Sponsorship Landscape - Dr. Norm O’Reilly · 2020. 5. 29. · 8th Annual CSLS The Canadian Sponsorship Landscape Study (CSLS) is an annual survey of Canadian sponsors, properties

1

’

r

Dr. Norm O’Reilly Ohio University & TrojanOne

Elisa Beselt & Adam DeGrasse TrojanOne

2

8TH CSLS EXECUTIVE SUMMARY

286 Responses

85.6% 14.4% English French

Sponsorship Marketing Budget

23.1%As percentage of total marketing communication budget

Amount Change

Industry Size $1.77B 12.7%

Activation Spend $1.10B -6.8%

Total Spend $2.87B 4.4%

Average Median

Sponsor Spending $2,599,220 $625,000

Property Revenue $1,791,820 $225,000

Agency Billing $1,133,650 $500,000

Activation Ratio

0.62For every dollar spent on rights fees, 62 cents is

spent on activation

Evaluation

3.0%of overall sponsorship marketing budget is spent on

sponsorship evaluation

3

REPORT

8th Annual CSLS

The Canadian Sponsorship Landscape Study

(CSLS) is an annual survey of Canadian

sponsors, properties and agencies that provides

an overview of the sponsorship industry in

Canada.

The study examines both academic and

industry resources to provide information that is

relevant for the sponsorship sector in Canada.

Data is collected anonymously and ethically

through a secure website. Over the years, the

study has engaged several partners, including

the Canadian Sponsorship Forum and the

Sponsorship Marketing Council of Canada,

where the findings are regularly presented at

annual conferences, as well as IMI International

and TrojanOne as key research partners.

In order to serve its purpose and ensure the

findings are readily available and can be applied

broadly, the survey report is publicly available.

Please note that all amounts presented in this

report are in Canadian dollars, unless indicated

otherwise.

1 BackgroundAbout, History & Purpose

2 MethodologyDesign & Sample

3 ResultsSponsors, Properties & Agencies

4 AnalysisQuantitative & Qualitative

5 Key LearningsLessons

6 ContactAuthors & Acknowledgements

4

1 BackgroundAbout, History & Purpose

5

HISTORY & PURPOSE

Background

2014 marks the eighth annual CSLS. The study

began in 2007 as a way to meet the several

needs within the Canadian sponsorship industry.

First, following the 2006 Canadian Sponsorship

Forum, many delegates, including key

sponsorship professionals, noted that the

support for sponsorship as a marketing tactic

was predominantly anecdotal and there was a

need for evidence to support and enhance

recommendations for best practices regarding

sponsorship in Canada.

Additionally, during this time there was a push

within academia to formalize the field of

research and provided academic literature on

sponsorship, especially with regards to its

professional application. Finally, anecdotal

disconnect within the industry, often between

sponsors and properties, created the need for

evidentiary support. The Canadian Sponsorship

Landscape Study was born out of all of these

needs in 2007 and and continues to meet these

demands today.

TimelineSince the study’s inception in 2007, the findings

have been presented at key industry gatherings

on an annual basis.

2007

Toronto International Film Festival, Toronto

Canadian Sponsorship Forum

2008

World Hockey Championships, Halifax


2009

Quebec Winter Carnival, Quebec


2010

Paralympics, Vancouver


Creating Opportunities, Toronto

Sponsorship Marketing Council of Canada

2011

Formula One, Montreal


Upping the Ante, Toronto


2013

MasterCard Memorial Cup, Saskatoon


CSTA Sport Event Congress, Ottawa

Women & Sponsorship

Sponsorship Revolution & Western Sponsorship Congress, Toronto &

Calgary


Infopresse RDV Commandite, Montreal

2014

RBC Bluesfest,

Ottawa


2012

Just for Laughs, Montreal


Trailblazing, Toronto


6

ORGANIZATIONS

Partners

Since 2007, the group responsible for carrying

out the study on the sponsorship industry in

Canada has gained momentum. During the first

year, the group brought together academics from

Canadian universities. Two years later, the

Sponsorship and Marketing Council of Canada

joined the team as co-presenter of the study for

several years. In 2014, the partners of the study

are listed here.

IMI International

As a leading market research firm, IMI

International supports the CSLS through the

provision of a secure website that allowed for

survey administration, data collection and

storage.

TrojanOne

An agency proficient in leveraging the passions of

consumers to create brand experiences. We’ve

built a reputation for developing ownable

properties and ideas that engage consumers and

bring brands to life.

CSFX

Since its inception in 2005, the Canadian

Sponsorship Forum has delivered best-in-class

sponsorship data and information while

partnering with top tier Canadian properties.

CSFX continues to present a conference format

completely unique to the industry, working

overtime to provide delegates with the total

sponsorship and experiential marketing package.

7

2 MethodologyDesign & Sample

8

DESIGN

Data Collection

In 2014, data collection was completed online,

through a secure website provided by IMI

International. An option to complete the survey

offline was also provided, where paper

responses could be mailed to the researchers.

Most respondents chose to provide their

information via the secure online site (90.2%).

Procedure

The study included three bilingual surveys: one

for each of sponsors, properties and agencies.

Although they share some common questions,

specific questions were developed for each of

the three groups of partners (sponsors,

properties and agencies).

The questions for each survey were initially

developed based on a literature review,

consultation with delegates from the initial

Canadian Sponsorship Forum and the expertise

of the researchers. They were originally

approved by the ethics board at Laurentian

University in 2007 and were approved by a

university each year of the study.

In subsequent years, questions have been

modified, adapted and added based upon the

feedback from survey respondents and other

partners.

Design

Triangulation, Industry, Canada

Recruitment

E-mail, Social Media, Database

9

SAMPLE

Sample Size

Over the eight years of the study, the CSLS has

received 3,015 responses. As such, the study

continues to strengthen and expand with the

longitudinal findings becoming more robust,

allowing for key insights.

Language

The CSLS surveys have been available in both

English and French since the inception of the

study. In 2014, the vast majority (85.6%) of the

respondents chose to answer in English.

Location

Most respondents indicated they had a head

office in Ontario (42.3%), followed by Alberta

(19.2%) and Quebec (14.9%).

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012 2013

182152

238218

294

145

167

247

404852

73

123

65

61

86

647481116

142

67

109

171

Nu

mb

er

of

Re

sp

on

de

nts

Sponsors Agencies Properties

CSLS Survey Respondents

10

3 ResultsSponsors, Properties & Agencies

11

SPONSORS

Profile

The sponsors that responded to the survey were

very diverse in size, with a few dozen up to tens

of thousands of staff, with annual sponsorship

budgets from several thousands to tens of

millions of dollars. The average total sponsorship

investment by a sponsor was $2,599,200.

On average they had just under 80 sponsorships

(almost double from 42 in 2012) with 84.1%

(increase of 10%) of sponsorship money spent

as cash, and the remainder split evenly between

value-in-kind product and service.

Sponsors made sponsorship decisions year

round, however, unlike in the previous year,

sponsors tended to make fewer decisions in the

fall - with 30.0% of sponsorship decisions made

in September and October versus 50.0% in

2012. The beginning of the year (January &

February) is becoming important for preparing

budgets as it accounted for 28% of respondents.

Sponsors structured their sponsorship divisions

so as the majority (79.0%) were in the Marketing

& Communications division compared to only

9.6% within a dedicated Corporate Partnership/

Sponsorship internal department.

2014

Sponsor

Respondents

(n = 64)

Total rights fee median

$625,000

Largest sponsorships

invested:

33.9% Pro Sport

27.9% Festivals, Fairs, Events

17.7% Olympic/Amateur

Sport

8.5% Education$715,233average largest sponsorship of

respondent

Investment mix:

84.1% Cash

15.9% Value In-kind

49.4% For-Profit

50.6% Not-For-Profit

Average # of Sponsorships:

79.8 (range 1 to 1,000)

Range in size from 10 staff

to 45,000 employees

$1,612,800average total activation spend

79.0% of sponsorship divisions fall under Marketing &

Communications

Average of 5 staff spend

more than 25% of time on

sponsorship

12

PROPERTIES

Profile

The properties that responded to the survey

were very diverse in size, where some had one

paid staff, while others had up to several

thousand staff. Their budgets were very diverse

in size, ranging from fifty thousand to hundreds

of millions of dollars.

The average sponsorship revenue per property

was nearly $1.8 million. Interesting to note that

9.1% of sponsorship revenue was received from

a not-for-profit sponsor.

Fifty-seven percent of property respondents

expect rights fees revenue to increase an

average of $165,225. This is compared to the

36% of properties who expect a decrease of an

average of $155,750.

Properties tended to have an evenly distributed

reach, with 50% having a local to provincial

reach and 46% an international or national

reach.

2014

Property

Respondents

(n = 182)

Annual budgets average

$15,230,072

$191,542average largest sponsorship

investment

$45,000 Median largest sponsorship

investment

2.4 staff spend more than

25% of time on sponsorship

Property Reach:

16.2% International

30.2% Canada

2.9% Multi-Province

26.1% Provincial

13.2% Regional

11.3% Local

Range in size from 1 staff

to 19,000 total employees.

$52,500

average activation spend per property

Believe sponsors on average are

3.61

sastified with sponsorship marketing programs (on a

scale of 1 to 5)

Average # of Sponsors:

34.5 (range 1 to 750)

$1,780,311average sponsorship revenue

for 2013

13

AGENCIES

2014

Agency

Respondents

(n = 40)

Number of Sponsorship Staff:

8.8 (range 1 to 90)

Agency Types:

54.0% Sponsorship

19.6% Event Management

10.8% PR Agency

10.3% Various other

5.2% Promotion Agencies24.1

average # of sponsorships worked on in 2013

Agency Reach:

12.0% International

69.3% Canada

6.5% Provincial

6.5% Regional

5.9% Local

$46,980average billing per sponsorship

client

$1,133,650average annual total billings for

sponsorship-related work

63.2% of total agency billings

from sponsorship

Sponsorship billings:

Sponsors

36.0%

Properties

59.5%Largest Sponsorship Client:

50% Sponsor

50% Property

Profile

Respondents were asked to identify what type

of agency best described them and the work

that they do. Over half (54.0%) considered

themselves sponsorship agencies, with the

remainder made up of research, event

management, advertising and other.

Among this sample, 63.2% of agency billings

came from sponsorship. Average billings per

client were just under $50,000. Agencies

worked on an average of 24.1 sponsorships.

There was an even 50/50 split of sponsor

versus property clients being their largest

sponsorship client. The largest sponsor client

accounted for an average of $385,250 in

billings. This was actually lower than the largest

property client, which comparatively brought in

an average of $450,011 in billings.

Of overall sponsorship billings, the majority of

billings came from properties (59.5%) over

sponsor clients (36%).

14

4 AnalysisQuantitative & Qualitative

15

QuantitativeResults

16

SPONSORS

Findings

Sponsors were asked to describe their single

biggest sponsorship investment in 2013. Half of

these were in sport (professional or amateur/

Olympic sport) and 27% were in festivals, fairs

and annual events.

The average size of the single largest

sponsorship was just over $700,000 which was

a large decline from 2012 when the average size

was over $1 million.

Overall, the categories of arts, naming rights, or

municipality did not have a single largest

sponsorship investment.

Category of Largest Investment

In Depth

$715,233 Average Size

$2.5K to $5.8M Range

> Mix than in previous years

5 of the last 6 years pro sport has

been the most popular category for

largest sponsorship investmentPro Sport

Festivals, Fairs & Annual Events

Education

Amateur Sport

Others

8.5%

27.9%

17.7%

33.9%

12.0%

17

0%

16.7%

33.3%

50.0%

2006 2007 2008 2009 2010 2011 2012 2013

Per

cent

of L

arge

st S

pons

orsh

ips

Historical Largest Sponsorship Investment Areas

SPONSORS

2006 2007 2008 2009 2010 2011 2012 2013

Average Size of Large

InvestmentN/A $125,173 $1,200,000 $666,217 $575,010 $1,262,020 $1,055,000 $715,233

Pro Sport Am Sport Festivals Education

Breakdown

Over the past several years, the average single

largest sponsorship investment by sponsors was

around $1,000,000.

Also, over the years, the largest sponsorships in

pro or amateur sport has remained steady or

declined, while the largest sponsorships in

festivals, fairs and annual events and education

has grown slightly.

18

12.3% Finance

9.7% Oil & Gas

22.1% Retail Trade

11.5% Manufacturing 6.5% Communications

12.9% Services

Note: These six categories are also the six most popular sponsor categories for the largest single sponsorship.

PROPERTIES

Revenue from

Sponsors

Properties were asked what category their

largest sponsor was from. In 2014, properties

who had a sponsor in the Retail Trade industry,

received an average off 22.1% of the

sponsorship revenue from them. This is followed

by sponsors in the Services, Finance and

Manufacturing sector.

19

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011 2012 2013

23.6%30.8%33.6%32.3%34.8%33.0%39.0%30.0%

76.4%

69.2%66.4%67.7%

65.2%67.0%

61.0%

70.0%

Pe

rce

nt

of

Re

sp

on

de

nts

Cash VIK

Cash vs. VIK Sponsorship Revenue

PROPERTIES

Sponsorship

Revenue

Not all sponsorship revenue is in the form of

cash payments. Properties often receive value-

in-kind (VIK) from sponsors. Whether this in-kind

sponsorship is from goods or services, they still

contribute to the sponsorship revenue of a

property.

Though the Cash vs. VIK question has been

asked every year since the study began; this is

the first time it was decided to compare the

data.

The data set shows a fairly consistent trend over

the last eight years, with VIK revenue accounting

for 30%-39% of sponsor revenue. The

exception appears to be from the most recent

data available, as VIK fell to 23.6%. It is positive

to note that as a whole, sponsorship revenue for

properties is mainly received through cash rights

fees.

20

AGENCIES

Findings

Agencies were asked to report what type of

work they did for their clients and what percent

of the overall billings did this work account for.

The percentages reported here represent the

average percentage of total billings by all

agencies in that area of work.

For example, 24.1% of total billings were in the

area of activation programs.

3.0%

11.0%

19.0%

27.0%

2010 2011 2012

8.7%9.1%

3.5%3.8%

14.8%

6.7%

7.6%

21.1%

17.0%

20.5% 20.3%

26.0%

17.9%

20.7%

24.1%

Agency Billings

Per

cent

of B

illing

s

Activation ProgramsSponsorship SalesSponsorship EvaluationSponsorship ResearchContracts/Negotiation

21

0%

20.0%

40.0%

60.0%

80.0%

2006 2007 2008 2009 2010 2011 2012 2013

45.8% 47.1%

55.9%52.5% 52.8% 54.2%

68.8%

62.3%

Per

cent

Inve

stm

ent

Historical Sponsorship Billings as Percentage of Total Billings

AGENCIES

Findings

In 2014, the CSLS asked agencies how much

of their sponsorship billings accounted for their

agencies total billings. Given the nature of the

study, the sponsorships billings for the agencies

responding accounted for a large portion of their

total income for the year. It is noteworthy to

examine the growing amount that sponsorship

billings is as percentage of total billings for

agencies over the last 8 years.

Expectations

The majority of agency respondents (68.5%)

expected that billings would remain the same in

2014. However, more respondents did expect

an increase (21.5%) over a decrease (10%).

The average increase expected was $118,125.

22

INVESTMENT GEOGRAPHY

International 13.5% National 23.8% Multi-Provincial 10.7%

Local 14.3%Regional 18.5%Provincial 19.2%

Findings

Sponsors were asked what percentage of their

overall sponsorship budgets gets designated to

each of the following areas.

Overall, sponsors were focused on markets

across all the set geographical areas. The single

largest was national sponsorship campaigns

(23.8%), but over 50% of budgets were targeted

to provincial, regional and local markets

suggesting that geographically close properties

are also important for sponsors.

23

INVESTMENT GEOGRAPHY

0%

10%

20%

30%

40%

2006 2007 2008 2009 2010 2011 2012 2013

Per

cent

Inve

stm

ent

Historical Trends of Property Geographical Focus

National

Multi-ProvincialInternational

Local

Regional

Provincial

Findings

Sponsors have historically spent their

sponsorship money on properties that have a

national focus. Properties with a local, regional

or even provincial focus are also common areas

of spend for sponsors. The lowest investment

by sponsors is in international or multi-provincial

sponsors.

24

ACTIVATION

Findings

The activation ratio was determined by dividing

the average amount spent on leveraging a

sponsorship and comparing it to the average

total rights fees paid per sponsorship.

Sponsorship activation grew quite significantly in

2012 and was at the highest level in three years.

However, there was once again a dip in

activation with roughly a 17% decrease.

In keeping with historical international trends,

the activation ratio in Canada is considerably

lower than in the US.

2010

622008

71

2006

432007

46

2012

75

2013

62

2009

76

2011

57

40¢

50¢

60¢

70¢

80¢

$1.70 $1.90 $1.50 $1.40 $1.40United States (IEG):

$1.60

2006 2007 2008 2009 2010 2011$1.70

2012$1.70

2013

25

0%

10.0%

20.0%

30.0%

2011 2012 2013

Historical Activation Preferences

Act

ivat

ion

Tact

ics

Use

d

ACTIVATION

Findings

Here, the type of activation tactics (some for

sponsors, some for properties) are outlined. Note

that this is not the percentage breakdown of

spend (e.g, $ amount), but whether their

leveraging and activation dollars were used in any

of these areas.

As can be seen here, hosting/hospitality and

advertising for both sponsors and properties were

widely utilized.

Hosting/Hospitality (Prop.)

Ad (Prop.)

Ad (Sp.)

Hosting/Hospitality (Sp.)

Branded Content (Sp.)Social Media (Sp.)

Product Sampling (Sp.)

26

EVALUATION

Findings

Sponsorship evaluation has declined since the

study began in 2006. In 2013, there was a very

slight increase in evaluation spend as a

percentage of marketing budget.

Contributing to the low evaluation numbers is

the fact that approximately 50% of respondents

spend $0 on any evaluation.

It is encouraging to note that among those that

do evaluate, 80% invest in pre-evaluation.

2.0%

4.0%

6.0%

8.0%

2006

7.8%

2007

4.5%

2008

6.0%

2009

4.1%

2010

2.6%

2011

2.3%2012

2.7% 2013

3.0%

27

PRE-SPONSORSHIP EVAL.

Findings

Pre-sponsorship evaluation has fluctuated over

the years, based on the sample. Pre-

sponsorship evaluation spending is critical to

creating a robust sponsorship evaluation plan as

it is important to establish benchmarks.

0%

5%

10%

15%

2009

13.1%

2010

3.1%

2011

0.6%

2012

14.9%

2013

9.9%

28

QualitativeResults

29

CONCERNS

Findings

Respondents were asked what keeps them up

at night about sponsorship, which provided

insight into what they considered to be the

current concerns facing sponsorship.

The ability to demonstrate ROI and concerns

about HR and expertise remained top of mind

for many respondents.

One main theme derived from the analysis in

2012 was related to getting sponsorship (e.g.,

sales) but, as seen in the graph, this was less of

an issue in 2013.

0%

7%

14%

21%

28%

35%

10.8%

6.6%

8.8%

11.0%

18.0%

20.4%

24.5%

9.0%

6.0%

12.4%

9.5%

27.9%

13.4%

21.4%

8.0%

3.8%

10.7%

18.6%

16.9%

18.3%

23.7%

Pe

rce

nt

of

Re

sp

on

de

nts

Dem

onst

ratin

g

RO

I

Bud

get

Concern

s

Activ

ation

HR &

Exp

ertise

Com

petit

ion

Historical Sponsorship Concerns Facing the Industry

2011 2012 2013

Securin

g &

Targ

ets

Oth

er

30

0%

5%

10%

15%

20%

10.0%

4.6%

6.1%

9.7%10.4%

11.5%12.6%

16.9%

18.3%

Pe

rce

nt

of

Re

sp

on

de

nts

Sponsorship in the Next 3 Years

Technology

Specific T

ypes

New

Pro

perties/

Industri

es

Activatio

n

Relatio

nships

/Partn

ership

s

Measure

ment

Com

munity

Knowle

dge/

Education

Oth

er

OUTLOOK

Major Opportunities

Respondents were asked to identify what the

biggest opportunities in the sponsorship

industry were in the next three years. The

question was left open-ended and the chart

outlines the answers combined by theme.

Technology (18.3%) and Specific Types (16.9%)

were the most prevalent answer themes across

all respondents.

The most common “Specific Types” were:

Sports (6.1%), Cause Marketing (4.3%),

Festivals/Fairs/Events (4.2%), Environment

(1.4%), Music (1.0%)

31

5 Key LearningsLessons

32

1 Keep Up With ChangeBudget, Mix

2

3

Fulfillment FundamentalsActivation, Servicing & Evaluation

Growing IndustryGlobal, Canada

KEY LEARNINGS

What We Learned

The data collected and analysis provided us

with several key learnings for current

sponsorship activities in the form of key

learnings to be applied and general information

for the sponsorship industry.

The information was summarized into three key

learnings found on the following slides.

16.7%

15.5%

22.5%

15.4%

22.3%

223.1%1.9%

29.6%

20

13

20

122

011

20

10

20

09

20

08

20

07

20

06

Sponsorship

Budget

Marketing

As a % of overall marketingcommunications budget

33

KEEP UP WITH CHANGE

Findings

One of the key measures of the value of

sponsorship is to examine the overall ratio of

spending on sponsorship as a percentage of

sponsors’ overall marketing communications

budgets. In 2013, sponsorship accounted for

over one in five marketing communications

dollars.

This percentage fluctuated over the seven years

of the study (the percentage is calculated on a

combination of actual data, ranges and tiers of

data, so some error exists), however what has

remained consistent is that sponsorship

continues to be a critical tool in the marketing

communications mix.

Expectations

Most (45.6%) sponsors expected that this

percentage will stay the same in 2014. 21.9%

felt there would be a decrease versus the 35.0%

of sponsors who expected an increase.

Expected Change for 2014

34.5% 44.8% 20.7%

34

KEEP UP WITH CHANGE

Sponsorship Mix

Since the study began eight years ago, the

percentage of sponsorship spending by area of

investment (i.e., property type) has undergone

appreciable change. While sport sponsorships

(both professional and amateur) have remained

fairly steady, festivals, fairs and annual events

have been growing, while other categories like

arts and cause marketing have witnessed ebbs

and flows.

For exact historical percentages and the dollar

amount per investment area, please refer to

Appendix A.

Note: Prior to 2009, sport was not differentiated

by professional or amateur/Olympic, so an even

split is assumed for those years.

0%

10.0%

20.0%

30.0%

2006 2007 2008 2009 2010 2011 2012 2013

Per

cent

Inve

stm

ent

Historical Sponsorship Investment Areas

Pro Sport Am Sport Festivals Art

Cause Media Entertainment, Tours, Attractions

35

FULFILLMENT FUNDAMENTALS

Activation Spend

Sponsors have been increasingly spending their

dollars on advertising. We also see a dramatic

increase in product sampling.

As discussed previously, spending on social

media and PR has declined - this may simply be

a matter of more efficiency. It may also be that

sponsors have been reclassifying “social media

spend” as “digital advertising” as the industry

has become more sophisticated.

0%

6.7%

13.3%

20.0%

2010 2011 2012 2013

Per

cent

Inve

stm

ent

Social media

Hosting/hospitality

PR

Advertising

Branded content

Product sampling

Internal marketing

Historical Sponsor Activation Tactic Spend

36

0%

10.0%

20.0%

30.0%

2010 2011 2012 2013

Per

cent

Inve

stm

ent

Co-promotions

Hosting/hospitality

PR

Advertising

Other

Product sampling

Internal marketing

Historical Property Activation Tactic Spend


Activation Spend

In contrast to sponsors, properties see a much

greater spend on hosting and hospitality.

Hosting and hospitality has been a continuous

component of properties’ activation spends over

the years. It is important for both sponsors and

properties alike to consider the important role

the spend plays in fulfilling sponsorship

activities.

Advertising has continued to remain a

substantial activation spend for properties.

37

0 1 2 3 4 5

3.61

2.85

3.24

4.33

2.99

3.26

3.48

3.59

3.63

2.98

2.55

3.91

2.82

2.67

2.70

2.26

2.74

2.58

Likert Scale

Recall stats

Loyalty stats

Target profile

Ambush protection

Activation w/ sponsors

Activation resourcesExclusivity protectionActivation w/ propertiesConcluding report

2012

0 1 2 3 4 5

3.90

4.01

4.09

4.11

3.01

3.66

3.46

3.46

3.26

3.69

3.49

3.95

3.40

2.59

3.21

2.11

2.16

2.14

Likert Scale

Provided Importance

Recall stats

Loyalty stats

Target profile

Ambush protectionActivation w/ sponsors

Activation resources

Exclusivity protection

Activation w/ properties

2013


Sponsorship

(Dis)Service

Sponsors were asked to describe the value of

services they received in a sponsorship on a

five-point Likert scale, where 5 was very

valuable and 1 was not at all valuable. They

were also asked to indicate how often those

same services were provided to them on a five-

point Likert scale, where 5 was always provided

and 1 was never provided. The difference was

then calculated and provided insight into the

disconnect that exists between the services that

sponsors value and the services that properties

and agencies provide to them.

Based on the data collected, properties

consistently under-service their sponsors. There

are large statistical gaps across the board for

what sponsors deem important versus what is

provided to them.

For a historical overview of the value of services

to sponsors, please refer to Appendix B.

Concluding report

Findings

Conservative estimates indicate that the

sponsorship industry in Canada in 2013 was

$1.77 B. This was the largest increase over the

previous year since 2008. Overall, the industry

rights fees have increased by roughly 60% since

we began the study in 2007.

Expectations

Despite high recent growth, Canadian

sponsorship industry professionals have a

modest outlook for next year, with several

expecting a modest increase, even more

expecting a decrease and just under half

expecting the industry size to remain relatively

the same.

38

GROWING INDUSTRY

Expected Change for 2014

20.1% 42.9% 35.7%

Industry Size

2006 $1.11B

2007 $1.22B

2008 $1.39B

2009 $1.43B

2010 $1.55B

2011 $1.59B

2012 $1.57B

2013 $1.77B

INDUSTRYSPENDING

$$

+60%

39

GROWING INDUSTRY*

Findings

The global sponsorship industry continues to

grow especially across the continents of North

America, Europe and Asia. According to

projections done by IEG, the global sponsorship

industry is valued at $53.1 billion. In North

America, while makes up a small fraction of the

total $19.8 billion industry with the U.S

dominating the spending.

Expectations

Globally, the sponsorship industry is projected

to grow in 2014 by 4.1%. This is slightly behind

the 5.6% projected growth in Asia and the 4.3%

growth expected in North America. European

sponsorship spending is expecting only a

modest growth of 2.1%.

* Note: Industry results noted on this page are

from IEG.

$19.8BNorth American

Sponsorship Spending

4.3% Projected Growth in 2014

$14.5BEuropean



$12.6BAsia Pacific



$53.1BGlobal Sponsorship Spending


40

0

1.0

2.0

3.0

2006 2007 2008 2009 2010 2011 2012 2013

$1.59$1.78

$2.38$2.52 $2.51 $2.50

$2.75$2.87

Historical Total Spend Trends ($B)

Rights Fees

Activation Spend

Total Industry Spend

Findings

↑ Rights Fees

↑ Activation Ratio

↓ Total Spend

2013 Activation

$1.77B Rights Fees

0.62 Activation Ratio

$2.87B Total

GROWING INDUSTRY

Increasing

Investment

Contrary to 2012 when sponsorship rights fees

declined, but the activation ratio grew to

ultimately net out a growth in total spend on

sponsorship, in 2013 the rights fees increased

and the activation ratio decreased.

Nevertheless, the industry continues to grow.

At $2.87 billion in total sponsorship spend, 2013

marked the highest year in the history of the

study in regards to the total spent in the

sponsorship industry.

41

6 ContactsAuthors

Dr. Norm O’Reilly, Lead Researcher

Holder of the Richard P. & Joan S. Professor of Business at Ohio University, Dr. O’Reilly is a Full

Professor and Chair of the world-ranked Department of Sports Administration in the College of

Business. Dr. O’Reilly was recognized in 2013 as one of the “Five to Watch” in sport business in

Canada by the Globe and Mail and is a lifetime Research Fellow of the North American Society

for Sport Management. In 2011, he was the recipient of the University of Ottawa’s Media

Excellence Award (for media coverage of his research).

Dr. O’Reilly is an accomplished scholar and active business professional. He is an active consultant and expert legal

witness, working closely with North American industry. As a consultant, he is minority owner and Senior Advisor with

the Consulting Group of Toronto-based marketing agency, TrojanOne, where he has worked for clients including Nike,

UFC, the Canadian Paralympic Committee, BMO, and many more. Since first teaching at the university level in 2000,

Dr. O’Reilly has taught more than 5,000 students. Prior to coming to Ohio, he has taught at the University of Ottawa,

the David Falk Center for Sport Management at Syracuse University, the Graduate School of Business at Stanford

University, the School of Sports Administration at Laurentian University, and the Ted Rogers School of Management at

Ryerson University. He has previously held positions as School Director, Vice-Dean and Director of a Research Centre.

Dr. O’Reilly is an active researcher and he has authored or co-authored 5 books, more than 80 articles in refereed

management journals and more than 150 conference presentations in the areas of sport management, sponsorship,

tourism marketing, marketing, risk management, sport finance, and social marketing. At conferences, he has won 11

Best Paper awards. Dr. O’Reilly is the lead researcher on the Canadian Sponsorship Landscape Study, a highlight of

the annual Canadian Sponsorship Forum since 2007, currently in its 8th edition. Dr. O’Reilly holds a PhD in

Management from the Sprott School of Business at Carleton University, a MBA from the Telfer School of Management

at the University of Ottawa, a MA in Sports Administration from the University of Ottawa, and a B.Sc. (Kinesiology) from

the University of Waterloo. Dr. O’Reilly also holds the CGA/CPA Accounting Designation.

Prior to joining academia, Dr. O’Reilly had involvement as an administrator, including Senior Policy Officer at Sport

Canada, Team Manager & Office Manager at Triathlon Canada, and Event Manager for the 2008 Toronto Olympic Bid.

He has been a member of the 2004, 2008 and 2010 Mission Staff for the Canadian Olympic Committee at the Olympic

Games, and attended the 2012 Olympic Games in a research capacity.

42

AUTHORSElisa Beselt, Researcher

Elisa brings strengths in research, analysis and strategy development to the Consulting Group

at TrojanOne. With a passion for sport and cause, Elisa enjoys finding ways for organizations

to optimize their potential.

Elisa has been a researcher and co-author of the annual Canadian Sponsorship Landscape

Study for four years. Additionally, she has been the lead consultant on some of the Consulting

team's largest projects, including the development of a revenue generation and sponsorship

strategy for the National Capital Commission, sponsorship strategy and support for the

Canadian Association of Fire Chiefs, and the development of a revitalized sponsorship strategy for Esso.

Adam DeGrasse, Researcher

A graduate of Queen's University, Adam has a passion for learning, research and creative

thinking. Having grown up playing competitive team sports established a foundation of

collaborative teamwork and the drive towards reaching an end goal - qualities that Adam

brings to life with his colleague and clients every day. Now he instills these same principles in

Toronto youth as a community football coach alongside Mark Harrison, TrojanOne’s president

and CEO.

Adam has experience working with a number of not-for-profit organizations and sponsorship projects. Recently,

Adam has been an integral part of sponsorship consulting projects for clients such as Esso, OLG, National Capital

Commission, Dairy Farmers of Canada, Kids Help Phone and Heart & Stroke Foundation. Additionally, he has

provided strategy and sponsorship consulting to the Canadian Sponsorship Forum, Nike High School Grand Prix

and Ottawa Duathlon, TrojanOne’s intellectual properties. In years past, Adam has been a key contributor to the

Canadian Sponsorship Landscape Study and the Most Valuable Property (MVP) Study, done in partnership with

Ipsos Reid.

Contact Information

We thank you for reading the 2014 Canadian Sponsorship Landscape Study. If you have any questions regarding the data or information found in this report, please do not hesitate to reach out to any of the authors. We encourage you to share the CSLS with your networks and complete the survey as it is made available each year.

‣ Dr. Norm O’Reilly: [email protected]

‣ Elisa Beselt: [email protected]

‣ Adam DeGrasse: [email protected]

43

THANK YOU!

44

APPENDIX A1

Historical Sponsorship Investment Areas (%)

Sponsor Spend by

Type (%)

This table outlines the percentage of

sponsorship investment by area by year.

2006 2007 2008 2009 2010 2011 2012 2013

Professional sport

27.0% 26.1% 24.3% 28.3% 21.9% 19.3% 27.2% 25.9%

Amateur/Olympic sport

27.0% 26.1% 24.3% 22.5% 14.9% 18.7% 22.2% 15.2%

Cause marketing

16.9% 8.3% 12.5% 14.7% 12.1% 5.1% 9.9% 11.4%

Festivals, fairs, annual events

5.6% 14.5% 21.7% 12.6% 18.1% 24.3% 18.1% 27.1%

Arts 10.9% 8.3% 10.7% 4.9% 9.2% 12.0% 10.5% 4.1%

Entertainment, tours,

attractions12.6% 6.0% 6.5% 1.9% 6.9% 7.9% 1.0% 3.2%

Media - - - 4.2% 5.3% 0.1% 5.9% 0.6%

2006 2007 2008 2009 2010 2011 2012 2013

Professional sport

$300 $318 $338 $405 $339 $307 $427 $458

Amateur/Olympic sport

$300 $318 $338 $322 $231 $297 $349 $269

Cause marketing

$188 $101 $174 $210 $188 $82 $155 $201

Festivals, fairs, annual events

$62 $177 $302 $180 $280 $387 $284 $479

Arts $121 $101 $149 $70 $143 $190 $167 $73

Entertainment, tours,

attractions$140 $73 $90 $27 $107 $126 $16 $57

Media - - - $60 $82 $2 $93 $11

45

APPENDIX A2

Historical Sponsorship Investment Areas ($ Millions)

Sponsor Spend by

Type ($ Millions)

This table outlines the amount of sponsorship

investment by area by year.

46

APPENDIX B

Importance and Provision of Services to Sponsors

Historical Value of

Services to

Sponsors

This table outlines the importance and provision

of services provided to sponsors since 2009

based on a five-point Likert scale.

*Note: In 2009 and 2010, the type of partnership (e.g., with sponsors or properties) was not specified.

VariableImportanceImportanceImportance ProvidedProvidedProvided

Variable2013 2012 2011 2010 2009 2013 2012 2011 2010 2009

Resources for activation program

4.17 4.33 4.09 3.90 4.03 3.13 2.82 2.59 2.84 3.03

Sponsor recall stats

4.24 3.63 3.88 4.20 4.24 2.64 2.58 2.52 2.49 3.23

Concluding report/audit

4.38 3.61 3.94 4.22 - 3.45 2.98 3.03 3.02 3.34

Audience loyalty stats

3.86 3.59 3.55 4.00 4.09 2.45 2.74 2.74 2.52 3.09

Information on purchase

behaviour of target group

4.09 3.48 3.50 3.51 3.91 2.70 2.26 2.27 2.64 3.11

Protection from ambush

marketers4.24 3.26 3.48 3.76 - 2.89 2.70 2.76 2.86 -

Protection of rights/

exclusivity4.79 3.24 3.24 4.02 4.33 3.75 3.91 3.70 3.21 3.69

Partnering on activation with other sponsors

3.68 2.99 3.06 4.32* 4.03* 2.54 2.67 2.62 3.09* 3.09*

Partnering on activation with

other properties4.05 2.85 3.06 - - 3.08 2.55 - - -

Documents

Sponsorship Landscape - Dr. Norm O’Reilly · 2020. 5. 29. · 8th Annual CSLS The Canadian Sponsorship Landscape Study (CSLS) is an annual survey of Canadian sponsors, properties