COMMERCIAL SPONSORSHIP IN A NUTSHELL Interaktion Passion Transaktion

COMMERCIAL SPONSORSHIP IN A NUTSHELL Interaktion Passion Transaktion Integration

The consumers love sponsoring. . . Attitude towards sponsorships 2008 Social Sports Culture Sampling Events Newspaper ads Public spons. Magazine ads TV spots Household dist. TV-sponsoring Outdoor Internet ads Film prod. placem. Kilde: Sponsor. Trends 2008

The big difference is the commitment. . . Target group is chasing sponsor/product Sponsor/product is chasing the target group Direct mail Film/Music/Sports/Culture Focus on content Sponsoring Promotion Events Tele marketing Focus on the product Print ads Commitment/Passion Interruption • It is all about • meeting the target group the right places • being the one they find interesting – rather than the one constantly interrupting and just standing out as one among many. • Talking with and not to the target group

Consumer affinity – media efficiency Consumer Affinity/ Message reception level • Rock/pop/dance • Event marketing • Cause Marketing • Personal sponsor marketing • Culture marketing • Soccer • Golf • Team sponsor marketing • Sport Marketing • Jazz music • Movies • Skiing • Tournament sponsor marketing • Cinema • Classical music • Cycling • Tennis • Outdoor • Theatre • Art • Radio • Boxing • Motor sport • Print (magazines) • Print (Newspapers) • TV Commercial's • Athletics • On line advertising Risk

Media influence Strong Awareness TV Spots Radio Print Outdoor Sponsor/event Internet Promotion Direct mail Salesforce Consideration Costumer Weak Loyal costumer

October 30 th, 2009 Event Management CBS

So, if Pressalit is seeking. . . Access to specific target audiences To create brand loyalty Increased awareness of company and product Product and market differentiation To entertain key clientele Image building (product or corporate image) . . . and want. . . Exclusivity Opportunity to demonstrate product attributes Opportunity to generate sales 7

How far are you willing to go? October 30 th, 2009 Event Management CBS

Case study: Nutella

Situation 1 Creating initial awareness is not the issue

But…consumption linked to children in household Usage is high among teenagers, but drop significantly in their 20’s High usage returns, when having children and decrease again for empty nestors Source: Gallup Index DK

The 4 challenges of ”Joy of Life in a Jar” 1 Finding the right time to exposure 2 Finding the right locations to assure high affinity 3 Finding the right location to assure high volume 4 Finding the right concept & message

From sampling to Nutella Party Adding value to the sampling experience Give-aways and animator ensures the commercial focus To enhance the DJ playing the Nutella experience, the target group is invited to stay and newest & coolest Sampling music to create the right atmosphere enjoy the lounge and attract attention feel Co-promotion with Minute Maid Juice to complete the ”small-meal” experience

Marketing the Nutella Event Radio campaign Morning show promotion & competition Awards for the best nutella smile, added value Sampling to sampling Main prize was a trip to Italy. Online campaign A three week online campaign to promote both radio and event. Pictures of Nutella smiles were uploaded and the page had app. 10% of the population as visitors. TV competition

A perfect example of. . Sight Sound Taste Millward Brown and Martin Lindstrøm’s neuromarketing data: The average effect of stimulating all 5 senses, compared too only 2 in a TV campaign, is at least 3 times higher! Smell Touch

ROI Sponsorship activation

Your event is your product! How do you price your product. . ? Methods: 1) Event bottom line: All revenues ex. Sponsorships minus expenses = SPONSOR NEEDS. Deficit divided into sponsorship categories and desired number of sponsors in each category. Benefits set accordingly 2) Event tasks: Direct sponsorship of specific tasks/activities (sub-events, print, etc. ) = face value pricing; often converted to barter deals. 3) Market analysis: What have sponsors paid in the past for similar events; which benefits did they receive? 4) Calculation sheet based on number of views/exposures etc. , with value attributed per view/exposure. 5) Opportunity to buy tickets (at regular rate or increased price = guarantees audiences.

Concrete measurements. . . ROI: Return on investment. ROO; Return on objectives. Measurement of long-term impact in areas where sales are not immediately closed, such as costumer meetings, discount coupon effect after event, etc. . HAND-INS, PRE-EVENT SURVEYS ROE; Return on equity. Measurement of the recognition and ownership value sponsors build through sponsorship longevity. AUDIENCE QUESTIONAIRE. ROMI; Return on Marketing Investment. Measuring the (dollars) of revenue (or market share, contribution margin etc. ) for every dollar of marketing spent, and/or press millimeter coverage etc. . DIRECT PROFIT and MEDIA MEASURES SALES: Real figures / increases

What can you offer?

Activation Definition: Activaton = marketing activities implemented by sponsor to make most out of funds invested directly in sponsorship Added expense above and beyond cash fee. Activation through coordination only.

Remember: Agreement on owership of results Promotioncampaigns Databases Audience surveys Online statistics Ads ”Ownership” Employee input/ideas Event-personel Graphic identities VIP networks / other sponsors Competitions

Sponsorship activation (pct. of sponsors) in ratio to sponsored cash amount <1: 1 = 17% 4: 1+ = 9% 3: 1 = 12% 1: 1 = 47% Source: IEG 2: 1 = 14% Average 1: 1, 5

To support event sponsorship, sponsors use these types of activation: Traditional advertising: Public Relations: Internal communication Hospitality: Online promotion: Direct marketing: On-site sampling: B-to-B: Sales promotion/offers Kilde: IEG 80% 77% 71% 69% 70% 62% 60% 50% 47%

Sponsorship activation tools. . . Promotional Reputational Experiential Behavioral Emotional

Activation level 1: Promotional Strategy > action > result Strategy: Promotion Action: Naming something Sponsoree's www Sponsors' www Dedicated micro-site Logos i ads Cross-advertising with other sponsors Result: Visibility Awareness & exposure Enhances effect of other activities

Sample micro site of naming right sponsorship www. januscharitychallenge. com

Activation level 2: Reputational Strategy > action > result Strategy: Reputation Action: Auction or give-away… Add ”a good purpose” Add a theme Demonstrate own Experteese / knowledge Result: Higher level of affinity Transfer/association of attributes Social responsibility Less commercial impression Adds greater internal pride

Activation level 3: Experiential Strategy > action > result Strategy: Experience Action: Integrate product or service Give space/room own ”brand” Create on-site competition or Similar instant participation Create pre-event experiences Create post-event experiences Stage special area/ viewpoint for ”insiders” Plan www-oplevelser Result Relevance Demonstrates special abilities Encourages new or renewed sense of loyalty / belonging

Activation level 4: Behavioral Strategy > action > result Strategy: Behavior: Action: Start loyality programme Get something before others Do something to get something Involve own sales channels Product launch Result: Build up databases Reach new outlets Generate revenue Increase market share

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Activation level 5: Emotional Strategy > action > result Strategy: Emotion Action: Awarding costumers with something unexpected Produce special merchandise not available elsewhere Engage employees Result: Stronger ties Greater loyalty Retention

Best activation: If sponsorship increases your score on the “wheel of value/force” of your branding/sales enhancing/media generating/audience engaging activities…. Unique or historical Identity creating 5 4 Media friendly 3 2 1 Storytelling Unpredictable Predictable Audience involvement Star Quality SPONSOR is looking for exactly the same features to reach his consumers/costumers and please his employees!