Webinar Series

About SponsorMap™

  A market research tool developed to better measure the impact of sponsorship.

  Focused on measuring outputs not inputs

  Used in 18 countries with more than 80 projects

  Partnered with Taylor Nelsen Sofres the world’s largest market research company with offices in more than 80 markets

  Integrated approach for measuring sponsorship in conjunction with media, on-line and sales information.

  Importantly, integrating sponsorship into the total measurement framework for brands. Not in isolation, demonstrating the business value of sponsorship is critical.

Major focus on measurement at present.

Growth in Sponsorship Slowing

Sponsorship has Grown Faster Than Advertising and Sales Promotion

Accountability is the Mantra Today

Accountability for Sponsorship Investments

Public opinion ends Wells Fargo golf sponsorship

UBS to end Hong Kong golf sponsorship

Bank of America Defends Sponsorship Deals

RBS cuts back sports sponsorship

ING ends Formula One sponsorship

Traditional Sponsorship Metrics Need Revision

The Sponsorship Quandary….

The Context of the Sponsor and Property Relationship

For Sponsors…

The purpose of sponsorship research is to:

  Make better strategic sponsorship decisions

  Invest in properties that will deliver against objectives

  Achieve sales, financial and non-financial targets

  Refine and improve activation mechanics to drive response

  Negotiate great rights acquisition fees and set activation budgets

  Deliver long-term brand equity and value

For Properties or Rights Holders…

For rights holders too there are important benefits from sponsorship measurement and evaluation.

  Justify healthy rights fees

  Better understand and work with brand sponsors

  Expand the pool of brands who can use sponsorship effectively

  Successfully renew sponsorship partnerships

 Properties that can show they deliver for brands will continue to be successful at attracting sponsors

The Sponsorship ROI challenge is also the Marketing ROI Challenge

Defining Marketing ROI (Return on Investment)

September Issue 2004 Chief Marketing Officer Magazine

in an article titled ‘Metrics Revolution”

Global corporations do not have an "industry-wide standard" in their respective sectors. Most of them seem to measure marketing ROI in diverse ways, some of them strikingly similar…

Sponsorship ROI Needs to be Measured Against Business Goals to Establish its Value

Unless you can demonstrate the potential value of the property in delivering against your brand and business objectives, why would a marketing director look at it and spend millions of on it? It is no different from any other marketing activity.

Sponsorship Cycle

Strategy and Operation Plan Updated

Sponsorship objectives and measurement must be aligned with the sponsor’s own brand and communication objectives and the overall strategic plan.

Typical Sponsorship Objectives

TV sponsorship for women’s deodorant

1   To increase brand penetration (Additional 5 million users)

2   To build brand awareness focusing on credentials of protection and care

3   To encourage trial and switching from other brands

4   To communicate invisible protection (deodorant).

Typical Sponsorship Objectives (Example 1)

Music sponsorship (Mobile phone sponsor)

1   To achieve high levels of awareness for brand A

2   To provide a significant increase in brand preference for brand A

3   To enhance brand A’s image attributes

4   To create a unique brand experience

Typical Sponsorship Objectives (Example 2)

Golf Sponsorship

The objectives of the sponsorship are to deliver for the Brand:

1  High-quality brand awareness

2  Increase customer loyalty

3  Improvement in attitudes and reputation.

This evaluation involves measurement of event sponsorship using several metrics from different sources to measure these sponsorship objectives

Typical Sponsorship Objectives (Example 3)

Sponsorship Theory Impacts on How We Measure

Understanding Sponsorship

•  Sponsorship is a dynamic three-way relationship.

•  Sponsorship works through harnessing the emotional connection between a property and its audience and converting this into a desired response for a sponsor.

•  Sponsorship operates through different cognitive processes than advertising. Advertising communicates directly to the customer through essentially an interruption mode whereas sponsorship communicates indirectly via a property in a passion mode.

PropertyProperty CustomerCustomer

SponsorSponsor

PropertyProperty CustomerCustomer

SponsorSponsor

PropertyProperty CustomerCustomer

SponsorSponsor

PropertyProperty CustomerCustomer

SponsorSponsor

Understanding Sponsorship

Sponsorship cognitive process involves attention, recall, engagement and appreciation to influence brand commitment.

It very important to understand how sponsorship works to demonstrate ROI.

Each of these elements impacts on sponsorship effectiveness.

•  In order to apply an effective sponsorship evaluation methodology, it is important to be clear what such methodology should be measuring. (Our SponsorMap™ approach is based on a framework for understanding the impact of sponsorship on attitude and behavioural change). A useful model for understanding the components of sponsorship effectivenesss is based on the foundations of Heider’s Balance Theory and the recent research from the Advertising Research Foundation.

•  People move through five key stages as they move from initial exposure to a sponsorship towards a behavioural change as a result of the sponsorship experience. These are:

–  Attention: The point of sponsor exposure to an audience whilst the audience is enjoying an event/property.

–  Understanding: The levels to which people are able to recall sponsors of an event/property. –  Engagement: The passion an audience has for an event/property. –  Appreciation: the gratitude or appreciation people may feel towards sponsors for the sponsors

involvement with an event/property. –  Commitment: The change in attitudes or behavior people may feel towards a sponsor/brand that

is a direct result of the sponsorship.

Understanding Sponsorship….

Measuring Attention (Exposure)

Media Measurement of Sponsor Logos (TV)

Analysis of exposure for the Bank of Scotland. Various systems available, all measuring signage.

Logo presence is 50% greater at this venue.

Media Measurement of Sponsor Logos (TV)

After Before

Exposure analysis can assist in driving sponsor recall and there are good solutions available.

27 27

Online Discussion Analysis of Exposure & Blogging

This is an example of on-line monitoring from Cymfony, a TNS company. They conducted an analysis of online discussion focusing on the favorability and key characteristics of the event and players as they relate to the sponsors. Coverage quality components such as brand prominence, title mention, message penetration and tonality were weighted and combined with Reach (% of stature list publications) to get the benchmark Verismo Score. Online monitoring is highly beneficial.

Sponsorship Volume at a Glance (Dec 1 - Dec 28, 2008)

Total PR Coverage Volume*

1,551 articles

Total Social Media Volume

415 posts

Sponsors Tracked Sponsor A Sponsor B Sponsor C Sponsor D Etc.

Measurements of Exposure are Measures of Inputs NOT Return on Investment at ALL.

Weak amongst Early Adopters

Strong amongst Early Adopters Adoption Index

Measuring Understanding (Sponsor Recall)

Unaided Awareness of Sponsors

An example of the survey research to determine sponsor recall.

Base: Total Asked (n=150) Q3a. Talking about the X , what SPONSORS were represented at this event? Q3b. What other SPONSORS were represented at the X event?

Top of Mind Total Unaided

Sponsor

Bank of America

American Express

FedEx

Accenture

Pepsi

Coca Cola/Coke

Citibank

Miscellaneous

Don't Know/None

SPONSOR

Bank of America

Nike

Buick

American Express

FedEx

Sony

Dole

Accenture

Target

Capital One

Citibank

Coca Cola/Coke

Pepsi

Miscellaneous

Don't Know/None

Sponsor Recall is Important but Not an End to Itself

There are natural limits on sponsor recall as an objective for sponsors.

Increasing Sponsorship Recall is not Always Best

Measuring Engagement (Passion)

Base: n=351

The level of engagement (passion) depends on audience and property type. This is a simple example from the US with a specific sample. The impact of a sponsorship for a sponsor is higher with properties that have higher levels of engagement. This depends on target audience a great deal.

Not All Properties are Equal for Sponsors

Property Sponsor “Passionates” Extreme sports Fashion 81% F1 Team Telco 70% Dance Party Tobacco 60% Broadcast Telco 59% Music Festival Telco 54% Football Utility 54% Horse Race Beer 53% Football Finance 43% Arts Utility 34%

Not All Properties are Equal for Sponsors… Some properties have a strong base of fans (“Passionates”) whilst others can have a less strong support

base. Useful information to determine sponsorship impact.

Sponsor Prompted Recall (Vodafone) Team Ferrari

Sponsor Recall is directly related to passion (engagement) therefore traditional aware vs.unaware results can be misleading unless passion is included. (Example from Advertising Festival Case Study 2005)

Break %Respondents

Base

Base

Unweighted

Weighted

Team Ferrari Passion

Unaware ofProperty Disinterested

PassiveEnthusiast Spectator Great Fan Fanatic

V Sponsor TeamFerrari

Yes

No

673 77 337 52 101 43 63

680 76 338 51 102 45 68

25% 2% 16% 31% 34% 45% 60%

75% 98% 84% 69% 66% 55% 40%

Sponsorship Recall is Directly Related to Engagement…

6.7 6.4 6.8 7.1 7.2 7.6 8 8.2

123456789

10

UnA

war

eS

pons

or

Un

awar

eP

rope

rty

Dis

inte

rest

ed

Am

biva

lent

Pas

sive

Ent

husi

ast

Spe

ctat

or

Gre

at F

an

Fana

tic

Purc

hase

Inte

nt

Sponsor Unaware Sponsor Aware

PASSION

Improvements in Sponsor Purchase Intent are often also directly related to Passion for the Sponsored Property…

Measuring Engagement (Appreciation)

6.15.2 5.6

6.4

8.39.2

123456789

10

UnA

war

eS

pons

or

No

Gra

titud

e

Am

biva

lent

App

reci

atiiv

e

Ver

yTh

ankf

ul

Del

ight

ed

Bra

nd A

dvoc

acy

Sponsor Unaware Sponsor Aware

GRATITUDE

Brand Advocacy also has a Strong Relationship to Sponsor Gratitude/Appreciation)

Property Sponsor “Gratefuls” Arts Utility 74%

F1 Team Telco 61%

Dance Party Tobacco 53%

Music Festival Telco 52%

Extreme sports

Fashion 52%

Horse Race Beer 47%

Broadcast Telco 38%

Football Finance 24%

Football Utility 12%

Gratitude Index Ratings - Benchmarks (Categories)) Sponsor appreciation generally depends on the level of activation and also the type of sponsored property.

Measuring Commitment (Brand Response)

Methodology & Sample

Pre and Post Survey Measurement Recommended

Survey research allows for a better understanding of sponsorship impact. In the case above it is the same people interviewed before a sponsorship and then following it. Sponsorship impact can more easily

be gauged with a pre and post treatment and often in conjunction with other tools.

Base: n=300 Source of Business

Shifts in Sponsor’s Brand Performance Indicators

Solid increases in the brand KPIs as a direct result of the event itself with source of business drinkers.

+4%

+13% +6%

✔

Margin of error (4%) at 95%CI *

* *

statistically significant

Demonstrating How a Sponsorship is Achieving Objectives

Brand Attribution through Sponsorship

PAA

SIO

N

Sponsor Unaware

Sponsor Aware

Healthy For Growing Bodies

6.1 5.8

5.5

5.9 6

5.9 7.1

8.1

1 6 UnAware Sponsor Unaware Property

Disinterested

Ambivalent Passive

Enthusiast Spectator Great Fan

Fanatic

10

Sponsorship Related Brand Image Enhancement

Sponsorship example FMCG industry where the health attributes of the sponsor’s brand are much higher with the segment of the markets that engaged with the sponsorship.

ROI Based on Financial Valuations Needs Lots of Data

Last Brand Purchased and Estimate of Increased Spend with Sponsor Sponsor purchases increased by 3% points post-event.

Base: Total Asked (n=500) Prefanq8/Q17. Thinking about the last time you purchased X, what brand or company did you use?

Last Brand Purchased

Total Event Audience

Avg. Spend

$41.52

Pre-Event

Post-Event

Increased Spend with Sponsor

3,000 At the Venue

Media Audience 497,000

At 3% point increment in last purchased brand from the event would

result in $622,000 additional sales from sponsor outlets per

retail outlet visit

Note: Calculation is based on total audience (reach measurement from in conjunction with pre and post survey

information from the fan survey.

Discussion

Thank-you

Nicholas Cameron Sponsorship Research Specialist Nicholas.Cameron@sponsormap.com

Resources: Free Monthly Webinars on Sponsorship Measurement Visit www.sponsormap.com for more details.