Transcript Just What is a Sponsorship Anyway ?

Dave Doroghy
Sponsorship 101
Just What is a Sponsorship
Anyway ?
 We bought a block of tickets to the event -
are we a sponsor ?
 We advertise in the program - are we a
sponsor ?
 We put a sign up at the entrance to the event
- are we a sponsor ?
Sponsorship is the Right to
Associate
 Bragging rights
 The value of association is the essence of
sponsorship
Association with a team
Association with an event
Association with a cause
Types of Sponsorship
rs &
Tou
s&
al
tiv
Arts
6%
10% %
9
irs
Fa
Cause
Marketing
8%
ons
acti
Attr
s
Fe
1999 North
American
Sponsorship
Spending by
Type of Property
Sports
67%
1999 Worldwide Sponsorship
Spending
8
7
($ billions)
6
5
4
3
2
1
0
North
America
Europe
Pacific Rim
Central /
South
America
All other
countries
New Type of Sponsorship Arena Naming Rights
 Historically arenas were named
after a significant individual or
place
 95% of all arenas being built in
North America today are named
after a company
 Today the average arena
naming rights deal in North
America is worth between $3 to
$10 million US annually
How do Sponsorships Differ
From Traditional Advertising ?
 It’s not just gross impressions
 The right to associate
 Exclusivity is often offered
 More of an emotional sale
 Involvement beyond advertising and
promotion
 Hospitality
Sponsorships Can Totally Involve a
Company, its People and Products
 Take a product and put it on a
real life stage within the context
of fun and excitement
 A sponsorship is so much more
than just a TV commercial
 Great way for large companies
to appeal to the grass-roots
level
 Great way for a company to
move into new markets - meet
new people
Since Sponsorships are Often Sold
Exclusively - How do we Define Categories ?
 Banks or brokers
 Supermarkets or gas stations
 Phone company - long distance or cell
 What exactly is a company buying the
rights for ?
Category Exclusivity
 Events can offer category exclusivity while
other forms of media cannot
 Maximizing category revenue vs. cutting
off future revenue opportunities
 What’s the company’s motivation ?
Sponsorship is an Intellectual
Property
 Contracts Vs. Letters of Intent
 The shorter the better
Categories
 GOLD SILVER BRONZE
 Establishing benefit levels
 Packaging sponsorships
 Pricing and Evaluating Sponsorships
Selling Sponsorships
 Pre meetings
 Here comes the pitch - does the batter have
a budget - RESEARCH
 Getting directly in front of the client
 Calls = Sales
 CUSTOMIZE
Presentation Materials
 You are the most important part of the
presentation material
 You only have one chance to make a good
first impression
 Leave behinds
 Sophistication of presentations
 Creative locations
 Introductions
Getting in to See Prospects
 Creatively getting past gate keepers
 Phone techniques
 Avoid sending materials
 Tenacity and persistence
Finding the Hook
 Getting their attention
 Sometimes even a bad
idea is better than no
idea
 Annual reports, web
sites provide great
research resources
Finding the Hook
Sponsorship Pricing
 How much is too much ?
 Be aggressive with pricing - leave room for
negotiation
 The most important factor is a competitive
environment
How do we Measure Results
 Pre and post surveys
 Awareness vs. Sales
 Helpful generic research information
 Sponsorship and advertising both very
difficult to measure
Believe in What You Sell!