Corporate Sponsorship: harnessing benefits whilst safeguarding independence and ethics

Transcription

1 Corporate Sponsorship: harnessing benefits whilst safeguarding independence and ethics

2 Vision & Mission Unify, strengthen and advance the business of sponsorship in Europe by being the pre-eminent organisation that builds understanding, value and demand for sponsorship across Europe. Mission Setting Standards Identifying and promoting responsible best practice and self-regulation. Improving - Advancing sponsorship competencies, practice and knowledge. Promoting - Being an advocate for sponsorship and promoting its importance, values and ethics. Supporting - Being an essential resource for sponsorship information, education/training and relationships. Engaging Acting as the advocate, manager and authority on key policy issues at national government and pan-european level. Benefiting Encouraging the role of sponsorship to make a contribution to society.

3 SPONSORS RIGHTS-HOLDERS

4 Agenda Introductions Sponsorship: definition Corporate motivations for investment Rights-holders objectives Rights-holders assets Case study Best practice

5 Sponsorship: What is it?

6 Definition Any commercial agreement by which a sponsor, for the mutual benefit of the sponsor and sponsored party, contractually provides financing or other support in order to establish an association between the sponsor's image, brands or products and a sponsorship property in return for rights to promote this association and/or for the granting of certain agreed direct or indirect benefits. International Chamber of Commerce

7 Translation. A sponsorship property is simply a tool. Corporate decision-makers care only for the results that can be achieved through it.

8 Rights-holder: the person or organisation that owns the physical or intellectual rights to a sponsorable property RIGHTS-HOLDER UEFA La Scala Kylie Minogue EON Productions PROPERTY Champions League La Traviata Aphrodite: Les Folies James Bond films Property: a project, event, team, venue, individual or other entity offered to the market as a sponsorship opportunity

9 Corporate motivations for investment

10 Attention deficit disorder The days of high demand and limited supply are over it s a new game now. A game where the limited supply is attention. Seth Goodin Permission Marketing

11 Sponsorship s USP Advertising: generates awareness Public Relations: informs and influences Sales promotion: stimulates interest and trial Sponsorship: engages the heart of the consumer.

12 Sponsorship objectives Awareness Association Perception Favourability Relevance Consideration Trial Loyalty Bonding Advocacy BRAND

13 Awareness Association Perception Favourability Relevance Consideration Trial Loyalty Bonding Advocacy BRAND Sponsorship objectives COMMERCIAL Sampling Showcasing Sales increase Market share growth Promotions platform Database building Loyalty programme enhancement Supply chain incentives Spoiling tactics Innovation catalyst Direct sales opportunities Advertising alternative Licence to operate New market penetration Employee skills development Marketing platform

14 Government lobbying NGO/Industry positioning Investor influence Change management Employee motivation Community relations Corporate citizenship B2B relationships Co-sponsor alliances Reputation management Potential employees Awareness Association Perception Favourability Relevance Consideration Trial Loyalty Bonding Advocacy BRAND Sponsorship objectives ENGAGEMENT COMMERCIAL Sampling Showcasing Sales increase Market share growth Promotions platform Database building Loyalty programme enhancement Supply chain incentives Spoiling tactics Innovation catalyst Direct sales opportunities Advertising alternative Licence to operate New market penetration Employee skills development Marketing platform

15 Rights-holders objectives.

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17 Funding replacement CASH Scheduled payments Performance bonuses

18 Added value CASH Scheduled payments Performance bonuses OTHER Value in kind - Personnel - Technology - Administrative resources - Materials provision - Specialist skills/expertise Marketing in kind - Database - Communications - Introductions - Brand enhancement Enhanced customer experience

19 What does AER have to offer?

20 Audience 87% 77% Sponsorship is an introduction by you to a group of people a sponsor wants to reach 65% 47% 45% 40% 35% 33% What data do you have/can you collect? Q. Which of the following characteristics to do typically analyze when making a decision to sponsor? Source: IEG Demographics Attendance Fan Passion/affinity Psychographics Growth Trends in category What Competition Sponsors Interest Among Trade/Dealers TV Ratings

21 Sponsorship assets Tangible has a monetary value Intangible value is non-financial

22 Tangible and intangible assets Tangible: has a monetary value Media exposure Tickets/hospitality Database access Specialist knowledge/expertise Meeting facilities Brand ambassadors Sampling Technology Administrative resources Content provision Marketing activity Intangible: value is nonfinancial Transferable brand attributes Property prestige Quality of delivery Convenience of location Credible brand endorsement Category exclusivity Strength of shared goals Networking opportunities Facilitated introductions Exclusivity of access Uncluttered environment

23 Case study: Golden Gate Bridge

24 The challenge Golden Gate Bridge, Highway & Transportation District faced $80m deficit Developed sponsorship program to fund: - cable restoration - enhanced visitor centre - contribute to ongoing operational costs Not naming rights - Modelled on National Parks Foundation sponsorship program 3-5 lead $1m -1.3m each - Website dedication, integration into visitor centre signage - Advertisements on local ferries and buses Early engagement with media and public meetings

25 Lessons learned Get the public involved in initial stages of developing the program e.g. Focus group discussions Engage opposition groups to identify benefits they can support and build them into the program Ensure buy-in from all internal stakeholders don t just focus on the opposition Define the detail before going public no room for misinterpretation Focus on those elements most likely to garner public support how partners would have assisted with preservation, promotion, celebration of the Bridge Critical mass anticipated annual revenue of $3-4m not sufficiently significant against the deficit

26 Best practice

27 Best practice Strategy development Focus on creating added value through sponsorship, not replacing operating costs Open your books Source PR expertise in public affairs Develop an integrated communications strategy Anticipate objections and have fact-based responses Andrew Mowen, Pensylvania State University

28 Best practice Safeguarding independence Absolute clarity from first interaction that you retain editorial control Define each property s sponsor architecture before going to market (numbers, categories, exclusivity etc.) Less is usually more More may offer greater protection If in doubt, don t do it

29 Sponsor relationships Best Practice Implement a proper structure on both sides at all levels to manage the relationship Meet regularly and frequently, share successes and challenges Take time to gain in depth knowledge of each other s strengths, culture and priorities Build a long term plan around priorities and leverages core strengths Ensure a joint approach don t relegate the sponsor to a supporting role Nothing is impossible explore all options to surface innovative solutions Monitor outcomes don t be afraid to change.

30 Accenture intelligent funding model - consulting plus cash. challenges Accenture s employees to apply their business and management expertise to the worlds of sports and the arts gives Accenture a platform to discuss its sponsorships (and services) in business media. Example: Skandia Team GBR sailing real impact on performance via athlete monitoring systems reduced churn of RYA membership

31 Thank you. +44 (0)