SPONSORSHIP RESEARCH

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SPONSORSHIP RESEARCH EVALUATION
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THE STRATEGIC DECISION MAKING PROCESS
DECISION MAKING
INFORMATION
DATA
OPINION
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THE GLOBAL SPONSORSHIP MARKET - 2006

• World sponsorship market 30.3 billion
• USA alone 12.1 billion
• Sport 65 19.7 billion
• Arts/Music/Causes 35
• Growth 1995-2005 ?? per year vs ?? for
  ad-spend
• Sponsorship was 4.6 of ad-spend in 1990 and is
  now 8.2

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THE LOCAL SPONSORSHIP MARKET -2005

• R2 217 million in direct sponsorship spend
• R1 849 million in leveraging
• 70 - 80 of the top 100 ad-spenders are also
  into sport
• Historical growth per year from 1996 to 2006
• Sport Sponsorships 19.5 p.a.
• Ad-spend 16.4 p.a.
• Sponsorships grew from 7.8 of ad-spend in 1986
  to 13.3 of ad-spend in 2006

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STRATEGIC SPONSORSHIP DEVELOPMENT CYCLE
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THE DATA PROCESS
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MARKET RESEARCH
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DEMOGRAPHIC RESEARCH

• What percentage of your target market
  participate, or have an interest in your intended
  area of sponsorship?
• What are the growth trends?
• What are the demographics of the market you are
  potentially going to reach?
• Does the profile of the audience match your
  target audience profile?

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ASSOCIATION RESEARCH

• It is impossible to change perceptions unless
  your target audience is aware of your
  communication.
• How do you compare with other sponsors in the
  same sponsorship arena?
• How does your sponsorship compare with
  competitors in the same market sector?

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STRATEGIC IMPACT RESEARCH

• Once you have successfully generated sufficient
  media to create an association, how has your
  messaging influenced your target audience?
• Determine the image/loyalty of consumers directly
  as a result of sponsorship activity.
• Have you created an emotional bond?
• What has the exact impact of your sponsorship
  been?
• Propensity to purchase.

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RESEARCH METHODOLOGIES AND ISSUES OF IMPORTANCE

• SAMPLING
• Size
• Random vs Quota
• Panels
• UNIVERSE AND TARGET MARKET
• INTERVIEWING TECHNIQUES
• Personal vs Telephone
• New media Internet and Cell phones
• Groups
• RESEARCH COMPANY FOCUS / SPECIALISATION
• Experience in Sport and related research
• BIAS / INDEPENDENCE
• QUALITY CONTROL MEASURES AND SYSTEMS
• Questionnaires
• Back-checks
• Computer analyses
• Track record
• COST vs COVERAGE vs TIMING

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POSSIBLE AREAS OF RESEARCH IN SPORT

• DEMOGRAPHICS
• Numbers participants and followers
• Who those numbers consist of
• Growth trends
• Factors impacting on growth trends
• Media exposure
• IMAGE RESEARCH
• Perceived characteristics of the sport
• Company / brand match up
• Repution
• Attitides
• EVENT RESEARCH
• Appeal of competitions
• Numbers
• Likes and dislikes
• Entertainment needs
• Sponsor recalls
• Sponsor and media Impact

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POSSIBLE AREAS OF RESEARCH IN SPORT

• STRATEGIC RESEARCH
• Expanding into new markets
• Factors impacting on the future of the sport
• Competitive landscape
• SPONSORSHIP RESEARCH
• Rights fees analyses and market value
• Competitive sponsor landscape
• Sponsor association research
• Sponsor impact research
• TRANSFORMATION RESEARCH
• Transformation plan / strategy
• Target setting
• Achievement / progress monitoring

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MEDIA AUDIT
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WHY TO EVALUATE SPONSORSHIP MEDIA

• Critical element in sponsorship evaluation
  process
• Direct relationship between media exposure and
  awareness
• Return on investment in rand terms with respect
  to exposure value
• Target market penetration
• Share of voice comparisons
• Competitor evaluations
• Understanding why some sponsorship work and
  others dont
• Key measurement area (targets) for agency
  performance
• Per title performance trends

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DIGITAL EVALUATION PROCESS
Mass Storage Large volume RAID-based storage of
data and multimedia files
Newbase Print Analysis Detection of headlines,
pictures and text ICR/OCR automatic text and
character recognition. Profile and keyword
matching with customer based data Automated
extraction of articles from the page.
Data Warehousing Offers SQL and full-text based
search capabilities.
Input Special digital equipment for fast,
accurate scanning of media types including
newspapers, magazines, television and radio
Magellan Broadcast Analysis Derived from unique
OmniPerception technology, Magellan Systems are
based upon proprietary Search Space Reduction
(SSRTM) image analysis algorithms that offer
customers accuracy and consistency
Trilogy Customer Specific Delivery Proprietary
analysis and report delivery software developed
by the CSIR
The entire process maximizes and guarantees
accuracy!
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VALUATION METHODOLOGY

• The World standard evaluation methodology which
  is considered best practice in the USA and Europe
  and also used in over 100 countries, is to take
  clearly visible brand exposure valued against
  standard rate card rates.
• Values can be interpreted as
• What would it have cost to purchase the media
  generated by our sponsorship, through
  conventional above-the-line methods at standard
  rate card rates?
• Rates are already weighted according to potential
  audience reach
• Credible results acceptable to advertising
  agencies and sponsorship agencies

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THE SPONSORSHIP PARADIGM
To effectively leverage any sponsorship it is
imperative that a marketing partnership is formed
with mutually beneficial goals and agreed upon
measurable objectives!
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Sasol TV Creative
What If
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Vodacom
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THE EXPECTANCY GAP

• Double digit growth in sponsorship spending over
  the last decade, yet sponsors pull out! WHY?
• Decrease in the marketability of rights or a
  change in the cost benefit perception (i.e. IBM
  withdrawal from its 38 year Olympic partnership)
• Concerns over sports organizing committees (i.e.
  bribery scandal at Winter Olympics and
  endorsement scandals)
• Ineffective communication / management reporting
  on sponsorship
• Inability to guarantee exclusivity or protect
  against ambush marketing
• Lack of financial controls and accountability
• Inability to fully deliver on contractual
  obligations and rights
• Failure to set evaluation / measurement criteria
  against set objectives

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THANK YOU