Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS /...

65
Lead Author: DR. NORM O’REILLY 13th ANNUAL

Transcript of Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS /...

Page 1: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

Lead Author: DR. NORM O’REILLY

13th ANNUAL

Page 2: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

ACKNOWLEDGEMENTS / CSLS PARTNERS

2

Page 3: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

3

TODAY’S PRESENTATION

Qualitative Deep Dive Sponsor, Property & Agency

Results 2018

Analysis 2006-2018

Industry Trends, Size & Future

13th CSLS Not-For-Profit Sponsorship

Page 4: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

Results13th Annual

Page 5: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

5

2018: A Story to Tell…

Page 6: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

6

SIMILAR TO…

2007

Toronto International Film Festival, Toronto

Big News

0.43

Page 7: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

7

2010

Paralympic Games,Whistler

Big News

Recession Proof

SIMILAR TO…

Page 8: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

8

SIMILAR TO…

2013

Mastercard Memorial Cup,Saskatoon

Big News

Festivalization

Page 9: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

9

2014

RBC Royal Bank Bluesfest,Ottawa

Big News

Pro Sport Renaissance

SIMILAR TO…

Page 10: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

10

2018: A Story to Tell Smarter? | Activation, Measurement and Servicing

Balanced? | Rights Fee Spend vs. Activation

Bigger? | The Big Players Assert Themselves, Return of Bias

More Advanced? | Gender, Agencies, Objectives

Page 11: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

11

5. Results #2 7. Results #4 9. Discussion3. Industry Data1. The Study

The Deal Servicing So What?Size & ScopeBackground

6. Results #34. Results #1 8. Results #52. The Sample

ActivationStrategy EvaluationStakeholders

Page 12: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

12

1. The Study

Background

Page 13: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

13

THE STUDY: CSLS 101

Origin

NeedShare

Bilingual

Perspective

Spend Revenue

Billing

Analysis

Themes Comparative

Modelling

Design

Longitudinal Deep Dives

Trends

Process

Online Attribution

Page 14: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

14

2. The Sample

Stakeholders

Page 15: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

15

RESPONDENTS

Historical CSLS Respondents by Type

Re

spo

nd

en

ts

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

130141139141

117132

152

238218

294

145

167

247

66684154

3133

4852

73

123

65

61

86

4139494134457481

116142

67

109

171

SponsorsAgenciesProperties

After going online in 2010, number of

respondents continually declined until a survey

redesign in 2016.

NOTE

4,075

TotalRespondents

DATA

Page 16: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

16

SURVEY PARTICULARS

Historical Language & Method Types

Pe

rce

nt o

f Re

spo

nd

en

ts

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0.0% 0.0% 0.0%

69.0%65.0%

73.0%68.0%

77.0%

84.0%

95.0% 97.0%100.0%

87.0%

13.4% 14.1% 15.6%11.4% 9.4%

33.2%

25.7%

14.4%10.5%

7.3%13.0%

7.5% 7.3%

French

Online

French rates rose around conference in

Montreal; decline since.

Online at 100% for first time in 2018, a few old

fashioned again in 2019.

NOTE

13 Years

Language & Method of Response

DATADATA

Page 17: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

17

TYPICAL SPONSOR IN 2018

Industry

• Avg. sales of $480M • Range: $200k to $1.5B

• 77.5% HQ in Ontario

• $3.3M average rights fee • Range: $20k-$25M

• Largest Sponsorship • Avg: $1.11M • Range: $20k to $5.5M

• Portfolio 2 to 60 sponsorship deals • Average: 14.6 deals

Sponsorship Spend

Money Mix

• 57.5% For Profit • 78.7% Cash vs VIK • Targeting (by $’s):

• Female: 17.3% • Male: 37.0% • Not Gender Specific: 45.7%

• Targeting (by # of deals) • Female 10.6% • Male 72.7% • Not Specific 16.7%

Internal Details

• 34% of decisions in October • Balanced otherwise

• 78% of sponsorship in marketing/comms • Others: PR, Community Relations, etc.

Decision-Maker

• 56% Male / 44% Female • 89.5% Director level or above

• 33% CEO/President/CMO • 56% VP

A SPONSOR (2018)

n=41

Page 18: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

18

TYPICAL PROPERTY IN 2018 Property Reach• 26.2% International • 40.5% Canada • 14.3% Multi-Provincial/Provincial • 14.3% Regional • 4.8% Local

Decision-Making

• Decision-maker • 62% M, 33% F, 5% Other • 31% CEO; 22% VP

A PROPERTY (2018)

n=130

• $3.4 received (average) • Range: $5k to $57.5M

• Largest sponsor • Average: $176,325 • Source:

• Retail 37.8% • Manufacturing 17.8% • Finance: 15.65

• Mix: 73.9% cash/26.1% VIK • 17.9% - no VIK

• Revenue Source • 89.8% For-Profit Sponsor • 10.2% NFP Sponsor

Revenue Sponsor Mix

• 27.6 sponsors • Range 1 to 150

• Source of Revenue: • Retail: 30.3% • Finance: 14.2% • Manufacturing: 12.3% • Services: 12.1% • Communications: 8.5% • Insurance: 5.1% • Others: 13.9%

Demographic

• Budget: $265M average • HQ: 61% Ontario • 5.8 staff working

primarily on sponsorship

Page 19: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

19

HQ & Reach

• HQ: 58.8% Ontario • HQ: 11.8% Quebec • Reach:

• 29.4% International • 52.9% National • 17.7% Provincial

• $5.3M average billings ($5k to $29M) • Up from $3.1M last year

• Sponsorship: 59.4% of total Billings • Sponsorships worked on: 81.4 (avg) • Areas of Work

• Sales - 24% of Billings • Research - 14.5% of Billings • Evaluation - 14.3% of Billings • Activation - 11.1% of Billings • Staffing - 10.5% of Billings

Sponsorship Billings

Client Mix• Stakeholder

• Sponsor: 50.3% • Property: 25.3% • Agency: 24.4%

• Largest • Sponsor: 52.9% • Property: 47.1%

• Mission • For-profit - 72.2% • NFP - 27.8%

Decision-Maker

• CEO: 47.1%; VP 29.4% • Gender: 52.9% M; 35.3% F; 11.8% Other

Focus of Billings

• Gender: • M 24%; F 24%; 52% O

• Industry • Pro Sport 25.9% • Festivals 21.8%

TYPICAL AGENCY IN 2018

NOTE 59% described themselves as a

“sponsorship agency”

AN AGENCY (2018)

n=66

Page 20: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

3. Industry Data

Size & Scope

20

Page 21: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

21

PROPORTION OF MARCOM BUDGET

Sponsorship as a Percentage of Marketing Communications Budget

Sp

on

sors

hip

Pro

po

rtio

n

0%

7%

14%

21%

28%

35%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

16.7%15.5%

22.5%

15.4%

22.3%

29.6%

21.9%23.1%

25.4% 26.1%24.1%

18.3%

23.3%

Among those organizations that use sponsorship,

about 1 in 4 marcom $’s are spent on

sponsorship.

NOTE

23.3%

In 2018

DATA

Page 22: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

22

CANADIAN INDUSTRY SIZE

Historical Canadian Sponsorship Industry Size: Rights Fees

Am

ou

nt (

$B)

$0.00

$1.00

$2.00

$3.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$1.11

$1.59

$1.80$1.94

CAGR of 3.78%.

NOTE

$1.80B

2018 Rights Fee Spend

DATA

Page 23: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

23

CANADIAN INDUSTRY SIZE

CAGR of total activation spend is 7.49%.

Historically, activation spend has fluctuated considerably more than rights fee spend, but it has increased more relatively than rights fees.

0.68 Activation to

Rights Fee in 2018

DATAHistorical Canadian Sponsorship Industry Size: Activation

Am

ou

nt (

$B)

$0.00

$1.00

$2.00

$3.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$0.48

$0.91 $1.04$1.11

$1.59

$1.94

$1.22

$1.80

Page 24: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

24

BIG PICTURE: CANADIAN INDUSTRY SIZE

Historical Canadian Sponsorship Industry Size: Total

Am

ou

nt (

$B)

$0.00

$1.17

$2.33

$3.50

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$3.02

$2.50

$1.59

$1.11

$0.48

$1.59

$0.91 $1.22

$1.80

CAGR of rights fees plus

activation spend is 5.06%.

NOTE

$3.02B in Total

Industry Spend

DATA

Page 25: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

4. Results #1

Strategy

25

Page 26: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

26

DECISION MAKING

Criteria in Decision-Making: Sponsors

Consum

er Pass

ions

Industr

y Trends

Asset A

ssess

ment

Inte

rnal D

ata/A

nalysis

Competit

or Activ

ity

Bias

Other

0% 10% 20% 30% 40%

0.0%

31.7%

9.4%

4.4%

16.7%

16.1%

21.7%

10.3%

10.8%

19.2%

15.6%

21.1%

2.9%

20.1%

1.8%

17.9%

9.3%

13.6%

12.5%

12.1%

32.9%

201620172018

Criteria in Decision-Making: Agencies on Sponsors Behalf

Consum

er Pass

ions

Industr

y Trends

Asset A

ssess

ment

Inte

rnal D

ata/A

nalysis

Competit

or Activ

ity

Bias

Other

0% 10% 20% 30% 40%

1.8%

10.1%

16.2%

11.1%

11.8%

15.9%

32.4%

3.85%

12.92%

14.77%

10.88%

17.77%

11.92%

27.88%

6.2%

21.8%

13.8%

11.8%

10.7%

9.6%

26.1%

201620172018

DATA

MajorityOf Decisions are About

The Right Factors

NOTE ON 2018

Sponsors report ‘bias’ bounce back

but agencies disagree and

report very high “consumer passions”

Page 27: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

27

LARGEST SPONSORSHIP CATEGORY

DATA

Triple The size of largest

investments in pro sport versus those in amateur

sport or the arts

56% Pro Sport

23% Amateur Sport

22% Arts

Average Size of Largest Annual Deal: $1.1M

NOTE Pro Sport: $1.9M

Page 28: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

28

PROPERTY MIX

Historical Sponsorship Investment by Property Type

Per

cen

tage

of I

nve

stm

ent

0%

12%

24%

36%

48%

60%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Pro Sport

Amateur Sport

FestivalsCause

Arts

55.1%

18.7%

5.6%8.3%

11.0%NOTE

Significant shift in 2018 over

previous years

DATA

55.1% of Investment is

in Pro Sport

Page 29: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

29

Historical Sponsorship Investment in Sport

Am

ou

nt (

$ M

)

$0

$233

$467

$700

$933

$1,167

$1,400

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$337$495

$404$344

$317

$295

$349

$298$231

$322$338

$301$300

$990

$766$715

$751

$659

$361$427

$307$339$405

$338$301$300

Pro SportAmateur Sport

NOTE

Pro sport is taking ‘share’ from amateur sport (and other areas)

$1.33B

in Sports *5% increase over 2017

DATA

PROPERTY MIX

Page 30: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

30

SPONSOR INVESTMENT: PROPERTY REACH

16.2% | 10.4% Regional

33.8% | 36.2% National

17.2% | 7.5% Provincial

9.6% | 11.8% International

10.3% | 20.4% Multi-Provincial

11.9% | 13.7% Local

13-YR AVG | 2018 DATA “Go Big or Stay Local”

Page 31: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

31

MISALIGNED VIEWS ON THE FUTURE

DECREASE STAY THE SAME INCREASE

24.5% Sponsor

43.6% Property

38.1% Agency

30.1% Sponsor

14.5% Property

0% Agency

45.5% Sponsor

41.8% Property

61.9% Agency

Page 32: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

32

5. Results #2

The Deal

Page 33: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

33

DEALS: CASH OR VIK

Historical Cash vs. VIK Mix for Properties

Pe

rce

nta

ge o

f Rev

en

ue

0%

17%

33%

50%

67%

83%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

21.3%20.9%23.3%24.2%22.1%23.6%30.8%33.6%32.3%34.8%33.0%39.0%30.0%

78.7%79.1%76.7%75.8%77.9%76.4%

69.2%66.4%67.7%

65.2%67.0%

61.0%

70.0%

CashVIK

NOTE

Over time, there has been a clear trend towards more

cash, from about 1 in 3 dollars as cash to about

1 in 5 dollars as VIK.

DATA

78.7% Continued trend

towards cash over VIK

Page 34: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

34

DEALS: VALUABLE BENEFITS

Although exclusivity and owned content

remained top, access related items (database, tickets, spokesperson) all increased over 2017

DATA & NOTE

2018 saw a shift in sought benefits by

sponsors

Digital Ads

Broadcast Ads

Exclusivity

Ownership of Area

1 2 3 4 5

4.3

4.4

3.9

3.8

3.9

4.0

4.2

4.4

3.7

4.3

3.8

3.5

Rights to Mark/Logo

Hospitality/Tickets

Spokesperson Access

Database Access

1 2 3 4 5

3.6

3.8

4.1

3.6

3.0

3.2

3.6

3.7

2.9

3.1

3.4

3.5

201620172018

Most Valuable Benefits Identified by Sponsors

Page 35: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

6. Results #3

Activation

35

Page 36: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

36

ACTIVATION: RATIO

Historical Activation Ratio: Canada

Act

ivat

ion

to R

igh

ts F

ee

0.00

0.50

1.00

1.50

2.00

2.50

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

0.43 0.46

0.71 0.760.62 0.57

0.750.62

0.410.51 0.53 0.53

0.68

DATA

0.68 Activation to

Rights Fee in Canada.The highest recorded number since 2012.

Page 37: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

37

ACTIVATION: RATIO

Historical Activation Ratio: Canada & US

Act

ivat

ion

to R

igh

ts F

ee

0.00

0.50

1.00

1.50

2.00

2.50

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1.7

1.9

1.51.4 1.4

1.61.7

1.5

1.71.8

2.2 2.2 2.2

0.43 0.46

0.71 0.760.62 0.57

0.750.62

0.410.51 0.53 0.53

0.68

CanadaUS

Although improved in 2018, the activation ratio in the US in more than

3X higher than in Canada.

DATA

2.2 Activation to

Rights Fee in US

Page 38: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

Act

ivat

ion

Sp

en

d (%

)

0%

5%

10%

15%

20%

25%

2010 2011 2012 2013 2014 2015 2016 2017 2018

38

ACTIVATION: MIX OF INVESTMENT

Branded Content

Hosting/Hospitality

Product Sampling

Advertising

PR

Social Media

Shift back to Advertising, Hosting and Sampling.

Others of note:Ancillary Events (4.1%),Co-Promotions (6.8%),

Sales Promotions (5.9%)

Page 39: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

39

ACTIVATION: DRIVERS OF ROI - SPONSOR VIEW

#3 Advertising

#5 Athletes

#5 Social Media

#1 Hosting/Hospitality

#1 Product Sampling

#7 Public Relations

#7 Branded Content

#7 Sales/Consumer Promotions

DATA

Shift Changing of views in 2018 over 2017

Page 40: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

40

ACTIVATION: DRIVERS OF ROI - PROPERTY VIEW

DATA

No Shift Views in 2018 same as 2017

Should properties and agencies take note?

#4 Social Media

#4 Sales/Consumer Promotions

#2 Hosting/Hospitality

#2 Product Sampling

#1 Branded Content

Page 41: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

41

ACTIVATION: BRANDED CONTENT

NOTE

Sponsors have trailed properties and agencies in identifying branded content as the tactic

that best drives business results.

DATA

1ST

Best Tactic for Properties and Agencies

Historical Activation Tactic that Best Drives Business Results

Pe

rce

nt o

f Re

spo

nd

en

ts

0%

25%

50%

75%

2014 2015 2016 2017 2018

44.0%

60.0% 61.1%

30.0%

47.1%

34%

20.7%

34.4%32.6%

26.7%25.0%

0.0%

35.3%

18.5%

10.9%

SponsorsPropertiesAgencies

Page 42: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

42

ACTIVATION: PROPERTY REINVESTMENT

Property Reinvestment of Rights Fees in Activation

Pe

rce

nt o

f Rig

hts

Fe

es

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2013 2014 2015 2016 2017 2018

0.3%1.0%

3.4%

5.9%

11.9% 11.7%

NOTES

20.8% of respondents reported no re-investment

in activation

Most Common Tactics #1 - Hosting/Hospitality

#2 - Advertising #3 - Branded Content

DATA

11.7% Reinvested by

Properties in Activation

Page 43: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

7. Results #4

Servicing

43

Page 44: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

44

SERVICING: SPONSOR PERSPECTIVE

Services to Sponsors: Viewed by Sponsors

Recall stats*

Loyalty stats*

Info/results on purchase*

Ambush protection*

Activation w/ sponsors*

Activation resources*

Activation w/ properties*

Concluding report*

Info/results on obj.*

Protection of rights

1 2 3 4 5

4.22

4.56

4.56

4.00

4.67

4.11

4.22

3.89

4.33

4.56

3.89

3.11

3.56

3.33

3.33

2.56

3.50

2.67

2.78

2.56

Provided by propertiesValue to sponsors

NOTE

DATA

9 of 10 are Statistically

Significant Differences (*)

In most cases, sponsors do not feel that they are

being serviced to the level they’d hope

Page 45: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

45

PROPERTIES INVESTMENT IN SERVICING ON THE RISE

10.7% of sponsorship

revenue is allocated to servicing

Servicing - 2017

16.6% of sponsorship

revenue is allocated to servicing

Servicing - 2018

NOTE

DATA

Only 7.5% of property respondents reported

no investment in servicing.

55.1% Increase from 2017 to 2018

Page 46: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

8. Results #5

Evaluation

46

Page 47: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

Sponsor Satisfaction with ROI

Pe

rce

nt o

f Re

spo

nd

en

ts

0%

25%

50%

75%

Very Dissatisfied Somewhat Dissatisfied Neither Satisfied Somewhat Satisfied Very Satisfied0.0%

6.5%

12.5%

62.5%

18.5%

0.0%

71.4%

14.2% 14.2%

0.0%

47

LAST YEAR’S ROI GAP (2017)

Sponsor Property on Sponsor

NOTE

This gap was consistent with previous years’

results as well.

DATA

Page 48: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

Sponsor Satisfaction with ROI

Pe

rce

nt o

f Re

spo

nd

en

ts

0%

25%

50%

75%

Very Dissatisfied Somewhat Dissatisfied Neither Satisfied Somewhat Satisfied Very Satisfied

0.0%

8.9%

35.6%37.8%

13.3%

0.0%

22.2% 22.2%

44.4%

11.1%

48

THIS YEAR’S ROI GAP (2018)

Sponsor Property on Sponsor

DATA

NOTE

Alignment!

3.61 Sponsor Mean 3.66 Property Mean

Page 49: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

49

EVALUATION INVESTMENT

Historical Evaluation Spend

Pe

rce

nt o

f Rig

hts

Fe

es

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

7.8%

4.5%

6.0%

4.1%

2.6%2.3% 2.3%

3.0%

1.1%

3.3%

5.5%

3.7% 3.7%

Pre-evaluation: 10.6% 3.6% 8.5%12.6%

DATA

3.7% of Rights Fee

Spent on Evaluation

NOTE

17% reported spending nothing on evaluation.

Work needed here.

Pre-Sponsorship evaluation spend was

8.5%.

Page 50: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

PROPERTY EVALUATION

GOOD NEWS LESS GOOD NEWS

5.4% Proportion of sponsorship

revenues invested in sponsorship evaluation

10.1% Proportion of those dollars

allocated to pre-sponsorship evaluation

30.4% spent zero on

sponsorship evaluation

48.2% spend nothing

on pre-sponsorship evaluation

DATA

++ Properties spending relatively more than

sponsors on evaluation

50

Page 51: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

AGENCIES AND ROI

New Question: In 2018, we asked agencies to tell us what techniques and measures they utilize to demonstrate ROI for their clients.

51

Select Quote:

‘ROI measurement strategy for each client is customized. Some is sales driven against timelines and given factors; for others it is brand recognition and others employee engagement.”

Topical Themes

• Proprietary (Custom) Models for Valuation and Evaluation

• Baselines, Benchmarks and Pre-Post • Brand Exposure • Social Media Metrics

Specific Recos

• Independent research • Consistent methods • Depends on objectives/goals/KPI’s to

measure against • Share of wallet and share of mind

Page 52: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

52

MEASUREMENT IS COSTING US SLEEP

Top Concerns Meeting Targets* Demonstrating ROI Demonstrating ROI Other* Demonstrating ROI Demonstrating ROIMeeting Targets**

Evaluation/Measure

Year 2012 2013 2014 2015 2016 2017 2018

*Demonstrating ROI #2 **Demonstrating ROI #3

“How to measure ROI on my sponsorship investments.”

- Sponsor

“Delivering on the promised benefits”

- Property

“How to measure its effectiveness.”

- Agency

“Determining the value of social and digital benefits.”

- Sponsor

“Demonstrating sufficient ROI to prospects and clients.”

- Agency

Page 53: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

9. Discussion

So What?

53

Page 54: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

Big Changes…Many of Them PositiveSO WHAT?

• Professional sport rise • Nearly $1B in rights fees

• Return of experiential assets on ROI, sought sponsor benefits & activation • hospitality, product

sampling and advertising • Perception of sponsor ROI

disappears in properties • Activation (CAGR 7.5%)

outpacing rights fees (CAGR 3.8%)

• Shift in reach: • “Go big or stay local”

• Property investment in servicing, activation, evaluation

• Is bias back for sponsors but not for their agencies?

• The rise of the “sponsorship agency” (39 out of 66 respondents)

• Measurement the priority

• VIK needs attention • Servicing gaps remain • Misaligned forecasts • Evaluation flat for sponsors • Gender

• Leadership 50/30/20 • Low on sponsor targets

Cosmic Shifts Important Signals Same Ole

4,000+ Total Historial Responses

0.68 Activation Ratio

>$3B Total Sponsor Spend

55.1% Increase in Property Servicing

54

Page 55: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

Deep DiveNot-For-Profit Sponsorship

Page 56: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

56

In 2018, sponsors spent $1.8 billion on sponsorship rights fees in Canada, of which 42.5% was on not-for-profit property partners

SPONSORS ARE ‘PRETTY EQUAL’ IN THEIR SPENDING

Estimated Spend

$765 million

Page 57: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

57

NOT-FOR-PROFIT HISTORY - TYPICAL CATEGORIES

Historical Sponsorship Investment by Property Type

Per

cen

tage

of I

nve

stm

ent

0%

12%

24%

36%

48%

60%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Amateur Sport

Cause

NOTE

Decliningproportion of a growing market

“Dogs”Note: other areas of NFP properties

(education, municipalities, etc.)

all <1% in 2018

DATA

Page 58: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

58

DEEP DIVE: SPONSORS

SPONSORS:

“How important is cause when you decide to sponsor a particular property?”

n=46

Page 59: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

IT DEPENDS/ROI LINK 54%IMPACT ORIENTED 22%

IMPORTANT 9%

“100% critical.”

“Assez importante.”

“Increasingly important for Gen Z.”

NO VALUE 15%

“Don’t sponsor causes. Its a rubbish investment and does nothing for the brand.”

“Cause is not important.”

“We have [another] division that deals with cause/purpose separately.”

“Eyeballs and meaningful integration.”

“Hire sponsorship professionals to sell and not fundraisers.”

“Create business with those donors, engagement.”

“Identify connection points…how can I as a sponsor connect with their donors/patrons/fans and create attribution.”

“Cele depend du rayonnement l’entreprise. Plus il est grand, plus la cause semble important.”

“Depends, it is not the first consideration, more of a nice value add.”

“Has to be contextually relevant to our brand.”

59

Page 60: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

60

DEEP DIVE: PROPERTIES

Properties:

“How important is cause to your ability to attract sponsors?”

n=130

Page 61: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

61

VERY/EXTREMELY 79% MODERATELY/FAIRLY 21%

“Important but not the top consideration.”

“Market in the same manner that leading not-for-profit properties already are and start with what the property can do for the partner, rather than just the great work they do for a cause.”

“All of our sponsorship opportunities are tied to cause.”

“It is critically important as we build the positive consumer/client/employee perception of our partners.”

Page 62: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

62

“It is critical that the cause of the property is aligned with my brand, otherwise it creates a point of conflict.”

- Sponsor

KEY LEARNING FOR CAUSES: YOUR PARTNERS DO NOT NEED YOU AS MUCH AS YOU NEED THEM.

Page 63: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

63

DEEP DIVE

All:

“According to historical CSLS data, investment by sponsors in cause properties has declined. What do you believe is (are) the reason(s) for this trend?”

n=171

Page 64: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

64

KEY LEARNINGS FOR CAUSES: THE TREND IS REAL. TIME TO CRANK UP YOUR MARKETING.

NAVEL GAZING

• “The public has become more dialed-in with what’s real and what is not…make sure that the partnership is authentic on every level.”

• “Causes are not able to demonstrate their specific demographics.”

• “Charities not investing in the appropriate personnel and resources needed to sell, manage, & deliver.”

COMPETITION INTENSE

• “Cause properties are unable to support sponsors in the same way as festivals.”

• “Analytics is replacing ‘doing good’.”

• “Too many charities asking for sponsorship.”

• “Crowded.”

• “From an ROI perspective, there is an inability to compete.”

• “Brands treat causes as donations.”

ACTIVATION IMPROVEMENT

• “Challenged to figuring out how to leverage cause and purpose as a means to driving their brand and business goals.”

• “Difficulty showing ROI.”• “Inability to meet or create

ROI.”• “Lack of tangible assets to

complement intangible value.”

• “Saturation and lack of creative storytelling.”

Page 65: Lead Author: DR. NORM O’REILLY...Lead Author: DR. NORM O’REILLY 13th ANNUAL ACKNOWLEDGEMENTS / CSLS PARTNERS 2 3 TODAY’S PRESENTATION Qualitative Deep Dive Sponsor, Property

Thank You!

www.sponsorshiplandscape.ca