While we don’t want to overstate this issue, it is a sad realization that both event promoters and brands need to take new security threats into account. Promoters and local police forces have been quick to make adjustments in the wake of recent events. We saw that at South by Southwest, where police cars blocked street access near pedestrian areas, and in Europe, where giant (branded) sandbags were set up to prevent vehicles from entering crowded areas.
By Samantha Phelan, Manager, Sales and Service, St. John's IceCaps.
Two years ago, in the lead-up to the 2014 FIFA World Cup in Brazil, Beats by Dre—a popular headphones brand—took to the internet with a uniquely crafted “Game Before the Game” video featuring famous soccer athletes, Neymar and Sturridge, emulating what their pre-game rituals looked like.
Baby boomers, who have left their mark on pretty much every corner of society, are now reaching retirement age, are living longer and are in better health than their predecessors. This demographic evolution means that the number of people over 65 will double in the next 25 years. In turn, this will lead to significant economic changes and will also represent a huge challenge to event promoters, who will have to adapt their offering to attract new visitors or spectators on site and appeal to new television audiences.
the conditions that enable partners to generate value and to maintain a good relationship aren’t that well understood. Moreover, when a brand exits a sponsorship, it is often ill equipped to do it properly, which can make the situation even more uncomfortable.
The renewal and cessation of sponsorships are topics that—despite their huge importance—don’t tend to be well covered and for which there are few resources. That’s why we decided to devote our attention to the subject in this edition.
We will cover the ending of a sponsorship when a contract comes up for renewal or when a scandal strikes, the impact of a sponsor exit on fans, and the relationship between the sponsor and the property—a subject rarely touched upon, but which has significant consequences on the success of the partnership. We will also supply data that sheds a light on these aspects of the sponsorship industry.
You spend years building a partnership between a brand and a property and then, for various reasons—objectives not being met fast enough, lack of vision at the management level, a changing of the guard or simply the strategic realignment of a scattered portfolio—and the time comes to call it quits.
No matter how good the reasons are for leaving, every brand needs a solid exit strategy. There are multiple players involved, from the property to the media to fans and the general public, and their reactions should not be underestimated. You don’t want to run the risk of having years of hard work crumble with a single news story.
There’s something special about the atmosphere at a major festival or popular event that reels in the crowds and has sponsors willing to dig deep into their pockets to get in on the action.
That vibe, unique to every event, is created by a multitude of factors that promoters strive to shape and influence to give event-goers an experience that is positive—and hopefully memorable.
Ever been approached by a rude or overzealous security guard at an event? Did it leave you with a bad taste in your mouth? These kinds of negative experiences, or an excessively long wait at the concession stand, for instance, can seriously tarnish an event’s reputation, whereas positive experiences—brought on by good logistical planning—help build and reinforce an event’s favourable image.
It’s important, then, to carefully analyze each and every contact point a visitor may have with an event, including those with sponsors, which can play a big part in creating a positive experience with on-site activations.
A sponsorship is a sophisticated and complex marketing tool; it entails an entire strategic process of solicitation, negotiation, and customer service. What’s more: professionals who are responsible for sponsorships must fully grasp both traditional and non-traditional marketing communication channels as well as the inner workings of several different markets. Sponsorships can be leveraged to achieve many objectives and reach different target audiences. It is therefore important to understand the basics before launching a full-fledge sponsorship campaign.
When it comes to evaluating a sponsorship package, pulling a number out of a hat is not enough. That’s where the Elevent report can serve you well. We’ve collated the latest data on the market so you can have a fair and independent assessment of sponsorship plans.
On one hand, a precious tool in the sponsorship arsenal; on the other hand, a fundamental—and sometimes harsh—element of the reality of supply and demand.
In fact, sponsorship valuation is key to establishing a pricing strategy, estimating market value and managing your sponsorship portfolio.
Sponsorship valuation is an essential part of acquiring a new property. In this day and age, all marketing expenses can be under scrutiny. This is especially true for sponsorship because of its very nature: the presence of hospitality and the entertainment aspect attached to it might raise suspicions that the decision to sponsor was motivated by top managers’ appreciation of a particular sport more than by sound market insight. John Kerry, secretary of state, raised the issue in his now infamous quote about sponsorship being wasteful. He tried, to no avail, banning companies that received bailout money to pursue such a marketing strategy. In other words, the process of sponsorship selection and evaluation must be extremely thorough. A strong business case must be put in place because folks from the finance department, external controllers, or even stockholders will ask questions about the sponsorship value and how the decision to sponsor was made. After all, sponsorship is a marketing investment, not a donation; thus you need to assess the value of your buy as you would do with any media campaign.
What 20 years of experience can teach you. An Interview with Claude Savard, VP corporate partnerships at Tennis Canada
Sponsorship might seem like a gold rush, easy money for an organization. However, finding sponsors is an art and requires tedious work. Even more so today, as sponsors are more sophisticated than ever in setting their objectives upfront and systematically measuring results. Claude Savard has extensive expertise in terms of selling sponsorship, andhas learned the how-to’s in the field with many trials and errors. Today, he is delighted to share some of his hard-earned experience. We interviewed Claude during the Infopresse 2013 Sponsorship Rendez-vous.
Selling sponsorship is a process. These days, you have to be relevant to the brand and tailor the proposal to the sponsor’s needs. To do so, you must know the company as much as you possibly can. In a nutshell, you can divide the selling process into 7 steps: selecting the right sponsor, doing a thorough research, setting a first meeting, drafting the proposal, holding an in-person presentation, following up and then proceed to negotiate or close the deal. Let’s examine the 7 ingredients of this sponsorship-selling recipe.
Before going to prospective sponsors in a given category, you must first understand what your own objectives and communication challenges are: “You too can gain from an association with the right sponsor, in terms of reaching your own communication objectives”. Things to lookout for are the popularity of a brand and its (positive) image, which can reflect on your organization. For example, an association with a premium brand could provide a sense of prestige to your event and, therefore, engage other players.
Another key element is the right property-sponsor fit, be it with the company or the audience itself. Finally, Claude insists on the fact that a partnership can bring more to the table than money alone: “Look for specific assets that sponsors can bring, it can leapfrog your sponsor acquisition or tackle some challenges your own organization is facing.”
Sponsorship is first and foremost a business relationship between two organizations with different goals. Aligning objectives to deliver greater value for both partners builds the relationship into a true alliance that can generate powerful results for both parties.
In the current industry, there is a 55% satisfaction level with ROI. However, that means a dissatisfaction rate of 45%, and that is an incredibly high figure. As well, 41% of sponsors are looking to drop their current sponsorships and jump ship.
The number one key to sponsorship renewal efforts is a healty sponsor-sponsee relationship, but this relationship typically does not get much attention. The quality of the relationship is a pre-requisite. There are times when a sponsor could be in the right sport but working with the wrong partner.
It may seem obvious but in an ever more competitive market, properties are under mounting pressures to gain revenues from sponsorship, and the task gets even harder during sluggish economic times. As it is true for the consumer market, attracting new business is a much costlier endeavor than retaining existing partners. That is why your sponsors are your greatest assets. I am a firm believer in the concept of shared value. Properties and sponsors might not always agree, but they do have common goals that can create added value for both partners once reached.
Besides the revenue gained from a sponsorship deal, properties will also seek objectives of their own like visibility, ticket sales, brand image and networking opportunities, to name a few. Sponsors will sign a sponsorship deal for various reasons like visibility, awareness, affinity with the target audience, brand image, sales or to mobilize their employees, for example.
It is a well-documented fact that sponsorship activation is a prerequisite for a sponsor to achieve its communication goals. Properties will largely benefit from a sponsor’s activation program, in various ways. It will generate both visibility and awareness: a great way of catching the interest a potential sponsor. Depending on the property’s industry, such publicity will also help in selling tickets or generating increased traffic.
Comments
0 Comments