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Investment in sponsorship has continued to grow since the inaugural Canadian Sponsorship Landscape Study in 2006, reaching $1.57 billion in 2012. In this session, Elisa Beselt from TrojanOne's Consulting Group will present a first look at the results from the 2014 Canadian Sponsorship Landscape Study, the 8th annual version of the nationwide analysis of sponsors, properties and agencies. In the 2014 study, delegates will hear about recent trends in experiential marketing, take a closer look at music sponsorship, and review the rise of 'festivalization' over the last few years. Reporting on findings from the 2013 year, Elisa will share the newest information on the sponsorship industry and key lessons on what this all means for sponsorship professionals.
Citation preview
’Dr. Norm O’Reilly Ohio University & TrojanOne
Elisa Beselt & Adam DeGrasse TrojanOne
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
1 CSLSAbout, History & Method
2
3
8th Annual Results Findings & Trends
Sponsorship in 2014Key Lessons from the 8th CSLS
TODAY
2
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS3
1CSLSAbout, History & Method
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS4
Design
Perspectives, Industry
Process
Online, Partners, Streamline
Analysis
Trend, Comparative
Origins
Industry Need, Share
HISTORY & METHOD
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS5
28th AnnualFindings, Trends & What’s Next
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS6
0
100
200
300
400
500
600
2006 2007 2008 2009 2010 2011 2012 2013
132
152
238
218
294
145
167
247
33
4852
73
123
65
61
86
45
7481
116142
67
109
171
Nu
mb
er
of
Re
sp
on
de
nts
SponsorsAgenciesProperties
CSLS Survey Respondents
210 Responses
45 Sponsors
132 Property
33 Agencies
About
90.5% English
9.5% French
Note: Survey is open until August 15th. Visit
www.sponsorshiplandscape.ca to enter responses.
RESPONDENTS
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS7
Primary Decision Maker
14%
12%
37%
14%
23%
CEO/President/ED
VP, Marketing/Sponsorship
Director/Manager, Marketing/Sponsorship
Other
Coordinator, Marketing/
Sponsorship
46.5%
14.6%
11.5%
Head Office
RESPONDENTS
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS8
Sponsors
n=45
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS9
ABOUT THE SPONSORS
2014
Sponsor
Respondents
(n = 45)
Total rights fee range from
$10K to $21M
30.9%of largest sponsorships
invested in pro sport
Largest sponsorship
property:
22.9% Festivals, Fairs, Events
19.2% Olympic/Amateur
11.5% Education
$681,342average largest sponsorship of
resopndent
Investment mix:
83.3% Cash
16.7% Value In-kind
49.0% For-Profit
51.0% Not-For-Profit
Average # of Sponsorships:
84.4 (range 1 to 1,000)
Range in size from 10 staff
to 45,000 employees.
$1,442,650 average activation spend
75% of sponsorship divisions fall under Marketing &
Communications
Average of 5 staff spend
more than 25% of time on
sponsorship
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS10
ABOUT THE SPONSORS
16.7%
200
6
15.5%
200
7
22.5%
200
8
15.4%
20
09
22.3%
21.9% 21.9%
20
10
29.6%
20
11 2
012
20
13
Sponsorship
Budget
Marketing
As a % of overall marketing communications budget
34.5% 44.8% 20.7%
Expected Change for 2014
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS11
LARGEST INVESTMENT
Category of Largest Investment
15.5%
11.5%
22.9% 19.2%
30.9%Pro Sport
Festivals, Fairs & Annual Events
Education
Amateur Sport
In Depth
$681,342 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 investment
Others
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS12
SPONSORSHIP FOCUS
International 13.0% National 23.3% Multi-Provincial 11.8%
Local 16.3%Regional 15.6%Provincial 19.1%Note: In 2012,
International was 1.0%.
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS13
Properties
n=133
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS14
ABOUT THE PROPERTIES
2014
Property
Respondents
(n = 133)
Annual budgets range from
$50K to $110M
$178,078average largest sponsorship
Largest sponsorship
range from
$2K to $1.5M2.3 staff spend more than
25% of time on sponsorship
Property Reach:
15.8% International
29.8% Canada
3.5% Multi-Province
24.6% Provincial
12.3% Regional
14.0% Local
Range in size from 1 staff
to 19,000 employees.
$51,570
average activation spend per property
Believe sponsors on average are
3.57
sastified with sponsorship marketing programs
Average # of Sponsorship
Categories:
33.2 (range 1 to 750)
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS15
SPONSORSHIP REVENUE
0%
13.3%
26.7%
40.0%
2006 2007 2008 2009 2010 2011 2012 2013
1.6% 1.1%2.6%
1.2%
35.4%
14.0%
19.3%
28.8%
Per
cent
Inve
stm
ent
Historical Sponsorship as Percentage of Budget
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS16
REVENUE TYPE
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
CashVIK
Cash vs. VIK Sponsorship Revenue
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS17
REVENUE FROM SPONSORS
12.9% Finance
6.4% Oil & Gas
27.8% Retail Trade
7.2% Manufacturing8.9% Communications
13.8% Services
Note: These six categories are also the six most popular
sponsor categories for the largest single sponsorship.
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS18
Agencies
n=33
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS19
ABOUT THE AGENCIES
2014
Agency
Respondents
(n = 33)
Number of Sponsorship Staff:
9.3 (range 1 to 80)
Agency Types:
52.9% Sponsorship
17.6% Event Management
11.8% PR Agency
11.8% Various Other
5.9% Promotion Agencies23.9
average # of sponsorships worked on in 2013
Agency Reach:
12.5% International
68.8% Canada
6.3% Provincial
6.3% Regional
6.3% Local
$45,369average billing per sponsorship
client
Range in size from 1 staff
to 60 employees.
62.3% of total agency billings
from sponsorship
Sponsorship billings:
Sponsors
35.3%
Properties
59.2% Largest sponsorship client:
50% Sponsor
50% Property
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS20
AGENCY BILLINGS
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
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS21
AGENCY BILLINGS
Area 2012 2013 Change
Activation Programs 20.7% 23.4% 2.7%
Sponsorship Sales 20.3% 24.8% 4.5%
Sponsorship Evaluation 21.1% 16.9% -4.2%
Sponsorship Research 14.8% 6.6% -8.2%
Contracts/Negotiation 9.1% 3.7% -5.4%
Areas of Sponsorship Billing
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS22
AGENCIES FOR ALL
Balanced
Billings are split evenly between profits and
not-for profits.
Everyone
Average sponsorship billing by client
was $45,369.
Growing
See a growth in sponsorship billings by
agencies in Canada.
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS23
Activation
Results
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
ACTIVATION RATIO
24
2010
622008
71
2006
432007
46
2012
75
2013
60
2009
76
2011
57
40¢
50¢
60¢
70¢
80¢
$1.70 $1.90 $1.50 $1.40 $1.40United States (IEG): $1.602006 2007 2008 2009 2010 2011
$1.702012
$1.702013
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
ACTIVATION TACTICS
25
Tactic Sponsor Property Agency
Advertising 20.0% 19.0% 14.2%
Hosting/hospitality 12.9% 22.1% 8.4%
Branded content 11.0% 10.0% 12.1%
Product sampling 12.0% 12.0% 14.2%
Social media 6.9% 6.9% 6.2%
Spend by Activation Tactic (Top 5)
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS26
Evaluation
Results
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
EVALUATION
27
0.0%
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
2.7%
Pre-Sponsorship Evaluation: 7.03% in 2013
Of those who evaluate, 80% invest in pre-evaluation
Note: 50% of respondents spend $0 on any evaluation
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS28
Qualitative
Results
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
SLEEPLESS NIGHTS
29
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
rat-
ing R
OI
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
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
Forecast
80% expect sponsorship revenues to
increase in 2014.
MUSIC INSIGHT
30
Hosting/Hospitality
Over 50% of activation spend on hosting/hospitality.
Largest Sponsors
Largest sponsors are from a mix of industries,
including agriculture and retail trade.
Value-in-Kind
40% receive more than half of their
sponsorship revenue from VIK.VIK
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS31
3Sponsorship in 2014Key Lessons from 8th CSLS
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
1 Keep Up With ChangeMix, Technology
2
3
Fulfillment FundamentalsActivation, Servicing & Evaluation
Growing IndustryGlobal, Canada
KEY LESSONS
32
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS33
Keep Up With
Change
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
SPONSORSHIP MIX
34
0%
10.0%
20.0%
30.0%
2006 2007 2008 2009 2010 2011 2012 2013
Per
cent
Inve
stm
ent
Historical Sponsorship Investment Areas
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
BIGGEST OPPORTUNITIES
35
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
Technology
Sponsorship in the Next 3 Years
Specific
TypesN
ew
Properti
es/
Industri
es
Activatio
n
Relatio
nships
/Partn
ership
s
Measure
ment
Com
munity
Knowle
dge/
Education
Oth
er
Specific Types: Sports (6.1%), Cause Marketing (4.3%), Festivals/Fairs/
Events (4.2%), Environment (1.4%), Music (1.0%)
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
BIGGEST OPPORTUNITIES
36
“Upcoming major events in our country (e.g., Pan
American Games & Women’s World Cup).”
“Getting the jump on each successive trend. With the impact of social media, when
something goes big, it goes big fast, complete with corresponding consumer
spending...Sponsorship needs to stay ahead of the curve.”
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
SOCIAL MEDIA CHANGES
37
In-Depth
6.9% Spend for Properties
6.2% Spend for Agencies
72.2% Agencies Using
Social Media
0%
5%
10%
15%
20%
Ac
tiv
atio
n S
pe
nd
Social Media Activation Tactic Spend for Sponsors
16.1%2012
3.9%2009
10.1%2011
6.9%2013
5.0%2010
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS38
Fulfillment
Fundamentals
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
ACTIVATION SPEND
39
0%
6.7%
13.3%
20.0%
2010 2011 2012 2013
Per
cent
Inve
stm
ent
Social media
Hosting/hospitality
PR
Advertising
Branded contentProduct sampling
Internal marketing
Historical Sponsor Activation Tactic Spend
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
ACTIVATION SPEND
40
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
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
SPONSORSHIP (DIS)SERVICE
41
0 1 2 3 4 5
4.38
4.05
4.79
4.17
3.68
4.24
4.09
3.86
4.24
3.45
3.08
3.75
3.13
2.54
2.89
2.70
2.45
2.64
Likert Scale
ProvidedImportance
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
Services for Sponsors
2012
Recall stats
Loyalty stats
Target profile
Ambush protection
Activation w/ sponsors
Activation resourcesExclusivity protection
Activation w/ propertiesConcluding report
2013
Note: All differences are statistically significant (*)
Recall stats
Loyalty stats
Target profile
Ambush protection
Activation w/ sponsors
Activation resourcesExclusivity protection
Activation w/ propertiesConcluding report
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS42
EVALUATION STORY
Budgets
Average of 2.70% of budget set aside for
evaluation.
No Evaluation
Many sponsors (50%) spend nothing on
evaluation.
There is Hope!
Among those that do evaluate, 80% invest in pre-
sponsorship evaluation.
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS43
Growing
Industry
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
GLOBAL SPONSORSHIP INDUSTRY
44
$19.8BNorth American
Sponsorship Spending
4.3% Projected Growth in 2014
$14.5BEuropean
Sponsorship Spending
2.1% Projected Growth in 2014
$12.6BAsia Pacific
Sponsorship Spending
5.6% Projected Growth in 2014
Source: IEG
$53.1BGlobal Sponsorship Spending
4.1% Projected Growth in 2014
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
INDUSTRY SIZE IN CANADA
45
Industry Size
2006 $1.11B
2007 $1.22B
2008 $1.39B
2009 $1.43B
2010 $1.55B
2011 $1.59B
2012 $1.57B
2013 $1.78B
INDUSTRY SPENDING
+60%
$$ 21.4% 42.9% 35.7%
Expected Change for 2014
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
INCREASING INVESTMENT
46
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$2.85
Historical Total Spend Trends ($B)
Findings
↑ Rights Fees
↓ Activation Ratio
↑ Total Spend
2013 Activation
$1.78B Rights Fees
0.60 Activation Ratio
$2.85B Total
Rights Fees
Activation Spend
Total Industry Spend
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS
SUMMARY
47
Keep Up With
Change
Fulfillment Growing
Fundamentals Industry
Canadian Sponsorship Landscape Study
8th ANNUAL
CSLS48
ThankDr. Norm O’Reilly
Elisa Beselt
Adam DeGrasse
Survey is open until August 15th. Visit
www.sponsorshiplandscape.ca to enter responses.Note:
you!