1. Sponsorship Masterclass for Festivals and Events
Bucharest 18 September 2014

2. What is Best-practice Sponsorship?
Sponsorship is a mutually beneficial relationship between a company or brand, and a festival or organisation that…
Is meaningful to the target market
Is relevant to the brand
Aims to change people’s perceptions and/or behaviours toward that company or brand
Offers activation opportunities

3. Key Dimensions of Sponsorship
Commercial transaction/investment and not a donation
Sponsorship is not about your need; it’s about achieving the sponsor’s objectives.
May take form of either a direct payment or provision of in-kind services/products
Putting logos on things for awareness and exposure is old hat and no longer the primary goal of sponsorship.
It’s better to get a couple of big sponsors than lots of small ones
The return sought from sponsorship is one that will ultimately positive affect profitability of a business

4. Questions to ask before you begin...
How much money is needed?
Is the purpose just to raise money or is it also to raise awareness?
What is your supporter base?
What resources are available to support the fundraising?
What is the timescale?

5. Steps to Success Get your own house in order
Understand and segment your audience effectively
Develop a strong marketing plan
Know what you have to offer
Target only the most appropriate sponsors
Develop creative, strategic offers
Approach all negotiations as win win-win
Price yourself correctly
Service your sponsors’ needs

6. Sponsors’ Objectives Corporate-related Objectives
Increase Public Awareness of the Company and its Services
Enhance Company Image
Alter Public Perception
Increase Community Involvement
Build Business/Trade Relations and Goodwill
Enhance Staff/Employees’ Relations and Motivation
Product/Brand-related Objectives
Increase Target Market Awareness
Identify/Build Image within Target Market (Positioning)
Increase Sales and Market Share

7. Understand What You Have to Offer
Your Brand
Your Audience
Tangible Benefits
The Intangible Benefits

8. Understand What You Have to Offer
Sponsors don’t want to align with you, they want to align with your target market
The more you know about your market and can provide benefits that are meaningful to that market, the more valuable you will be to Sponsors
You provide the opportunity, activation provides the results
You need to foster it
Always think win-win-win
A small, meaningful benefit for all or most of a target market, is more powerful than a chance to win big for one or two

9. Overview of Sponsorship Planning Process
Prospect research
Case for support
The approach
Relationship management
Assessment of outcomes
Feedback
Objectives

10. Sponsorship Plan Framework
Needs to answer 3 questions:
Where are we now?
Fundraising Audit
2. Where do we want to be?
Sponsorship and Fundraising Objectives
How are we going to get there?
Strategies
Tactical Plans

11. The Sponsorship Plan
1) Fundraising Audit: a review of the environment; market analysis and competitor benchmarking; information on where the synergies lie; who is likely to support activity and what level of funding is available
2) Fundraising and Sponsorship Objectives: define objectives and setting of realistic income generation targets
3) Definition of the strategy and tactics to achieve these targets

12. Research to Assess a Match
Essential potential sponsor knowledge:
Marketing objectives
Product or brand attributes
Target markets
Needs – absolute requirements
Wants – that that would be nice
Exclusions – what will they not support
Special emphasis – new services, product launches...
Desirables
Relevant interests of Chairman, CEO and directors
Do you know anyone who knows them?
Are they already a member of your audience?

13. Perceptions and behaviours around your festival
Knowing your Audience
If all you have is demographics…
You don’t have enough information to market to them successfully
You don’t have enough information for a sponsor to see the value in the audience
If you don’t have strong research (yet), do simple descriptions of each market
Prioritise markets based on their strategic value, not size
Gold
Buying Patterns
Perceptions and behaviours around your festival
Psychographics
Demographics

14. UK Arts Consumer Segments

15. Target Market Assessment Exercise
Segmenting Audience by primary motivations - by perceptions / motivations
Consider and label three types of people attending Festival
What is the prime motivation for segment to attend Festival?
What else makes the Festival appealing to this segment?
What proportion is this segment (%)?
Who will this segment attend with?
What things have to go right in order for this segment to consider their experience to be a success?
What message will this market be receptive to (what will make them attend)?

16. Example Target Market Assessment
Definition of Target Market  
1 Folkies - music lovers, musicians dancers, the in-crowd visitors
2. Locals at individual events with specific interest to them
3. Folkies who want to play with their mates & drink beer in pubs rather than see of buy tickets
 What is the prime motivation for segment to attend Festival?
1. Good mix of music
2. Personalities or niche activities
3. Informal sessions/sing a rounds in pubs, meeting mates and playing together good craic
What else makes the Festival appealing to this segment?
1. Friendly atmosphere in attractive setting, safe for families
2. Festival village atmosphere
3. Festival atmosphere Festival village camping (even for locals)
What proportion is this segment (%)?
1. 65%
2. 20&
3. 15%
[65% audience aged 36 – 55 (sim proportion male & female)

17. Target Market Assessment
Who will this segment attend with?
1, 2, & 3. Partner or friend
What things have to go right in order for this segment to consider their experience to be a success?
1. Quality breadth of artists friendly welcome from Festival volunteers; clean attractive facility for camping
2. Safe Known names chance to learn something new,
3. Friendly welcoming atmosphere, meeting mates, convivial social occasions
What message will this market be receptive to (what will make them attend)?
1. Good quality music, friendly atmosphere, attractive location, good campsite, easy access
2. Know what they are coming to, interested in person or subject; not too folkie beer, beards & sandals
3. Meet your mates, it has the trad folk you love, you can join in good beer

18. Think Brand Few companies have only one brand
Corporate sponsorship departments and budgets oversubscribed - go directly to brand manager
Individual brands have separate marketing budgets

19. Recognising Synergy Brewery based near Harrogate in Yorkshire
Recently bought back into Theakston family ownership – desire to raise profile
Beer has historic crime link - Peculier Court of Masham
Emblem is a legendary tale from the crusades
Solving problems over a pint of beer is a common theme in crime fiction
Promotional strapline “Beer on the darkside”
Target market -mature, discerning drinkers

20. Activation Definition: Activation
= marketing activities implemented by sponsor to make most out of funds invested directly in sponsorship
= added expense to sponsor above and beyond the cash paid to sponsoree.
Sponsor’s ”activation activities” should not be left up to sponsors alone, but should be handled in a spirit of coordination and cooperation.

21. Supporting 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

22. IEG's sponsorship activation tools...
Promotional
Reputational
Experiential
Behavioral
Emotional

23. Activation level 1: Promotional 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
with other sponsors

24. Activation level 2: Reputational 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

25. Activation level 3: Experiential 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

26. Activation level 4: Behavioral 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

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

28. The Sponsorship Proposal
Must answer three basic questions:
What is the organisation being asked to sponsor?
What will the organisation receive for its sponsorship?
What will it cost?

29. Attributes of a Successful Proposal
Sell benefits, not features Not the artistic merit of the festival - rather benefits to sponsor
Address the sponsors needs not the festivals Many proposals emphasise the festival needs for money, rather than the sponsors needs -such as market access
Tailor proposal to the business Benefits will not have equal meaning to each potential sponsor
Include promotional extensions a) identification in collateral materials b) sponsor leverage of event: provide ‘exploitation menu’
Minimise Risk e.g. guaranteed media coverage or listing reputable co-sponsors
Include added value present in terms of its total impact on achieving greater sales

30. Sponsor Benefits Use inventory to create list of benefits
Make a comprehensive package
Categorise benefits where appropriate
Must be tailored to sponsor’s needs

31. Example Benefits Naming Rights Category Exclusivity Event sponsorship
Preferred Supplier status
Sampling opportunities
Venue usage /signage
Inclusion in all print, outdoor and/or broadcast advertising
Access to money can’t buy experiences
Celebrity meet and greets
Promotion on festival web site (hyperlinked)
Loyalty marketing (eg early access to tickets for customers)
Access to audience database and research
Opportunity to provide inserts in event-oriented mailings
Inclusion in Press releases and media activities
Preview /participation in the event by employees
Workshops for employees
Opportunity to provide prizes for media or event promotions

32. Calculating the cost of sponsorship
Calculating Baseline Fee ie cost of servicing sponsorship:-
2 x (cost to deliver benefits + cost of sale + cost of servicing) = baseline fee or
Full cost of event + cost of benefits + cost of sale & servicing – budgeted ticket sales) = baseline fee
Then apply market influencers:
What the market will bear
Research
Use your network
Lead time before the event
Under 6 months will very likely impact your price
Under 3 months will severely impact both your price and your credibility
Other activities competing in the marketplace
Uniqueness of what you offer and its position in the marketplace
Economic situation and trends

33. Determining Market Price
What is cost of similar sponsorship products on the market?
How does your proposal stand up?
How does you sponsorship servicing measure up?
How much is your potential sponsor likely to invest?
Multi-year discount?

34. Some Sponsorship Queries
Should we offer different sponsorship levels?
How do we define category exclusivity
When is the best time to approach sponsors?

35. a) Should We Offer Different Sponsorship Levels?
Platinum, Gold, Silver, Bronze levels are popular – But
Only usually work best with lower level sponsorships - e.g. Corporate Membership
Not beneficial to creating strong high level sponsorships – makes for bargain hunters paradise

36. Category sponsorship

37. b) How Do We Define Exclusivity?
Rule of exclusivity – the more exclusive is granted, the more valuable it is
Exclusive naming rights - Title sponsorship
Event exclusivity – sole concert sponsorship
Official supplier (water; alcohol; travel/transport; printing; musical instruments...)

38. Sponsorship Exclusivity

39. Exclusivity – does not Exclude

40. c) When Is Best Time To Approach Sponsors?
Ask when they set budgets during your research
Best time is before they have set their annual budget
You can try last minute deal but can smack of desperation
When running an annual festival I have often found a 3 year cycle to cultivate sponsors – Year:
Intro the festival – send them material
bring them along to an event – your shop window visit them after event whilst still in there minds
sign them up

41. Contra Sponsorship Things to keep in mind:-
A contra sponsorship only has value if:
You have budgeted for specific item already
It adds value to your sponsorship packages
Is the contra sponsorship saving you cash?
You still need cash to run your event
- endeavour to negotiate contra deals only as a component of the investment

42. Types of Contra Sponsorship
Promotion
Media
Creativity
People
Infrastructure
Product or services
Accommodation
Travel

43. Contra Sponsorship Benefits
for Thirsty Planet
Designated ‘Official Water’ of the Moor Music Festival
Opportunity of bottled water reseller status on-site
Opportunities to promote Thirsty Planet on-site
Raising awareness and generating donations for Pump Aid
Credit and logo on Festival website
Photo opportunities with artists
10 complimentary Weekender and day passes for staff or promotional use

44. Evaluating the Sponsorship
To demonstrate evidence of value generated to internal and external stakeholders
To review if your partnership met its objectives and delivered for your Festival
To improve and enhance your partnership so that you achieve maximum return on investment?

45. NB. Remember the need to benchmark in advance to measure impact!
Measuring Success
Robust evaluation process will be necessary to enable Festival to measure success against the expectations of sponsor
Things to include in an evaluation:
Quantitative measures
Exposure to sponsor logo
Media coverage
Attendances
Audience awareness of sponsor
NB. Remember the need to benchmark in advance to measure impact!

46. An Evaluation Framework
Benefits
Bespoke tool for cultural partnerships developed by the leading experts in this field - Arts & Business and the London Benchmark Group
The latest and most robust framework which sets the standard
Provides you with evidence of how your project and partnership performed
Essential for establishing how future partnerships can be made more effective
Gives you the real cost of activity so you can establish how efficiently you are working and benchmark yourself against the market
Essential for internal buy-in, support and be able to secure internal resources by being able to justify the expenditure
Used to generate PR and media coverage
Can be used as a project management tool
Findings and recommendations on one easily digestible page, that internal and external stakeholders will read and understand
Identifies clear actions and recommendations for you.

47. Discussion and Questions