what sponsors want from partners
Transcription
what sponsors want from partners
WHAT SPONSORS WANT FROM PARTNERS THE MOST IMPORTANT BENEFITS, SERVICES AND OBJECTIVES www.sponsorship.com 1 FINDINGS FROM THE 14TH ANNUAL PERFORMANCE RESEARCH/SPONSORSHIP DECISION-MAKERS SURVEY REFLECT A FAIRLY CONSISTENT APPROACH OVER THE YEARS TO WHAT CORPORATE MARKETERS HOPE TO ACHIEVE FROM THEIR RELATIONSHIPS WITH RIGHTSHOLDERS. The 2014 results reveal an interest in more tangible benefits beyond those that offer visibility, an increasing reliance on marketing agencies to help execute sponsorships, and improvement into measuring the impact of partnership programs. www.sponsorship.com 2 SURVEY FINDS SPONSORS LOOKING FOR SLIGHTLY DIFFERENT BENEFITS SERVICES PROPERTIES HowAND Valuable Are TheFROM Following Benefits To You? ACCORDING TO THE SURVEY, BRAND MARKETERS SAY THEY ARE NO LONGER AS INTERESTED IN RECEIVING IDENTIFICATION ON SPONSORED PROPERTIES’ MEDIA BUYS AND COLLATERAL MATERIALS, WITH BOTH OF THOSE BENEFITS NO LONGER AMONG THE TEN MOST VALUABLE. HOW VALUABLE ARE THE FOLLOWING BENEFITS TO YOU? CATEGORY EXCLUSIVITY 58% ON-SITE SIGNAGE 43% BROADCAST AD OPPORTUNITIES 42% 41% RIGHT TO PROPERTY MARKS AND LOGO TITLE OF A PROPRIETARY AREA ACCESS TO PROPERTY CONTENT 31% 30% 28% SPOKESPERSON/ACCESS TO PERSONALITIES Reflecting a desire for benefits that 27% TICKETS AND HOSPITALITY deliver more than just visibility, 25% ACCESS TO PROPERTY MAILING LIST/DATABASE sponsors are instead prioritizing RIGHT TO PROMOTE CO-BRANDED 23% connections to personalities and talent PRODUCTS/SERVICES associated with properties, as well as access Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable to sponsored organizations’ databases and Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey mailing lists. The latter returned to the top ten, Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable while the former cracked the list for the first timeSource: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey in the survey’s history. www.sponsorship.com 3 How Valuable Are The Following Property-Provided Services? Sponsors are also making it clear that help with HOW VALUABLE ARE THE FOLLOWING PROPERTY-PROVIDED SERVICES? determining the impact of their partnerships is a top priority. Assistance in measuring ASSISTANCE MEASURING ROI/ROO ROI and/or ROO topped the list of 42% AUDIENCE RESEARCH ON PROPENSITY TO PURCHASE 42% valuable services provided by AUDIENCE RESEARCH ON RECOGNITION/RECALL 34% properties in this year’s survey. AUDIENCE RESEARCH ON ATTITUDE/IMAGE 32% In 2013, sponsors said it was the POST-EVENT REPORT/FULFILLMENT AUDIT 32% fourth most valuable service. LEVERAGING IDEAS AUDIENCE CONTACT INFORMATION Also increasing in importance: rightsholder-provided research on whether audiences recognize and recall sponsors. Conversely, sponsorship fulfillment reports fell to only the fourth most valuable service. Since best practices for producing such reports include reporting the type of metrics and research that sponsors say is critical, the conclusion here is that the majority of properties must not be following such practices, instead producing reports that sponsors don’t find useful. 25% 21% AUDIENCE RESEARCH ON BUYING HABITS THIRD-PARTY VALUATION STATEMENT TRACKING OF PROMOTIONAL OFFERS 18% 13% 12% of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable DoPercent properties meet your expectations in helping you Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey measure yourthereturn Percent of respondents who ranked factor a 9 oron a 10 investment/objectives? on a 10-point scale, where 10 is extremely valuable Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey DO PROPERTIES MEET YOUR EXPECTATIONS IN HELPING YOU MEASURE YOUR RETURN ON INVESTMENT/OBJECTIVES? YES Despite the fact that measurement help is now the top service sponsors want from rightsholders, their partners are not very good at delivering it, according to respondents. Nearly three-quarters of sponsors said properties did not meet their expectations in helping measure ROI or ROO. 27% 73% NO Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey www.sponsorship.com Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey 4 Which Types Of Agencies Do You Use To Support Your Sponsorships? Sponsors remain reliant on agency support, with the number of sponsors who manage execution and activation completely in-house setting a new low in the survey’s history, dropping to 22 percent, one point below last year’s level. WHICH TYPES OF AGENCIES DO YOU USE TO SUPPORT YOUR SPONSORSHIPS? MARKETING, PROMOTIONS, PR 75% ADVERTISING NONE, MANAGE ENTIRELY IN-HOUSE 52% 22% 22% INDEPENDENT SPONSORSHIP SPECIALIST However, the 2014 survey saw a notable SPONSORSHIP SPECIALIST REPRESENTING PROPERTY 10% change in which agency type is providing those services. In 2013, 63 percent of Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey sponsors said they used advertising or media buying agencies, while 60 percent used marketing/promotion/PR agencies for sponsorship support—with many clearly using both. In 2014, 75 percent of sponsors say they rely on marketing/promotion and PR agencies, while only 52 percent report using ad or media agencies. Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey In addition, the survey for the first time asked sponsors who used multiple types of agencies to note the type that they relied on most. More than half, 55 percent, selected marketing/promotion/ PR agencies versus just 14 percent who said ad or media agencies. www.sponsorship.com 5 For the first time in the survey’s history, social media claimed the number one spot among marketing communications channels used to activate sponsorship, with nine out of 10 sponsors including it in their leveraging mix. Social media took the top spot from public relations, which saw significantly less sponsors—77 percent in 2014 versus 89 percent in 2013—using it. On-site interaction moved up to the number three spot from number eight, with 76 percent of sponsors activating at events and venues this year compared to 51 percent last year. On the flip side, internal communications were less popular in 2014, with only 65 percent of sponsors reporting the practice as a leveraging tool compared to 86 percent in 2013 when it was number three. Survey respondents allocated an average of 23 percent of their overall marketing/advertising/ promotion budgets to sponsorship, the second highest average in the survey’s 14 years. Over the past 10 years, sponsorship’s share has bounced between a low of 16 percent in 2004 to a high of 25 percent in 2010. What Channels Do You Use To Leverage Your Sponsorships? WHAT CHANNELS DO YOU USE TO LEVERAGE YOUR SPONSORSHIPS? 90% SOCIAL MEDIA PUBLIC RELATIONS 77% ON-SITE INTERACTION 76% 71% TRADITIONAL ADVERTISING HOSPITALITY 67% DIGITAL/MOBILE PROMOTIONS 66% INTERNAL COMMUNICATIONS 65% DIRECT MARKETING 41% BUSINESS TO BUSINESS 40% SALES PROMOTION OFFERS 28% What Portion Of Your Marketing Budget Is Spent On Sponsorship Rights Fees? Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey WHAT PORTION OF YOUR MARKETING BUDGET IS SPENT ON SPONSORSHIP RIGHTS FEES? 23% SPONSORSHIP Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey www.sponsorship.com Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey 6 Another survey data point that has fluctuated over the years is the ratio of activation spending to spending on rights fees. For 2014, sponsors report spending an average of $1.70 on leveraging for every $1 spent on rights fees, up from $1.50 in 2013. Only 27 percent of sponsors say their spending will increase this year over last, with 21 percent cutting spending and 52 percent keeping their budgets at 2013 levels. What Is Your Company’s Typical Promotional Spending Ratio? WHAT IS YOUR COMPANY’S TYPICAL PROMOTIONAL SPENDING RATIO? AVERAGE IS 1.7 TO 1 3 TO 1 2 TO 1 10% 15% 4 TO 1 OR MORE 12% 0 TO 1 18% 45% 1 TO 1 How Will Your 2014 Sponsorship Spending Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey Compare To 2013? Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey HOW WILL YOUR 2014 SPONSORSHIP SPENDING COMPARE TO 2013? DECREASE 21% 52% INCREASE STAY THE SAME 27% Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey www.sponsorship.com 7 How Will Your 2014 Leveraging And Activation Spending Compare To 2013? The outlook is slightly more positive for activation spending, with more than a third of sponsors— 35 percent—upping the amount they will direct toward activation, while 14 percent are lowering their activation budgets and 51 percent are keeping spending on par with 2013. The majority of sponsors are in the market for new partnerships, but fewer sponsors are considering first-time deals this year than last. Only 66 percent say they are considering new relationships versus 75 percent in 2013. Sponsors are seemingly much more dissatisfied with at least one of their partners this year. A majority of survey respondents—57 percent—are looking to drop out of a current sponsorship, compared to only 41 percent of sponsors in 2013. HOW WILL YOUR 2014 LEVERAGING AND ACTIVATION SPENDING COMPARE TO 2013? DECREASE 14% 51% INCREASE STAY THE SAME 35% Is Your Company Considering New Sponsorships In 2014? Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey IS YOUR COMPANY CONSIDERING SPONSORSHIPS Source: IEG/Performance Research 2014 SponsorshipNEW Decision-Makers Survey IN 2014? 34% YES NO 66% Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey www.sponsorship.com 8 How Important Are These Objectives When Evaluating Properties? In terms of the most important objectives, there was a little movement among the top 10, with using sponsorship to increase sales/trial or usage of products jumping from number nine to number four, with nearly half of sponsors rating it a 9 or 10 on a 10-point scale. Moving in the opposite direction was “showcase community/social responsibility,” which dropped from number four to number seven, as only 26 percent of sponsors gave it a 9 or 10. HOW IMPORTANT ARE THESE OBJECTIVES WHEN EVALUATING PROPERTIES? CREATE AWARENESS/VISIBILITY 67% INCREASE BRAND LOYALTY 63% CHANGE/REINFORCE IMAGE 48% STIMULATE SALES/TRIAL/USAGE 47% ACCESS PLATFORM FOR EXPERIENTIAL BRANDING 30% DRIVE RETAIL/DEALER TRAFFIC 30% SHOWCASE COMMUNITY/SOCIAL RESPONSIBILITY ENTERTAIN CLIENTS/PROSPECT 26% 20% SAMPLE/DISPLAY/SHOWCASE PRODUCTS/SERVICES 19% ACCESS CONTENT TO USE IN PAID, OWNED AND EARNED MEDIA 19% Survey participants were given a new option among possible objectives in this year’s study: “Access content to use in paid, owned and earned media.” It ranked ninth. Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey www.sponsorship.com 9 Has Your ROI Increased, Decreased Or Stayed The Same? The survey had some good news to report on the sponsorship measurement front. Although it continues to show a limited amount of dedicated spending on evaluating the success of partnerships, there were two bright spots. HAS YOUR ROI INCREASED, DECREASED OR STAYED THE SAME? STAYED THE SAME DECREASED First, the number of sponsors who replied that they could not say whether, in general, their ROI and/or ROO from sponsorship was increasing, decreasing or staying the same dropped to 15 percent from 26 percent. Second, although the amounts allocated to evaluation are still low—with only 27 percent of sponsors spending more than one percent of a sponsorship’s total budget on measurement— significantly fewer sponsors report that they spend nothing at all. Although still high at 22 percent, the figure is at least down from 27 percent in 2013. 19% DON’T KNOW 15% 5% INCREASED 61% What Percentage A Sponsorship’s Budget Is Source: IEG/Performance Research Of 2014 Sponsorship Decision-Makers Survey Spent On Measuring Return? Source: IEG/Performance Research 2014 Decision-MakersBUDGET Survey WHAT PERCENTAGE OF Sponsorship A SPONSORSHIP’S ON MEASURING RETURN? IS SPENT FIVE PERCENT OR MORE 3% ONE TO FIVE PERCENT 24% NONE 22% ONE PERCENT OR LESS 51% Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey 6 www.sponsorship.com 10 How Valuable Are These Metrics In Evaluating Sponsorships? Regarding which metrics were most important to HOW VALUABLE ARE THESE METRICS IN EVALUATING SPONSORSHIPS? sponsors, there was little change among the top ten. Awareness of products/services/brands AWARENESS OF PRODUCTS/SERVICES/BRAND and attitudes toward the brand each moved ATTITUDES TOWARD BRAND up one spot to number one and number AWARENESS OF COMPANY’S/BRAND’S SPONSORSHIP two, respectively—replacing the former 73% PRODUCT/SERVICE SALES number one: awareness of the company 73% AMOUNT OF MEDIA EXPOSURE GENERATED or brand’s sponsorship. AMOUNT OF POSITIVE SOCIAL MEDIA ACTIVITY 71% The survey was conducted online in March 2014 and received 115 reponses. 83% 69% RESPONSE TO CUSTOMER/PROSPECT ENTERTAINMENT The survey included a new option for respondents among metrics: “Amount of positive social media activity.” It joined the top ten at number six. 91% 88% RESPONSE TO SPONSORSHIP-RELATED PROMOTIONS/ADS 64% LEAD GENERATION 54% EMPLOYEE/INTERNAL RESPONSE 53% Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable When DoesResearch Your Company Determine Its Source: IEG/Performance 2014 Sponsorship Decision-Makers Survey Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable Sponsorship Budget? Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey WHEN DOES YOUR COMPANY DETERMINE ITS SPONSORSHIP BUDGET? FOURTH QUARTER (OCT. – DEC.) 45% 22% FIRST QUARTER (JAN. – MARCH) SECOND QUARTER (APRIL – JUNE) 5% 28% THIRD QUARTER (JULY – SEPT.) Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey Source: IEG/Performance Research 2014 Sponsorship Decision-Makers Survey www.sponsorship.com 11 ABOUT IEG AND ESP PROPERTIES IEG has shaped and defined sponsorship over three decades. It is the globally recognized source for industry insights, trends, training and events via sponsorship.com, its annual conference, online publications, trend reports, surveys and webinars. IEG is part of ESP Properties, a WPP company. As a commercial and creative advisor for rightsholders, ESP Properties helps organizations unlock greater value from their audiences and brand partnerships. Our consulting team assesses and advises how to grow the value of rightsholders’ commercial programs. We do this through a full range of services across data, digital and content development to better understand audiences and create more relevant ways to engage with them. This provides brand partners with new ways to connect with communities of fans and followers, growing the potential value of commercial partnerships. Our sales team provides partnership strategy and sales representation to the world’s most active sponsors, within and beyond the WPP network of brand clients. Through WPP we have extensive contacts and deep insights into what it takes to create successful partnerships. For more information about the value of sponsorships and partnerships, IEG and ESP Properties, please visit www.sponsorship.com, www.espglobal.com, or call Dan Kowitz at 312/725-5114. DAN KOWITZ Senior Vice President, Business Development, ESP Properties © 2014 IEG, LLC. All Rights Reserved. www.sponsorship.com 12