Sponsorship as a communication tool

Vega Tools Day

1Presented 2 August 2013

Sponsorship as a communications tool

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1. Sponsorship is more than SIGNAGE2. Sponsorships MUST be linked to

business and brand objectives3. Sponsorships are AN INVESTMENT

thus MEASURE MEASURE MEASURE

3 Key Takeouts From Today

@OctagonSA@JudithMugeni

www.octagonsa.com

Sponsorship plays

a different role to

advertising – "If

advertising waves

at its target

audience, then

sponsorship has

the ability to get

close enough to

shake them by the

hand…"

“Sponsorship is a mutually advantageous businessrelationship between parties in which the sponsorprovides benefits for the sponsored in exchange for aresult that can be measured against pre-definedobjectives.”

Source: David Ross

Sponsorship Defined

Sponsorship Assets sponsor pays the property

and in return receives specific rights and benefits, often referred to as sponsorship assets

Leveraging The amount sponsors spend over

and above the sponsorship fee to maximize the return on their investment in the sponsorship property

Sponsorship/Rights fees The dollar amount

a sponsor gives to an event.

Basic Sponsorship Terms

FIFA WORLD CUP 2010 Sponsorship LandscapeThe sponsors …

GLOBAL PARTNERS

WORLD CUP PARTNERS

NATIONAL SUPPORTERS

$350m

$65m

$20m

Different Rights Holders Structure Their Sponsorships Differently

Examples of models: IOC Sponsors

World Wide Top Partners

Other Commercial Programmes

Suppliers

Ticketing Program

Licensing

Different Rights Holders Structure Their Sponsorships Differently

Sponsorship Assets: Ambush Marketing Dilemma

Sports sponsorship: major

sporting events, teams, individuals.

Broadcast Sponsorship: Television and radio

programme sponsorship.

Arts and Culture sponsorships such as arts events or organizations

Venue sponsorships

Recent! Digital sponsorships

… Different TYPES of sponsorship

R4,596,000,000+ BMI Estimated Direct spend on Sports

$53,300,000,000 IEG Forecasted global spending

… Sponsorship is BIG Business

platform Globally

TWSM 2012

Year on year, Sports are the most sponsored

SpendRanking Globally SA

1 Soccer Soccer

2 Golf Rugby

3 Rugby Cricket

TWSM 2012 BMI Sport Info 2012

With Football as the number 1 most sponsored sport globally and in SA

Brand Awareness

Moving TM towards positive behaviour

Stakeholder Interaction

WHY? SPONSORSHIP PUTS BRANDS IN A SPECIAL PLACE to meet brand and business

objectives…

Through Maximising Visibility: logo sightings, brand name mentions through TV, Print, Radio, Online etc

Maximised Exposure leads to increased Awareness and Association levels of sponsorship

Measure: Event attendance, Media reach, Media exposure valuation (logo, name, mentions), Website

visits

1. Build Brand Awareness

Barclays Global and Africa Presence How does a GLOBAL brand like this reach its Target Markets

Effectively and

Efficiently

Basic Sponsorship Terms

Barclays Premier League naming rights£120 Million over 3 years since 2001

By putting a huge investment behind Sponsoring a property that is loved around

the world

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Some 87% of overall respondents in Europe rank the Barclays Premier League as the football competition they follow most closely.

In Asia and the Middle East, 90% of overall respondents rank the Barclays Premier League as the football competition they follow most closely.

In Africa 88% of overall respondents rank the Barclays Premier League as the football competition they follow most closely.

Source:

The sponsorship gives Barclays domestic and international exposure, with the

Premier League followed by millions of fans worldwide.

Its MORE than

Awareness…

Sponsorship is

WHERE WE find

CONSUMERS

at their MOST

PASSIONATE

It is BORROWED EQUITY

Where the brand Seeks a RUB OFF

Effect

Achieving desired product, brand and image effects and outcomes

Impact includes increase in Awareness|Positive Perception of brand |Positive behaviour (Usage: Trial,

Loyalty, Reinforcement)

Measure: Consumer reach (brand recall, brand perception, intent to purchase, sales, Lead

generation)

2. Moving Target Market towards positive behaviour

It is INTERACTI

VE

It is where RELATIONSHIPS ARE

BUILT

Community|client perceptions, HR objectives, Other Stakeholders, Client entertainment through

Hospitality

Impact includes increase in Awareness, Positive Perception of brand, positive behaviour (Usage: trial,

loyalty, reinforcement)

Measure: Employee satisfaction levels, feedback from hospitality guests, Community Impact

3. Improve Relationships with Key Stakeholders: Corporate objectives

Depth of sponsorship linked with social responsibility

Depth of sponsorship linked with social responsibility

Depth of sponsorship linked with social responsibility

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Barcelona and Boca Juniors, both have UNICEF on their shirts

Depth of sponsorship linked with social responsibility

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Football Yona Ke Yona : development through the inclusion of professional and amateur teams.

Golf: The Nedbank Affinity Cup- donates an amount equal to the Affinity Cup winner’s prize money

Comrades Marathon: The Comrades Marathon Home from Home Programme donated 50 000 to house runners who could not afford their own accommodation at the race

Depth of sponsorship linked with social responsibility

Federations

Leagues

Teams

Players

Tournaments

Development/

Grassroots

Within Football rights and assets are divided into distinct segments and

leveraged differently by different brands

• Event/Individual Sponsor

– Pepsi Team

– AFCON & CAF events sponsor

• Event sponsor– FIFA Partner– UEFA European

Championships – UK Coca cola

championship (Contract ending in 2010)

PEPSI VS COKE

Football sponsorship: Who comes out as the winner...

Pepsi tends to use “Team Pepsi” in marketing campaigns

Brand Awareness and Association

Real Madrid – Emirates $40 Million per year

Brand Awareness and Association

Barcelona - Qatar Airways $38 Million per year

Brand Awareness and Association

Liverpool - Standard Chartered $33 Million per year

Brand Awareness and Association

Bayern Munich - Deutsche Telekom$37 Million per year

Brand Awareness and Association

Manchester United - Chevrolet $80 Million per year

Brand and Product Linkage

Brand and Product Linkage

Brand and Product Linkage

Brand and Product Linkage

Brand and Product Linkage

Brand and Product Linkage

Etihad Stadium£400 Million over 10 years

Venue Sponsorship: Brand Awareness

The Emirates Stadium£150 Million over 5 years

Venue Sponsorship: Brand Awareness

Allianz Arena$300 Million over 20 years

Venue Sponsorship: Brand Awareness

Premier League TV Rights: Worth £3 Billion between 2013 and 2016

Broadcast sponsorship is a lucrative investment

How I Met Your Mother Red Bull

Big Bang TheorySnickers

Master ChefRobertson

Sensation – Samsung R10 Million

Arts, Culture and Entertainment Sponsorship

South African Music Awards - MTNR15 Million

Rocking The Daisies – Carling

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KEY MARKET ACTIVATION

PUBLICRELATIONS

B2B

SOCIAL MEDIA

CLASSICAL ADVERTISING

ON-LINE COMMUNICATION

B2C

INTERNAL MARKKETING

It’s more than signage…more than a channel.Sponsorship delivers content we can leverage across

multiple channels.

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Turkish Airline Commercial: Manchester United

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NY City Marathon Case Study using a 360 degrees Leveraging Approach

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Ask WHAT added benefits Did I as a sponsor BRING to the FAN

BRANDS must be seen to be BRINGING

something to the sponsored

PROPERTY

WITHOUT us sponsoring this event you would

not be getting the following

VALUE added Benefits.......

MEASURE MEASURE MEASURE Return ON Objectives

Football Best PracticeSponsorship Best Practice

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1. Sponsorship is more than SIGNAGE2. Sponsorships MUST be linked to

business and brand objectives3. Sponsorships are AN INVESTMENT

thus MEASURE MEASURE MEASURE

3 Key Takeouts From Today

@OctagonSA@JudithMugeni

17

Thank You

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