sponsorship research & roi
TRANSCRIPT
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.
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
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
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.
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)
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….
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
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
There are natural limits on sponsor recall as an objective for sponsors.
Increasing Sponsorship Recall is not Always Best
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
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Sponsor Unaware Sponsor Aware
PASSION
Improvements in Sponsor Purchase Intent are often also directly related to Passion for the Sponsored Property…
6.15.2 5.6
6.4
8.39.2
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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.
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
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.
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.
Thank-you
Nicholas Cameron Sponsorship Research Specialist [email protected]
Resources: Free Monthly Webinars on Sponsorship Measurement Visit www.sponsormap.com for more details.