1 October 2006 Sponsorship vs advertising What does a brand look for in a sponsorship? Clear sponsorship strategy What is

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October 2006www.globalsportnet.com

Sponsorship vs advertisingWhat does a brand look for in a sponsorship?Clear sponsorship strategyWhat is a rights holder looking for in a

sponsor?Sponsorship is about long relationshipsWhat is activation and how does activation

fuel sponsorship?The sponsorship negotiation?Return on investment

Today‘s Discussion

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Introduction

Fredrik Ulfsäter – Head of Sponsorship

Tigran Sirunyan – Head of Eastern Europe

Global Sportnet

International sports marketing agency

Part of the WPP group of specialist marketing and communication agencies

Founded in 1995

Acquired 100% by WPP in 2002

Offices in:

Hamburg

London

Reputation built on the global marketing of European football clubs and associations

Today an expanded portfolio of sports and business activities

Dubai

Singapore

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HQ´d in London, WPP is one of the world's leading advertising,

marketing and communication service groups Some 2,000 companies and a network of top international agencies

including:

Bates, Young &Rubicam, Grey, J Walter Thompson, Red Cell, Landor, LG Ad,

MindShare, Mediaedge:cia, Mediacom, Ogilvy & Mather, Hill & Knowlton,

Burson Marsteller, Millward Brown, Media Pro and many, many more… Over 90,000 employees on some 2,000 offices in over 100 countries

worldwide, a multi-billion (US$) proposition For GSN, an unmatchable resource base and calling card For WPP, a sports offering to the Group’s clients

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Business Areas

Media Rights

Buying, selling and distributing of media content be it TV, broadband or mobile across all sports either as the principal or as an agent

Sponsorship

Acting as an exclusive agent to rights holders for sponsorship program development and sales

Consulting

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Launched in 2004, Performance is a strategic sports & entertainment consulting company specialising in:

Sponsorship audits, strategy development, planning, implementation, research and evaluation

Providing a sports service offering to WPP Group and non-WPP client companies

Leveraging proprietry WPP group-funded research and consulting tools such as SportZ and BrandZ

50/50 JV between GSN and WPP media giant MindShare Offices in London, Hamburg, Frankfurt, Stockholm, Barcelona,

Amsterdam and Singapore Performance client list includes the likes of:

www.performance-worldwide.com

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Why is Sponsorship becoming

more and more important?

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1950s

Attention is an increasingly scarce resource…

2006

Importance of Sponsorship

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More control over their media…


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More brands are chasing the same audience


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A need to talk differently

Branded Programming

Sponsorship TV

Spots

DirectMarketing

TeleSales

Promos

Film/Music co-

marketing &

placement

Engagement Interruption

Chased by consumer Chasing the consumer

Product Focused

Content Rich

Digital

Events


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Advertising delivers a clearly defined message in a controlled environment whereas sponsorship reaches the hearts and minds - it is emotional

In a fragmented market, sponsorship offers stickiness

Sponsorship is multifaceted


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ASSET

Marks & Logos

Audience

Publication Materials

Signage

Web site

Sites/venues

Guaranteed media

VIP opportunities

Database

Events + programmes

Merchandise

RELATED BENEFIT

Promotional rights

Access

Visibility

Impressions

Extended reach

Access

Impressions

Incentives

Access

Proprietary programmes

Impressions & promotional incentives


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What does the brand look for in a sponsorship?

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Fame through association

What Brands Look For

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Shared brand experience


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CRM & Content


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Brand differentiation


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Internal audiencesMotivating

stakeholders

Distributors

Customers/Consumers

Employees


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360 degree approach

Tickets to Olympic Games

Athlete’s Road To Success

Merchandise

Testimonials

TV Spots

BroadcastSponsorship

On-PackPromotions


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Brand awareness

Product placement

Hospitality and networking B2B, B2C or even B2G

Brand positioning and association - aspirational

Reach a specific geographic region

Gain access

Internal, incentivise and reward, bring a company together

Increase sales

Develop customer loyalty

Develop new markets

Broaden customer base

Develop community relations

To change or revitalise brand image

Enhancing brand/corporate image

Encouraging brand shifting

Customer/trade promotions

Recruitment

Product showcasing/sampling

Product or service launches

Press and sales conferences

Differentiation from competitors

CSR


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Have A Clear Sponsorship Strategy And Plan Ahead

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Identify the need for sponsorship and it’s objectives Determine the role which sponsorship will play in the company's

integrated marketing communications plan Which sponsorship creates the strongest relationship with my

target audience Which sponsorship has the greatest potential for attracting new

customers Sponsor what:

Sport Music Arts Community

The choice has to be targeted Has to be credible for the target market - and it must be

positive Budget for activation not just the rights fee

Sponsorship Strategy/Planning

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DemographicsAttendanceFan passion/affinityGrowth trends in the property categoryWhat the competition sponsorsTV ratingsInterest in property amongst your potential

sellers

Sponsorship Strategy/Planning

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Sponsor Event

Powering Wimbledon

Really talking to women

“Destination Football”

Why are you involved?

Sponsorship Strategy

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What a rights holder looks for in a sponsor?

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Cash In Kind Support i.e. Saving On Expenditure Extended Marketing Reach Adding Value To The Visitor Experience Brand Association & Brand Building Project Enhancement

Rights Holder & Sponsor

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Sponsorship is all about building long term relationships. The longer the relationship lasts, the greater the value which can be derived from it

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What is activation and how does activation fuel sponsorship and increase its chances of success?

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Sponsorship doesn’t work unless consumers are told about them

Sponsorship needs awarenss!

Activation

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TV & Print

Internet Promotions

PR

Outdoor

Dealerships

Radio

Activation

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Base: 70 brands involved in international sporting events. Association with the event is indexed to 100.

BRAND EVENT ASSOCIATION

Source: RSL/Ipsos

265

412

435

355

842

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0 100 200 300 400 500 600 700 800 900

No Support at all

Unlinked ads only

Linked ads only

BTL promos only

Brdcast sp'p only

BTL promos & linked ads

BTL promos,linked ads & brd sp'p

all brands indexed to 100

Anything below this line indicates a negative return on investment

Activation

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Sponsorship Awareness

One Season

+ 1 %

+ 8 %

Sport Fan

Specific team fan

Increase in Consideration

Activation

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Rights fee and the activation budget1:11:21:3Budget for activation before you sign the

contract

Activation

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The Negotiation

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PRICE CONSIDERATIONS

ClutterImageMedia coverageLive attendanceRelevance

GENERALGuard against

ambush marketingSet out as many

variables as possible

CONTRACT TERMSParties involvedObject (grant of license)TerritoryDurationFinancial termsMedia commitmentExclusivityPRRisk managementResults of trackingChoice of law

The Negotiation

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Return On Investment

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Planning

Integration

Acitvation

Communication

Measurement

Return On Investment

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Media Evaluation

Capture Exposure

EffectivenessContent Equity StudiesBrand Trackers

Genuine ROI CRM around assets

Measuring Success

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MEASUREMENT CRITERIA

Internal feedback

Sales/promotion bounceback

TV exposure analysis

Print media analysis

Dealer/trade response

Consumer research

Measuring Success

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Plan

Integrate

Acitvate

Communicate

Measure

Summary

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THANK YOU

Documents

1 October 2006 Sponsorship vs advertising What does a brand look for in a sponsorship? Clear sponsorship strategy What is