Today‘s Discussion

1. Today‘s Discussion • Sponsorship vs advertising • What does a brand look for in a sponsorship? • Clear sponsorship strategy • What is a rights holder looking for in a sponsor? • Sponsorship is about long relationships • What is activation and how does activation fuel sponsorship? • The sponsorship negotiation? • Return on investment

2. 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

3. 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

4. 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

5. www.performance-worldwide.com • 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:

6. Why is Sponsorship becoming more and more important?

7. Importance of Sponsorship Attention is an increasingly scarce resource… 1950s 2006

8. Importance of Sponsorship More control over their media…

9. Importance of Sponsorship More brands are chasing the same audience

10. Importance of Sponsorship

11. Importance of Sponsorship A need to talk differently Chased by consumer Chasing the consumer Promos Film/Music co-marketing & placement Direct Marketing Digital Product Focused Content Rich Branded Programming Tele Sales TV Spots Events Sponsorship Engagement Interruption

12. Importance of Sponsorship • 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

13. Importance of Sponsorship RELATED BENEFIT Promotional rights Access Visibility Impressions Extended reach Access Impressions Incentives Access Proprietary programmes Impressions & promotional incentives ASSET Marks & Logos Audience Publication Materials Signage Web site Sites/venues Guaranteed media VIP opportunities Database Events + programmes Merchandise

14. What does the brand look for in a sponsorship?

15. What Brands Look For Fame through association

16. What Brands Look For Shared brand experience

17. What Brands Look For CRM & Content

18. What Brands Look For Brand differentiation

19. What Brands Look For Internal audiences Motivating stakeholders Distributors Employees Customers/ Consumers

20. What Brands Look For 360 degree approach Testimonials Broadcast Sponsorship TV Spots On-Pack Promotions Merchandise Athlete’s Road To Success Tickets to Olympic Games

21. What Brands Look For • Customer/trade promotions • Recruitment • Product showcasing/sampling • Product or service launches • Press and sales conferences • Differentiation from competitors • CSR • 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 • 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

22. Have A Clear Sponsorship Strategy And Plan Ahead

23. Sponsorship Strategy/Planning • 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

24. Sponsorship Strategy/Planning • Demographics • Attendance • Fan passion/affinity • Growth trends in the property category • What the competition sponsors • TV ratings • Interest in property amongst your potential sellers

25. Sponsorship Strategy Why are you involved? Sponsor Event Powering Wimbledon Really talking to women “Destination Football”

27. What a rights holder looks for in a sponsor?

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

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

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

31. Activation Sponsorship doesn’t work unless consumers are told about them Sponsorship needs awarenss!

32. TV & Print Activation Radio Outdoor Dealerships PR Internet Promotions

33. 0 100 200 300 400 500 600 700 800 900 No Support at all 6 all brands indexed to 100 Unlinked ads only 12 Linked ads only 265 BTL promos only 412 Brdcast sp'p only 435 BTL promos & linked ads 355 BTL promos,linked ads & brd sp'p 842 Activation BRAND EVENT ASSOCIATION Anything below this line indicates a negative return on investment Base: 70 brands involved in international sporting events. Association with the event is indexed to 100. Source: RSL/Ipsos

34. Sponsorship Awareness One Season Activation

35. Activation • Rights fee and the activation budget • 1:1 • 1:2 • 1:3 • Budget for activation before you sign the contract

36. The Negotiation

37. The Negotiation CONTRACT TERMS • Parties involved • Object (grant of license) • Territory • Duration • Financial terms • Media commitment • Exclusivity • PR • Risk management • Results of tracking • Choice of law PRICE CONSIDERATIONS • Clutter • Image • Media coverage • Live attendance • Relevance GENERAL • Guard against ambush marketing • Set out as many variables as possible

38. Return On Investment

39. Return On Investment • Planning • Integration • Acitvation • Communication • Measurement

40. Measuring Success Media Evaluation Capture Exposure Effectiveness Content Equity Studies Brand Trackers Genuine ROI CRM around assets

41. Measuring Success MEASUREMENT CRITERIA • Internal feedback • Sales/promotion bounceback • TV exposure analysis • Print media analysis • Dealer/trade response • Consumer research

42. Summary • Plan • Integrate • Acitvate • Communicate • Measure

43. THANK YOU