IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

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1 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MAY 6, PACKAGING HOW THE EXPLORATORIUM HAS SECURED $4 MILLION IN SPONSORSHIP REVENUE Nonprofits can generate significant sponsorship revenue without overt commercialization. Demonstrating that museums have much to gain from sponsorship, San Francisco s Exploratorium has generated $4.1 million in revenue since launching a corporate engagement program two years ago. Partners include Autodesk, Inc.; Chevron Corp.; Franklin Templeton; Genentech, Inc.; PG&E Corp. and Sunpower Corp, all of which have multiyear deals. The 43-year-old institution which features more than 1,000 experiential exhibits that mix science and art launched the program in 2011 to support its relocation from the Palace of Fine Arts to a new $300 million, nine-acre campus on Pier 15. The new venue which opened April 17th is roughly three times the size of the Exploratorium s previous home. While the museum s advancement department continues to secure donations from individuals and corporations, the engagement program takes fundraising to the next level by providing access to unrestricted dollars. The money we get from sponsorship goes directly to our operating budget, said Barbara van Dillen, the Exploratorium s director of corporate engagement. Van Dillen who worked for more than two decades at IMG prior to joining the Exploratorium has focused the nonprofit s sales efforts on locally-based technology companies. The strategy: offer collaborative partnerships that can be used to engage employees and demonstrate community involvement. Rather than offering on-site exposure, the nonprofit aligns each partner with programming that supports their business and/or corporate social responsibility initiatives. For example, Pacific Gas and Electric ties into the venue s sustainability program to support its green energy initiatives; Genentech provides free admission to California public schools teachers; while Chevron uses its partnership to support STEM (science, technology, engineering and math) initiatives IEG, LLC. ALL RIGHTS RESERVED. 1

2 Autodesk partnered with the museum in part to demonstrate its support for the maker movement, a growing subculture of consumers who have embraced electronics, technology and other DIY activities. The software company in 2011 acquired a Web site that offers user-generated content on DIY projects. They own that area, and that s our DNA, said Van Dillen. The sponsorship exec works closely with the nonprofit s development team to make sure partnerships do not harm existing philanthropic relationships, she said. It s a coordinated effort. I don t want to cannibalize my colleagues in development. The takeaway: museums and other nonprofits can generate significant sponsorship revenue by offering tailored marketing packages. In general, nonprofits are so concerned about getting what they want that they often try to fit a square peg in a round hole. They need to listen to what a company wants to do and try to figure out an alignment. Novarto, Calif.-based Bartram Sponsorship Strategies assists with sponsorship sales. Source Exploratorium, Tel: 415/ IEG, LLC. ALL RIGHTS RESERVED. 2

3 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MAY 6, ACTIVATION AFTER YEAR OFF, LOTTERY SEES SUCCESS FROM FESTIVAL PROMOTION Takeaway: Properties need to offer tailored promotional platforms that help sponsors break through the clutter and generate ROI. In today s world of corporate belt-tightening, sponsorship decision-makers are increasingly relying on properties for activation ideas that will keep partnerships fresh and relevant. But what happens if a property doesn t provide the big ideas a sponsor is looking for? What should a sponsor do? For Kentucky Lottery Corp., that may mean sitting out a year to motivate properties to come up with better ideas. Case in point: KLC in 2012 opted out of its decades-long partnership with the Kentucky Derby Festival due to a lack of breakthrough ideas from the property. The lottery was in need of new activation platforms to keep the relationship fresh, relevant and impactful. We have had budget cuts over the past five years, and we need to get the biggest bang for our dollars. The ideas coming from the Derby weren t hard-hitting enough to make our dollars work, said Kate Leverette, KLC s vice president of marketing. It s not rocket science. If you take a year off, you get better ideas. The strategy paid off: KLC this year returned to the Derby after the festival offered a promotional platform that gave a consumer the chance to push the start button for Thunder Over Louisville. The event which was held on April 20th is billed as the largest annual fireworks show in North America. The grand prize dubbed The Thundernator has previously been awarded to celebrities and Medal of Honor recipients. The reason this was a big deal is because no one else has had the chance to do it, said Leverette, who was also drawn to the expected media buzz around the first-time promotion IEG, LLC. ALL RIGHTS RESERVED. 3

4 If it wasn t the first year of the promotion, there wouldn t be as much talk. We felt this was the perfect time to jump on board. The lottery offered the Thundernator as the grand prize in a second-chance drawing promotion for non-winning $2 scratch-off tickets. The sponsorship paid off: Roughly 317,600 consumers registered for the promotion. That s a great number for a four-week promotion, said Edie Frakes, KLC s manager of promotions and events. More than anything, properties need to be flexible and creative by offering promotions customized for each client, said Patrick Armstrong, senior vice president with the Kentucky Derby Festival. KLC sponsors a number of other properties in the Bluegrass State including University of Louisville and Western Kentucky University athletics. The lottery will soon kick off a second-chance drawing with the Kentucky Speedway that dangles tickets and a behind-the-scenes experience at the June 29th Quaker State 400 NASCAR Sprint Cup Series race. Sources Kentucky Lottery Corp., Tel: 502/ Kentucky Derby Festival, Tel: 502/ IEG, LLC. ALL RIGHTS RESERVED. 4

5 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MAY 6, SELLING BEST PRACTICES: LEVERAGING SALES SEASONALITY Properties can speed up the sales process by offering platforms that coincide with key sponsor sales seasons. When prospecting potential partners, sellers need to consider a number of factors ranging from brand fit to audience alignment. One commonly overlooked but increasingly important factor: sales seasonality. Properties can improve their close rates by targeting companies and categories whose key sales periods overlap the timing of their event or series during the calendar year. Case in point: Pest control companies frequently look for promotional platforms that take place in the spring, a time when their service is in demand. MosquitoNix will sponsor next month s HP Byron Nelson Championship PGA Tour event in Irving, Texas to promote its service during the onset of the mosquito season. Two other examples: The Scott Company activates its sponsorship of Major League Baseball by promoting grass seed in the spring and fertilizer in the fall, while York leverages the National Hockey League by promoting heating services in the winter and cooling systems in the spring. When you re a sponsorship seller, you look for any strategic angle that can justify an investment in your property. Demonstrating sales relevancy is a good differentiator from other properties, said Kevin Adler, president of Engage Marketing, an agency that represents both sponsorship buyers and sellers. Source Engage Marketing, Tel: 312/ IEG, LLC. ALL RIGHTS RESERVED. 5

6 SALES SEASONALITY: CATEGORIES TO CONSIDER Spring Pest control Landscaping Real estate agencies Heating & cooling Jewelry (Valentine s Day) Salty snacks (Super Bowl) Flower delivery (Mother s Day) Cruise lines Vacation destinations Tax preparation Summer Beverages (alcoholic & non-alcoholic) Ice cream Military Hotels Sun screen Fall Clothing retailers (back to school shopping) Computer/electronic devices Electronics retailers Heating & cooling Winter Credit cards Home cleaning services Retailers (holiday shopping) Over-the-counter medication 2013 IEG, LLC. ALL RIGHTS RESERVED. 6

7 IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING MAY 6, SELLING COMPANIES STEP UP SPONSORSHIP TO PROMOTE CORPORATE ANNIVERSARIES Properties should watch for corporate anniversaries when targeting new partners. Looking for new companies to target? How about companies celebrating corporate anniversaries? While companies have long used sponsorship to celebrate corporate milestones, the trend is picking up momentum. Case in point: Wells Enterprises, Inc. the owner of Blue Bunny ice cream has teamed up with Make-A- Wish Foundation to celebrate its 100th anniversary. The company is activating the tie by granting 100 wishes to 100 children with life-threatening medical conditions. Wells launched the program April 29th the day that marks the 33rd anniversary of the wish that inspired the founding of Make-A-Wish. Consumers that visit can learn about wishes that have been granted and personalize wish cards. Wells will deliver the messages to all 100 wish kids in October to celebrate the company s 100th birthday on Oct. 24th. Other companies that have used sponsorship to support anniversaries include Sun-Maid raisins, which sponsored the 2012 California State Fair to promote its 100th anniversary, and Union Pacific Corp., which sponsored the Nebraska State Fair and other events to promote its 150th birthday. Source Wells Enterprises, Inc., Tel: 712/ IEG, LLC. ALL RIGHTS RESERVED. 7

8 ABOUT IEG IEG leads the way in sponsorship solutions. With over 30 years providing insights, evaluation, and guidance, our teams bring unparalleled perspective and proven methodology to every challenge. We partner with top brands and properties to create fresh strategies, evaluate opportunities and maximize results. Our clients redefine what s possible, exceed expectations and achieve lasting impact. A unit of WPP s GroupM, IEG is connected to specialty sibling communications companies in media, digital and activation. GroupM is the leading global media investment management operation that also serves as parent company to WPP media agencies including Maxus, MEC, MediaCom, and Mindshare. INSIGHTS EVALUATION GUIDANCE IEG LEADS THE WAY IN SPONSORSHIP ANALYSIS, INSIGHT, VALUATION & MEASUREMENT For more information about IEG and the sponsorship industry, please visit or call 800/ (outside the U.S. and Canada, 312/ ). WWW. SPONSORSHIP.COM 2013 IEG, LLC. ALL RIGHTS RESERVED. 8