YouTube and at the festival. We have done that for a few years, but this year we will screen 20 shorts as opposed to 12.

We also will have live streaming for a significant number of events. We tested that last year, and we will expand it this year. That includes opening day press conferences, award ceremonies and some panels. It’s a great way to engage our audience beyond Park City.

IEG SR: Will you incorporate sponsors into that effort?

Kennedy: Not this year. I’m old school. I like to test things before we sell them. I want to build a buzz around it, and then try to sell it. It’s easier to sell something with a proven history.

Source Sundance Institute, California office: Tel: 310/360-1981


Although their on-time performance may ebb and flow, U.S. airlines can be counted on to be sponsors of many properties.

According to IEG’s annual survey of rightsholders, the airline sector was one of three of the most active categories that did not appear less frequently on sponsor rosters over the past three years, with 11 percent of properties reporting a deal from at least one airline each year.

In that regard, airlines find themselves in the company of insurance and telecommunications companies.

Although it is very possible—indeed probable—that airline sponsors have reduced sponsorship-related spending or ticket allocations during recent turbulent economic times, at least they have roughly maintained their number of deals, even if they are at lower levels of commitment.

With the economy seeming to stabilize and more business and leisure travelers taking to the skies, nearly all of the country’s major carriers have added deals to their sponsorship portfolios in recent months.

In general, the airline category’s hot buttons include: boosting visibility in new markets, demonstrating community involvement; engaging employees; building relations with frequent business flyers and securing business from sponsored properties.

Airlines typically fund deals with a combination of cash and in-kind tickets.

Below, detailed sponsorship profiles for the most active U.S. airline sponsors:

AirTran Holdings, Inc.9955 AirTran Blvd.Orlando, FL 32827

Tad Hutcheson, vice president of marketing and sales407/318-5600

Targets/Objectives/Key Activations: The seventh largest U.S.-based airline uses sponsorship to build awareness and generate trial, particularly in new or growing markets. Case in point: signed a handful of new deals in ’09 to promote expanded service in Milwaukee, inking agreements with The Great Circus Parade, Marquette University athletics, MLB Milwaukee Brewers, Milwaukee Film Festival and Wisconsin State Fair. Outside of Milwaukee, focuses on sports-centric properties in five key markets: Atlanta, Baltimore, Boston, Indianapolis and Orlando. AirTran in ’09 signed a multiyear deal with the NFL Atlanta Falcons, replacing the team’s previous deal with Delta.

Decision-making Structure: Hutcheson reviews and signs off. Kevin Healy, senior vice president of marketing and planning, provides input.

Current Sponsorships: Presenting: Marquette University athletics. Cosponsor: Amway Center, Orlando; Andretti Autosport Izod IndyCar Series team; Atlanta Convention & Visitors Bureau; Atlanta Film Festival 365; BB&T Charleston Food & Wine Festival, South Carolina; Bike MS: Citrus Tour; Cobb County Convention & Visitors Bureau, Georgia; Florida Film Festival, Orlando; Georgia Aquarium; Hands On Atlanta; Honda Grand Prix of St. Petersburg Izod IndyCar Series race; MLB Milwaukee Brewers; NBA Orlando Magic; NFL Atlanta Falcons, Baltimore Ravens and Indianapolis Colts; NHL Boston Bruins; Old Dominion University athletics; Pro Football Hall of Fame, Canton, Ohio; Streets of St. Petersburg; Verizon Wireless Amphitheatre at Encore Park, Alpharetta, Ga.; Visit Florida; Wichita River Festival; Zoo Atlanta

Additional Comments: Frequently leverages sports teams with custom-painted planes. ’09 passenger count: 24 million.*

WHO DOES WHAT

Airline Industry Remains On Board With Sponsorships Properties should target the key carriers in their markets for cash or in-kind sponsorship.

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Airline continued from p25

American Airlines4333 Amon Carter Blvd.Fort Worth, TX 76155

Billy Sanez, director of global advertising, promotions & corporate communications817/963-1234

Targets/Objectives/Key Activations: Unit of AMR Corp. and third largest U.S.-based carrier has revamped its corporate sponsorship strategy over the past two years by dropping properties that don’t offer international exposure or multi-segment reach in favor of partnerships that can be activated on a global basis. The company last year signed a new partnership with the North Texas Super Bowl XLV Host Committee and has not dropped any major ties this year, Sanez said. Looks for properties that provide access to 25-to-54-year-old business travelers, exclusivity, media exposure, promotional elements and hospitality opportunities. Evaluates deals based on their ability to reach women, Hispanics, African-Americans, the GLBT community and other targeted groups. Remains an active sponsor on the local level.

Decision-making Structure: Accepts national, regional and local proposals at AA-Promo.com. Funds community events and other local deals out of local sales offices. Octagon, PR agency Weber Shandwick and promotion agency AC&M help develop sponsorship strategy and activation.

Current Sponsorships: Title: American Airlines Arena, Miami; American Airlines Center, Dallas; American Airlines Theatre, New York City. Cosponsor: AFI Dallas Int’l Film Festival; Arlington Park horse track, Arlington Heights, Ill.; Bank of America Chicago Marathon; Bass Performance Hall, Fort Worth; Brookfield Zoo, Illinois; ECHL Charlotte Checkers; FedEx Orange Bowl and Festival; Grant Park Music Festival, Chicago; ING Miami Marathon and Half Marathon; Int’l Reggae and World Music Awards, New York City; Los Angeles Film Festival; Main Street Fort Worth Arts Festival; MLS and four teams; Navy Pier, Chicago; NBA Europe Live; NBA Mavericks and Heat; NFL Cowboys; North Texas Super Bowl XLV Host Committee; Pasadena Tournament of Roses Parade and Rose Bowl Game; Philadelphia Zoo; San Angelo Stock Show & Rodeo, Texas; St. Jude Children’s Research Hospital; Susan G. Komen for the Cure; Zachary Scott Theatre Center, Austin, Texas.

Additional Comments: American has extended its use of branded entertainment, including a global tie-in with Paramount Pictures Corp.’s Up in the Air. American plans to expand its use of branded entertainment with tie-ins with additional films this year, Sanez said. Rogers and Cowan serves as American’s entertainment support agency. Activates 22-year-old Komen tie through Miles for the Cure program offering AAdvantage frequent-flyer members five miles for each dollar donated to the cause. Passenger count: 85.7 million.*

Continental Airlines, Inc.1600 Smith St.Houston, TX 77002

Dana Bates, director, brand marketing, advertising & sponsorships713/324-5000

Targets/Objectives/Key Activations: Dropped its long-running partnership last year with Madison Square Garden and the venue’s primary tenants the NBA New York Knicks and NHL New York Rangers. Otherwise, the sixth largest U.S.-based airline largely kept its sponsorship portfolio intact in ’09. Uses sponsorship to strengthen its market positioning and enhance relationships with frequent business customers. Continental focuses on properties located in three key markets: Cleveland, Houston and New York City, in addition to its national partnership with the March of Dimes. Typically activates by offering OnePass frequent-flyer members the opportunity to bid miles for once-in-a-lifetime property-connected perks such as walk-on roles in Broadway shows.

Decision-making Structure: Skokie, Ill.-based Paragon Marketing Group screens and evaluates ties in conjunction with Bates and Jeff Jones, manager, sponsorship marketing. Paragon also helps develop sponsorship strategy and implement ties.

Current Sponsorships: Presenting: Golfers Against Cancer. Cosponsor: Albuquerque Int’l Balloon Fiesta; Alley Theatre, Houston; American Theater Wing’s Tony Awards; AT&T Pebble Beach National Pro-Am, PGA Tour stop, California; The Broadway League; Carnegie Hall; Cherry Creek Arts Festival presented by Janus, Denver; Cleveland Sports Commission; Cleveland Orchestra; Cleveland Museum of




Art; ConocoPhillips Rodeo Run, Houston; Cynthia Woods Mitchell Pavilion, The Woodlands, Texas; Great Lakes Science Center, Cleveland; Greater Houston Convention & Visitors Bureau; Hawaii Opera Theatre; Hobby Center for the Performing Arts, Houston; Houston Ballet; Houston Grand Opera; Houston Livestock Show & Rodeo; Houston Symphony; Houston Zoo; ING New York City Marathon; Jimmy V Celebrity Golf Classic; Lincoln Center for the Performing Arts; Make-A-Wish Foundation; March of Dimes Foundation; Mercedes-Benz Fashion Week, Miami; MLB Houston Astros; MLS Houston Dynamo; Museum of Fine Arts, Houston; National Assn. of Hispanic Publications; NBA Cleveland Indians; New Jersey Performing Arts Center; NFL Cleveland Browns, Houston Texans and New York Giants; Opera Cleveland; Out & Equal Workplace Advocates Annual Summit; Points of Light Foundation; Rock & Roll Hall of Fame & Museum, Cleveland; Special Olympics, New Jersey; The Old Globe, San Diego; Theatre Under the Stars, Houston; USTA U.S. Open; Wings Over Houston Airshow.

Additional Comments: Outside the U.S., Continental last fall sponsored the London Arts Festival to promote its business-class service between London and New York City. Passenger count: 43.9 million.*

Delta Air Lines, Inc.1030 Delta Blvd.Atlanta, GA 30320

Tim Mapes, senior vice president of marketing404/715-2600

Targets/Objectives/Key Activations: The largest carrier in the world since merging with Northwest Airlines Corp., Delta uses sponsorship to build visibility, engage with customers in key markets, tout customer benefits and build loyalty. The airline expanded its presence in New York City in ’09 with a multiyear, estimated seven-figure per-year partnership with Madison Square Garden (replacing Continental), a tie that includes the Knicks, Rangers and Liberty. The company last year dropped its partnership with the NFL Atlanta Falcons to put more focus on pro baseball, according to a published report. Activated its sponsorship of the ’10 Grammy Awards through a promotion with online radio station Pandora.com offering personal listening stations inspired by Grammy Award-winning artists and a sweeps dangling a trip to the awards show. The carrier

further leveraged the tie by making a donation to The Grammy Foundation for every tweet using #DeltaGrammys; the company donated $1 per tweet, up to $10,000.

Decision-making Structure: Accepts proposals at Delta.Sponsorport.com.

Current Sponsorships: Title: Classic Chastain Park Amphitheatre, Atlanta. Cosponsor: 100 Black Men of America; 3M Championship presented by Post-it Products, PGA Tour Champions Tour stop, Blaine, Minn.; AIDS Walk New York presented by Duane Reade; Alliance Theatre Co.; ALSAC / St. Jude Children’s Research Hospital; American Red Cross; Atlanta Ballet; Atlanta Convention & Visitors Bureau; Atlanta Journal-Constitution Peachtree Road Race 10K; Atlanta Pride Festival; Atlanta Symphony Orchestra; Bank of America Atlanta Football Classic; Beacon Theatre; Breast Cancer Research Foundation; Brigham Young University athletics; Capital One Bowl; Chicago Theatre, Chick-fil-A Bowl; Children’s Hospital of Wisconsin Foundation; Children’s Medical Center Foundation of Central Texas; Children’s Miracle Network; Cincinnati Opera; Cirque du Soleil; Fiesta Atlanta; Food Network New York City Wine & Food Festival; Food Network South Beach Wine & Food Festival presented by Food & Wine; Fox Theatre, Atlanta; Georgia Institute of Technology athletics, Grammy Awards; Greater Cincinnati Convention & Visitors Bureau; Guthrie Theater, Minneapolis; Habitat for Humanity Int’l; High Museum of Art, Atlanta; Juvenile Diabetes Research Foundation Int’l; Madison Square Garden; Make-A-Wish Foundation; Medtronic Twin Cities Marathon; Minnesota Orchestra; MLB Atlanta Braves, Boston Red Sox, Cincinnati Reds, Colorado Rockies, Detroit Tigers, Los Angeles Dodgers, Minnesota Twins, New York Mets, New York Yankees and Tampa Bay Rays; Naismith Awards; National Assn. of Collegiate Directors of Athletics; National Society of Black Engineers; Native American Business Alliance; Nature Conservancy; NBA Atlanta Hawks, Memphis Grizzlies, New York Knicks and Utah Jazz; NFL Minnesota Vikings, New Orleans Saints and New York Jets; NHL Anaheim Ducks, Atlanta Thrashers and New York Rangers; North American Int’l Auto Show, Detroit; PGA Tour; Radio City Music Hall; Saint Paul Chamber Orchestra; St. John’s University athletics; Tribeca Film Festival; U.S. Ski and Snowboard Assn.; University of Georgia athletics; University of Minnesota athletics; Vanderbilt University athletics; WaMu Theater at Madison Square Garden; Wildlife Conservation Society ; WNBA New York Liberty; Xavier University athletics, Zoo Atlanta




Additional Comments: Delta’s 22-year-old partnership with the PGA Tour runs through this year; the airline activates the tie by offering travel perks to Tour members. Passenger count: 108.6 million.*

JetBlue Airways Corp.118-29 Queens Blvd.Forest Hills, NY 11375

Lisa Borromeo, manager, national sponsorships718/286-7900

Targets/Objectives/Key Activations: The eighth largest U.S.-based airline has ramped up sports marketing over the last year with new ties to Boston College and University of Texas athletics, the New York Jets and the Florida Panthers. The low-cost carrier uses sponsorship to strengthen its presence in existing markets and build visibility in expanding markets. For example, the airline late last year partnered with BC athletics to build its presence in the market, where it plans to boost daily departures 30 percent by summer ’10. Frequently leverages new partnerships by offering discount tickets for a specific promotional period. For example, JetBlue late in ’09 offered a 10 percent discount on flights out of Boston to celebrate BC deal. The airline ran a similar promotion late last year around its Panthers tie, offering an 18 percent discount on flights out of Fort Lauderdale. The promotion tied into the start of service to San Francisco, JetBlue’s 18th destination out of Fort Lauderdale-Hollywood Int’l Airport.

Decision-making Structure: Borromeo reviews and approves ties with Marty St. George, senior vice president of marketing and commercial strategy, and other marketing staff.

Current Sponsorships: ATP Legg Mason Tennis Classic presented by GEICO, Washington, D.C.; Aquarium of the Pacific, Long Beach, Calif.; Austin Marathon and Half Marathon, Texas; Boston College athletics; Boston Independent Film Festival; Boston Marathon; Celebrate Brooklyn!; Chelsea Piers, New York City; Dig the Beach beach volleyball series, Florida; Fort Lauderdale A1A Marathon & Half Marathon presented by Publix; Hofstra University athletics; Lexus Broadway Across America, Boston; Litquake, literary festival, San Francisco; Long Beach Int’l City Bank Marathon & Half Marathon, Calif.;

Long Island 2 Day Walk To Fight Breast Cancer; Marine Corps Marathon, Washington, D.C..; MLB Boston Red Sox, Los Angeles Angels of Anaheim and Los Angeles Dodgers; MLS Real Salt Lake; Nation’s Triathlon, Washington, D.C.; Nautica New York City Triathlon presented by RCN; NBA Los Angeles Clippers and Orlando Magic; NFL Buffalo Bills and New York Jets; NHL Florida Panthers; Nike Women’s Marathon, San Francisco; Orlando Hispanic Expo; Richmond Ballet; River to River Festival presented by American Express, New York City; St. John’s University athletics; Statesman Capitol 10,000 presented by H-E-B, Austin, Texas; Tri-City Medical Center Carlsbad Marathon & Half Marathon, California; USA Luge; University of Texas at Austin athletics.

Additional Comments: JetBlue activated its new Panthers partnership by placing a branded airplane tailfin on a “JetBlue Tarmac” outside the BankAtlantic Center; the company plans to further leverage the tie by offering travel packages for fans to attend away games. The deal affords title of an Hispanic concert series at the arena and official and exclusive sponsor status. Passenger count: 22.4 million.*

Southwest Airlines Co.2702 Love Field Dr.Dallas, TX 75235

Andy Allman, director, national strategic partnerships214/792-4000

Targets/Objectives/Key Activations: The second largest U.S.-based carrier uses sponsorship to tap into consumer passion points, demonstrate its community involvement and build presence in new markets. For example, the company last year signed title of the Southwest Airlines Porch at New York City’s Bryant Park to promote its launch of service at LaGuardia Airport. The airline—which leveraged the tie through on-site chats with its senior leadership—has renewed the partnership due to the buzz it generated, Allman said. The company is increasingly leveraging ties with text-message promotions, as well as promos that tout its Click ‘n Save email service and Rapid Rewards loyalty program. Also has tapped deals to promote its Bags Fly Free positioning. For example, in late ’09 leveraged its Nuggets tie with promo that dangled tickets to a Nuggets game and roundtrip airline tickets; to enter, consumers were required




to say “Bags Fly Free only on Southwest Airlines” at the carrier’s Pepsi Center display area.

Decision-making Structure: Allman approves national deals, as well as promotions with Coca-Cola, Kraft and other strategic partners. Irene Riddle, director of brand engagement, oversees market-specific sponsorships.

Current Sponsorships: Title: Chinese New Year Festival & Parade, San Francisco. Cosponsor: Border Book Festival, Mesilla, N.M.; Busch Adventure Parks; Capitol Federal Park at Sandstone amphitheater, Bonner Springs, Kan.; Chicago Blues Festival; Chicago Convention & Tourism Bureau; Children’s Medical Center, Dallas; Congressional Hispanic Caucus Institute Annual Gala; Hispanic Assn. of Colleges and Universities; Midnight Gaming Championship; MLB Baltimore Orioles and Pittsburgh Pirates; NAACP Image Awards; National Assn. of Women Business Owners; National Baseball Hall of Fame and Museum; NBA; NBA Boston Celtics, Denver Nuggets, Phoenix Suns and San Antonio Spurs; NHL Dallas Stars; Oregon Museum of Science & Industry; Red Rocks Park and Amphitheatre, Morrison, Colo.; Ronald McDonald House Charities; San Jose Holiday Parade, Calif.; State Farm Bayou Classic college football game; T-Mobile San Jose Mariachi and Mexican Heritage Festival presented by Target, Calif.; U.S. Hispanic Chamber of Commerce; Water Country USA; WNBA Washington Mystics

Additional Comments: Busch Adventure Parks deal includes Busch Gardens venues in Tampa and Williamsburg, Va.; SeaWorld Adventure Parks in Orlando, San Antonio and San Diego; and Water Country USA in Williamsburg. Activated ’10 NBA All-Star Game by flying trophies to the event on “Slam Dunk One.” Passenger count: 101.3 million.

United Airlines77 W. Wacker Dr.Chicago, IL 60601

Samantha Petti, manager of marketing communications312/997-8000

Targets/Objectives/Key Activations: Fourth largest carrier and subsidiary of UAL Corp. uses its 30-year-old relationship with the USOC as its major national sponsorship platform. The carrier transports athletes and

seeks to gain additional business from national governing bodies of individual sports. “The sponsorship is the best illustration of United’s global reach and all the services it can provide,” said Jeannie Goldstein, a partner with Chicago Sports & Entertainment Partners, which helps United develop strategy. Obtains sponsor status of some NGBs as a result of USOC tie.

Decision-making Structure: Petti screens proposals. United’s marketing/promotions department is responsible for sports and events ties, while nonprofit partnerships are handled by corporate social investment/public relations.

Current Sponsorships: Title: United Center, Chicago. Cosponsor: MLB Chicago Cubs and White Sox; NBA Chicago Bulls; NHL Chicago Blackhawks; USA Canoe/Kayak; U.S. Biathlon Assn.; U.S. Fencing Assn.; U.S. Figure Skating; USOC; US Speedskating; U.S. Synchronized Swimming.

Additional Comments: Cross-promotes USOC tie with other Olympic sponsors. For example, United has run a sweepstakes with Visa Inc. offering trips to the Beijing and Vancouver Games to consumers who purchase airline tickets using a Visa card. Transports the Bears, Cubs and White Sox, but not the Bulls. Passenger count: 56 million.

automotive sponsorship spending: 2010 proves better than ...€¦ · sponsorship spending: 2010...

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