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MAKING SPONSORSHIP PAY – HOW CAN WE HELP?The role of Research in Sponsorship as a Marketing Tool.

Prepared for: MediaCom Engage Conference

10 May 2012

Presented by: Richard Brinkman

Head of KantarSport

RESEARCH IN SPORT : WHAT IS IT GOOD FOR?IT MUST BE ACTIONABLE AND UNDERSTANDABLE

RESEARCH IN SPORT : WHY DO YOU WANT TO DO IT?YOU HAVE TO BE BRAVE

THE GLOBAL RECESSION HAS SEEN A SLOW DOWN IN MARKETING SPEND…

Source: GroupM – This Year, Next Year

Global Marketing Spend

…WHILST SPONSORSHIP REMAINS IN GOOD HEALTH

Source: GroupM – This Year, Next Year

Global Sponsorship Spend Up 88%

CONSUMERS WITH LESS CASH IN THEIR POCKETS ARE STAYING HOME AND WATCHING MORE TV AND MORE SPORT

Source: BARB/Infosys TV

Average Daily Hours of TV - UK

TV STILL LIES AT THE HEART OF MEDIA CONSUMPTION, BUT FOR HOW LONG?

Source: OFCOM CMR 2010

Daily Reach of Devices - UK

57% of mobile phone use takes place concurrently with other media activity and 62% for computer use

LET’S NOT WRITE OFF TRADITIONAL MEDIA JUST YET

More people read newspapers than are connected to the web

Total newspaper readership 1,900,000,000 per day

540,000,000 newspapers sold every day

Global paid-for circulation up 1.3 % year-on-year, 8.8% over 5 years

Newspapers reach 41% more adults than the world wide web

Twitter used by 1.9% of UK population

TIME SHIFTED VIEWING MEANS IT IS HARDER THAN EVER TO REACH YOUR TARGET MARKET THROUGH TRADITIONAL MEANS – DOESN’T IT?

Source: BARB

Alongside the challenges already confronting brands is the growth in time shifted viewing.

The development of services such as TiVo and Sky + have further blunted the power of traditional TV advertising.

But Sport is less vulnerable to the effects of time shifted viewing, particularly live content.

15.1% of all viewing in Sky + homes is now time shifted. Sports content is amongst the least time shifted programming (particularly amongst highly rated programming).

16.7%14.5%

10.1% 9.9%7.5% 7% 6.9%

5.7% 5.6% 5.1%4.0%

Proportion of Coverage Time Shifted (Sep ‘11)

SO….CHALLENGING!!

Its difficult – Emotional into rational.

Its big – and getting bigger!

Its scary – Accountability and Planning

Its dynamic – changing and evolving

Its increasingly global

Its 2-paced – traditional media driven but experienced live and in real time too

SO….IT’S A BIT OF AN ANIMAL!!

WHAT TO DO ? DEPENDS ON WHAT YOU WANT OUT BUT DON’T….

KEEP IT SIMPLEADAPT TO YOUR OBJECTIVES

• TV, Press, Online Monitoring • SportsI – Advanced image recognition brand exposure monitoring• Advice and Recommendations to maximise exposure

• Viewing trends• Global comparisons• Analysis of sport vs.. other content• InfoSys

•Sportscope: continuously tracking sports properties followed• Impact of sponsorship• Media touch points• Multi country

• Specific event based studies – i.e. Olympics• Market size and structure• Market segmentation • Usage and attitude • NPD and pricing research

• TGI – Lifestyle, products, media plan• TRI*M – Hospitality and spectator experience• BGI – the “equity” in a sport, how attached are people• NeedScope – matching values, assessing “fit”

Media Output

Consumer Outcomes

Commercial Sport Programmes

Multimedia Monitoring & Evaluation

AudienceAnalysis

Syndicated tracking surveys

Custom Market

Research

Specialist Techniques &

Tools

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What is the ROI?

How can we make it work harder?

What attitudes and behaviours are we driving?

What’s the media value for what we got?

What should we pay?

What should we sponsor?

FUNDAMENTAL MODEL OF OBJECTIVESWHO SHOULD DO WHAT?

KantarSport

THE THORNY ISSUE OF MEDIA VALUECONSISTENCY ACROSS TV, PRESS & ONLINE

IT IS BECOMING MORE IMPORTANT NOT LESSEVERY PARTNERSHIP NEEDS NEGOTIATING

Consistent language understood functionally and globally

Useful for establishing KPIs

Informative around efficient implementation

Worthwhile part of the story (not the whole story)

Its about people not technology

Make sure its understandable, robust, variable minimal and actionable

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1TRACKING SPONSORSHIP IMPACT

SPORTSCOPE : CONSUMER TRACKING STUDYWHAT DOES IT DO? MORE THAN JUST A 500 PERSON AWARENESS SNAPSHOT

Profiles consumers who follow different sports. Segments fans based on their level of attachment to a sport.

Establishes levels of awareness generated from brands’ sports sponsorship and the affinity to those brands involved.

Tracks trends in sports consumption and spend throughout the year.

Facilitates comparisons between sports and competitive brands based on different target groups – a comparable measure between different activity.

Measures the equity that lies within individual sports, key competitions, clubs and individuals.

Enables governing bodies, rights owners and clubs to understand key metrics about their supporters.

Allows sponsors to see which sports, clubs and competitions can offer them the best ROI through understanding comparable awareness and disposition measures.

SPORTSCOPE : CONSUMER TRACKING STUDYHOW DOES IT DO IT?

A monthly on-line survey to a rolling panel of 1000 nationally representative adults.

Run in UK, France, Italy, Germany, Spain, USA, Russia, China, Brazil, Australia.

Core module asking about media consumption of sports, spend on sports and commitment to particular sports runs every month.

This is augmented by specific modules going into more depth about particular sports and brands within those sports on differing frequencies.

So there are 12 football modules, 3 F1 modules, 2 rugby, tennis, golf, horse-racing, skiing modules etc per year. Covering 20 sports in all.

More bespoke client questions and other sports (ie basketball) can be added at additional cost.

Additional countries can also easily be added at additional cost.

• Interaction with individual sports – watch, read, listen, play• Degree of commitment to each sport followed – segmentation • Where sport fits into leisure activities• Equity of each individual sport• Spend on leisure and sport’s share of wallet

• Age, Gender, Social Class• Region• Household size•Other demographics and lifestyle are available on request

• Sponsorship association with F1, trackside and teams (spontaneous & prompted)• Sponsor brand awareness, affinity, usage & consideration

• Importance of F1 amongst other Sports and MotorSports • Races interested in attendance / watching• Team / Driver followed • Detailed analysis about how people follow F1

SPORTSCOPEQUESTIONNAIRE FOR CORE & F1 MODULE

F1

Brands in F1

Demographics

Sport & Leisure

OUR APPROACH TO SPONSORSHIP MEASUREMENTANALYSIS: BRAND BEHAVIOUR

Movement through the impact funnel highlights the impact the sponsorship is having on a target.

12

25

60

25% of those aware of the sponsorship consider the brand

60% of those who consider are likely to buy

This can be visualized in a simple pyramid… few people aware, but impact on those few

is great.

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KantarSport

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IMPACT OF SPONSORSHIP BY BRANDAUDI AND NIKE CONVERTING A NICHE GROUP WHILE AON’S GREATER AWARENESS NOT YET TRANSLATING TO CONSIDERATION

Audi

55

Aware

Consider

Engage 75

AON

Nike AIG

Aware

Consider

Engage

Aware

Consider

Engage

Aware

Consider

Engage

Movement along the

impact chain determines the shape

and provides diagnostics

on the strengths & weaknesses

of your sponsorship

16

70

100

34

71

42

11

86

IMPACT OF SPONSORSHIP OVER TIMEAFTER THE TOURNAMENT THE PROPENSITY TO ENGAGE WITH THE COCA COLA WAS LOWER BUT THE CONSIDERATION SET WAS MUCH HIGHER

IMP

AC

T

TIME

During World Cup%

After World Cup%

Aware

Consider

Engage

60

25

12

40

60

86

38

92

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IMPACT OF SPONSORSHIP BY SEGMENTMOVEMENT ALONG THE IMPACT CHAIN CAN BE DIFFERENT DEPENDING ON YOUR COMMITMENT LEVEL, WHICH PROVIDES FURTHER DIAGNOSTICS ON THE STRENGTHS & WEAKNESSES OF YOUR SPONSORSHIP

IMP

AC

T

ATTACHMENT

Strongly Attached%

Attached %

Divided%

Unattached%

Aware

Consider

Engage

40

15

45

5

25

60

40

50

60

20

30

40

Example data only

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2COMBINED WITH THE POWER OF TGI

Source: Sportscope TGI 2011

UCL fans are 40% more likely to have a Blackberry

UEL fans are 25% more likely to have a games

console at home

UCL fans are 44% more likely to drink draught

lager (as against 33% for football

fans)

UEL fans are 17% more likely to drive a people

carrier

SPORTSCOPE TGIEXAMPLE INSIGHTS

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Golf fans are 29% more likely to have a bank

account with RBS

Horse racing fans are 27% less likely to have a bank

account with RBS

Golf fans are 54% more likely to earn over £50k per

year

Horse racing fans are 35% more likely to earn over

£50k per year

SPORTSCOPE TGIEXAMPLE INSIGHTS

Source: Sportscope TGI 2011

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SKIING IS A FAIRLY NICHE SPORT IN GB AND SUFFERS FROM A HIGH LEVEL OF COMPETITION FOR FAN ATTENTIONSKIING LANDSCAPE

5.5% of GB adults (2.6m adults)

follow skiingOn average skiing followers, follow

7.7 sports. Higher than the average

for all sports fans which is 3.3Skiing followers also follow:

Formula 1 (59%)Athletics (57%)Tennis (53%)Football (53%)

FOOTBALL FOLLOWING BY COMPETITIONTHREE QUARTERS OF FOOTBALL FANS FOLLOW THE UCL. WHEN USING TGI DATA UCL AND UEL WILL LARGELY REFLECT THE WIDER FOOTBALL FAN BASE . SPORTSCOPE TGI SEGMENTS FOLLOWERS BASED ON THEIR ATTACHMENT TO THE COMPETITION

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Source: TGI 2011

TGISportscope TGI UCL Followers

Source: Sportscope TGI 2011

PROFILE OF CARLING CUP FANSSPORTSCOPE TGI SEGMENTS FANS BASED ON ATTACHMENT TO THE COMPETITION ALLOWING MORE DETAILED ANALYSIS OF THE FANBASE

Attached Fans are the most desirable target for a sponsor partner

•More engaged with the sporting property

•Tune in to communications about the property

•More exposed to sponsors

•More affinity with sponsors and what they are trying to do

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KEY BRAND UPLIFTSSIGNIFICANT DIFFERENCE AMONGST ATTACHED CARLING CUP FANS

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3THE FUTURE

WHAT IS GOING TO HAPPEN?COLLABORATION THE KEY THEME

The industry gets the research it deserves – less than 1.5% of total sponsorship spend goes back into R&D.

Concentration on measuring what makes sponsorship attractive vs other media – ability to start a more personal and interesting dialogue.

Use of dual screen/media – online and social media behaviour driven by traditional media.

Online behaviour and habits, scale and proliferation of content grabbed and shared by individuals.

Getting the correct basis for your dialogue – “fit” – TNS NeedScope.

The live experience – stakeholder management tool such as TRI*M.

A less confrontational view between rights holders and brands – share costs.