cafe conference - brent barootes sponsorship today …€¦ · scenario today ! properties are ......

Sponsorship Today: Industry Trending and How It Can Impact Your Fair or Exhibition Brent Barootes – November 15, 2012

WHITE PAPER Presented by

Partnership Group – Sponsorship Specialists ™

CANADIAN ASSOCIATION OF FAIRS AND EXHIBITIONS (C.A.F.E.) CONFERENCE

Thursday November 15, 2012 (Afternoon Keynote)

SPONSORSHIP TODAY:

INDUSTRY TRENDING AND HOW IT CAN IMPACT YOUR

FAIR OR EXHIBITION

Mobile Devices

Staying connected in the session

Twitter: #partnershipgrp

#sponsorship@partnershipgrp

#cafe2012@partnershipgrp

BRENT BAROOTES President and CEO Partnership Group – Sponsorship Specialists

Phone: 403-255-5074 Fax: 888-486-3407 Toll Free: 888-588-9550 Email:

[email protected]

November 15, 2012

MANAGING SPONSORSHIP IN YOUR CRAZY BUSY LIVES

ü What has happened in 2012?

ü Who managed their busy lives to profit from sponsorship?

ü Who let their crazy lives rule their sponsorship opportunities?

ü How does this affect your Strategic Plan?

Since the CSLS was undertaken in 2006 the industry has grown 43% ü  Again the industry grew by over 2% since last year – now

$1.59 billion

ü  Brands were investing almost 75% of their sponsorship investment dollars within Canada

ü  Almost 22% of spends are on local sponsorships

ü  Both Professional Sport and Fairs/Festivals and Events had the greatest number of largest sponsorship rights fees in the 2012 study (25% each)

Canadian Sponsorship Landscape Study (CSLS) 2012

Canadian Sponsorship Landscape Study 2012

ü  Diversity in sponsorship mix – on average over 100 properties per sponsor (In a range of 0 to 1100!)

ü  Decrease in spending on activation – now at $0.57 / dollar) (2011 was $0.62/dollar and at 75 cents per dollar in 2010)

ü  30% of brands marketing budgets last year were spent in sponsorship and experiential marketing – up by almost 1/3 over the 2011 study and up over 75% over the last 7 years


ü  Greatest continuous growth has been with fairs, festivals and annual events

ü  Entertainment-Tours – Attractions and the Arts have also continued to see growth trending

ü  For in-kind sponsorships, about 18% are in-kind product and 13% are in-kind services and 69% cash


ü  The average property had 25 sponsors

ü  It is important to note that 72% of properties receive less than $100,000 in sponsorship revenue

ü  Sponsors when evaluating ROI the top three areas to measure were:

1.  Brand perception 2.  Brand value 3.  Brand Knowledge / profile ü  Revenue ranked 6th


ü  The 2012 report showed clearly that properties still are failing to provide resources for activation programs and this is a major issue for sponsors

ü  The report also showed that sponsors are not receiving a comprehensive wrap up report and this is critical for them

ü  Also sponsors noted that properties need to be better at providing sponsor recall statistics as well as audience loyalty statistics


ü  35% of property sponsorship revenues come from financial institutions (20%) and crown corporations (15%)

ü  Food and Beverage sponsors account for 12.5% and oil and gas accounts for 9.5%

ü  Provincial lotteries account for about 8%

ü  The balance (35%) comes from auto, professionals organizations like law firms, communications, retail, travel, agriculture


Sponsorship Investment Allocation:

1. Professional sport 19% 2.  Amateur sport 19% 3. Cause Marketing 5% 4.  Fairs, Festivals and Annual Events 24% 5.  Arts 12% 6.  Education 8% 7.  Attractions, Entertainment, Tours 8% 8.  Other 5%


ü Average small sponsor / brand: ü  spent about $23,000 on sponsorship ü No ROI measurement ü About $1000 on activation ü  Largest sponsorship was about $14,000 ü Allocated to 4 properties and 3 were NFPs


ü  Most influential consumer trends were (almost 75% of areas of influential trends) ü  Technology ü  Consumers shift to healthier lifestyles and the

environment ü  Cause based marketing issues

ü  The top areas of concern for sponsors and properties going forward are: ü  Showing ROI ü  Budget concerns ü  Activating

Consumer Sponsorship Rankings (CSR)

Consumer Sponsorship Rankings 2012

ü  This research was done by Enigma Research

ü  1000 respondents in the 2012 study, all telephone conversations from random Canadians

ü On average 12-15 minutes with each interview (French and English)

ü  Cross section from every region of Canada


ü  Coca-Cola and Molson were seen as the most active sponsors in all of Canada

ü  These were followed by Labatt, GM, McDonald’s and then Tim Horton’s

ü  Interesting that no financial institutions ranked in top 6 of Canadians minds though they are the #1 most active category in Canada


ü  Breweries ranked as one of the most supportive industry for sport, culture and causes

ü  Followed by soft drink companies

ü  Insurance industry rated the lowest


ü  Bell, Coca-Cola and McDonalds were seen as the most active sponsors in all of Canada with Bell #1

ü  These were followed by Molson, Rogers, RBC, BMO, Pepsi, TD and Ford

ü  Interesting that Rogers and McDonalds tied for #1 among Canadians under 30


ü  Almost 50% of Canadians noted that Air Canada was the most supportive travel company followed by WestJet and then AirTransat

ü  TD was ranked #1 for financial institutions

ü  Wal-Mart was again recognized as the leading sponsor in large retail outlets


ü  The #1 ranked arts and cultural event in Canada according to Canadians was Carnaval de Quebec, for winter festivals

ü  Stanley Cup Playoffs for sport

ü  Terry Fox Run for fundraising event and walk/run

ü  Montreal Jazz festival for music festivals


ü  In regards to the top ranked fairs and exhibitions, the Calgary Stampede and Canadian National Exhibition (CNE) held the #1 spot with the Calgary Stampede #2


ü  35% of Canadians said they pay more for brands that supported their arts and cultural organization, 57% said the same when the sponsorship is related to a cause and only 32% would do so in regards to sports

Arts and Cultural Sponsorship Cause Sponsorship Sports Sponsorship

MANAGING SPONSORSHIP IN YOUR CRAZY BUSY LIFE

ü What happened in 2012 to make it a bust or burn year for all these busy folks?

ü Who are the stories about?

ü What activities occurred in their busy days?

ü  The trending we are seeing in this overly busy sponsorship (and life in general) world


ü  Your strategic plan to move forward has a key element of funding

ü  You need to look at fairs and exhibitions, large and small as well as associations like the provincials and CAFÉ – what other revenue streams are there?

ü  Sponsorship is one of those “increased funding opportunities”


ü  The second goal looks to government – government funding is drying up – you need to be self sustaining – like municipalities and charities

ü And strategic alliances with sponsors and partners is the fourth goal and objective… you need to focus on it


ü We have seen a huge increase in professional development both on the brand/sponsor side and the property side

–  Those investing wisely in their busy organization are making time for professional development like this conference

–  These are the successful organizations


ü More individuals are moving towards our this industry and to this side of fundraising than have in the past

–  Shift from corporate and philanthropy into sponsorship

–  More hands make the day less busy


ü Municipalities, post secondary educational institutions and agricultural societies are the properties that are seeking their piece of the pie and more

ü  The financial institutions, telecoms and big retailers continue to dominate the landscape from a brand side


ü  Seeing more small and medium sized businesses, local and regional getting their piece of the pie and doing it right

ü  Though the CSLS shows that activation investment is down, we are seeing brands (both as direct clients of ours as well as sponsors of our property clients) are spending more in activation and again doing it right


ü  The digital world and social media are slowly playing a part in the sponsorship world, but it is slow to catch on

–  Too much time on this is killing organizations –  You need to be there, do it right but don’t get lost

in it –  It can make your day so unproductive


ü Many think they are doing it, but really they are not – they have a FaceBook page and call it “a social media platform”

–  What are you really doing on FaceBook? –  Is it a friend raiser, fundraiser, brand

builder or what? –  Why are you there? –  How is it helping your sponsors… getting

you money?


ü  The mobile world is the next integration key – some are doing it

ü  But do it right or your day will be busier than ever!


ü We are seeing better negotiation on both the brand and property sides

ü  Properties that are successful and moving forward and not running a cluttered day are those ones doing it right and negotiating better

ü  Today we are seeing brands understand that even these are business opportunities and not “charity”


ü  Properties are understanding it is no longer smiling and putting a sick kid up front for negotiation, but that it is a business scenario today

ü  Properties are also understanding the sales process better – brands will no longer accept stock proposals – they must be custom designed and the right info needs to be there


ü  Successful properties have great sales people in-house or engage outside agencies to sell for them

ü And who is selling it for you… PNE uses an outside agency – SCORE Marketing

ü We are seeing more and more properties getting the selling process right and doing it internally and building capacity


ü  Sales is the ultimate factor of success or not – be it in house capacity or external brokerage selling – the sponsors want a professional approach

ü This is not an ask – it is a solution providing business agreement

Industry Happenings

ü  Re/Max realty in Peterborough stepped up from a local franchise into arena sponsorship naming two sky boxes in the Pete’s arena

ü  Northlands – CFR signed an increased long term deal with ATB

Industry Happenings

ü  Bick’s Pickles sponsored Grill and Give BBQ in Montreal for $25,000 – associated to Food Banks Canada

Industry Happenings

ü  VantageOne Credit Union in BC renewed its Soccer commitment last month to the VantageOne Soccer Centre in Vernon

ü  VISA joined past sponsors National Post, CBC and Sports Canada with ParticipAction’s Sports Day in Canada in September

ü  TD sponsored the Calgary Folk Music Festival with “green” plan – H2O – bottle free filling stations

ü  Viterra announced the title sponsorship of the Viterra 2012 Canadian Gymnastics Championships in Regina

Industry Happenings ü  Purolator has signed a four year deal with Hockey

Canada as the exclusive courier and freight delivery service

ü  Purolator also secured their exclusivity with TIFF

Industry Happenings ü  KFC blundered in 2010 with their double down fat

chicken burger at the same time as the breast cancer launch for pink buckets of chicken

ü  In 2011 they did it again with Mega Jug of Pepsi for just $2.99 with $1 of that going to Juvenile Diabetes (800 calories and 56 spoonfuls of sugar)

Industry Happenings

ü  ScotiaBank has extended its sponsorship for the AIDS Walk through 2014 – 40 communities

ü  NorQuest College of Edmonton and Ryan Drury had their best year ever in sponsorship revenue generation

ü  Montreal and Calgary started talking about transit stop naming rights – TCC moved forward with it with Pattison managing the sales and logistics

ü  Ottawa is getting into the game as are the Town of Kindersley, Town of Taber, Town of High River and others

Please visit our website for more information

Thank You

cafe conference - brent barootes sponsorship today …€¦ · scenario today ! properties are ......

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