Sponsorship as a communication tool presented by Octagon at Vega Tools Day in Johannesburg

1. Vega Tools Day
1Presented 2 August 2013
Sponsorship as a
communications tool

2. 17
1. Sponsorship is more than SIGNAGE
2. Sponsorships MUST be linked to
business and brand objectives
3. Sponsorships are AN INVESTMENT
thus MEASURE MEASURE
MEASURE
3 Key Takeouts From Today
@OctagonSA
@JudithMugeniwww.octagonsa.com

3. Sponsorship plays a
different role to
advertising – "If
advertising waves at
its target audience,
then sponsorship has
the ability to get
close enough to
shake them by the
hand…"

4. “Sponsorship is a mutually advantageous business
relationship between parties in which the sponsor
provides benefits for the sponsored in exchange for a
result that can be measured against pre-defined
objectives.”
Source: David Ross
Sponsorship Defined

5. Sponsorship Assets
 sponsor pays the property and in
return receives specific rights
and benefits, often referred to
as sponsorship assets
Leveraging
 The amount sponsors spend over and
above the sponsorship fee to maximize
the return on their investment in the
sponsorship property
Sponsorship/Rights fees
 The dollar amount a
sponsor gives to an
event.
Basic Sponsorship Terms

6. FIFA WORLD CUP 2010 Sponsorship Landscape
The sponsors …
$350m
$65m
$20m
Different Rights Holders Structure Their
Sponsorships Differently

7. Examples of models: IOC Sponsors
World Wide Top
Partners
Other Commercial
Programmes
Suppliers
Ticketing Program
Licensing
Different Rights Holders Structure Their
Sponsorships Differently

8. Sponsorship Assets: Ambush Marketing
Dilemma

9. Sports
sponsorship: major
sporting events, teams,
individuals.
Broadcast
Sponsorship:
Television and radio
programme sponsorship.
Arts and Culture
sponsorships such as arts
events or organizations
Venue
sponsorships
Recent! Digital
sponsorships
… Different TYPES of sponsorship

10. R4,596,000,000+
BMI Estimated Direct spend on Sports
$53,300,000,000
IEG Forecasted global spending
… Sponsorship is BIG Business

11. platform Globally
TWSM 2012
Year on year, Sports are the most
sponsored

12. Spend
Ranking Globally SA
1 Soccer Soccer
2 Golf Rugby
3 Rugby Cricket
TWSM 2012 BMI Sport Info 2012
With Football as the number 1 most
sponsored sport globally and in SA

13. Brand Awareness
Moving TM towards positive behaviour
Stakeholder Interaction
WHY? SPONSORSHIP PUTS BRANDS IN A SPECIAL
PLACE to meet brand and business objectives…

14. Through Maximising Visibility: logo sightings, brand
name mentions through TV, Print, Radio, Online etc
Maximised Exposure leads to increased Awareness
and Association levels of sponsorship
Measure: Event attendance, Media reach, Media
exposure valuation (logo, name, mentions), Website
visits
1. Build Brand Awareness

15. Barclays Global and Africa Presence How does
a GLOBAL
brand like
this reach
its Target
Markets
Effectivel
y and
Efficiently
Basic Sponsorship Terms

16. Barclays Premier League naming rights
£120 Million over 3 years since 2001
By putting a huge investment behind Sponsoring
a property that is loved around the world

17. 17
Some 87% of overall
respondents in Europe
rank the Barclays Premier
League as the football
competition they follow
most closely.
In Asia and the Middle
East, 90% of overall
respondents rank the
Barclays Premier League
as the football competition
they follow most closely.
In Africa 88% of overall
respondents rank the
Barclays Premier League
as the football competition
they follow most closely.
Source:
The sponsorship gives Barclays domestic and
international exposure, with the Premier League
followed by millions of fans worldwide.

18. Its MORE
than
Awareness…
Sponsorshi
p is
WHERE WE
find
CONSUMERS
at their
MOST
PASSIONATE

19. It is
BORROWED
EQUITY

20. Where the
brand
Seeks a
RUB OFF
Effect

21. Achieving desired product, brand and image effects
and outcomes
Impact includes increase in Awareness|Positive
Perception of brand |Positive behaviour (Usage: Trial,
Loyalty, Reinforcement)
Measure: Consumer reach (brand recall, brand
perception, intent to purchase, sales, Lead
generation)
2. Moving Target Market towards positive
behaviour

22. It is
INTERACTIVE
It is where
RELATIONSHI
PS ARE BUILT

23. Community|client perceptions, HR objectives, Other
Stakeholders, Client entertainment through
Hospitality
Impact includes increase in Awareness, Positive
Perception of brand, positive behaviour (Usage: trial,
loyalty, reinforcement)
Measure: Employee satisfaction levels, feedback from
hospitality guests, Community Impact
3. Improve Relationships with Key
Stakeholders: Corporate objectives

24. Depth of sponsorship linked with social
responsibility

25. Depth of sponsorship linked with social
responsibility
Depth of sponsorship linked with social
responsibility

26. 17
Barcelona and Boca Juniors,
both have UNICEF on their shirts
Depth of sponsorship linked with social
responsibility

27. 17
Football Yona Ke Yona : development
through the inclusion of professional and
amateur teams.
Golf: The Nedbank Affinity Cup-
donates an amount equal to the
Affinity Cup winner’s prize money
Comrades Marathon: The Comrades Marathon
Home from Home Programme donated 50 000
to house runners who could not afford their
own accommodation at the race
Depth of sponsorship linked with social
responsibility

28. 


Federations
Leagues
Teams
Players
Tournaments 










Development/
Grassroots
   
Within Football rights and assets are divided
into distinct segments and leveraged
differently by different brands

29. • Event/Individual Sponsor
– Pepsi Team
– AFCON & CAF events
sponsor
• Event sponsor
– FIFA Partner
– UEFA European
Championships
– UK Coca cola championship
(Contract ending in 2010)
PEPSI VS COKE
Football sponsorship: Who comes out as the
winner...
Pepsi tends to use “Team Pepsi” in
marketing campaigns

30. Brand Awareness and Association

31. Real Madrid – Emirates
$40 Million per year
Brand Awareness and Association

32. Barcelona - Qatar Airways
$38 Million per year
Brand Awareness and Association

33. Liverpool - Standard Chartered
$33 Million per year
Brand Awareness and Association

34. Bayern Munich - Deutsche Telekom
$37 Million per year
Brand Awareness and Association

35. Manchester United - Chevrolet
$80 Million per year
Brand and Product Linkage

36. Brand and Product Linkage

37. Brand and Product Linkage

38. Brand and Product Linkage

39. Brand and Product Linkage

40. Brand and Product Linkage

41. Etihad Stadium
£400 Million over 10 years
Venue Sponsorship: Brand Awareness

42. The Emirates Stadium
£150 Million over 5 years
Venue Sponsorship: Brand Awareness

43. Allianz Arena
$300 Million over 20 years
Venue Sponsorship: Brand Awareness

44. Premier League TV Rights:
Worth £3 Billion between
2013 and 2016
Broadcast sponsorship is a lucrative investment

45. How I Met Your Mother
Red Bull

46. Big Bang Theory
Snickers

47. Master Chef
Robertson

48. Sensation – Samsung
R10 Million
Arts, Culture and Entertainment
Sponsorship

49. South African Music Awards - MTN
R15 Million

50. Rocking The Daisies – Carling

51. 17
KEY MARKET
ACTIVATION
PUBLIC
RELATIONS
B2B
SOCIAL MEDIA
CLASSICAL
ADVERTISING
ON-LINE
COMMUNICATION
B2C
INTERNAL
MARKKETING
It’s more than signage…more than a channel.
Sponsorship delivers content we can leverage across multiple
channels.

52. 17
Turkish Airline Commercial: Manchester United

53. 17
NY City Marathon Case Study using a 360
degrees Leveraging Approach

54. 17
Ask WHAT added benefits Did I as a sponsor
BRING to the FAN
BRANDS must
be seen to be
BRINGING
something to
the sponsored
PROPERTY
WITHOUT us
sponsoring this
event you would
not be getting
the following
VALUE added
Benefits.......
MEASURE
MEASURE
MEASURE
Return ON
Objectives
Football Best PracticeSponsorship Best Practice

55. 17
1. Sponsorship is more than SIGNAGE
2. Sponsorships MUST be linked to
business and brand objectives
3. Sponsorships are AN INVESTMENT
thus MEASURE MEASURE
MEASURE
3 Key Takeouts From Today
@OctagonSA
@JudithMugeni

56. 17
Thank You
56