Building a Successful Marketing Strategy in Harsh Economic ... · Building a Successful Marketing...

Building a Successful Marketing Strategy in Harsh Economic Weather

Jed Pearsall2009 ASTA Annual Conference, Cleveland

• IEG-Performance Research study

• 9th Annual Study

• On-line Survey

• 100+ Sponsorship Decision Makers

What are companies doing in 2009?

“How will your overall sponsorship spending in 2009 compare to 2008, Is your company seeking to drop out of any current sponsorships, How will your spending, specifically on sponsorship leveraging and activations in 2009, compare to 2008?” Source: IEG / Performance Research Study (March 2009)

2009 marked the first year total charitable giving dropped since 1987

400 largest charities expect giving to decline by median of 9% in 2010

Corporate giving expected to drop 3% to 5%

Among companies with cause marketing programs, 17% cut funding in 2009

Sources: • The Chronicle of Philanthropy• LBG Research• PR Week(Cited in USA Today, November 3, 2009)

Just this week…

• Online study (February 23-28)

• Nationally representative of U.S. consumers

• 1000+ Respondents

• Ages 18-64, equal gender, range of HHI

• All AVID involvement with sports, arts, and/or causes

• Open forum feedback

• Qualitative one-on-one discussions

Comprehensive Research Study:

Consumers started questioning traditional sponsorships

top line findings:

“Today, how would you rate how much you agree or disagree with the following statements?”

Total; N=1005

Source: Performance Research Study (March 2009) –Consumer Viewpoints on Corporate Sponsorship in the Down Economy

“I Think More About Wasteful Corporate Spending Than In The Past”

74%

The Consumer Mindset

Consumer Mindset

MSNBC REPORTING ON NORTHERN TRUST BAILOUT

CNN REPORTING ON CITIBANK

There is a sense of low confidence in corporations

top line findings:

“Overall, has your approval rating of how corporate America conducts business today changed from what it was a year ago?”

Approval Ratings of Corporate America

Total; N=1005

Source: Performance Research Study (March 2009) –Consumer Viewpoints on Corporate Sponsorship in the Down Economy

The “halo effect” of corporate sponsorship became less bright

top line findings:

Paying More/Same/Less Attention To Sponsorship In Current Economy[by activities in past 6 months]

“At the current time and [given] the current economic situation, are you paying more, the same or less attention to the following?”

Source: Performance Research Study (March 2009) –Consumer Viewpoints on Corporate Sponsorship in the Down Economy

Total; N=1005

Suggested Spending Changes To Raise Opinion Of Corporate America

“In order to raise your opinion of corporate America in the near future, would you like to see increases or decreases in the following areas?”

Sponsorship of your favorite sports event

Source: Performance Research Study (March 2009) –Consumer Viewpoints on Corporate Sponsorship in the Down Economy

Total; N=1005

Sponsorship Association - “Very Positive Feeling”(listed in order of current sponsorship “halo”)

Among fans of: 1 year ago Today Point drop

% Loss

1 Campbell Soup sponsoring the American Heart Association General public 56% 43% 13 23%

2 Ford sponsoring NASCAR racing NASCAR 54% 40% 14 26%

3 Ford sponsoring Susan G. Komen (Breast Cancer Awareness) General public 53% 38% 15 28%

4 Sprint Communications sponsoring the NASCAR series NASCAR 58% 37% 21 36%

5 Home Depot sponsoring the Olympics Olympics 47% 36% 11 22%

6 Coca-Cola sponsoring your local Food or Cultural Festival General public 46% 35% 11 24%

7 Bank of America sponsoring the US Olympic team Olympics 41% 31% 10 25%

8 State Farm sponsoring the NFL NFL 34% 23% 11 30%

9 MasterCard sponsoring Major League Baseball MLB 35% 21% 14 39%

10 Buick sponsoring Tiger Woods PGA 42% 21% 21 50%

11 Wachovia Bank sponsoring “Wachovia Championship” (PGA Tourn.) PGA 53% 21% 32 60%

12 Capital One sponsoring the “Capital One Bowl” (college FB game) NFL 28% 20% 8 31%

13 Capital One sponsoring “Capital One Bowl” (college FB game) College Sports 34% 20% 14 40%

14 General Motors sponsoring the NY Yankees MLB 30% 18% 12 39%

15 Bank of America sponsoring Bank of America Stadium (Carolina Panthers) NFL 24% 15% 9 37%

16 Citibank sponsoring the New York METS Stadium – “CITI Field” MLB 31% 16% 15 48%

17 AIG Insurance sponsoring the Manchester United Soccer team General Public 19% 13% 6 35%

Source: Performance Research Study (March 2009) –Consumer Viewpoints on Corporate Sponsorship in the Down Economy

“The following are some examples of corporate sponsorships. A year ago, what would have been your reaction to the following? Today, considering the current economy, what is your reaction to the following?”

Total; N=1005

A few comments…

Before making a decision ask the question.  'What would the average Joe say or react to this.' 

Keep sponsorships humble,  grounded and not frivolous.  

Go on a diet like the rest of us.

Relate to the people's fears about the economy and the future.  

Sponsorship “damage” may be contained to specific industries

Top good stories:

Level of Confidence in Sponsors by Industry

12% 14% 16%20% 22% 22% 25% 24% 25%

29% 30%34% 36% 37%

73% 71% 70%68% 65% 67% 65% 66% 63%

61% 60%58% 55% 52%

15% 15% 14% 13% 13% 11% 11% 10% 11% 10% 11% 9% 9% 10%

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More confidenceSame / Doesn't matterLess confidence

“Given the state of today's economy as a consumer, would it give you more or less confidence if a company in one of these industries sponsored your favorite sports events?”

Source: Performance Research Study (March 2009) –Consumer Viewpoints on Corporate Sponsorship in the Down Economy

Total; N=1005

Consumers still appreciate and want sponsorship

Top good stories:

Sponsorship Importance Today

Sponsors are still shoppingTop good stories:

Are corporate sponsorship managers considering new sponsorships?

Source: IEG / Performance Research Study (March 2009)

Sponsorships can be seen as part of economic recovery

Top good stories:

Sports Sponsorship

Arts Sponsorship

Non-profits and causes may garner more support than ever

Top good stories:

A few comments…

Non profit organizations give the sense that you care more about what is going on in the country, almost like being patriotic.

Do what is morally right!

Sponsorships of non‐profits provide a good look into the company’s soul.. But sponsorship of sports makes you look like you are giving the money away.

Priorities‐priorities‐priorities !!!!  Corporate responsibility to the community which keeps them going in these desperate times should be number one.

Non-profit / Causes

Agree That Corporate Sponsorship Of [INSERT] In Order To Keep The Events Going “Is More Important To Me Now Than Ever”

“Today, how would you rate how much you agree or disagree with the following statements?”

49%

33%

23%

Source: Performance Research Study (March 2009) –Consumer Viewpoints on Corporate Sponsorship in the Down Economy

Total; N=1005

Suggested Spending Changes To Raise Opinion Of Corporate America

“In order to raise your opinion of corporate America in the near future, would you like to see increases or decreases in the following areas?”

41%

47%

12%

0% 25% 50% 75% 100%

20%

60%

20%

0% 25% 50% 75% 100%

Sponsorship of your favorite sports event

Sponsorship of your favorite cultural activities

Sponsorship of your favorite non‐profit org’s or causes

Source: Performance Research Study (March 2009) –Consumer Viewpoints on Corporate Sponsorship in the Down Economy

Total; N=1005

Learnings: Corporate Sponsorships…

are seen as vital to non-profit organizations

are considered more valuable for non-profits than sports

need to be justified – now more than ever

Learnings: consumers need to know …

What are the benefits? (directly or indirectly)

It a sponsorship providing what is otherwise unattainable?

Sponsors are the oxygen for non-profit organizations

Sponsors are partners, not exploiters

…Hope is not a strategy

What is the key takeaway?

Be confident..you have attributes that sponsors

in today’s economy!

What is the key takeaway?

need wantwill pay for

Jed Pearsall2009 ASTA Annual Conference, Cleveland

Thank you!