COMMERCIAL SPONSORSHIP IN A NUTSHELL

1. Interaktion Passion Transaktion Integration COMMERCIAL SPONSORSHIP IN A NUTSHELL

2. The consumers love sponsoring... Attitude towards sponsorships 2008 Social Sports Culture Sampling Events Newspaper ads Public spons. Magazine ads TV spots Household dist. TV-sponsoring Outdoor Internet ads Film prod. placem. Kilde: SponsorTrends 2008

3. The big difference is the commitment..... Target group is chasing sponsor/product Sponsor/product is chasing the target group Direct mail Film/Music/Sports/Culture Promotion Focus on content Focus on the product Tele marketing Events Sponsoring Print ads Commitment/Passion Interruption • It is all about • meeting the target group the right places • being the one they find interesting • rather than the one constantly interrupting and just standing out as one among many. • Talking with and not to the target group

4. Consumer affinity – media efficiency Consumer Affinity/ Message reception level • Cause Marketing • Rock/pop/dance • Personal sponsor marketing • Event marketing • Culture marketing • Soccer • Golf • Team sponsor marketing • Jazz music • Sport Marketing • Movies • Skiing • Tournament sponsor marketing • Cinema • Classical music • Cycling • Tennis • Outdoor • Theatre • Art • Radio • Boxing • Motor sport • Print (magazines) • Print (Newspapers) • Athletics • TV Commercial's • On line advertising Risk

5. Media influence Strong Weak Consideration Costumer Loyal costumer Awareness TV Spots Radio Print Outdoor Sponsor/event Internet Promotion Direct mail Salesforce

6. October 30th, 2009 Event Management CBS

7. So, if Pressalit is seeking... • Access to specific target audiences • To create brand loyalty • Increased awareness of company and product • Product and market differentiation • To entertain key clientele • Image building (product or corporate image) ...and want... • Exclusivity • Opportunity to demonstrate product attributes • Opportunity to generate sales 7

8. How far are you willing to go? October 30th, 2009 Event Management CBS

9. Case study: Nutella

10. Situation 1 Creating initial awareness is not the issue

11. But…consumption linked to children in household Usage is high among teenagers, but drop significantly in their 20’s High usage returns, when having children and decrease again for empty nestors Source: Gallup Index DK

12. The 4 challenges of ”Joy of Life in a Jar” 1 Finding the right time to exposure 2 Finding the right locations to assure high affinity 3 Finding the right location to assure high volume 4 Finding the right concept & message

13. From sampling to Nutella PartyAdding value to the sampling experience Give-aways and animator ensures the commercial focus To enhance the Nutella experience, the target group is invited to stay and enjoy the lounge feel Sampling DJ playing the newest & coolest music to create the right atmosphere and attract attention Sampling Co-promotion with Minute Maid Juice to complete the ”small-meal” experience

14. Marketing the Nutella Event Radio campaign Morning show promotion & competition Awards for the best nutella smile, Main prize was a trip to Italy. TV competition Sampling added value Sampling to sampling Online campaign A three week online campaign to promote both radio and event. Pictures of Nutella smiles were uploaded and the page had app. 10% of the population as visitors.

15. Millward Brown and Martin Lindstrøm’s neuromarketing data: The average effect of stimulating all 5 senses, compared too only 2 in a TV campaign, is at least 3 times higher! Taste Smell Touch A perfect example of.... Sight Sound

16. ROISponsorship activation

17. Your event is your product!How do you price your product..? Methods: • Event bottom line: All revenues ex. Sponsorships minus expenses = SPONSOR NEEDS. Deficit divided into sponsorship categories and desired number of sponsors in each category. Benefits set accordingly • Event tasks: Direct sponsorship of specific tasks/activities (sub-events, print, etc.) = face value pricing; often converted to barter deals. • Market analysis: What have sponsors paid in the past for similar events; which benefits did they receive? • Calculation sheet based on number of views/exposures etc., with value attributed per view/exposure. • Opportunity to buy tickets (at regular rate or increased price = guarantees audiences.

18. Concrete measurements... ROI: Return on investment. ROO; Return on objectives. Measurement of long-term impact in areas where sales are not immediately closed, such as costumer meetings, discount coupon effect after event, etc.. HAND-INS, PRE-EVENT SURVEYS ROE; Return on equity. Measurement of the recognition and ownership value sponsors build through sponsorship longevity. AUDIENCE QUESTIONAIRE. ROMI; Return on Marketing Investment. Measuring the (dollars) of revenue (or market share, contribution margin etc.) for every dollar of marketing spent, and/or press millimeter coverage etc.. DIRECT PROFIT and MEDIA MEASURES SALES: Real figures / increases

19. What can you offer?

20. Activation Definition: Activaton = marketing activities implemented by sponsor to make most out of funds invested directly in sponsorship Added expense above and beyond cash fee. Activation through coordination only.

21. Remember: Agreement on owership of results Promotion- campaigns Databases Online statistics Audience surveys ”Ownership” Ads Event-personel Employee input/ideas Graphic identities VIP networks / other sponsors Competitions

23. Sponsorship activation (pct. of sponsors) in ratio to sponsored cash amount <1:1 = 17% 4:1+ = 9% 3:1 = 12% 1:1 = 47% 2:1 = 14% Source: IEG Average 1:1,5

24. To support event sponsorship, sponsors use these types of activation: Traditional advertising: 80% Public Relations: 77% Internal communication 71% Hospitality: 69% Online promotion: 70% Direct marketing: 62% On-site sampling: 60% B-to-B: 50% Sales promotion/offers 47% Kilde: IEG

25. Sponsorship activation tools... • Promotional • Reputational • Experiential • Behavioral • Emotional

26. Activation level 1: PromotionalStrategy > action > result Strategy: Action: Result: Promotion Naming something Visibility Sponsoree's www Awareness Sponsors' www & exposure Dedicated micro-site Enhances effect of Logos i ads other activities Cross-advertising Cross-advertising with other sponsors

27. Sample micro site of naming right sponsorship www.januscharitychallenge.com

28. Activation level 2: ReputationalStrategy > action > result Strategy: Action: Result: Reputation Auction or give-away… Higher level of Add ”a good purpose” affinity Add a theme Transfer/association Demonstrate own of attributes Experteese / knowledge Social responsibility Less commercial impression Adds greater internal pride

29. Activation level 3: ExperientialStrategy > action > result Strategy: Action: Result Experience Integrate product or service Relevance Give space/room own ”brand” Demonstrates Create on-site competition or special abilities Similar instant participation Encourages new Create pre-event experiences or renewed Create post-event experiences sense of loyalty / Stage special area/ belonging viewpoint for for ”insiders” Plan www-oplevelser

33. Activation level 4: BehavioralStrategy > action > result Strategy: Action: Result: Behavior: Start loyality programme Build up databases Get something before others Reach new outlets Do something to get something Generate revenue Involve own sales channels Increase market Product launch share

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35. Activation level 5: EmotionalStrategy > action > result Strategy: Action: Result: Emotion Awarding costumers with Stronger ties something unexpected Greater loyalty Produce special merchandise Retention not available elsewhere Engage employees

36. Best activation: If sponsorship increases your score on the “wheel of value/force” of your branding/sales enhancing/media generating/audience engaging activities…. Unique or historical Identity creating 5 4 Media friendly 3 Unpredictable 2 1 Storytelling Predictable Audience involvement Star Quality SPONSOR is looking for exactly the same features to reach his consumers/costumers and please his employees!