Sponsorship Revenue Development

Transcription

1 Sponsorship Revenue Development Trends and Impacts for Non-Profits and Charities AFP EDMONTON LUNCHEON ADDRESS March 6, 2014

2 Mobile Devices Staying connected in the session #afpedmonton

3 BRENT BAROOTES President and CEO Phone: Fax: Toll Free:

4 BUILDING PARTNERSHIPS FOR GOOD The plan for this session Discuss recent trends and updates in the industry Discuss the analysis of that information How all these affect you as nonprofits, charities and AFP members

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6 Since 2006 the industry has grown 41% Now $1.57 billion Almost 22% of spends are on local sponsorships and 72% have a community focus 51% spent with non profits and charities (about $800M) 69% of all spending is in cash with 16% in product and 15% in services

7 Where the of money comes from : 18% Telecoms 14% Financial Institutions 8% Oil and Gas 6% Beer and Athletic Apparel (each) 4% Automotive, Energy, Packaged Goods, Food, Pharmaceuticals, Lotteries (Each) 2% Developers, Agriculture & Retail (Each)

8 Where does the money go: 1. Sport 37% 2. Fairs, Festivals and Annual Events 17% 3. Cause 14% 4. Arts 12% 5. Other (Education, Member organizations, municipalities) 13% 6. Attractions, Entertainment, Tours 7%

9 2013 CONSUMER SPONSORSHIP RANKINGS AN EXCLUSIVE CANADIAN RESEARCH STUDY

10 Consumer Sponsorship Rankings 2013 MOST ACTIVE SPONSORS IN CANADA #8 #9 #10 #1 #7 #6 #5 RESPONDENT S PERCEPTION #4 #3 #2

11 Consumer Sponsorship Rankings 2013 #1 #2 #3 #4 Most Important Charities #5

12 Top 9 Charities or causes 22% CANCER RELATED Canadian Cancer Society Heart and Stroke Foundation United Way / Centraide Breast Cancer Red Cross Terry Fox Run Sick Kids Enfant Soleil Salvation Army

13 Consumer Sponsorship Rankings 2013 In the telecommunications sector, TELUS clearly ranks #1 in western Canada owning more share of Canadian consumer support than the next six telcos combined. In the rest of Canada, Bell dominates share, with Rogers a close second and Videotron fourth, followed by SHAW.

14 Consumer Sponsorship Rankings 2013 In the Media side: Rogers scores highest in most age, income, and geographic demos against any single other recalled single brand When Bell and CTV are combined, they dominate most categories SHAW with Global, radio and TV ranks below TVA, Astral (now a Bell product) and Quebecor.

15 Consumer Sponsorship Rankings 2013 Atlantic Canadians believe that oil and gas companies are the most supportive of sponsorship followed by western Canada Quebecers are almost 1.5 times more likely to say that oil and gas companies are not supportive of sponsorship in Canada. Petro-Canada and Shell are both dominant brands in the energy sector

16 Consumer Sponsorship Rankings 2013 The Canadian Cancer Society scores highest for a cause in the industry, and as could be expected, skews highest recall in the 50+ age category and $100,000+ income category, The CIBC Run for the Cure shows up outside the top 10 of the most important causes or charities in Canada and the Terry Fox Run ranks highly.

17 Consumer Sponsorship Rankings 2013 SHOULD MUNICIPALITIES SEEK SPONSORSHIP? 6.5 out of 10 Canadians believe municipalities, parks and secondary schools should seek corporate sponsorship as a source of revenue

18 Consumer Sponsorship Rankings 2013 OPINIONS ON MUNICIPALITIES SPONSORSHIP 43% 87 % 50 % Companies should get preferential treatment if they are providing revenue to offset costs through a sponsorship Companies should be able to sponsor public spaces such as hockey rinks, ball parks and recreational facilities Companies should be able to retitle existing buildings named after prominent citizens or community benefactors

19 QUESTIONS ON CORPORATE SPONSORSHIPS Top 3 reasons people feel corporations sponsor sports, cultural events and causes: To enhance brand image Display corp. name or logo Be seen as a good corporate citizens Top 3 methods people feel most appealing ways for corporations to promote sponsorships: Donating prizes Giving cash to organizations Offering reduced tickets & products

20 Trending and Impact Conference Board of Canada Community Investment Committee update IMAGINE Canada study shows 56% of Canadian corporations switched from philanthropy to corporate sponsorship in the preceding year

21 Trending and Impact Brands are starting (slowly) to making more demands on their partners (charities or not) and becoming accountable for their ROI ROI and not necessarily ROI to the community has become a major factor for brands today

22 Trending and Impact The properties who will continue to grow in this sector are getting the paradigm shift They understand the need to be creative in partnerships and this does not just mean with ideas on activation, feel good elements and helping but how they can integrate the brand into their theirs and more

23 The truth behind sponsorship? Retired CBC Dragon s Den investor and retired First Energy s CEO Brett Wilson in an interview held no punches when he remarked about his feeling on philanthropy. We ve used charity as our marketing budget since day one. He added People would say no, giving is supposed to be altruistic. But I have said bullshit from the start. There s nothing wrong with the scratched back approach to giving

24 Building for the future Growing Competition for sponsorship dollars as an increase in fluency around sponsorship permeates the non profit sector CSLS 2013 Property Customer service (or lack thereof) by properties and a historical view of what is in it for me versus what can I do for them CSLS Sponsor

25 Building for the future Top Five Predictions for Continued growth of industry in revenues and this will continue to be a shift in dollars from traditional marketing and philanthropy as well as increased budgets 2. More growth in people and professionalism more creative presentations, more training and development, better partnerships

26 Building for the future Top Five Predictions for Growth with municipalities and entertainment / festivals and events and education sectors 4. More ROI focused investments 5. Social and digital media will continue to play a growing role in sponsorship everything from identification, valuation, ROI metrics and activation

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28 Please visit our website for more information Thank You