canadian sponsorship landscape study · 2007-2009 •new study driven by the industry •added...

08-08-08

EXECUTIVE SUMMARY | DECEMBER 2016

CANADIAN SPONSORSHIP LANDSCAPE STUDYELISA BESELT & ADAM DEGRASSE | T1NORM O’REILLY | OHIO UNIVERSITY & T1

10TH ANNUAL

2

10TH ANNUAL CSLS EXECUTIVE SUMMARY

Sponsorship Marketing Budget

26.1%As percentage of total marketing communication budget

2015 Change

Industry Size $1.74 B 4.8%

Activation Spend $0.87 B 27.9%

Total Spend $2.62 B 12.0%

Activation Ratio

0.51For every dollar spent on rights fees, 51 cents is

spent on activation

Evaluation

3.25%of overall sponsorship marketing budget is spent on

sponsorship evaluation

Average 2015 Change

Sponsors Spending $3,035,588 38%

Property Revenue $2,767,983 26%

Agency Billing $975,525 70%

236 Responses

92.7% 7.3%English French

2007-2009• New study driven by the industry• Added qualitative questions• Recession proof• Activation jump

2010-2012• Evaluation decline• SMCC partnership• Gap in service expands• Industry concerns move

from ROI to digital

2013-2015• Activation rebound• Festivals on par with pro sport• Pro sport adapts• 1 in 4 marketing $ is on

sponsorship

10 YEARS OF CSLS

3

OPPORTUNITIES AND THREATS IN SPONSORSHIP TODAY

THREAT

Talent Gap

• Lack of implementation, evaluation and activation knowledge

• Limited professional development opportunities

• Succession planning

• Having sponsors work together instead of competing for attention

• Increased integration of sponsor brands

OPPORTUNITY

Co-Sponsorship

Opportuniti

es

4

• Decline of traditional mediums (e.g., cable TV)

• Integration across platforms, as well as enhanced digital activities are realities of sponsorship today

OPPORTUNITY

Digital & Content

INFLUENCE ON SPONSORSHIP DECISIONS

Sponsor

Decisi

ons

8.3%9.0%

9.0%

9.0%

9.9%15.6%

39.2%

14.0%3.0%

15.0%

10.5%18.5%

11.0%

28.0%

Consumer PassionsInternal Data/AnalysisBiasIndustry TrendsCompetitor ActivityOtherAsset Assessment

SponsorAgency on

Sponsor Behalf

39.2% of sponsors say that “Consumer Passions” influence their sponsorship decisions. 18.5% of agencies (on sponsors’ behalf) say that “Bias” influences their sponsorship decisions.

5

ROI SATISFACTION

Sponsor

ROI

Sponsor

Property’s Perception

0%

20%

40%

60%

0% 0%

40%

55%

5%10%

20% 20%

40%

10%

Re

spo

nd

en

ts (

%)

Sponsor mean = 3.40Property mean = 3.71

SomewhatDissatisfied

Neither satisfied nor dissatisfied

Somewhat satisfied

Very satisfiedVery

Dissatisfied

6

SPONSORSHIP DISSERVICE

Proper

ty

Servic

e Gap

Recall stats

Loyalty stats

Target profile

Ambush protection

Activation w/ sponsors

Activation resources

Exclusivity protection

Activation w/ properties

Concluding report

Info/results on objectives

0 1 3 4 5

4.00

4.27

4.18

4.09

4.00

3.82

4.09

3.91

4.18

4.27

2.64

3.36

3.45

2.82

2.91

2.09

2.64

2.55

2.09

2.27

Likert Scale

ProvidedImportance

7

Industry S

ize

Activation

Rights fees

Total

CANADIAN SPONSORSHIP INDUSTRY

$0

$0.75

$1.50

$2.25

$3.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$1.59$1.78

$2.38$2.52 $2.51 $2.50

$2.75$2.85

$2.34

$2.62

$0.48 $0.56

$0.99$1.09

$0.96 $0.91

$1.18$1.07

$0.68$0.87

$1.11$1.22

$1.39 $1.43$1.55 $1.59 $1.57

$1.78$1.66 $1.74

Am

oun

t (B

illio

ns $

)

Industry Size in 2015 was

$1.74 B

8

MARKETING COMMUNICATIONS BUDGET

Investm

ent

Structu

re0%

10%

20%

30%

40%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

16.7% 15.5%

22.5%

15.4%

22.3%

29.6%

21.9% 23.1%25.4% 26.1%

Spo

nso

rshi

p B

udge

t (%

)

10-year average is

21.9%

9

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

24.2%22.1%23.6%30.8%33.6%32.3%34.8%33.0%39.0%30.0%

75.8%77.9%76.4%69.2%66.4%67.7%65.2%67.0%

61.0%

70.0%

Res

po

nden

ts (%

)

CASH VS. VALUE-IN-KIND REVENUE

Investm

ent

Structu

re

CashVIK

10-year cash average is

69.7% and VIK average is

30.3%

10

SPONSORSHIP SPEND (BIG 5)

0%

15%

30%

45%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Inve

stm

ent (

%)

Catego

ries

Amateur sport

Festivals

Cause

Pro sport

Arts

11

GEOGRAPHIC FOCUS OF SPONSORSHIP SPEND

International 8.6% National 30.6% Multi-Provincial 8.5%

Provincial 20.3% Regional 13.9% Local 17.1%

Geogr

aphy

2006 - 2015 average by

region

12

ACTIVATION RATIO

Activa

tion

CA0

CA0.25

CA0.50

CA0.75

CA1.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$0.43 $0.46

$0.71$0.76

$0.62$0.57

$0.75

$0.62

$0.41

$0.51

Act

ivat

ion

to R

ight

s Fe

e

10-year average is 0.58; US is

consistently near 1.70 (per

IEG)

13

EVALUATION

0%

2%

4%

6%

8%

10%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

7.80%

4.50%

6.00%

4.10%

2.60% 2.30% 2.30%3.00%

1.10%

3.25%

Spen

d o

n E

valu

atio

n (%

)

Evaluatio

n

10-year average is

3.70%

14

The industry spend on both rights fees will hold steady. However, the nature of how sponsors and properties activate will change.

D’ACTIVATION1

16

Organizations will move towards integrating sponsorships more internally. 2Social media will fall as a target of activation investment.

Companies will integrate traditional platforms for sponsorship with new platforms.

Live content will continue its reign as a driver of sponsorship investment.5

34

WHAT’S NEXT? OUR EXPECTATIONS

Festivalization is a fundamental activation platform that will see a lot of growth and diversification in the coming years. 6

17

Cause will need to be an integral component of all great sponsorships.7Sponsorship marketers will become more strategic about who they want to interact with. Target markets will become more defined.

The industry will see a change in how sponsorship activations and interactions are measured.

Training, education, and resources to aid with sponsorship practices will become more formalized.10

89

WHAT’S NEXT? OUR EXPECTATIONS

If you have any questions regarding the data or information found in this report, please do not hesitate to reach out to any of the authors. We encourage you to share the CSLS with your networks and complete the survey as it is made available each year.

Dr. Norm O’Reilly [email protected]

Elisa Beselt [email protected]

Adam DeGrasse [email protected]

THANK YOU!

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canadian sponsorship landscape study · 2007-2009 •new study driven by the industry •added...

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