Sponsorship marketing is a growing, multi-million-dollar aspect of public relations in Canada, a key tool in the practitioner's toolbox. What is happening in the sponsorship marketing world? How can we best leverage our investments in sponsorship? Brent Barootes, President and CEO of Partnership Group - Sponsorship Specialists, provides an overview of what is happening in the Canadian sponsorship marketing world, and how these trends are affecting public relations and communications. The presentation includes highlights of 2012 research on industry activity and consumer feedback as well as critical and professional analysis of these outcomes and how they are impacting our organizations. Brent also focuses on how PR professionals should be utilizing the medium of sponsorship as they do other communications tools and media.

1. SPONSORSHIP TODAY
INDUSTRY OVERVIEW
TRENDING AND IMPACT ON PR AND
COMMUNICATIONS
CPRS EDMONTON
January 18, 2013

2. Mobile Devices
Staying connected in the session
Twitter: #partnershipgrp
#sponsorship@partnershipgrp

3. BRENT BAROOTES
President and CEO
Phone: 403-255-5074
Fax: 888-486-3407
Toll Free: 888-588-9550
Email: brent@partnershipgroup.ca

4. SPONSORSHIP TODAY
The plan for this session
 Discuss recent trends and updates in the industry
 Discuss national sponsorship surveys and the
analysis of that information
 How all these affect the PR and communications
world

5. Canadian Sponsorship Landscape Study 2012
Thanks to:
 Norm O’Reilly and Benoit Seguin
 University of Ottawa
 Sponsorship Marketing Council of Canada
 TrojanOne
 Canadian Sponsorship Forum
 IMI International

6. Canadian Sponsorship Landscape Study (CSLS) 2012
Since the CSLS was undertaken in 2006 the industry has
grown 43%
 Again the industry grew by over 2% since last year –
now $1.59 billion
 Brands were investing almost 75% of their
sponsorship investment dollars within Canada
 Almost 22% of spends are on local sponsorships
 About 35% of that spend was with “for profit
properties” and 65% with “non profits and charities”

7. Canadian Sponsorship Landscape Study 2012
 Diversity in sponsorship mix – on average over 100
properties per sponsor (In a range of 0 to 1100!)
 Decrease in spending on activation – now at $0.57 / dollar)
(2011 was $0.62/dollar and at 75 cents per dollar in 2010)
 Both Professional Sport and Fairs/Festivals and Events had
the greatest number of largest sponsorship rights fees in the
2012 study (25% each)
 Naming rights accounted for only 6% of the
sponsorships in Canada last year

8. Canadian Sponsorship Landscape Study 2012
 30% of brands marketing budgets last year were spent in
sponsorship and experiential marketing – up by almost 1/3
over the 2011 study and up over 75% over the last 7 years
 Cause marketing and professional and amateur
sport sponsorships have seen a declining trend
over the past several years
 Greatest continuous growth has been with fairs,
festivals and annual events
 Entertainment-Tours – Attractions and the Arts have also
continued to see growth trending

9. Canadian Sponsorship Landscape Study 2012
 For in-kind sponsorships, about 18% are in-kind product
and 13% are in-kind services and 69% cash
 Average sponsorship rights fee investment in Canada for
2012 was $4M (ranged from $0 to $25M for total brand
investments)
 Sponsors when evaluating ROI the top three areas to
measure were:
1. Brand perception
2. Brand value
3. Brand Knowledge / profile
 Revenue ranked 6th

10. Canadian Sponsorship Landscape Study 2012
 The 2012 report showed clearly that properties still are
failing to provide resources for activation
programs and this is a major issue for sponsors
 The report also showed that sponsors are not
receiving a comprehensive wrap up report and
this is critical for them
 Also sponsors noted that properties need to be better
at providing sponsor recall statistics as well as
audience loyalty statistics

11. Canadian Sponsorship Landscape Study 2012
 Almost 55% of properties have operating budgets of
less than $1M
 The average property had 25 sponsors
 On average properties received about $740,000 in
sponsorship revenue
 It is important to note that 72% of properties
receive less than $100,000 in sponsorship revenue
and 92% receive less than $1M

12. Canadian Sponsorship Landscape Study 2012
 20% of property sponsorship revenues come from
financial institutions and 15% from crown
corporations
 Food and Beverage sponsors account for 12.5% and
oil and gas accounts for 9.5%
 Provincial lotteries account for about 8%
 The balance (35%) comes from auto, professionals
organizations like law firms, communications, retail,
travel, agriculture

13. Canadian Sponsorship Landscape Study 2012
Sponsorship Investment Allocation:
1. Professional sport 19%
2. Amateur sport 19%
3. Cause Marketing 5%
4. Fairs, Festivals and Annual Events 24%
5. Arts 12%
6. Education 8%
7. Attractions, Entertainment, Tours 8%
8. Other 5%

14. Canadian Sponsorship Landscape Study 2012
 40% of organizations that used an agency to
assist them in sponsorship used specifically a
sponsorship agency
 There continues to be a six year downward slide
on post evaluation of sponsorships – now only
2.3% of total sponsorship budgets are spent on
evaluation of outcomes
 41% of sponsors invested in pre-sponsorship
evaluation

15. Canadian Sponsorship Landscape Study 2012
 The biggest growth areas for activation in the 2012
study are:
 Ancillary events
 Internal marketing (employees)
 Social media
 The biggest “losers” in activation dollars were:
 Product sampling
 Trade allowances – distribution incentives
 Advertising

16. Canadian Sponsorship Landscape Study 2012
 The brands that epitomized
sponsorship passion from an industry
perspective were:
 Tim Horton’s
 Loto Quebec (1/3 of study responses
from Quebec)
 Kraft
 CIBC
 TELUS

17. Canadian Sponsorship Landscape Study 2012
 The industries that best epitomize
sponsorship as selected by industry people are:
 Financial Institutions
 Restaurants
 Consumer Packaged Goods
 Sports Apparel
 Alcohol / Lotteries

18. Canadian Sponsorship Landscape Study 2012
 Most influential consumer trends were (almost
75% of areas of influential trends)
 Technology
 Consumers shift to healthier lifestyles and the
environment
 Cause based marketing issues
 The top areas of concern for sponsors and
properties going forward are:
 Showing ROI
 Budget concerns
 Activating

19. Consumer Sponsorship
Rankings (CSR) 2012

20. Consumer Sponsorship Rankings 2012
 This research was done by Enigma Research
 1000 respondents in the 2012 study, all telephone
conversations from random Canadians
 On average 12-15 minutes with each interview
(French and English)
 Cross section from every region of Canada
 The 2012 study also has four detailed
supplementary studies available for subscription
purchase on the financial industry, the telecoms,
sport and charities

21. Consumer Sponsorship Rankings 2012
Canada’s Most Supportive Industry Categories
1. Soft drink companies
2. Restaurants and fast food
3. Banks and financial 6. Media companies
institutions 7. Auto Manufacturers
4. Telecommunication 8. Large Retail
companies 9. High Tech companies
5. Breweries 10.Lottery corporations

22. CONSUMER SPONSORSHIP
RANKINGS 2012
Canada’s Most Supportive Sponsors by Industry Categories
1. McDonalds within the restaurant sector and highest
scoring among all industries
2. Coca- Cola
3. Air Canada in airlines
4. Ford – Lincoln in auto category
5. Molson for brewery

23. CONSUMER SPONSORSHIP
RANKINGS 2012
Canada’s Most Supportive Sponsors by Industry Categories
6. TD/Canada Trust
7. Shell for energy or petroleum company
8. CN for railway
9. Apple for technology
10.WalMart for large retailer
38% of Quebec felt BMO was the most
supportive FI

24. CONSUMER SPONSORSHIP
RANKINGS 2012
Canada’s Most Important Annual Events / Properties
1. Carnaval du Quebec – (Winter festival)
2. Stanley Cup Playoffs (Annual sport event)
3. Montreal Canadiens (Sports team)
4. Montreal Jazz Festival (Music festival)
5. Cancer (Health causes)
6. Terry Fox Run (Run, Walk or Bike)
7. CNE (Exhibition or fair)
8. Terry Fox Run (Fundraising)

25. Getting in the Game… CSR
2012
Canada’s Most Important Annual Events / Properties
1. Sport ranked #2
2. Cancer related causes rank highest amongst Canadians
3. Red Cross and Heart and Stroke seen also as very
important fundraisers by Canadians
4. Hospital related causes are more important amongst
higher income earners in Canada

26. Getting in the Game… CSR
2012
Why do brands get involved in sponsorship according
to Canadian consumers?
Others are:
1. 92% of Canadians believe it • Support causes, athletes
is for people to see their • Sample product
brand name • Entertain clients
2. Majority say it is to enhance • Obtain sales leads
their brand image as good • Differentiate themselves
corporate citizens
3. Canadians know it is to
create brand loyalty

27. Getting in the Game… CSR
2012
Who influences brand loyalty?
• 69% of Canadians said they would prefer to do business with a
brand who supports their favorite causes
• 53% said the same for arts / cultural events
• 45% said the influence is there for sport
Interesting CSR Insight: Higher income Canadians are more
likely to conduct business with sponsors of their favorite
properties

28. Consumer Sponsorship Rankings 2012
Who influences brand loyalty?
 35% of Canadians said they pay more for brands that
supported their arts and cultural organization, 57%
said the same when the sponsorship is related
to a cause and only 32% would do so in regards to
sports
Arts and Cultural Sponsorship
Cause Sponsorship
Sports Sponsorship
 Interesting CSR Insight: More than 2/3 of higher
income Canadians would pay more if a favorite cause
is supported

29. CONSUMER SPONSORSHIP
RANKINGS 2012
Consumers thoughts on sponsorship methods
• 2/3 of consumers felt donating prizes to a cause or sport was
an appealing or very appealing approach
• Giving cash actually ranked second!
• Providing volunteers and staff was also important as was
handing out samples and marketing of the event
Interesting CSR Insight: Signage at events ranked in bottom
of top ten and “naming of an event” ranked last overall!

30. CONSUMER SPONSORSHIP
RANKINGS 2012
How active are the consumers?
• 76% frequently or occasionally watched
sports on TV
• Almost 50% of Canadians attended alive
amateur sport event in the last year
• 36% participated in a walk or run
• 50% of Western Canadians attended fairs or
agricultural events

31. Trending and Impact
• Shift in percent of what sport
“owns” – margin used to 50% of
all revenues – it is falling
• We are seeing other sectors get
better at the game – inevitable
• Municipalities are really growing
and getting in the game

32. Trending and Impact
• Other major growth area according to
CSLS is entertainment – more an more
trade shows, concerts and festivals are
understanding sponsorship and
beginning to do it right
• Fairs and exhibitions and related
festivals are growing – we are seeing Ag
Societies / Fairs and Exhibitions

33. Trending and Impact
• Continued shift of corporate
philanthropic dollars to corporate
sponsorship
• Ongoing shift and growth (as
illustrated by the CSLS) of
sponsorship marketing dollars in
brand budgets from traditional
marketing

34. Trending and Impact
Both IEG and The
Sponsorium Report have
shown a move towards
integrating, internal
employee relations, public
relations and government
relations into their
sponsorship activation
and investment programs

35. Trending and Impact
•Brands are starting (slowly) to
making more demands on their
partners (charities or not) and
becoming accountable for their
ROI
• ROI has become a major
factor for brands today

36. Trending and Impact
•The properties who will
continue to grow in this sector
are getting “the paradigm shift”
• They understand the need to be
creative in partnerships – and
this does not just mean with
ideas on activation, but how they
can integrate the brand into their
theirs and more

37. Trending and Impact
• Digital media and social
media and assets
continue to grow and
become a focus
•Sponsors are now
questioning the value of
the property social media
offerings

38. Trending and Impact
•Properties are undertaking
IAV work specifically for digital
and social media for their
sponsorship programs
•This is a critical step into the
future for properties and
brands and must be undertaken

39. Trending and Impact
• Digital media and social media and
assets continue to grow and become a
focus
•Both properties and brands looking to
confirm values and understand how to
measure success, activate and leverage
• Shift to sponsorship agencies working
in conjunction with digital agencies

40. Trending and Impact
 IMAGINE Canada study shows 56% of
Canadian corporations switched
from philanthropy to corporate
sponsorship in the preceding year

41. Trending and Impact
 Sponsorship is now a fully integrated
marketing and communications vehicle
 It integrates PR, GR, IR, marketing,
advertising, digital and social media, HR
and more
 BP has invested hundreds of millions into
tourism sponsorship in Florida and
Louisiana as part of their PR recovery
41

42. How It Works
42

43. Industry happenings that should not have happened
 KFC blundered in 2010
with their double down fat In 2011 they did it again
chicken burger at the same with Mega Jug of Pepsi
time as the breast cancer for just $2.99 with $1 of
launch for pink buckets of that going to Juvenile
chicken Diabetes (800 calories
and 56 spoonfuls of
sugar)

44. How It Works
44

45. SPONSORSHIP TODAY
QUESTIONS?

46. Thank You
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