SPONSORSHIP RESEARCH & EVALUATION

1. SPONSORSHIP RESEARCH &EVALUATION

2. THE STRATEGIC DECISION MAKING PROCESS DECISION MAKING INFORMATION DATA OPINION

3. THE GLOBAL SPONSORSHIP MARKET - 2006 • World sponsorship market: $30.3 billion • USA alone: $12.1 billion • Sport: 65% [$19.7 billion] • Arts/Music/Causes: 35% • Growth 1995-2005: ??% per year vs ??% for ad-spend • Sponsorship was 4.6% of ad-spend in 1990 and is now 8.2%

4. THE LOCAL SPONSORSHIP MARKET -2005 • R2 217 million in direct sponsorship spend • R1 849 million in leveraging • 70% - 80% of the top 100 ad-spenders are also into sport • Historical growth per year from 1996 to 2006: • Sport Sponsorships: 19.5% p.a. • Ad-spend: 16.4 % p.a. • Sponsorships grew from 7.8% of ad-spend in 1986 to 13.3% of ad-spend in 2006

5. STRATEGIC SPONSORSHIP DEVELOPMENT CYCLE

6. THE DATA PROCESS

7. MARKET RESEARCH

8. DEMOGRAPHIC RESEARCH • What percentage of your target market participate, or have an interest in your intended area of sponsorship? • What are the growth trends? • What are the demographics of the market you are potentially going to reach? • Does the profile of the audience match your target audience profile?

9. ASSOCIATION RESEARCH • It is impossible to change perceptions unless your target audience is aware of your communication. • How do you compare with other sponsors in the same sponsorship arena? • How does your sponsorship compare with competitors in the same market sector?

10. STRATEGIC IMPACT RESEARCH • Once you have successfully generated sufficient media to create an association, how has your messaging influenced your target audience? • Determine the image/loyalty of consumers directly as a result of sponsorship activity. • Have you created an emotional bond? • What has the exact impact of your sponsorship been? • Propensity to purchase.

11. RESEARCH METHODOLOGIES AND ISSUES OF IMPORTANCE • SAMPLING: • Size • Random vs Quota • Panels • UNIVERSE AND TARGET MARKET • INTERVIEWING TECHNIQUES: • Personal vs Telephone • New media: Internet and Cell phones • Groups • RESEARCH COMPANY FOCUS / SPECIALISATION • Experience in Sport and related research • BIAS / INDEPENDENCE • QUALITY CONTROL MEASURES AND SYSTEMS • Questionnaires • Back-checks • Computer analyses • Track record • COST vs COVERAGE vs TIMING

12. POSSIBLE AREAS OF RESEARCH IN SPORT • DEMOGRAPHICS • Numbers: participants and followers • Who those numbers consist of • Growth trends • Factors impacting on growth trends • Media exposure • IMAGE RESEARCH • Perceived characteristics of the sport • Company / brand match up • Repution • Attitides • EVENT RESEARCH • Appeal of competitions • Numbers • Likes and dislikes • Entertainment needs • Sponsor recalls • Sponsor and media Impact

13. POSSIBLE AREAS OF RESEARCH IN SPORT • STRATEGIC RESEARCH • Expanding into new markets • Factors impacting on the future of the sport • Competitive landscape • SPONSORSHIP RESEARCH • Rights fees analyses and market value • Competitive sponsor landscape • Sponsor association research • Sponsor impact research • TRANSFORMATION RESEARCH • Transformation plan / strategy • Target setting • Achievement / progress monitoring

14. MEDIA AUDIT

15. WHY TO EVALUATE SPONSORSHIP MEDIA • Critical element in sponsorship evaluation process • Direct relationship between media exposure and awareness • Return on investment in rand terms with respect to exposure value • Target market penetration • Share of voice comparisons • Competitor evaluations • Understanding why some sponsorship work and others don’t • Key measurement area (targets) for agency performance • Per title performance trends

16. DIGITAL EVALUATION PROCESS Mass Storage Large volume RAID-based storage of data and multimedia files Newbase™ Print Analysis Detection of headlines, pictures and text ICR/OCR: automatic text and character recognition. Profile and keyword matching with customer based data Automated extraction of articles from the page. Data Warehousing Offers SQL and full-text based search capabilities. Input Special digital equipment for fast, accurate scanning of media types including newspapers, magazines, television and radio Magellan™ Broadcast Analysis Derived from unique OmniPerception technology, Magellan™ Systems are based upon proprietary Search Space Reduction™ (SSRTM) image analysis algorithms that offer customers accuracy and consistency Trilogy Customer Specific Delivery Proprietary analysis and report delivery software developed by the CSIR The entire process maximizes and guarantees accuracy!

17. VALUATION METHODOLOGY • The World standard evaluation methodology which is considered best practice in the USA and Europe and also used in over 100 countries, is to take clearly visible brand exposure valued against standard rate card rates. • Values can be interpreted as: • “What would it have cost to purchase the media generated by our sponsorship, through conventional above-the-line methods at standard rate card rates?” • Rates are already weighted according to potential audience reach • Credible results: acceptable to advertising agencies and sponsorship agencies

18. THE SPONSORSHIP PARADIGM To effectively leverage any sponsorship it is imperative that a marketing partnership is formed with mutually beneficial goals and agreed upon measurable objectives!

19. Sasol TV Creative What If

20. Vodacom

21. THE EXPECTANCY GAP • Double digit growth in sponsorship spending over the last decade, yet sponsors pull out! WHY? • Decrease in the marketability of rights or a change in the cost benefit perception (i.e. IBM withdrawal from its 38 year Olympic partnership) • Concerns over sports organizing committees (i.e. bribery scandal at Winter Olympics and endorsement scandals) • Ineffective communication / management reporting on sponsorship • Inability to guarantee exclusivity or protect against ambush marketing • Lack of financial controls and accountability • Inability to fully deliver on contractual obligations and rights • Failure to set evaluation / measurement criteria against set objectives

22. THANK YOU