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Sponsorship EssentialsSponsorship Essentials

by

Björn Walliser

Professor of Marketing, University of Nancy (France) &Part-time Faculty Member, California State University,

Northridge

presentation given at the

University of Nevada Las Vegas

April 6, 2010

Sources of the powerpoint presentation: Björn Walliser, Sponsoring et parrainage, Dunod, 2006 Sam Fullerton, Sports marketing, 2nd ed., McGraw-Hill,

2010

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The Sponsorship ProcessThe Sponsorship Process

SPONSORorganisation, individual

ACTIVITY / EVENT PERSON / GROUP

Financial or non-financial support

Contribution to communication objectives

MEDIA

TARGET OF

SPONSORSHIPDEAL

MEDIA

ACTIVITYSPONSOR

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Key Sponsorship ConceptsKey Sponsorship Concepts

• Participants– Sponsor – Party Seeking Association (Visa)– Sponsee – Property Owner (e.g. FIFA)

Linkages– Self-Evident – adidas products used in event– Strategic – Visa Credit Cards and FIFA have similar

target markets

• Leveraging – Efforts to Support One’s Sponsorship with Additional

Strategic Initiatives (i.e. Event-Oriented Advertising)

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Example of LeveragingExample of Leveraging

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Venue Naming RightsVenue Naming Rights

• Building Sponsorship

• Sponsor Pays to Have Its Name Attached to a Facility for A Specified Period of Time

• Many Types of Facilities beyond Sports

• Percent of Major US Professional Teams Playing in Venues with Corporate Sponsor– 30% in 1997– 69% in 2007

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Allianz Arena MünchenAllianz Arena München

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Sponsorship vs. AdvertisingSponsorship vs. Advertising

2 pictures

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Sponsorship vs. AdvertisingSponsorship vs. Advertising

Which was the name of the sponsor?

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Sponsorship vs. AdvertisingSponsorship vs. Advertising

2 pictures

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Advertising’s AdvantagesAdvertising’s Advantages

• Persuasive Message – Words and Images Used to Convey Ideas

• Standardization– Everyone Receives an Identical Message

• Guaranteed Size of Audience Reached– Circulation; TV Ratings; Radio Ratings

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Sponsorship’s AdvantagesSponsorship’s Advantages

• Credibility, Emotion • Internal Morale• Sales Opportunities• Overcome Advertising Restrictions

– Bans against Tobacco Advertising

• Cut Through Advertising Clutter– Not Competing with Broadcast Advertising

• Reach Small Segments and Niches– Small Specialized Properties (local festival)

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Worldwide Sponsorship InvestmentsWorldwide Sponsorship InvestmentsSource: different sources, especially IEG.

2,55

8,310

14

19

25

30

38

43

0

5

10

15

20

25

30

35

40

45

1985 1989 1991 1993 1996 1999 2002 2005 2007 2010

(in billion USD)

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Sponsorship Spending WorldwideSponsorship Spending WorldwideSource: 2007 IEG Sponsorship Report (sample issue), p. 1 and 4.

0

2

4

6

8

10

12

14

16

NorthAmerica

Europe PacificRim

SouthAmerica

Others

billion USD

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Sponsorship ObjectivesSponsorship Objectives

Brand image

Brand awareness

Personnel motivationSales

Relation-ship building

Product demonstration

Corporate image

Corporate awareness

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Sponsorship ComponentsSponsorship Components

• Category Exclusivity

• Signage

• Right to Use Event Trademarks and Logos

• Distribution Rights

• Hospitality Areas

• Complimentary Advertising

• Free Tickets

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Sponsorship Components (Cont’d)Sponsorship Components (Cont’d)

• Right to Purchase Additional Tickets

• Link on the Event Web Site

• (Sponsorship) Designation

• Inclusion in Event Promotions

• Access to Property Mailing List / Database

• Right of First Refusal

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Which Components Which Components Are Most Valuable?Are Most Valuable?

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IMC including sponsorshipIMC including sponsorship

Advertising PR Sales promotion

Sp

onso

rsh

ip

TVMagazine

Newspaper

CouponSweep-stakes

Push money

Pressconference

Website

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IMC including sponsorshipIMC including sponsorship

Advertising PR Sales promotion

Sp

onso

rsh

ip

TVMagazine

Newspaper

Coca Cola: TV ads

That feature soccer

CouponSweep-stakes

Push money

Pressconference at Augusta Master’s

Pressconference

Website

GM gives away NFL

posters

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Sponsorship Categories (US) Sponsorship Categories (US) Numbers for 2008Numbers for 2008

• Sports (69%)

• Entertainment, Tours & Attractions (10%)

• Cause-Related Marketing (9%)

• The Arts (5%)

• Festival, Fairs & Annual Events (4.5%)

• Associations and Membership Orgs (3%)

* Rounding creates small statistical error (IEG)

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Sponsorship Categories (Europe)Sponsorship Categories (Europe)

• Sports sponsorship (60-70%)

• Arts / cultural sponsorship (15-20%)

• Social sponsorship (10-15%)

• Environmental sponsorship (< 5%)