Repucom Guest Lecture April 2014 (Thomas More & EHSAL)

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WE ARE REPUCOM

GLOBAL LEADERS IN SPORTS MARKETING RESEARCH

WIM MATHUESBELGIUM I APRIL 2014

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INTRODUCTION

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WE UNDERSTAND THE BUSINESS OF SPORT AND HOW FANS ENGAGE WITH IT TO HELP CLIENTS:

WE ARE REPUCOM

» MAKE BETTER INFORMED DECISIONS

» TRACK COMPETITORS MORE EFFECTIVELY

» REACH THEIR COMMERCIAL OBJECTIVES

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WE VALUE SPORTS MARKETINGOPPORTUNITIES & ADD VALUE TOYOUR SPONSORSHIP INVESTMENT

THIS IS WHAT WE DO

ASSESS» Sponsorship fit and renewals» Predictive asset valuation» Negotiation support

EVALUATE» Property health» Portfolio benchmarking» Sponsorship optimization

MEASURE» Monitoring » Measurement frameworks» Activation diagnostics

SPONSORSHIP INSIGHTS

LIFECYCLEMEASURE

EVALUATE

ASSESS

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WE DELIVER THE INSIGHTSTHAT LET YOU MAKE TRULYINFORMED DECISIONS

THIS IS WHAT WE DO

» COMPREHENSIVE

» ADVANCED

» INDEPENDENT

» VALUABLE

» FOCUSED

MEDIA EVALUATION

Analyzing brand impactin media around the world.

COMMERCIAL AUDITING

Protecting your global brand and asset rights.

CONSULTANCY

Insights around your needs to grow Return on Assets and Objectives.

MARKET INTELLIGENCE

Comprehensive market and competitor analysis.

MARKET RESEARCH

Understanding target markets through focused research.

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WHEREVER YOU AREWHEREVER SPORTS FANS ARE

LEADING THE WAY

AMSTERDAMBANGALOREBARCELONABRUSSELSBUENOS AIRESCHARLOTTE, NCCOLOGNECOLUMBIADUBAIJOHANNESBURGKANSAS CITY, MO

KARLSRUHELONDONMELBOURNEMILANNEW YORKPARISSAO PAULOSINGAPORESYDNEYTOKYOVANCOUVER

AMERICAS MIDDLE EAST

AFRICA

ASIA PACIFIC

EUROPE

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BRANDS RIGHTS HOLDERS AGENCIES MEDIA

TRUSTED ADVISOR TO THE INDUSTRY´S KEY PLAYERS

MAXIMIZING VALUE FOR RIGHTS HOLDERS, BRANDS, MEDIA AND AGENCIES

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TRUSTED ADVISOR TO THE INDUSTRY´S KEY PLAYERS

MAXIMIZING VALUE FOR RIGHTS HOLDERS, BRANDS, MEDIA AND AGENCIES

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SPONSORSHIPS IN THE MARKETING MIX

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SPONSORSHIP IS BECOMING A KEY PART OF THE MARKETING MIX:

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

• 63% of brands say sponsorship is now integrated into their marketing strategy

• 58% feel that this will lead to better quality sponsorships

Source: Repucom Outlook

PERFORMANCE SELECTION

EVALUATION VALUATION

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MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP

SELECTING THE BEST FIT

MEASURING PERFORMANCE

PERFORMANCE SELECTION

EVALUATION VALUATION

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

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ACCOUNTABILITY

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

Requirement and expectation to justify actions or decisions

Needs to be independently evaluated

Source: Repucom Outlook

PERFORMANCE SELECTION

EVALUATION VALUATION

71% of industry professionals believe that it is essential to have independent evaluation of the effectiveness of sponsorships, only 5% disagree.

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MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP

SELECTING THE BEST FIT

PERFORMANCE SELECTION

EVALUATION VALUATION

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

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BRANDS STATE THEIR KEY OBJECTIVES FOR……SPORTS SPONSORSHIP

1 = Increase brand awareness

1 = Brand Impact/Image

3. Entertainment of clients & prospects

…CAUSE RELATED SPONSORSHIPS:

1. Brand Loyalty

2. Brand Credibility

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

of brands say that pre-analysis to justify involvement is becoming more important72%

Source: Repucom Outlook

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AND THEN EVALUATE USING: » Viewing data» Media exposure» Brand trackers» Attendance numbers» Media value

DECISIONS TO SPONSOR ARE MOST LIKELY TO BE BASED ON:

1. Brand exposure

2. TV audiences

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

BUT A DISCONNECT ON HOW

Source: Repucom Outlook

of brands say that pre-analysis to justify involvement is becoming more important72%

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ANALYSIS OF SPONSORSHIPS

Brand Fit

Target Group / Audience Fit

Fit with overall marketing strategy & other Engagements in

the portfolio

Competitive Context

Business Fit (Transactional aspect / CRM)

Geographic Fit

MATRIX OF CRITERIA

All of these elements should be considered in tandem with any ROI analysis

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PROPERTY SELECTION – ANALYSIS FRAMEWORKIDENTIFICATION AND EVALUATION OF APPROPRIATE PROPERTIES

Platform PropertyCategory

REPUCOM‘S SPONSORSHIP EVALUATION FRAMEWORK

BRAND FIT

AUDIENCE FIT

BUSINESS FIT

A shortlist of properties best suited

to your brand

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PASSION CATEGORY SCORECARD EXPLANATION

» An objective and data driven approach to ranking all Categories» A tool designed specifically to facilitate informed commercial decisionsScores indexed out of 10

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PLATFORM SCORECARDEXPLANATION

Top 2 Box HH income

Art Galleries / Exhibitions Comedy Opera Ballet Musicals

x.xWithin CategoryTop 2 box % score (‘Regularly’ / ‘Sometimes’) for each activity. The most frequently visited / watched / performed activity within each category is fixed to 10

Across CategoryAn analysis of each activity in the context of all the other activities – across Categories. Only the most regularly performed activity - across Categories - will receive an index of 10 for this measure

Total An average of the ‘Within Category’ & ‘Across Category’ score

x.x

x.x

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PROPERTY SCORECARD - EXPLANATION

Brand Fit

Audience Fit

Business Fit

Awareness of event / property

Effect on brand Preference

Indirect Property Fit

Direct Property Fit

TV Viewership

Attendance

Social Media interaction

Sponsor-Target Fit

Geographic relevance

B2B Interaction

B2C Interaction

Simple awareness of property

Does sponsoring an event / property makes you feel better about [BRAND]

What does the property / event lend to your brand in terms of desirable image traits

How well the event / property and [BRAND] fit together

TV Audience & viewership figures – indexed vs. other events / properties

A measure of social media activity surrounding each property / event using:

At event attendance – indexed vs. other events / properties

Potential to activate the sponsorship rights (sales promotion opportunities / Hospitality opportunities, networking potential, linking to other partners)

What degree of relevance does this property have in your brand’s key territories?

Fan profile: Level of product category affinity, brand loyalty

Scores indexed out of 10

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DUMMY DATA

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WHAT IS SPONSORGLOBE?FULL ACCESS TO THE WORLD‘S LARGEST SPONSORSHIP DATABASE

SPONSORGLOBE [UNIQUE]

» SPONSORGLOBE forms an important part of the analysis in that information can be gleaned to inform market specific recommendations, in each category amongst any relevant competitor brands

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SPONSORSHIP SUMMARY FIGURES

45%

16%

4%

14%

4%4%

7%SPORTS

ARTS & CULTURE

ATTRACTIONS

DINING

MUSIC

SHOPPING

THEATRE

TRAVEL

NUMBER OF ENGAGEMENTS BY PASSION CATEGORY

TOTAL NUMBER OF ENGAGEMENTS:

73

PROPORTION OF OVERALL SPONSORSHIP INVESTMENT BY PASSION CATEGORY

TOTAL SPONSORSHIP SPEND:

€31.05m

71%

10%

2%

5%3%

2% 6% SPORTS

ARTS&CULTURE

ATTRACTIONS

DINING

MUSIC

SHOPPING

THEATRE

TRAVEL5 Biggest Sponsorships

NBA/USA Basketball/WNBA €4 Mil p.a.

PGA of America €3.1 Mil p.a.

United States Golf Association (USGA) €3 Mil p.a.

US Open €3 Mil p.a.

Barclays Center €1.6 Mil p.a.

SPONSORGLOBE [EXAMPLE OUTPUT]

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WHAT DOES SPONSORGLOBE CONTENT LOOK LIKE?

SPONSORGLOBE [EXAMPLE OUTPUT]

SCUDERIA FERRARI

Brand Company Contract start

Contract end Industry Sponsor

origin Sport Sponsorship object origin

Official sponsorship title

Value per season in USD

Marlboro Philip Morris International 1983 2015 Tobacco USA Formula One Italy Sponsor >75,000,000

Santander Banco Santander 2009 2017 Finance

Banking Spain Formula One Italy Sponsor 40,000,000 – 49,999,999

Shell Royal Dutch Shell 1996 2015 Energy /

Fuel / Oil Netherlands Formula One Italy Sponsor 30,000,000 – 39,999,999

…

SEASON 2013

EXAMPLE ON FURTHER OUTPUT YOU CAN GENERATE: SPONSOR ORIGIN

32%

18%14%9%

27% ItalyUSAGermanySwitzerlandOthers

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MAXIMISING THE EFFECTIVENESS OF SPONSORSHIP

MEASURING PERFORMANCE

PERFORMANCE SELECTION

EVALUATION VALUATION

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

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MEASURING PERFORMANCE

60% of brands felt that the importance placed on ROI would increase

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

84% of brands agreed that they needed to place more importance on ROI

83% felt that the importance placed on ACCOUNTABILITY was greater than ever

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BENEFITS OF MEASURING PERFORMANCE

MAXIMIZEthe return of sponsorship campaigns

IDENTIFYkey areas of improvement

UNDERSTANDhow to reallocate your sponsorship budget effectively

REPORTfact-based insights to report internally

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

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BEFORE YOU MEASURE PERFORMANCE YOU NEED TO KNOW:

» Benchmarks

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

» Letting the assets do the work» Activating the assets» Full leverage campaign

» What are your objectives

WHERE YOU ARE WHERE YOU ARE GOING

HOW YOU ARE GOING TO GET THERE

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Most Economical

LeverageAssets

ActivateSponsorship

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

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WHAT PERFORMANCE TO MEASURE?

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

ROI ROO

ROIROA ROIROL

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WHAT PERFORMANCE TO MEASURE?

Return on Leverage» Added Return – Earned

Return on Assets» Utilisation» Asset Performance Index

Return on Objectives» KPIs» Sponsorship Performance Index

Return on Investment» $ return/ Ratio of return» Assets – Paid For» Activation/Leverage – Earned

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

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MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

Print

Online

Ambient

Collateral

TV

Additional Components

Sponsorship AttributesStatus

ExclusivityClutterTiming

Geographic ReachAudience Profile

Track Record

Association BenefitsAwareness

ImageActivation

(B2B, B2C, B2E)

TANGIBLES INTANGIBLES RETURN COSTS

ROI $

+ = ÷

ROI RATIO

AssetsPaid For

EarnedActivated+ =

TOTALRETURN

ARE YOU GETTING THE BEST RETURN:FROM THE ASSETS?

FROM YOUR OWN ACTIVATION?

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IS THE SPONSORSHIP MEETING ITS OBJECTIVES?

Do people know about it?

Is it saying the right things?

Has it changed opinions/

considerations?

Has it led to sales?

Add PR

Changebranding

Add Channels

Add CSR

Change Message

AddRetail Push

Brand being shown/

mentioned?SPONSORSHIP

MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

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MAXIMISING THE EFFECTIVENESS OF SPONSORSHIPSELECTING THE BEST FIT & MEASURING PERFORMANCE

KPIs TARGET ACTUALSPONSORSHIPPERFORMANCE

INDEX (SPI)

HOW TO FIND OUT WHAT IS WORKING AND WHAT IS NOT.RETURN ON OBJECTIVES

TV exposure is not achieving target. Is this poor branding, positioning or not enough coverage?

TOM is over target and maybe at peak levels.

Time to shift to more focus on changing image through print articles and messaging – add a new

KPI

Social media is reaching target numbers

Next step is engagement – re-tweets, dwell time, sentiment, messaging

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ONE NUMBER FOR RETURN ON OBJECTIVES

120

£2 : 1

ONE $/RATIO FOR RETURN ON INVESTMENT

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THANK YOU

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THANK YOU

GET IN TOUCH

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AMERICASMIDDLE EAST

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EUROPE

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