the relative value of sponsorship engagement in brand...
TRANSCRIPT
The Relative Value of Sponsorship Engagement in
Brand Activation Strategies
Kirk Wakefield Anne Rivers
6/24/2013 2
BAV®
The Largest and Longest Study of Brands in
the world
• Building since 1993
• Over 740,000 respondents
• 50,000 brands across 200 categories
• 276 studies in 51 countries
• $140 million invested since inception
United States BAV®
• Measured quarterly since 1993
• BrandScape of 3,500 brands
• Panel of 16K consumers
• Custom studies are can be anchored back to
database
for depth and breadth
A Comprehensive Set of Measures
• Brand health
• Brand imagery/ personality
• Consumer funnel: Usage, Preference,
Consideration, Loyalty
BAV® Consulting’s Proprietary Brand Database: BrandAsset®
Valuator
• Kirk Wakefield Passion and fan model
• Bob Jacobsen & Natalie Mizik
Tie compustat valuation and brand metrics
• Kevin Keller
Brand resonators and consumer funnels
• David and Jennifer Aaker
Leading emotional Attributes
• Rajeev Batra
Power of a global brand
Academic Partners Continually
Developing the Model
6/24/2013 3
Percentile
rank
Brand Strength
LEADING INDICATOR
Future Growth Value
ENERGIZED
DIFFERENTIATION
The brand’s point
of difference.
Relates to
Pricing Power
RELEVANCE
How appropriate the
brand is to you
Relates to market
penetration
Brand Stature
LAGGING INDICATOR
Current Operating Value
ESTEEM
How well
regarded the
brand is
Relates to
loyalty
KNOWLEDGE
An intimate
understanding
of the brand
Relates to depth
of consumer
experience
The BAV model uses 4 pillars to assess brand health, development,
momentum, and competitive advantage
6/24/2013 4
BrandAsset® Consulting: USA All Adults Half Years, 2001-2011
4
BAV’s Brand Strength Fund nets $21,169 (+112%) vs. NASDAQ’s $13,357 (+33.6%) on $10,000 initial
investment made 10 years ago
Optimizing Brand Strength directly drives stock price
6/24/2013 5
Percentile
rank
Different
Distinctive
Unique
Innovative
Dynamic
Differentiation
Energy
ENERGIZED DIFFERENTIATION
Different, Distinctive, Unique,
Innovative, Dynamic
• A Brand’s point of difference
• Relates to Pricing Power
• Differentiation is the leading
element for emerging, successful
brands
• Differentiation is the leading
negative indicator for brands that
are getting into trouble
Energized Differentiation: the engine of the brand train
The brand’s meaning, identity relates to margins
Bra
nd
STR
EN
GTH
(E
ner
gize
d D
iffe
ren
tiat
ion
& R
elev
ance
)
Brand STATURE (Esteem & Knowledge)
0
50
100
0 50 100
Source: BrandAsset® Valuator USA NASCAR Fans and Non-Fans, Note: Fan defined by usage or consideration of NASCAR
Sponsor brands have higher perceived Brand Strength and Differentiation among fans because fans are more engaged with their media
Ford
Sprint
Nationwide
Bank of America
Ford
Sprint
Nationwide
Bank of America
NASCAR fans
Non-Fans
New, Unfocused
or Unknown Commodity
or Eroded
Ubiquitous, Declining,
Mass Market
Leadership
Niche or Unrealized Potential
0
25
50
75
100
EnergizedDifferentiation
Relevance Esteem Knowledge
Fans Non-Fans
∆ = 33 ∆ =23
∆ =15 ∆ =5
Average NASCAR sponsor Pillar Performance
Fans, in particular, find sponsor brands to be more Differentiated
and Relevant
Breyers Chevrolet
Coors
Breyers
Chevrolet
Coors
Engagement Activation
• Activation describes the relationship
between environmental stimuli and
emotional processing
• Originates in psychobiology (Kroeger-Riel 1979),
• Activation in sponsorship terms is
interpreted as measurable communication
consciously observed by the audience
• “turning on a prospect to a brand idea
enhanced by the surrounding context” (Advertising Research Foundation, Elliott, 2006)
• Engagement involves evoking emotion in the
audience
• Traditional media engages the audience
with cognitive and emotional measures at
low amounts of attention (Heath 2009)
• Sponsorship and online contexts engages
active participation among the audience at
high levels of attention (Whelan and Wohlfeil
2006)
Opportunity to physically track via RFID
Traditional media and sponsorship activities offer different types of
engagement; sponsorships support audience interaction leading to Activation
1. What is the relative value of sponsorship engagement and activation in driving brand differentiation?
- How can we employ RFID technology to prompt and measure relevant behaviors?
2. Accounting for traditional media, what is the contribution of sponsorship activation?
3. Accounting for traditional media and sponsorship engagement and activation, what is the contribution of second screen engagement?
The Questions
1 2 3 4 5
The Event: The Championship Challenge November 15-17, 2012; Last NASCAR race of the season
Fans entering any of the gates at the Homestead Miami Speedway (1) were intercepted and invited to register for the Championship Challenge (2) inside the gates to win prizes based on the frequency of checking in at 12 stations across the 3-day event. Patrons could also opt for engagement via four green-screen photo booths for mobile uploads (3). For check-ins and photos, participant were given an RFID-tagged lanyard to wave in front of the check-in RFID (4-5).
Sponsors
Sponsor Space (Sq Ft) 1. Ford (Ford Eco-Boost 400) 45,000
2. Sprint (NASCAR Sprint Cup
Series) 15,400
3. Speed TV 14,400 (includes audience space)
4. Coca-Cola 2,400 stage (open thoroughfare in front)
5. Army 12,100 (outside gates)
6. New Holland 7000*
7. Geico 5000
8. Contender Boats 2000*
9. Best Buy 1600
10. Yamaha motors 4 charging stations
*Located outside gates
5
1
2
3 4 6 7
8
9
10
• 2073 subjects registered for the Championship Challenge received emails on Monday (11-27, following the Thanksgiving Holidays) from the Homestead Miami Speedway requesting participation in a survey. Reminders were sent two days later.
• An incentive of a $10 online gift card was offered.
• 390 (18.8%) responded to the survey and 330 (15.9%) completed the entire survey regarding sponsors.
• Completes were not significantly different from incompletes in terms of hours spent at the track (17.24 vs. 15.47, F 1, 372 = 1.76, p = .19) or reported excitement experienced at the event (5.05 vs. 4.91, F 1, 369 = .76, p = .38). Thus, non-respondents do not appear to be different from respondents with respect to behavior or emotion associated with the event.
• Based on emails provided by subjects, responses were matched with the RFID data collected over the course of the three race days. A total of 216 subjects were correctly matched. Those without matching emails were no different than those matching in terms of event attendance (17.17 hours), but did report higher levels of excitement (5.85) than the non-respondents (4.91). Hence, the sample may be characterized as exhibiting greater enthusiasm about the experience.
Sample
RESULTS
Passion Engagement-
RFID
2nd Screen Media
Consumption
Time at Event
Traditional Media
Consumption
Differentiation Non-sponsors
Differentiation Sponsors
Net Promoter
Score
Sponsor Activation
Activation Non-
sponsors
Proposed Model
Bra
nd
STR
EN
GTH
(E
ner
gize
d D
iffe
ren
tiat
ion
& R
elev
ance
)
Brand STATURE (Esteem & Knowledge)
0
50
100
0 50 100
NASCAR sponsors see a lift in brand equity, usage and consideration
among respondents passionate about NASCAR
Sprint
Nationwide
Bank of America
Breyers
Chevrolet Ford
Coors
Sprint
Nationwide
Bank of America
Breyers
Chevrolet
Ford
Coors
0
10
20
30
40
50
Usage Consideration
Low Passion (NASCAR)
High Passion (NASCAR)
% o
f R
esp
on
den
ts
Average Sponsor Brand Usage and Consideration
Not passionate about NASCAR Passionate about NASCAR
“Please indicate how passionate you are about the following
sports leagues, where 0 – not at all passionate and 10 – extremely passionate “
Source: BrandAsset® Valuator USA, High Passion about NASCAR, Low Passion about NASCAR 2012. Notes: High Passion defined as 8-10 on 10 pt scale, Low Passion defined as 0-3 on 10pt scale.
Selected Sponsors: Sprint Ford
Bank of America Nationwide
Breyers Chevrolet
Coors
New, Unfocused
or Unknown
Commodity
or Eroded
Ubiquitous, Declining,
Mass Market
Leadership
Niche or Unrealized Potential
Passion alone was not enough to stimulate higher activation among
participants, but it affected time spent at the event – allowing for more
chances to check in
0.001
0.017
0.294
Activation
Total Tower Check Ins
Hours at track
Correlation to Passion
Passion Engagement-
RFID Time at Event
Number of towers visited (higher RFID activity) led to higher average
activation
0.146 0.106 0.091
0.119 0.149
-0.141
-0.066
Army Coca-Cola Ford SpeedTV Sprint Apple Rolex
Relationship Between RFID and Activation
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0 5 10 15 20 25 30
Ave
rage
Act
ivat
ion
Total Tower Check-ins
Engagement-RFID
Sponsor Activation
Activation Non-
sponsors
Average Sponsor Brand Activation
Increased involvement in sponsorship
activities helped participants better identify
and understand sponsor brands
Total towers visited is related to growth in sponsor
brand activation and decreased activation among
non-sponsors
Non-Sponsor
Brands
Sponsor Brands
Coefficients from Structural Equation Model
While mere exposure to sponsors had no effect on activation, size of the
sponsorship activity is related to brand activation
Ford
Sprint
SpeedTV
Coca Cola
Army
New Holland
Geico
Contender
Best Buy
Yamaha
R² = 0.5914 0
0.5
1
1.5
2
2.5
0 10 20 30 40 50
Ave
rage
Acti
vati
on
Sponsorship Station Square Footage
(in thousands)
R² = 0.0127 0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
0 5 10 15 20 25 30 35
Ave
rage
Acti
vati
on
Total Time Spent at Track
(Hours)
Activation led to greater perceived brand differentiation and likelihood to
recommend in sponsor brands
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Ford Sprint SpeedTV Coca Cola Army NewHolland
Geico Contender Best Buy Yamaha Apple Rolex
Brand Activation > 0
All Miami Respondents
0
2
4
6
8
10
Ford Sprint SpeedTV Coca Cola Army NewHolland
Geico Contender Best Buy Yamaha
Ave
rag
e N
PS
Sco
re
Ave
rag
e D
iffe
ren
tia
tio
n
45,000 4 Sponsorship Sq. Footage Non-Sponsors
Perceived Brand Differentiation
Likelihood to Recommend Brand
Sponsorship activation is a stronger driver of brand differentiation than
traditional media consumption and second screens
Perceived Brand
Differentiation
Activation
.605
Traditional Media
.146
2nd Screens
.096
Coefficients based on Structural Equation Model
Brand Strength
LEADING INDICATOR
Future Growth Value
ENERGIZED
DIFFERENTIATION
The brand’s point
of difference.
Relates to
Pricing Power
RELEVANCE
How appropriate the
brand is to you
Relates to market
penetration
Brand Stature
LAGGING INDICATOR
Current Operating Value
ESTEEM
How well
regarded the
brand is
Relates to
loyalty
KNOWLEDGE
An intimate
understanding
of the brand
Relates to depth
of consumer
experience
Discussion of Implications
• Sponsorship engagement (RFID) leads to increased activation of brand
• Photo engagement no direct effect on activation, but on excitement
• Mere exposure (time spent at event) has no direct effect on activation
• Activation leads to increased perceptions of brand differentiation and likelihood to recommend a brand
• Comparatively, sponsorship activation more strongly influences brand differentiation than traditional media or 2nd screens among attendees
• Among these fans, Facebook and texting multi-tasking is associated with increased attention presumably leading to enhanced brand equity