Approaches to
Sponsorship
Value
Measurement
Bernie Colterman
Managing Partner
CEPSM
what we do (really well)
Strategic Marketing Planning
Sponsorship Valuations &
Strategies
Revenue Development
Social Marketing
Partnership Marketing
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June 11-12, 2014
Ottawa Convention Centre
June 11-12, 2014
The evolution of sponsorship
valuation
Mass Segmentation /
Customization
Advertising “Clutter”
Shift to selling the “brand
experience”
Focus on customer retention / share
Demographics / Psychographics
The Web / Social Media
Power of the Customer
the old way of doing things is
not good enough anymore…
Improving brand perceptions (91%)
Increasing brand value (84%)
Increasing brand loyalty (70%)
Increasing brand knowledge (70%)
Cause-related element (43%)
Other Factors (60%)
– Value alignment
– Increasing sales
– Employee engagement
– Product / service sampling
Customer
Sponsee
Sponsor
x
●
Number of attendees
●Flat fee based on
covering a fixed
percentage of
expenses
●
Flat fee based on the
subjective value the
organizer places on the
property (best guess)
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Key Considerations:
Audience Composition
Brand / Competitive Position
Tangible Assets i.e. exposure, impressions
Intangible Assets i.e. uniqueness of the opportunity,
prestige, etc.
Level of Activation
Regional influences
Determining the value of your
tangible assets
●
Every property is
unique
●
What is valuable to
one company, may
not be to another
●
Values can change
depending on the
environment
●
Set value benchmarks
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Assets are all the touch points between you
and your audience that can be leveraged to a
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Properties
Organization
Campaign
Program
Facility
Event
Conference
Special Activity
Benefits
Print collateral
Advertising
Direct Mail
Electronic
Public Relations
Sales Venues
Sales Promotion
Display Space
Speaking
Networking
Other? _______
Why is it important?
●
Identifies all opportunities
●Identifies gaps and/or new
opportunities
●
Allows for easy mixing and
matching of benefits
●
Encourages advance
approval of benefits
●
Makes for easier packaging
A Master Inventory is Your
Most Important Planning Tool
The greater the impact on the audience,
the greater the value
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What’s considered valuable in
sponsorships is changing…
“Sponsor awareness is virtually meaningless to
consumers”
“Research consistently shows that consumers will
support sponsors who support things that are
important to the consumer”
Sergio Zyman, former Chief Marketing Officer, Coca-Cola
When Canadians were asked “what influences
you to purchase brands you normally don’t”,
What percentage answered :
Experiential Marketing?
52%
Logo ID on publications
Banner Sign
Inserts
Ad in publication
Direct Mail piece
Article in publication
Coupon with Offer
Sampling / Demos
Qualified Leads
Direct Sales
Stage of Decision Level of Impact
Knowledge Impressions
Attitude/Credibility
Acceptance
ACTION TRANSACTIONS
Speaking
Articles
Demonstrations / Sampling
Exhibits
Direct mail
Testimonials
Advertising
Hard assets
Opportunities to communicate brand / product
attributes in a unique way
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Description Amount Variables
Logo ID in Publication $.0025 - $.05 cover vs. inside stand-alone or group logo vs. message Rarely higher than $.02 Ad in Publication rate card colour vs. b/w
or $.02-$.08 location
Usually worth $.06 Logo ID on Web Site $.0025 - $.05 location, link
unique visitors, interactive Logo / Link usually $.005 Exhibit Space rate card or location
Description Amount Variables
Sign with sponsor ID $.0025 - $.05 stand-alone vs. group
length of impression Rarely higher than $.02
PA Announcements $.0025 - $.04 incidental vs. integrated Usually worth $.01 ID on Media Buy 5-10% of 10% for title
ad value 5% for mentions Product Sampling / Distribution $.07 - $.15 insert vs. face-to
face Use of Mailing List $.07 - $.30 audience
exclusivity Usually worth $.20 Article in Newsletter $.06 - $.10 Usually worth $.08
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Description Amount Variables
Sign with sponsor ID $.02 - $.08 stand-alone vs. group, duration Show Bags / Badges $.25 - $.75 exclusivity, clutter
Speaking Opportunity $5 - $25 stand-alone vs.
panel, content
Ad / Exhibit Space rate card location, added
value
Collateral Distribution $.10 - $.25 insert vs. face-to-face
Use of Mailing List $.35 - $1.00 audience exclusivity Logo on pub. / web site $.02 - $.06 location, link,
relevance
Article in Newsletter $.08 - $.25 audience
Description Variable Value
Sign with Sponsor ID Entrance – stand-alone $.04 Range:$.0025 - $.05 Entrance – multiple logos $.02 Entrance – stand-alone w tagline $.05 Walkway – stand-alone $.02 Walkway – multiple logos $.005 Stage – stand-alone $.05 Stage – multiple logos $.03 PA Announcements General PA $.005 Range:$.0025 - $.05 Before performance $.04
After performance $.02
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Media Distribution / Reach
Ad Medium Price Cost / Exposure
Kitchener Post 60,000 Full Page, B/W Ad ½ Page, B/W Ad
$3,690 $2,029
$.06 $.03
London Free Press (London)
73,961 73,961 73,961
Full Page, Colour Ad ½ Colour Ad $13,184 $6,637 $3,343 $0.075 $0.041 $0.021 Canada Post Per Item Unaddressed
AdMail(50 g) $50.00 / 1,000 $0.15 Valpak 50,000 81/2 x 31/2 Coupon, 4-Colour $480/10,000 $2,400 $0.048
Keyword Search Average Cost Per Click (for Southern Ontario)
Hockey Equipment $.03 Exercise Machines $.09 Fitness Centres $.56 Training Equipment $.14 Home Insurance $4.59 Pet Insurance $1.55
Car Insurance Quote $13.63
Landscape Ideas $.38
Garden Tools $.05
Appliance Stores $.31
Appliance Repairs $.29
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To increase the value of the sponsorship:
Increase event audience numbers
Increase Total Exposure to target audience (e.g. print, web, newsletters) Provide higher level benefits
Assign Flat Values to Benefits
Level of Impact Types of Benefits Flat Value
Low logos, links, signs $50.00
Medium ads, inserts $250.00
High mailings, articles, speaking, $500.00 sampling, demos
Qualitative elements that
influence the value of your
assets
A Sponsorship Program without a
strong associative element, is similar
to advertising.
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“Positioning is the act of designing the
organizational image and value offer so that
customers understand and appreciate what
the organization stands for in relation to its
Good customer service
Quality of organization / program
Our reputation
Knowledgeable staff
Good results
Dedication of staff
Consistent management
Responsiveness
Innovation
Trust
45What is our brand and USP?
Who is our competition?
Attribute
Value Range
Audience Desirability
25% - 50%
Uniqueness of Opportunity
25% - 50%
Exclusive Opportunity
25% - 50%
Ability to Impact Sales
30% - 50%
Prestige / Recognition
10% - 30%
Track Record
10% - 30%
Worthwhile Cause
10% - 30%
Networking Opportunities
10% - 30%
Geographical Coverage
10% - 30%
Media Potential
10% - 30%
Ability to Impact / Engage
10% - 30%
Ease of Activation
10% - 30%
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Example:
Total Value of Tangible Assets:
$10,000
Add Intangible Values:
Exclusive to industry sector (25%)
$ 2,500
Prestigious event (15%)
$ 1,500
High quality audience (30%)
$ 3,000
Greater reach
Greater frequency
Higher impact benefits
Less clutter
Enhanced brand image
Creative Activation
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Cadbury (UK) – 200 Easter Trails
Coca Cola (US) – Funding of 12 park Discovery Centres
Sylvania (US) – Lighting for Thomas Jefferson Memorial
HBC (CA) – Olympic uniforms, in-store merchandizing CIBC (CA) – Employee involvement – Run for the Cure
Olympus (US) – Share the Experience Photo Contest
Hi -Tee (SA) – Sponsor of trail guide foot ware
Home Depot (Canada) – NHL Coaches Sessions
M&M’s (CA) – Retail-based fundraising – Breast Cancer IKEA (CA) – Retail-based fundraising – Tree Canada
Value
is not necessarily the same as
Pricing
Subject to Supply and Demand
Value can fluctuate
Look to provide at least $1.50
in value for every $1.00 received
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What would it cost to do it on their own?
Example: Conduct a targeted mailingResearch leads
Develop database
Design / print collateral
Envelope
Mail merge
Mailing cost
Cost of Program or Service
How much sales revenue could it generate?
Why “fit” is so important in
realizing the true value of your
assets
Audience Time of Year Nature of Event
Brand / Value Alignment Cause Alignment
Medium Sales Cycle Shortest Sales Cycle Optimal Value
Longest Sales Cycle Least Value
Medium Sales Cycle
High Audience and Product
Alignment
Low Value and Brand Alignment High Value and Brand Alignment
Low Audience and Product
Alignment
