This document provides an overview of sponsorship and philanthropy trends in Canada. It discusses how the sponsorship industry has grown significantly over the past decade and now accounts for $1.55 billion annually. Most sponsorship funding goes to sports, causes, arts, festivals and events. The document also outlines how properties can enhance their social missions through sponsorship by gaining alternate funding and exposure for their organizations, and how they can help sponsors achieve measurable returns on investment and objectives.

1. An Industry Update and Trending Report

2. Session Overview
 Who we are and our qualifications to
speak to you
 Defining Sponsorship and
Philanthropy
 Industry Trending
 Enhancing a Property’s Social
Mission and Opportunity
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3. Session Overview
 Determining ROI for brands and sponsors through
measurable asset valuation and activation
 Do some story telling
 Making it all work together
 Questions
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4. Defining Philanthropy
• A gift with nothing in return
• Based on the cause, the
linkage, wanting to help
• Delivers a feeling of doing
good
• CRA compliance
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5. Defining Philanthropy
You give because you care
You have Corporate Social
Responsibility (CSR) strategy or
policy
Have a relationship
You get nothing in return
(officially by CRA) other than a
tax receipt
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6. Defining Philanthropy
Charities get the money,
stewardship required but no
additional work beyond that…
unlike sponsorship which is
labor intensive
Gifts can be ongoing but often
change with senior
management changes and
“charities of choice”
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7. Defining Sponsorship
B2B or B2C Transaction
Not Philanthropy
Looking for an ROI or ROO
Many companies confuse it
with sponsorship (as do
properties or charities)
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8. Defining Sponsorship
Our Definition:
A cash and/or in-kind fee paid to a property
(typically in sports, arts, entertainment or causes)
in return for the exploitable commercial potential
associated with that property.
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9. Defining Philanthropy
 Sponsorship can involve
many approaches
 It is a form of marketing
 Integrated into a multi-
faceted plan – not just a
stand alone sign at an
event nor a gift
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10. Industry Trending
Canadian Sponsorship Industry* is a:
$1.55 Billion industry (Fees and activation)
Up 8.5% from 2010 study
Up 40% from 2006 study
*(Reported by the preliminary 2011 Canadian Sponsorship Landscape Study
and produced by SMCC, University of Ottawa and Canadian Sponsorship
Forum)
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11. Industry Trending
Canadian Sponsorship Revenue Allocation:
35% Sport (down from 2010 at 51%)
20% Causes
8.5% Arts
16% Festivals, Fairs and Annual Events
20% (Other including parks and recreation,
municipalities, educational institutions, conferences)
(Reported by the preliminary 2011 Canadian Sponsorship Landscape Study and
produced by SMCC, University of Ottawa and Canadian Sponsorship Forum)
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12. Industry Trending
23% of brands Marketing / PR /
Communications budget now goes
to sponsorship and event marketing
/experiential marketing – 10 years
ago this was less than 5%
On average sponsors have 45
properties they sponsor per year
(Reported by the preliminary 2011 Canadian
Sponsorship Landscape Study and produced by SMCC,
University of Ottawa and Canadian Sponsorship
Forum)
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13. Industry Trending
Edelman Good Purpose Survey 2010 released
this year looked at the relationship of causes
(charities) to brands.
Some of the key findings were:
64% of Canadians will recommend a brand they
have tried or heard about to friends and family
when it is for a good cause they believe in. This
is up from 52% in the previous year study
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14. Industry Trending
Edelman Good Purpose Survey 2010
67% of Canadians said they would switch brands that
are comparable in quality and price if the brand
supports a cause they believe to be worthy
71% of Canadians said brands should spend less money
on "advertising" and more on causes. This number is up
by 10% over the pervious year's study
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15. Industry Trending
The 2010 Canadian Fundraising & Philanthropy /
Innovative Research Group Economic Pulse of the Not
For Profit Sector showed:
 46% of non profits and charities not presently engaging in
sponsorship revenue generation are likely to undertake it
in the coming year
 40% expect such sponsorship revenue to increase this
year
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16. Industry Trending
The 2010 Canadian Fundraising & Philanthropy /
Innovative Research Group Economic Pulse of the Not
For Profit Sector showed:
 57% of those surveyed indicated sponsorship was part of
their mix with Arts and culture indicating 62% and
Education 64%
 Another 25% indicated cause marketing was part of their
revenue mix overall
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17. Industry Trending
IMAGINE Canada study showed:
• 56% of Canadian corporations are engaging
in sponsorship that used to be philanthropy
• 26% engaging in cause marketing
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18. Industry Trending
2011 Canadian Consumer
Sponsorship Rankings
Being released at the Western
Sponsorship Congress 2011
Some preliminary findings….
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19. Industry Trending
Majority of Canadians prefer to conduct business
with sponsors of favourite events and causes
 63% agreed that all other things being equal, they would
prefer to do business with sponsors of favourite causes
 By comparison, 57% agreed to same statement regarding
arts/cultural events and 50% regarding sports
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20. Industry Trending
Approximately half of Canadians would switch
brands if sponsor made meaningful contribution
 Overall, 55% would likely switch brands if sponsor made
meaningful contribution to favourite charity or cause
 47% agreed to similar statement regarding arts/culture
and 44% for sports
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21. Industry Trending
Millions of Canadians
participate in types of activities
sponsored by corporations
 32% attended an arts festival or
cultural event; 31% attended
amateur sport; 31% attended a gala
or fundraiser
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22. Industry Trending
Giving cash, providing volunteers or staff most
appealing sponsorship methods
 Canadians were asked to rate the appeal of 10 common
sponsorship methods
 Giving cash, providing volunteers/staff ranked highest
overall; providing guest speakers and executives rated
lowest
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23. Enhancing A Property’s Social
Mission and Opportunity
Why is / should sponsorship important to a
property (charity, cause, non profit)?
 An alternate revenue channel
 No restrictions on how you spend the cash
 Opens doors for corporate employee rank and file
giving once relationship is made
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24. Enhancing A Property’s Social
Mission and Opportunity
Why is / should sponsorship
important to a property
(charity, cause, non profit)?
 Opens the door for corporate
executive giving
 Ongoing if you can deliver
business results
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25. Enhancing A Property’s Social
Mission and Opportunity
How can this help the mission of
the organization?
 Unencumbered revenue
 Opportunity to increase exposure
of your organization’s mission
 Partnerships work better than
supplier agreements
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26. Enhancing A Property’s Social
Mission and Opportunity
Does it restrict the organization based on sponsors?
 No, you partner with whom you feel comfortable
 You partner with like minded organizations
 You can have multiple brands from an industry if you
segregate the assets
 You are selling assets you own
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27. Enhancing A Property’s Social
Mission and Opportunity
This is revenue to apply to your mission
It needs to be a partnership though
Properties need to look differently at the sponsorship
model versus the philanthropic model
A paradigm shift is necessary
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28. Enhancing A Property’s Social
Mission and Opportunity
The paradigm shift is from:
“Please help, here is what we
need and here is how it will
impact our community”
To…
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29. Enhancing A Property’s Social
Mission and Opportunity
…To
“How as a charity can I help you
succeed better as brand or a
corporation?”
It is all about the sponsor and
not about your mission though
your mission will benefit
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30. ROI and ROO Measurement
for the Brand or Sponsor
Can success be measured?
Sponsors need to see results, can properties /
charities / non profits deliver results?
What is ROI?
What is ROO?
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31. ROI and ROO Measurement
for the Brand or Sponsor
Can success be measured?
 Yes it can!
 Metrics for values – industry standards
 1/3 of a cent X number of unique users to your web site
 Impressions / eyeballs
 5 cents per sample / $5 per sample
 Email blast
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32. ROI and ROO Measurement
for the Brand or Sponsor
Can success be measured?
 Before outcomes can be measured the objectives need to
be determined at the front end
 Like a brand asks charities for “societal impact”;
properties should be asking what the brand’s goals and
objectives are to deliver on them
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33. ROI and ROO Measurement
for the Brand or Sponsor
Sponsors need to see results, can properties /
charities / non profits deliver results?
 Driving traffic Brand development
 Engaging / retaining employees Share price
 Recruitment Camelot sales
 Sales
Image / PR / IR
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34. ROI and ROO Measurement
for the Brand or Sponsor
What is ROI?
 Return on investment
 What is the sponsor getting in return based on their
objectives of sales, employee engagement, PR etc
 Does not have to be dollars and cents… but it is
always about dollars and cents
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35. ROI and ROO Measurement
for the Brand or Sponsor
What is ROO?
 Return on objectives
 Return on opportunity
 Social return
 London Benchmarking
 Sponsorium
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36. Story Telling
To deliver results for sponsors (brands / donors /
corporations) and properties (charities and non profits)
there must be true partnerships
Philanthropy is clear, the donor (company or individual)
gives because they care and want to move the mission
forward
Not really true for sponsors
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37. Story Telling
There must be a mutual win – win – win
The brands must be open and honest about what their
objectives are to ensure the property can help them
The properties need to understand that sponsorship is
not about them… it is about the sponsor
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38. Story Telling
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39. Story Telling
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40. Story Telling
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41. Story Telling
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42. Story Telling
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43. Story Telling
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44. Story Telling
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45. Story Telling
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46. Story Telling
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47. Story Telling
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48. Story Telling
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49. Story Telling
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50. Conclusion
Sponsorship today is more than hanging a banner
It is more than philanthropy
It is about results and outcomes for both parties
It is about partnerships
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