Performance Research ROI

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Sponsorship ROI in the Real World
Presented by Jed Pearsall & Bill Doyle, Performance Research, March 14, 2011

Jed Pearsall
Bill Doyle PERFORMANCE RESEARCH

Our mission:

To help clients measure
and understand the value
of sponsorship, and reveal
the essential truth about
sponsorship impact.

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Michael Lynch
VP, Global Partnerships
Visa

“You can’t manage a sponsorship
if you can’t measure it.”

  research is too costly

  fear of results

  don’t know where to start

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What
SHOULD we
do?

How DID we do /
How can we
NOW what
do we do?
SPONSORSHIP
RESEARCH
OPTIMIZE
what we
ARE we doing?
do?

How DID
we do /
ARE we
doing?

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  define the type of sponsorship

  outline your objectives

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  media based   engagement based
- target markets - experiences
- eye balls - relevancy
- cost efficiency - emotions
- relationships

Measurement:
  cost per thousand
  impressions
  outputs not outcomes

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  specific
  measurable
  appropriate
  realistic
  time specific

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Not everything that can
be counted counts.
And not everything that
counts can be counted.

Albert Einstein

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  build awareness and familiarity
  initiate a conversation
  generate trials
  drive store traffic
  differentiate the brand
  engage new consumers
  fulfill a need
  increase consideration
  elevate sales
  build long term loyalty

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Olympic Games Raceways
America’s Cup Concert Venues

  First sponsorship research firm FIFA World Cup Stadiums
Rugby World Cup Theme Parks

  Single focus on sponsorship NFL, NBA, NHL, MLB Ski Resorts
Motorsports Beaches

& lifestyle marketing Extreme Sports Bars/ Clubs
Youth sports Golf Courses

  750+ programs Theme parks Fairs / Festivals
Cause marketing Football Stadiums

  12 clients on IEG’s Top 15 sponsors Web sponsorship Basketball Arenas
Music sponsorship Olympic Venues
TV Sponsorship College Campuses
Site-based marketing City Streets
Alternative media Movie Theaters
Minorities / subcultures Museums
Websites Arts Venues

  on-site research
  online research
  telephone research
  focus groups
  immersion studies
  strategic consulting

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“the truth
is
rarely pure
and
never simple”.
Oscar Wilde

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9 real studies…
- covering 25 years of research
-  hundreds of thousands of interviews
-  representing millions of pages detailed statistics

without showing a pie chart
under 3 minutes each

Taking On The World: Sony Ericsson Tries for an Ace with WTA

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  confusion of what product is
  new logo, new products
  hard to reach youth / young adults
  active local sponsors
  global considerations
  don’t sell directly

  on-site measurements, 8 countries
  market-area online interviews
  tracking through successive years

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  Business objectives
  8 of 10 fell into primary target
  unaided brand awareness up 20 points
  correct “familiarity” driven up
  attribute for “attractive brand” up 40 points
  consideration rose 30 points

  Sponsorship objectives
  variable unaided awareness (10%-60%)
  over 1 million units for every 2 pts)

Meeting a Challenge: Attracting Recruits in Time of War

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  increase reach to a specific target
  positive impact on imagery
  personal connection to deliver information
  motivate to visit a recruiting office

  re-contacted visitors to activation 10 days post
  compare to existing base-line measures

•  change of imagery
•  propensity to consider
•  rank Army higher than other branches
•  initiation of conversation with influencers
•  reduction of concerns / fears

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  80% of visitors were males
  75% connected to someone in the service
  Over half had improved imagery
  40% were more likely to consider
  Rose to be the most preferred service
  40% discussed options with parents
  35% plan to investigate option further

Showing it off: Powering up for Scrubbing Bubbles

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  needed platform to showcase new product
  wanted interactive, educational, fun
  traditional barriers to trial

  on-site intercepts, 3 of 10 stops
  30-day post re-contact
  qualitative observations

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  quantitative findings
  3/4 “enjoyed very much”
  virtually all took coupons
  over ½ correctly assimilated info.
  positive movement in brand perception
  “off the charts” post-event purchase

  qualitative review
  variability in events, staff, location
  children increased interaction
  husband decreased interaction
  Scrubby rules!

Hitting the Streets: Brand Engagement Teams Bring Fashion Out of the Store

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  Awareness is universal
- Education about experience key to gaining customers

  New Customers
- Has a hurdle to initiate trials
- Needs explanation to convince newbies

  Existing Customers
- Typically become brand evangelists
- Need reasons to return and shop different departments

  objectives
- drive store traffic trials for new customers
- increase visitation frequency among existing customers
- increase “Basket” for existing customers

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  on-site intercepts of surrounding activities
- test cells had engaged in activation
- control cells not exposed to activation

  respondents re-contacted 30 days post activation

  multiple cities across the US

  four unique activations tested in18 months

  significant increase in…
- trials and repeat visits
- average “basket”

  incremental sales directly attributable to
program were calculated

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Making Them Sweat: Getting Kids to Get Rid of the Stink

  need to encourage use
  early users = long users
  kids tell mom’s what to buy
  peer pressure to conform

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  varied sports events
  pre, during, re-contact surveys
  sampling vs. non sampling
respondents

  high incoming brand awareness made some
ROI measures questionable
  “Coolness” jumped 20+ points
  two-thirds received a sample
  purchase intent rose 15 points among trials

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Getting Into The Cart: Encouraging Kids To Call The Shots

  cereal aisle has become
more and more cluttered

  mature brands have difficulty
standing out

  needed to increase trials and
relevance

  kids request numbers rule

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  on-site intercepts among attending kids
  control, prior to exposure of event
  test, immediately following the event
  stratified by current “users” and “non-users”
  event covered multiple sites over 3 months

  brand attribute significantly increased
(test vs. control)
  relevancy increased
  non users- greatest increases
  three quarters reported learning
something “new” about the brand
  overall mom “requests” were
significantly up (nearly all agreed).

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Quiet Please: The (Marketing) Show is About to Start

  sense of responsibility
  sense of isolation
  need for socialization
  need to have confidence

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  pre-exposure baseline
online surveys

  post-event online surveys
throughout summer months

  strong repeat attendance (6+)
  most had previously used brand
  15+ point pre-to-post lift in purchase intent
  15+ pre-to post drop for key competitor
  significant increase in all brand health measures

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Say Cheese: Racing to Save Customers

  brand leader in film (back then!)
  facing new competition from low price retailers
  protect against erosion, needed to keep base
  especially vulnerable in the South East
  signed a 4 race deal to decide if it was working

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  on-site interviews- race fans
  final race of the contract
  control / pre-race
  test / post race

  brand loyalty was quantified

  aware of sponsorship were 2x as likely to
purchase

  exposure to the program stopped erosion

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Speaking Through the Arts: Reaching HNWI’s in a Quite Way

  worldwide cultural differences

  need for consistent message

  platforms resistant to branding

  target traditionally insulated

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“Arts & cultural sponsorships have two enormous
advantages. First, they represent one of the last kinds of
sponsorships where consumers give you credit for just
showing up… Secondly, because they draw fewer
sponsorship dollars, they allow you to be distinctive and
win attention by doing something unexpected.”

David D'Alessandro
Chief Executive Officer, John Hancock Insurance
Author of Brand Warfare

  focus Groups in U.S., Europe, Asia
  pre-post telephone surveys
in sponsorship markets

  on-site intercepts at events

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  art is a universal language

  fear of over-commercialization is unfounded
  most want to be informed more about corporate
support

  arts are not that much different from…

  Arts are not that much different from…

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  evaluation has become more walk, less talk
  interest in evaluation has moved higher up the ladder

  raising the bar for success

  ROO and ROI also includes ROR

  ROI is NOT static- fluid and adapting

  the industry is getting smarter
  the challenges may be getting bigger

  the learning never stops

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see
yourself
as
others
see
you

www.performanceresearch.com

PERFORMANCE RESEARCH
25 MILL STREET • QUEEN ANNE SQUARE • NEWPORT, RHODE ISLAND 02840 • (401) 848-0111 • FAX (401) 848-0110

Nuts & Bolts of Sponsorship Research

28th Annual IEG Sponsorship Conference
“Return on Engagement”
Monday March 13, 2011
Bill Doyle -- Vice President
bill@performanceresearch.com

Why sponsor..... ?

o At first it was “to get free publicity” -- which then evolved into
-- “logo placement”
-- and eventually “alignment with a property”

-- Clipping services
-- Media Impressions
(Joyce Julius 734-971-1900 / SiS 212-736-0645)
-- Event Audits
This is now a valuable tool to analyze a means to an end and no longer
just an end result.

But, sponsorship objectives can now include:

o To increase awareness
o Reach my target market
– DEMOGRAPHICS AND BUYER-GRAPHICS – a must for properties

o Change / Enhance Image
o Business to business / Client entertainment
o Employee / Internal Motivations
o On-Site Sales Opportunities
o Related Direct Sales Opportunities (Licensed Merchandise)
o Sales Promotions / Incentives / Retail POP
o Be an Integral Part of the Property Experience

How do you measure all these?


Traditional Methods

Quantitative / Surveys --- Answers the question “IF?”:

- Awareness
- Target Market / Demo’s
- Image Enhance
- Employee / Internal Motivations
- Purchase intent

Survey Methodologies Include:

- On-site Intercepts (When sponsorship is “site” based)
- On-site Intercepts / Telephone Re-Contact
- Telephone RDD – LISTS AVAIL?
- On-line – LISTS AVAIL?

Property Pointer:

You MUST be gathering data-bases of your audience, this will save
SIGNIFICANT amounts of time and money when research is needed.

Common Nuts and Bolts Questions about survey research at events:

-- How do you select a methodology? (Efficiency/sampling issues)
-- How long can the survey be? (Think “down-time”)
-- When do you need incentives & How much? (Depends on interest level)
-- How do you phrase ??’s / know what to ask? (Use a pro or existing Q’s)
-- How much does it cost? (Huge ranges - $5k - $50k)
-- Where do I start? (Tabulations are first step!)
-- Can I do this myself? (Yes and no.. see above)
-- How / where do I collect the surveys? (Avoid Bias! Geo/Demo or?)
-- How many surveys make a valid sample? (See chart – 200 is typical)
(Remember sub-groups)

Qualitative -- Focus Groups -- Answers the question “WHY?”:

- Why does it (or why does in not) change an image?
- Why would purchase intent change for one sponsor and not another?
- Why do you like one concept over another?

Focus Group Methodologies (as they pertain to Sponsorships)

- In affect, “Sit around and Talk”
- Focus Groups are NOT quantitative.. don’t “count” votes or opinions.

Observational Research -- Answers the question “HOW?”

- How do they become aware?
- What do they do with that knowledge?
- How does it translate to actual behavior?

Observational Research Methodologies:

- Day In Life Of (DILO)
- Product Inventories
(Cupboard / Cooler checks / Ashtray Sift / Tire Counts)

- Video Accounting
- Video Intercepts
- Self-Directed Videos
- Purchases / Uses / Aspirations / Problems - concerns

Common Nuts and Bolts Questions about qualitative research:

-- How long can a session be? (2hr MAX.)
-- When do you need incentives?
(How much?) (Depends – but $50-$100 common)
-- How do you phrase the discussions? (Consult a pro / educator or course)
-- How much does it cost? (All totaled about $6-$8k per group)
-- How long does it take to schedule? (Should be min. 14-21 days notice)
-- How do you recruit? (Consider sub-ing out or intercepts)
-- How many groups make a valid sample? (Trick question!)


COMPANY PROFILE
Performance Research (Newport, Rhode Island) was organized in 1985 to provide quantitative
and qualitative evaluation of event marketing programs to corporate sponsors, properties and
their agencies.

Over the past twenty+ years, the company has conducted over 1 million, on-site, on-line, and
telephone interviews and more than 500 focus groups regarding corporate sponsorships of
sports, leisure activities and special events. As a leader in custom sponsorship evaluation,
Performance Research has in-depth experience with worldwide events such as the Olympic
Games, Rugby World Cup, America’s Cup, FIFA World Cup and Formula 1 Grand Prix, and U.S.
professional sports such as the NFL, NBA, NHL, PGA and ATP tours. In addition they have
worked with motorsports such as NASCAR, IRL, NHRA, FIM, and IMSA series, as well as
regional sponsorships and events with extensive experience in concerts, theme parks, ski resorts,
museums, cinemas, zoo’s and traveling exhibits.

Performance Research is a primary research partner with many of the top sports sponsors,
including: Anheuser-Busch, Amoco Oil, AT&T, adidas, Coca-Cola, Citi-Financial, Coors Brewing
Company, Eastman Kodak, Exxon, Ford Motor Company, General Motors, Harley Davidson, IBM,
Gillette, Honda, Kellogg’s, McDonald’s, Miller Brewing Company, Nissan, NCAA, MCI, Pepsi,
Philips Electronics, R.J. Reynolds, Shell Oil, Sony-Ericsson, Subaru, Ticketmaster, TJX, UBS,
VISA and WGBH / PBS.

Market data presented by Performance Research has been referenced by leading publications
such as: Financial Times, The Wall Street Journal, The New York Times, USA Today, Business
Week, Financial World, Fortune, Hollis Sponsorship Report, Adweek, Advertising Age, Autoweek,
BrandWeek, Marketing, MediaWeek, NewsWeek, Promo Magazine, Sport Business Sports
Marketing Letter, Sports Marketing Quarterly, Smart Money, IEG Sponsorship Report, Sports
Marketing and Sponsorship News.

PRINCIPALS

Jed Pearsall is the founder of Performance Research. He holds a doctorate in sports
management from Temple University, and is a former faculty member at Temple specializing in
Sociology of Sports. Pearsall’s pre-doctoral work was completed at Dartmouth College and The
Wharton School of Finance (Univ. of Pennsylvania). Pearsall is a frequent speaker at IEG’s
annual conference on Sports and Special Events, the BDS Sponsorship Conference (London), as
well as Association of National Advertisers (ANA) conferences for Financial Mgt. and
Sponsorship.

Bill Doyle (Vice President) holds a degree in Business Management from Rutgers University and
has developed most of the event measurement criteria now standard in the industry. Doyle is the
first and possibly the only focus group moderator in the United States specializing in the event
marketing industry. He has lectured at the International Conference on Sports and Special
Events (Paris), and the AMA Conference on Sports Marketing, IEG’s annual conference on
Sports and Special Events as well as several other sports marketing conferences globally.


SAMPLE SIZE SELECTION: Internet, On-Site and TELEPHONE RESEARCH

Statistical significance is only relevant to randomly selected samples and does not apply to samples collected with an
inherent bias (self-selection, geographic, etc.). Increased sample sizes have no effect on legitimizing improperly selected
respondents. (Collecting 4,000 biased surveys is far worse than collecting 100 random surveys.)

Prior to the collection of data, the effect of sample size on the precision of the research can only be estimated in a + / -
percentage range.

The actual +/- percentage figure will depend on how extreme, or how close the final percentage of responses are to either
0% or 100%.

For example, with a sample size of 200 respondents, on a simple YES/NO question with 90% of the respondents
answering YES and 10% answering NO, the data could vary by +/- 2% (at a 95% confidence level). However, if 50%
answered YES and 50% answered NO, the margin of error could be as high as +/-7%. When considering sample sizes,
this 7% variation would then be the "worst case scenario".

Although it is extremely rare in any sponsorship-related study for the worst-case scenario to happen, it should still be
considered as a possibility when selecting sample size.

The following chart outlines the best and worst case scenarios, showing the margin of error for various sample sizes at
the 95% confidence level. Margin of error decreases as confidence level decreases. 1

BEST CASE: WORST CASE:
MARGIN OF ERROR MARGIN OF ERROR
200 RESPONDENTS +/- 2% +/- 7%
300 RESPONDENTS +/- 1½% +/- 5½%
500 RESPONDENTS +/- 1% +/- 4½%
1500 RESPONDENTS +/- 1% +/- 2¼%

1
Statistical References:

Kachigan, Sam. Multivariate Statistical Analysis, Radius Press, New York, 1982, p.81.

Kinnear, T. & Taylor, J. Marketing Research: An Applied Approach, McGraw-Hill, New
York, 1983,
pp. 227-233.

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