Sponsorship

Prof. Benoit Séguin

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 Themes
• Sponsorship … the basics
• Sponsorship objectives
• Building successful sponsorship
• Valuating sponsorship

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 Definition of Sponsorship

Relationship between a Marketer and a Property in

which the marketer pays a cash or in-kind fee in
return for access to the exploitable commercial
potential associated with the property.

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 Integrated Marketing Communications
(IMC) Plan
• Advertising
• Personal Selling
• Sales Promotion
• Public Relations / Publicity
• Sponsorship

• Key Is How They All Work in Harmony

• Sponsorship Is NOT Advertising

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 Integrated Marketing Communications

Walliser, AISTS, 2011

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The Sponsorship Process

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 Key Sponsorship Concepts
• Participants
– Sponsor – Party seeking association
– Sponsee – Property owner (e.g. FIFA)

• Linkages
– Self-evident – adidas products used in event
– Strategic – Visa Credit Cards and FIFA have similar
target markets

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The FIT event/SO versus sponsor

Which characteristics to consider?

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The All Blacks

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Iveco & the All Blacks: shared values

A value-based
partnership

Performance
Reliability
Team spirit
Commitment
Power

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Iveco & All Blacks: the core idea

Giving a soul
to our products

sharing
the soul
with the
All Blacks

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Reinforcement and Transfer

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 Activation of sponsor’s brand as a
catalyst of the process
• There are numerous means that make it
possible to activate the sponsor’s brand among
individuals interested in the event.
– TV sponsorship: billboard, break bumprs, reminders,
trailers
– Promotional activities
– Websites
– Direct marketing
– Events
– Merchandising
– Hospitality with customers
– Co-op marketing programs with your sponsors 16
 Developing strategic choices
concerning sponsorship (events)
1. Fit between sponsee brand equity and the sponsor
desired brand equity
2. Coherence between the event stakeholders and the
sponsors marketing/communications target
3. Compatibility between the sponsor’s
marketing/communications possibilities
4. Acceptability and goodwill of the association between
the sponsor and the event
5. The possibilities of activating the sponsor’s brand
among communication target by the sponsor
6. The competitiveness of the offer in a competitive
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 What are sponsors looking for?
• Understanding sponsors’ expectations
• Sponsorship to meet their marketing objectives
• Commercial objectives aiming at selling more
products and services
• Corporate objectives aiming at promoting
sponsor social values and performance, and
corporate citizenship

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 Sponsorship objectives
• Heightened visibility • Entertain clients
• Shape consumer • Merchandising
attitudes opportunities
• Communicate • Showcase product
commitment to a
particular lifestyle attributes
• Business to business • Combat larger ad
marketing: incenting budgets of competitors
the trade • Drive sales
• Differentiate product • Achievement of
from competitors multiple objectives

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 Drive Sales
• Sustainable competitive advantage via the association
with the Sponsee
– Visa over MasterCard (No presence at World Cup)

• Merchandising opportunities
– Selling Coca-Cola products at the Olympic venues

• Shape consumer attitudes

– Firestone after negative PR (Indy 500)

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 Drive Sales (cont’d)
• Overcome advertising restrictions
– Bans against tobacco advertising

• Cut through advertising clutter

– Not competing with broadcast advertising

• Reach small segments and niches

-Small specialized properties (local festival)

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 Improve Image
• Attain Positive PR
– Support seen as helping the Sponsee

• Viewed as a Good Corporate Citizen

– Contribution to a popular Sponsee
– Especially for causes or local events

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 Improve Image (Cont’d)
• Shape Consumer Attitudes
– Reach new target market
– Selected property portrays different image

• Philanthropy
– Donations viewed favorably by public

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 Create Greater Awareness
• Increased Visibility
– Ability to reach more potential customers
– Mass reach to introduce new product
– Mass reach to inform of new brand name

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 Provide Hospitality Opportunities
• Entertain customers, prospects & suppliers –
Reinforce relationships

• Opportunity to Attend Event

Tickets; parking

• Provision of Various Amenities

TV monitors, restrooms; premium seating

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 Enhance Employee Morale
• Entertain Employees
– Use of free tickets & hospitality areas
– Reward high performers

• Sense of Pride
– Feeling of “My company cares”

• Employee Involvement
– Feeling of “I’m part of the corporate team”

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 Take it all approach to
sponsorship

Walliser, AISTS, 2011

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 Sponsorship Components (cont’d)
• Rights to purchase additional tickets
• Link to the event Web site
• (Sponsorship) designation
• Inclusion in event promotions
• Access to property mailing list (database)
• Right of first refusals

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 Category Exclusivity
• A guarantee that the Sponsor’s competitor will NOT
be allowed to become involved with the Sponsee

• Pepsi-Cola is a sponsor of the World Cup of cricket.

Category exclusivity provides assurance that Coca-
Cola will not be involved in any Official capacity

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 Signage
• Actual signs identifying and promoting the Sponsor at
the event venue

• Helps to reinforce the relationship in the consumers’

minds

• May be actual or virtual signage

• There is a concern about signage clutter

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 Right to Use Event
Trademarks and Logos
• Events generally have terms and symbols that are
legally protected

• It is illegal to use these intellectual properties without

permission of owner

• Sponsors use these in advertising, on packaging, and

on promotional Items

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 Distribution Rights
• Right to use event as a distribution outlet

• Distribution of free samples of product at event venue

• Ability to sell products at event venue

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 Hospitality Areas
• Facilities to entertain selected individuals

• On-Site hospitality
– Luxury Suites
– Temporary Facilities

• Off-Site hospitality
– Temporary or Leased Facilities

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 Complimentary Advertising
• “Free” advertising for the Sponsor
• Often Paid as Part of Rights Fees

• Examples
– TV Advertisements
– Radio Advertisements
– Print ad in the Event Program
– Mentions by Announcers – PA or Media

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 Free Tickets
• Admission to the sponsored event

• Important for events that typically sell out

• May vary according to sponsorship level

– High level sponsors receive more free tickets

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 Right to Purchase
Additional Tickets
• Valuable for sold out events

• May be used even when free tickets are not provided to

the Sponsor

• May be bought at discount if event is not expected to be

sold out

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 Link on the Event Web Site
• The ability for visitors to the event’s web site to click on
an icon that will take them to the Sponsor’s Web site

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 Designation
• How the sponsor can refer to itself in its own marketing
efforts. Examples include:
– Presenting Sponsor
– Title Sponsor
– Official Sponsor
– Marketing Partner
– Official Supplier
– Regional Supporter

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 Inclusion in Event Promotions

• The event is likely to promote itself through traditional

media. It is to the Sponsors’ benefit to be identified
in the event’s advertising and marketing efforts

• Helps to reinforce the relationship between the

Sponsor and the Sponsee in the minds of the
consumers

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 Access to Property
Mailing List / Database
• Sponsor and Sponsee likely have very similar target
markets

• Access to Sponsee’s list will provide sponsor with

access to potential buyers

• Many properties have lists of ticket buyers and

members of fan clubs

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 Right of First Refusal

• Current Sponsor Is Provided Opportunity to Renew

Its Sponsorship for the Next Period Prior to the
Solicitation of New Sponsors by the Sponsee

• Evaluate New Terms; Effectiveness of Existing

Sponsorship; Potential Actions by Competitor if
Sponsorship Is Terminated

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 Exploiting the programs
• Multiply associations between sponsor, event
and target audience
• Media and promotional activities
• Signage on-site
• PR activities
• Merchandising
• Human resources programs

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Sponsorship activation platform

PR
Social Events
Media
Publicity
DIFFUSION: ONE TO MANY

MARKETING Direct
Advertising COMMUNICATIONMarketing
TARGET

Print Sale
material promotion
Internet
New media

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 From sponsorship activation platform to
processes

Web site

Flyers
To stimulate Direct To recruit
the interest Advertising Event PR new clients
marketing

Publicity

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Building successful Sponsorship

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 A Model for Sponsorship Success

• Step 1: Pre-sponsorship practices

• Step 2: Negotiation

• Step 3: Sponsorship Life

• Step 4: Sponsorship Termination

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 Step 1: Pre-sponsorship practices

• Organizational Capacity

• Research

• Planning

• Building relationships

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 Capacity

• Level of expertise: staff vs volunteer

• Commitment and resources (human & financial)
• Necessary time and energy
• Dollars to invest in activation

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 Research

• Information on the property

• Information on spectators/viewers

• Information on media coverage

• Information on competitors

• Restrictions

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 Planning

• Identification of properties available within

organization/event

• Categories of sponsorship

• Sponsorship

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 Research of sponsors
• mission, values, corporate philosophy, history, culture
• product or service
• marketing approaches
• promotion/communications mix (advertising, personal sales, sales
promotions, sponsorship)
• customers—who they are and how they are reached
• place of distribution
• partners in cross promotions (e.g., Pepsi, Wendy’s, and Frito Lay)
• selling process—how the product(s) gets to customers
• annual donations—participation in the Imagine campaign
• current and past sponsorship
• annual advertising budget
• person responsible for making sponsorship decisions

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 Relationships
• Television

• Newspaper

• Radio

• Other media

• Potential sponsors

• Agencies

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 Step 2: Negotiating Stage

• Be certain of « fit »

• Leveraging Commitment

• Terms of Contract

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 Fit
• Whether it is through image, associations, or
objectives, the fit must be clear to both parties.
• Canada Post and Freestyle Skiing

“Canada Post has traditionally been perceived as a conservative

government corporation, kind of boring. Its sponsorship of ‘Freestyle
skiing’ brings images that are audacious and innovative. Its sponsorship
of the ‘fastest sport on ice’ (speed skating) fits well for Canada Post
products such as parcel delivery service Purolator. Canada Post
believes that it can transfer these types of images to its delivery of
mail and parcels. In addition, the company wants to maintain and
improve their brand image to keep their presence in the Canadian
community. Sponsorship is also the opportunity for Canada Post to be
perceived as a good corporate citizen. “Everybody understands that it
is important to support amateur sports and their athletes that do not
have much support. Image is everything: Canada Post wants to be
perceived as a good corporate citizen.”
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 Activation Commitments
• By leveraging a sponsorship and the accompanying
association, a sponsor will more likely reach its
objectives. The sponsee must also take on a
leveraging and involvement role to enhance the
value of the association, build their own brand, and
combat ambush marketing

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 Contracts
–Status of sponsor (exclusivity, category, etc.)
–Event signage (how many, where, who pays)
–Advertising credits (where—on stationery, event name,
program cover/ad)
–Sponsorship fee (how paid, when paid)
–Merchandising rights (Can sponsor sell T-shirts, mugs, or other
souvenirs? Can sponsor manufacture its own souvenirs or buy
from the promoter at cost? Who gets profit?)
–Ownership of television rights (who owns and controls, rights
of refusal for advertising spots, opening and closing
billboards, rights to use footage of event)

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 Step 3: Sponsorship Life

• Organizational Support

• Develop Evaluation Frameworks

• Measuring ROI

• Implement Leveraging Tools

• Encourage Joint Planning

• Organizational Support

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 Organizational Support

• Dedicated staff or volunteer for relationship

• Servicing
– keeping regular communications on activities of organization, making sure that
all materials needed from the sponsor for s specific event are in place, inviting
the sponsor to special events, knowing sponsor’s objectives so you can create
innovative promotions, keeping track of all the things you do for a sponsor (log),
working with media to ensure your sponsor gets publicity, ensuring the
sponsor’s logo specs are respected in all collateral materials, providing
added-value benefits to sponsor without asking for more money—people
enjoy getting a deal.

• Deliver, deliver, deliver

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 Evaluation Framework

• Gut feeling???

“It is my belief that no other program undertaken by the company has

had the positive effect on furthering relationship with customers and
consumers as the sponsorship of Freestyle. Also, the company’s support
of Canadian heroes has greatly contributed in building employees
pride and motivation. The sponsorship has, in my opinion, greatly
exceeded expectations. At the start we didn’t know what to expect
but what we got was something that positively affected the company’s
relationship with all of its stakeholders.”

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 Measuring ROI

• Tangible benefits: These are the quantifiable assets in a sponsorship

package. They may include activities that take place in or around an event:
signage, public service announcements, collateral materials produced by
the sponsee or sponsor (e.g., posters, flyers), website, sampling/coupons,
and hospitality. The sport marketer must be able to track the number of
spectators or people that can be reached through these activities. It is also
important that sport marketers keep track of sponsor identification through
broadcast of an event and the media coverage (publicity) resulting from it.

• Intangible benefits: These are the qualitative assets that a sponsee delivers,
such as borrowed imagery and audience loyalty.
– measuring awareness levels achieved or attitudes changed
– comparing the value of sponsorship-generated media coverage to the cost of
equivalent advertising space or time

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 Measuring ROI
• Activity, in terms of event, includes:
– event signage
– event attendance
– merchandise sold
– programs sold
– numbers reached through sampling
– total number of impressions generated through paid media
– impressions created through unpaid media coverage (publicity, PR)
– impressions created though consumer/customer communication channels (packaging)
– impressions created through sales promotions and cross-promotions (point-of-purchase
displays)
– documenting “extensions” to other areas of business (e.g., hosting by the salesforce)

• Attitudinal research
– sponsorship fit
– tracking: Involves quantitative surveys targeted at audience and implemented through
on-site intercepts, telephone surveys, surveys of employees, customers. Topics can
include knowledge of sponsorship, sponsor recall, attitudes towards sponsors, and
behavioural changes resulting from a sponsorship.
– image transfer: More difficult to assess, will depend on the strength of the sponsee’s
brand and the amount of leveraging on the part of the sponsor. These benefits are
usually the result of long-term investment in a property.

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 Measuring ROI
Benchmarking sponsorship program
• sponsorship positioning
• rights fees
• communications support
• business extensions
• marketing integration

Sponsorship efficiency
• ROI of sponsorship versus other communications options
• cost of awareness
• cost of favourability
• cost of trial

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 Measuring ROI
Track sales objectives, including a sponsorship’s ability to:

• increase sales of a product or a service to consumers

• drive sales to business customers
• increase distribution outlets
• generate product display at point of sale
• produce targeted new leads
• improve efficiencies of this and other promotions
• lock in heavy users
• boost retail traffic

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 Measuring ROI
Measure sales gains through:

• sales for the two- to three-month period surrounding the

sponsorship to the same period in previous years
• sales in the immediate event area versus national sales
• sales tied directly to the sponsored event (e.g., ticket
discount with proof of purchase, then tracking redemptions)
• number of outlets carrying product
• number of retailers/dealers participating in the program
• incremental sales to retailers—additional case orders,
display penetration, shipments, features, and price reduction

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 Measuring ROI
Media coverage and its related value is a tangible asset that
must be measured. The marketer must be able to answer these
questions:

• What is the value of a sign/banner placed within television

range?

• What is the value of a 30-second ad on television?

Newspaper advertising?

• How much coverage did the event get from the media
(publicity)? What is the value of this coverage?

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 Encourage Joint Planning
• Once the parties are clear on the details of the contract, they
should develop a detailed

• plan with the goal of maximizing—for both sponsor and

sponsee—the opportunities/benefits associated with the
sponsorship.

• Therefore, clear objectives must be set and supported by a

leveraging plan.

– how will the sponsor integrate the sponsorship within its

communications mix? Through advertising? Sales
promotion? Point-of-purchase programs? Production of
merchandise? Any of these activity takes time; thus the
importance of beginning the planning stage early
(usually 8 to 12 months before execution).
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 Step 4: Termination

• Succession plan

• Ask sponsor for reference

• Keep relationship

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 Best Practices
Fit Ensure a good fit between the partners, whether through image, associations, or objectives.

Exclusivity Know that most companies demand exclusivity in their product category.

Leveraging Understand that companies seek sport organizations who offer and create leveraging
opportunities for their sponsorship.

Relationship building Build good relationships and networks with sponsors. Consider offering sponsors the opportunity
to network with each other.

Market expansion Understand that many companies use sponsorship to break into new markets and create brand
awareness.

Community/Cause Consider that many organizations want to be seen as a good corporate citizens that support the
community. They often see sport sponsorships as a way to give back to the community.

Employee motivation/education Know that many companies see sport sponsorships as an opportunity to get their employees
involved and motivated toward the company’s goals.

Know both parties objectives Understands what both parties are trying to gain through the sponsorship agreement to make it
easier to reach those objectives:

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 Determining Fair Market
Value of Sponsorship
Packages

Acknowledgment: IEG

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 How???

1. Guessing?

2. Approximating what similar properties have

gotten?

3. Charging sponsors the costs to produce an event

or maintain a program?

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 What a sponsor will pay

VALUE

Tangible benefits Price adjusters

Intangible benefits

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 Tangible benefit

• Refers to the quantitative assets in a package,

both measured and non-measured, such as
advertising in the official program book and
sponsor ID on ticketbacks

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 Intangible benefit

• Refers to the qualitative assets that a sponsorship

delivers such as borrowed imagery and audience
loyalty. When a company buys sponsorship, it is
primarily buying access to a property’s intangibles.

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 Price adjuster

• After calculating the value of benefits, properties

and sponsors must factor in additional variables,
such as category competitiveness, which can
move the final price upwards or downwards

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 Step One

Valuing Tangible Benefits

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 Primary Types of Tangible Benefits

A. Sponsor ID in non-measured media

• Signage
• Public address announcements
• Collateral materials
• Web site

B. Sponsor ID in measured media

• Print
• Broadcast

C. Sampling/Display
D. Database access
E. Tickets/Hospitality 76
 Measuring Tangible Benefits

• Sponsor ID in non-measured media

• Signage
• Public address announcements
• Collateral materials

• Value Range = $.0025-$.05 per impression

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 Measuring Tangible Benefits

• Sponsor ID in non-measured media

• Web site

• Value Range = $.0025-$.10 per impression

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 Measuring Tangible Benefits

• Sponsor ID in measured media

• Print
• Broadcast

• Value Range = 5%-10% rate card value

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 Measuring Tangible Benefits

• Sampling/Display

• Value Range = $.04-$.15 per person sampled

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 Measuring Tangible Benefits

• Database Access

• Value Range = $.075-$.15 per name

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 Measuring Tangible Benefits

• Tickets/Hospitality

• Value = Face Value

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 Tangible Benefits Worksheet
On-Site Signage/ID

Description reach Calc Value

On-Field signage 300,000 300,000 x $.03 $9,000
attendees

Scorecard sign 300,000 300,000 x $.02 $6,000

(static) attendees

Rotating Ad/Message 75,000 300,000 x 25% $2,250

On Jumbotron attendees see x $.03

Concourse/Entrance 100,000 300,000 x 33% $250

Signage attendees see x $.0025

Subtotal $17,500 83
 Tangible Benefits Worksheet
Summary of Tangible Benefits

• Description Value
• On-site signage ID $17,500

• Publications/Collateral $15,000

• Web site $3,200

• Sponsor ID in measured media $50,000

• Sampling/Display $6,500

• Tickets/Hospitality $27,500

• Grand Total $119,700

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 Step Two

Evaluating Quality of Intangible

Benefits

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 Intangible Benefits

Ultimate Example of Intangible Value

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 Intangible Benefits
• 10 Types of Intangible Benefits

Prestige Networking
Recognizability Activation
Loyalty
Intangible Benefits

Exclusivity Media Coverage

Ambush Protection Track record
Clutter

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 Intangible Benefits: Prestige

What it is:
•A measure of how meaningful/relevant your property
is to its audience

How to enhance it:

•Act as a brand manager; constantly strive to
improve your relationship with your audience

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 Intangible Benefits: Recognizability and
Awareness

What it is:
•A measure of how familiar targeted audiences
are withyour property

How to enhance it:

•Increase promotion, advertising, PR efforts;
proactively recruit media partners

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 Intangible Benefits: Audience Loyalty

What it is:
• A measure of the propensity of your audience to
actively support sponsors because of their link to
the property

How to enhance it:

• Educate the audience as to the critically important
role sponsors play

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 Intangible Benefits: Category Exclusivity

What it is:
• A measure of the ability of a sponsor to forge a
unique relationship with the property apart from its
competitors

How to enhance it:

• Allows sponsors to lock out multiple categories at
discounted rates; provide proprietary programs

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 Intangible Benefits: Protection from Ambush

What it is:
•A measure of how well you limit opportunities for
sponsor competitors to claim an association with
property

How to enhance it:

•Bundle program ads, etc. into sponsor packages,
don’t sell a la carte; secure rights to affiliated venues,
events and organizations, work with government
officials

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 Intangible Benefits: Degree of Sponsor
Clutter
What it is:
• A measure of how many companies are
competing for share of voice related to the
property

How to enhance it:

• Limit the number of sponsorship packages sold;
offer proprietary programs

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 Intangible Benefits: Ability to Activate

What it is:
• A measure of how easy it will be for sponsor to
promote its association with the property

How to enhance it:

• Provide turnkey promotional opportunities,
such as retail partner tie-ins

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 Intangible Benefits: Networking
Opportunities
What it is:
• A measure of the value of cosponsors and the
opportunity for a sponsor to work with them

How to enhance it:

• Host sponsor workshops and encourage partners
to plan cross-promotions

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 Intangible Benefits: Media Coverage
Potential
What it is:
• A measure of the ability of the property to attract
print and broadcast coverage

How to enhance it:

• Develop your media relations program and seek
ways to add newsworthy components to your
property

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Intangible Benefits: Established track record

What it is:
• A measure of how well you have worked with
previous sponsors

How to enhance it:

• Over-deliver; assign liaisons with sponsors;
document fulfillment with post-sponsorship
reports

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 Accounting for Intangible Benefits Value

Benefits Score
• Prestige of Property 7
• Recognizability 7
• Level of Audience Interest/Loyalty 6
• Category Exclusivity 9
• Protection from Ambush 10
• Degree of Sponsor Clutter 9
• Ability to Activate 8
• Networking opportunities 9
• Media Coverage Potential 7
• Established track Record 5

Total 77

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 Intangible Benefits
Using the Value of Your Intangibles to Determine Total Package Value

•The value of your intangible benefits act as as a multiplier of your total

tangible value

•The higher your intangible « score », the higher the multiplier

•Average Multiplier is between 1.2 and 3.5

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 Step Three

Accounting for Factors that Will Adjust

the Final Price

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Price Adjusters

Sponsor’s Promotional
Commitment

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Price Adjusters

Number of Categories
Locked Out

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Price Adjusters

Competitiveness of
Category

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Price Adjusters

Multi-Year
Commitment

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Price Adjusters

Sales Rights

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Price Adjusters

Introduction to
Cosponsors

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Questions?

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