Measuring Sponsor ROI in Europe

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Accountability is the Mantra Today

Accountability for Sponsorship Investments

Exposure valuations are no longer considered valuable to sponsors. We can measure them but they cannot be “banked”.

Sponsorship Cycle

Strategy and Operation Plan Updated

Sponsorship objectives and measurement must be aligned with the sponsor’s own brand and communication objectives and the overall strategic plan.

Sponsorship Theory Impacts on How We Measure

Understanding Sponsorship

•  Sponsorship is a dynamic three-way relationship.

•  Sponsorship works through harnessing the emotional connection between a property and its audience and converting this into a desired response for a sponsor.

•  Sponsorship operates through different cognitive processes than advertising. Advertising communicates directly to the customer through essentially an interruption mode whereas sponsorship communicates indirectly via a property in a passion mode.

PropertyProperty CustomerCustomer

SponsorSponsor

PropertyProperty CustomerCustomer

SponsorSponsor

PropertyProperty CustomerCustomer

SponsorSponsor

PropertyProperty CustomerCustomer

SponsorSponsor

Understanding Sponsorship

Sponsorship cognitive process involves attention, recall, engagement and appreciation to influence brand commitment.

It very important to understand how sponsorship works to demonstrate ROI.

Each of these elements impacts on sponsorship effectiveness.

Several methods can be used. These are based on the overall sponsors objectives

  Media impressions   Social media measurement   Surveys   Sales measurement - Eg., Bounce-back coupons

Choice of methods based on the overall sponsorship objectives and cost. Most affordable are usually sales measurement and surveys.

Measuring Understanding (Sponsor Recall)

Unaided Awareness of Sponsors

An example of the survey research to determine sponsor recall.

Base: Total Asked (n=150) Q3a. Talking about the X , what SPONSORS were represented at this event? Q3b. What other SPONSORS were represented at the X event?

Top of Mind Total Unaided

Sponsor

Bank of America

American Express

FedEx

Accenture

Pepsi

Coca Cola/Coke

Citibank

Miscellaneous

Don't Know/None

SPONSOR

Bank of America

Nike

Buick

American Express

FedEx

Sony

Dole

Accenture

Target

Capital One

Citibank

Coca Cola/Coke

Pepsi

Miscellaneous

Don't Know/None

Measuring Engagement (Passion)

Please indicate whether you have HEARD of the following events? Please indicate whether you have an INTEREST in the following events? Please indicate whether you would MAKE AN EFFORT TO GO to the following events? Please indicate whether you WOULD CONSIDER YOURSELF A GREAT FAN of the following events? Please indicate whether you WOULD BE DEVASTATED WITHOUT any of the following events? Base: Total Population: 4.839M

Measuring The Strength of Properties Example

Looking at the various passion levels for several properties with weighted results – estimates against the total adult population. Example from with three main competitors sponsoring different properties. Survey data allows us to talk about the passion for each property. This is the value of properties.

Event Sponsored Fun Run Music Tour F1 Grand Prix Dance Festival Fringe Festival % Pop.

Project. % Pop. Project. % Pop.

Project. % Pop. Project. % Pop.

Project.

Fanatic - - 1% 48k 1% 48k - - - -

Great Fan 1% 48k 1% 48k 2% 97k 2% 97k - -

Spectator 1% 48k 3% 145k 8% 387k 4% 194k 1% 48k

Passive Enthusiast 3% 145k 7% 339k 14% 677k 3% 145k 1% 48k

Disinterested 8% 387k 22% 1,065k 55% 2,661k 21% 1,016k 5% 242k

Unaware 87% 4,210k 67% 3,242k 20% 968k 70% 3,387k 93% 4,500k

Passionates 1% 48k 2% 97k 3% 145k 2% 97k - -

Event Awareness 13% 629k 34% 1645k 80% 3871k 30% 1452k 7% 339k

Conversion Rate : 6%

Conversion Rate : 4%

Conversion Rate : 7%

Conversion Rate : 0%

Conversion Rate : 8%

Conversion Rate is the proportion of Passionates among those who are aware of the event.

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Sponsor Unaware Sponsor Aware

PASSION

Improvements in Sponsor Purchase Intent are often also directly related to Passion for the Sponsored Property…

Brand Attribution through Sponsorship

PAA

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Sponsor Aware

Healthy For Growing Bodies

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Sponsorship Related Brand Image Enhancement

Sponsorship example FMCG industry where the health attributes of the sponsor’s brand are much higher with the segment of the markets that engaged with the sponsorship.

Measuring Engagement (Appreciation)

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Sponsor Unaware Sponsor Aware

GRATITUDE

Brand Advocacy also has a Strong Relationship to Sponsor Gratitude/Appreciation)

Measuring Commitment (Brand Response)

TV sponsorship for women’s deodorant

  To increase brand penetration (Additional 5 million users) - Survey reveals an additional 7,162,000 product trials - Sponsorship themed products tracked with unique sales codes sales 240%

higher than non-themed

  To communicate invisible protection (deodorant).

- Image ratings showed significant improvements based on survey data

  To encourage trial and switching from other brands - 84% of trial from source of business competitors brands

European TV Sponsorship ROI Example

Arts Sponsorship ROI Example – Use of On-line Survey

Music Event Sponsorship in Russia – FMCG Company

  Increase brand preference

- Trial, Occasional, Substitute brand (This is the language the sponsor used for marketing performance so it is already accepted as a good performance measure to use)

  Examine ‘multiplier effect’ of increased reach beyond the immediate event audience

- 2,500 at event x 16 (Multiplier effect) = 40,000 consumers touched from the event

European Music Event Sponsorship ROI Example

Methodology & Sample

Pre and Post Survey Measurement Recommended

Survey research allows for a better understanding of sponsorship impact. In the case above it is the same people interviewed before a sponsorship and then following it. Sponsorship impact can more easily

be gauged with a pre and post treatment and often in conjunction with other tools.

Russian Music Properties – Passion Ratings

Base: n=300 Source of Business

Shifts in Sponsor’s Brand Performance Indicators

Solid increases in the brand KPIs as a direct result of the event itself with source of business drinkers.

+4%

+13% +6%

✔

Margin of error (4%) at 95%CI *

* *

statistically significant

Demonstrating How a Sponsorship is Achieving Objectives

Discussion

About SponsorMap™

  A market research tool developed to better measure the impact of sponsorship.

  Focused on measuring outputs not inputs

  Used in 18 countries with more than 80 projects

  Partnered with Taylor Nelsen Sofres the world’s largest market research company with offices in more than 80 markets.

  Integrated approach for measuring sponsorship in conjunction with media, on-line and sales information.

  Importantly, integrating sponsorship into the total measurement framework for brands. Not in isolation, demonstrating the business value of sponsorship is critical.

Thank-you

Nicholas Cameron Sponsorship Research Specialist Nicholas.Cameron@sponsormap.com

Resources: Visit www.sponsormap.com for more details.