tag:blogger.com,1999:blog-76493880806229822352024-03-07T19:42:59.208-08:00Pinpoint AccuracyIncreasing the efficacy of sponsorship marketingDavid Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.comBlogger20125tag:blogger.com,1999:blog-7649388080622982235.post-88645227526808978872012-01-27T14:58:00.001-08:002012-01-27T15:07:57.273-08:00The NFL’s Grateful for the Global RecessionI normally don’t comment on sports in this blog. Too many other people do that already. But, I saw an interesting observation that was made by the commissioner of American Football the other day. Because of the recession, huddled masses of Americans with nothing else to do, are connecting with the sport in front of their televisions.<br /><br />"People want to feel part of a group, feel like they're connected, and right now during these difficult times, they can turn on free television and watch the greatest entertainment that's out there," Roger Goodell observed.<br /><br />Admittedly, he said the next challenge is to get people to come back to stadiums because they’re at home experience is just so darn good, and FREE! Ok – he didn’t say THAT, but he might as well have. Not to mention that food and beverage, parking fees and just about everything else about the stadium experience has become so overpriced, a weeks pay is in order for a family of four to go to the stadium. Why WOULD anyone go to the stadium and experience what they can experience at home…free!?<br /><br />I like Mr. Goodell. Seems like a down to earth guy, coming up from the ranks of nothing short of janitor to head one of the biggest sports leagues on our planet. But, his quote has me a little perplexed and intrigued. Why would you admit your product’s no longer affordable live and better on TV?<br /><br />Perhaps his observation would open the door for cool, new activation from NFL sponsors to go beyond the games television rights and actually engage fans at stadiums. Create real experiences that are must haves that result in an all day affair reserved for attendees. This would give people a reason to head back to the stadiums and justify those ridiculous prices. By creating greater value for the “fan experience” and a reason for fans to WANT to go back to the stadium, might just be what gets NFL fans out of their living rooms and back to their top left corner, Row ZZZ seat. <br /><br />My friend reminds me that he can see the game a whole lot better in front of a 50” flat screen – so why spend the money to go to the game. Perhaps sponsors can give fans a reason to chuck the flat screen and embrace the experience that occurs outside the gridlines. <br /><br />Just trying to help, Mr. Goodell.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-41307619999098510052012-01-17T11:54:00.000-08:002012-01-17T12:15:27.747-08:00Furthering the industry - time to act!I haven’t been keeping up with my social media presence lately. Well, it’s been almost a year. I considered it a study of weighing the use of time to engage in social media versus reconnect with the world by more tactile efforts – talking to people, shaking hands and more importantly, listening to people. <br /><br />I’ve been keeping “in touch” with the news, colleagues on the move and the trends of our industry. Honestly, without the likes of Dan Beeman, Kris Mathis, Kim Skildum-Reid, Brent Barootes and even Lesa Ukman, there would be little to no cohesive news about the sponsorship industry at all.<br /><br />Most of the conversation within the sponsorship industry hasn’t changed much in the past year. People are still looking for sponsors, looking for advice on how to obtain sponsors, discussing evaluations, valuation and return on investment/ engagement/ opportunity.<br /><br />Are these topics enough to advance the sponsorship industry further? In the world of CMO’s and CFO’s, PR and Ad Agencies, discussions swirl around the power of social media platforms, the next social media darling, measuring social media and the new possibilities from interactive TV. Outside of an occasional big sports deal or music tour or two, barely a whimper is heard about the strengths associated with sponsorship marketing . <br /><br />Local sponsorships like fairs and festivals tend to make up the majority of sponsorship deals and have an even greater impact on shaping the industry since they connect with infinitely more people. Most sponsorship sales professionals have difficulty relating to billion dollar deals between major sports leagues and Fortune 100 companies. While those deals provide somewhat of a blueprint for activating local programs, they don’t speak to creating great ideas around local sponsorship endeavors. <br /><br />The people I mentioned in this blog understand and have been instrumental in inspiring many others, including me. As professionals in this fledgling industry, we need to be more proactive, learn from one another, band together in protecting and inspiring others about the benefits of sponsorship marketing. Not just in social media space, but in face-to-face conversations about the challenges facing our industry.<br /><br />As my firm embarks on a new venture – I open the door to create time to work on recruiting colleagues in other markets to set up roundtable discussions, networking opportunities to connect sponsor professionals with one another. Through this effort, perhaps we can begin to build the framework of an association. <br /><br />I look for your thoughts and interest in participating.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com1tag:blogger.com,1999:blog-7649388080622982235.post-77534227882993338722011-03-06T14:08:00.000-08:002011-03-06T14:09:38.463-08:00Time to Get Our RulersThere have been several terrific conversations lately surrounding the need for sponsorship measurement practices. Research shows a continuing gap in comprehensive measurement of sponsorships effectiveness for brands. New heightened emphasis on corporate accountability places into question how companies can sustain sponsorship practices without numbers to justify the expense. <br /><br />There’s even renewed discussions brewing at the U.S. congressional level to minimize sponsorships by the military, in part, because a lack of understanding and measurement to actually determine the practices impact. As Professor Tony Meenaghan stated in a recent article appearing in Admap, “Given the nature and scale of criticism directed at sponsorship measurement, a range of changes must be anticipated.” <br /><br />It used to be that in order to measure results, you only needed to measure the number of eyeballs reached. That line of thought is waning. As Meenaghan points out, “the valuation of media coverage is not a valid measurement of effectiveness …It is essentially a measure of publicity and not a measure of the effects of that publicity, or other elements of the sponsorship and its activation.” <br /><br />While there is some value for adding to the visibility of a brand, according to Kim Skildum-Reid, author the Last Generation Sponsorship, measurement is to be “based on a brand’s alignment with an understanding by its target audience. The sponsor’s measurement should focus on market research as the key element to measure impact.”<br /> <br />Because of sponsorships unique ability to engage consumers within an experience that matches their lifestyle, sponsorship is able to transcend its advertising roots. The sponsor becomes part of the experience. And, its engagement with the target audience embraces their passions, ultimately providing an indelible bond that research proves to be quite lasting. What’s missing is the need to measure the results of this engagement.<br /><br />While the sponsee has an obligation to report on what elements it delivers on behalf of the sponsor, it is the sponsor that carries the responsibility to measure the results of engagement. Only the sponsor can capture quantifiable activities that showcase their sponsorship effectiveness. And, if a sponsor is going to justify its budget, it’s going to need to quantify the effectiveness.<br /><br />Having said that – nearly 4 out-of-5 of sponsors currently spend less than 1% of their rights fees to place any type measurement according to IEG’s Performance Research Report. The European Sponsorship Association members also found in a 2007 survey that only 11% of the sponsors believed there ROI measurement was even remotely effective. So, if it is the sponsor obligation to measure results, there are few taking time and budget to do that, and accountability measures are rising, the entire industry may suffer as company budgets are skimmed and scrutinized.<br /><br />It’s time sponsor professionals request, no require, measurement tools be put into place by our sponsors. Outlining benchmarks and methods to measure results from the sponsorship should be spelled out in agreements right along with describing sponsor benefits and terms. If representatives of properties truly want to elevate the profession and protect our industry from budget erosion, we must build measurement parameters into our relationships. <br /><br />I realize the radical nature of the idea – but our options are pretty limited given the corporate and congressional climate around budget and spending; either put up – or shut up.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-54287899880630150782010-12-15T05:58:00.000-08:002010-12-15T06:13:40.784-08:00Gross Sponsorships for Mad MenAdvertising agencies are king of the advertising world. Most of the dollars spent in advertising and marketing pass through an advertising or media-buying agency. Over the years, I’ve had my share, both good and bad, of discussions with agencies. And like many colleagues, I hang up the phone with an account manager and say “they just don’t get sponsorship.”<br /><br />Actually they do. <br /><br />But a distinct issue for agencies is – how are we going to make money off of a sponsorship? Agencies aren’t built to necessarily buy sponsorship and activate the program. Unlike creating a TV ad and buying time, sponsorship falls completely out of their model for making money. <br /><br />Many agencies aren’t geared to execute street marketing programs, design a fleet of experiential tour trucks, or build out trade show booths. Perhaps because they cannot make money on sponsorships, they steer clear of involving their client in sponsorships.<br /><br />Ad buying agencies make their money by receive a percentage of what they purchase for their client at a gross rate – meaning – the agency takes anywhere between an 8% -15% cut off the price of the media and that’s how they’re paid. Realize that the media “lifts” the rate they offer to agencies in order to make up for some of the difference of selling ad space directly to the brand versus through the agency. This is called a “gross rate” versus a “net rate.”<br /><br />I’m not suggesting a major conspiracy here. But it’s possible that because the way North America’s sponsorship discipline developed (no measured media, no gross and net rates to agencies), it’s growth has been stymied because decision makers aren’t able to find a way to make a profit off of it. Look at the growth of the digital media space. Digital media can be measured in a myriad of ways and agencies make money off design (Websites/Facebook Cause pages/digital ads) and placement. <br /><br />So, would it make sense for the sponsorship industry to offer a gross rate to agencies? How would it effect sponsorship broker fees? Would there be an overall reduction in sponsorship rates from it? I realize there’s a lot of questions to be asked before heading down this road. But, as an industry, shouldn’t we be thinking of ways to make it easier to say “yes,” especially to a discipline that we know works so well!<br /><br />I respect the fact that agencies need to make good decisions for their clients and also make profitable business decisions for themselves. Maybe it’s time our industry makes it easier for agencies to do both.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-3080784758515033422010-04-29T07:00:00.000-07:002010-04-30T14:23:21.276-07:00KFC and Komen – Supporting or adding to the cause?<meta name="Title" content=""> <meta name="Keywords" content=""> <meta equiv="Content-Type" content="text/html; charset=utf-8"> <meta name="ProgId" content="Word.Document"> <meta name="Generator" content="Microsoft Word 11"> <meta name="Originator" content="Microsoft Word 11"> <link rel="File-List" href="file://localhost/Users/davidrachell/Library/Caches/TemporaryItems/msoclip1/01/clip_filelist.xml"> <!--[if gte mso 9]><xml> <o:documentproperties> <o:template>Normal</o:Template> <o:revision>0</o:Revision> <o:totaltime>0</o:TotalTime> <o:pages>1</o:Pages> <o:words>220</o:Words> <o:characters>1255</o:Characters> <o:company>Vangel Associates</o:Company> <o:lines>10</o:Lines> <o:paragraphs>2</o:Paragraphs> <o:characterswithspaces>1541</o:CharactersWithSpaces> <o:version>11.0</o:Version> </o:DocumentProperties> <o:officedocumentsettings> <o:allowpng/> </o:OfficeDocumentSettings> </xml><![endif]--><!--[if gte mso 9]><xml> <w:worddocument> <w:zoom>0</w:Zoom> <w:donotshowrevisions/> <w:donotprintrevisions/> <w:displayhorizontaldrawinggridevery>0</w:DisplayHorizontalDrawingGridEvery> <w:displayverticaldrawinggridevery>0</w:DisplayVerticalDrawingGridEvery> <w:usemarginsfordrawinggridorigin/> </w:WordDocument> </xml><![endif]--> <style> <!-- /* Font Definitions */ @font-face {font-family:"Times New Roman"; panose-1:0 2 2 6 3 5 4 5 2 3; mso-font-charset:0; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:50331648 0 0 0 1 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman";} table.MsoNormalTable {mso-style-parent:""; font-size:10.0pt; font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style> <!--StartFragment--> <p class="MsoNormal">On the outset it’s cute.<span style=""> </span>Supporting breast cancer research by purchasing a chicken breast – I get it.<span style=""> </span>It’s even in a cute pink tub and branded <i>buckets for the cure</i><span style="font-style: normal;">.<span style=""> </span>But, are you scratching your head on this one too?</span></p><p class="MsoNormal"><span style="font-style: normal;">
<br /><span style=""> </span></span></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">YUM Brands KFC, has launched a campaign to provide a donation of up to $8.5 million – a potential record-breaking donation – to Susan G. Komen for the Cure.<span style=""> </span>Just go to your nearest KFC and purchase a pink bucket of sodium and fat rich fried chicken or the less sodium and fat packed grilled chicken -<span style=""> </span>and help the cause.<span style=""> </span>However, the verdict is still out on all the causes associated with breast cancer – including the risk from sodium and fat rich foods.</p><p class="MsoNormal">
<br /></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">Barbara Brenner, exec at Breast Cancer Action, a watchdog group, denigrated Komen Foundation with this quote: "This will keep them (Komen) in business for years. They talk about a cure, but this partnership will create more breast cancer.”</p><p class="MsoNormal">
<br /><span style=""> </span><o:p></o:p></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">Ouch!</p> <p class="MsoNormal">
<br /></p> <p class="MsoNormal">So, has Komen missed their mark on developing support for their cause?<span style=""> </span>Research says a definite “yes.”<o:p></o:p>
<br /></p><p class="MsoNormal">
<br /></p><p class="MsoNormal">Studies have shown (Gareth Smith, <i>Journal Marketing Management</i><span style="font-style: normal;"> 4/04, Vol. 20) that the connection with a cause needs to make a valuable connection in the consumers mind to be effective. Synergy provides credibility to both the cause and the supporting company.<span style=""> I'm not a cancer researcher, but I'm thinking this may be a bit of a conflict - and hence - would be perceived by consumers as missing the relationship purpose. I'm not sure who looses on this one - KFC or Komen.
<br /></span></span></p><p class="MsoNormal">
<br /><span style="font-style: normal;"><o:p></o:p></span></p> <p class="MsoNormal"><span style=""> </span><o:p></o:p></p> <p class="MsoNormal">Cone’s recent Trend Tracker report stated that 56% of consumers feel better about a nonprofit when they partner with a company.<span style=""> </span>I wonder how this makes everyone feel about Komen?<span style=""> </span></p> <!--EndFragment--> David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-76335412638603951672010-03-13T11:55:00.000-08:002010-04-09T15:30:15.783-07:00America's New Beer MarketDon't look now, but that beer your drinking isn't American. Yes, I know it says "American Lager" or "home of the Rockies" or whatever on it - but it's owned by a multi-national conglomerate that resides somewhere overseas.<br /><br />And, as I sit in this bar, I notice most people are drinking the local craft coming out of the tap. I don't even see a bottle of Bud Light Miller Draft Coors Lime ANYWHERE here. So, it makes me wonder why these local breweries haven't "tapped" into the fact that building relationships through a sponsorship with the local "cool" community event isn't on the TOP of their list. Look, spending all those marketing dollars on the bottom shelf at the local grocery store is ok, or on those neat little draft tap tops shaped as your logo. But isn't time you come out to meet and rub elbows with the American beer drinker? Isn't time you stepped up your marketing game?<br /><br />Are you really that afraid of the BIG multinational brewer that you won't even TRY to compete for a meaningful sponsorship? You wanna know a secret? Small properties aren't always excited to work with the BIG multinational brewer - and big brewers seem to have their sites on global events rather than the local food fair.<br /><br />So, maybe now is the time for the local brews to belly up to that local sponsorship scene and reshape the way your audience experiences an I.P.A. Believe me, activated properly, local events will do wonders in gaining customers because in reality, Americans are ready for you.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-37947060728865956422010-03-12T12:47:00.000-08:002010-03-13T12:12:19.320-08:00The sign of too many logos...Is what we call “sponsorship” becoming too pervasive?<br /><br />While I think sponsorship marketing is still a fledgling discipline, the way in which it’s currently being used is becoming pervasive….even to me. <br /><br />But, when I tell people what I do – and I still get this quizzical look. I mean, sponsor logo's are EVERYWHERE.<br /><br />That’s when I’m reminded that sponsorship has become so omnipresent, the general population has become immune to its existence. And, study after study points to the fact that as sponsorship becomes a permanent feature with properties, the use of benign activities like placing logos as the only property activation point is ruining our profession.<br /><br />The property rights holders providing proposals to potential sponsors around on field signage, and pricing the different sizes of signage around the arena as options – please STOP. If you want to sell billboards – get into the away from home advertising industry – but stop calling yourself sponsorship marketing professionals.<br /><br />As a discipline, it’s imperative that we start providing opportunities that fully integrate partners into our properties and the experiences our properties provide for our audiences. We need to insist that sponsors leverage their relationship with us in order for everyone, especially our audience, to gain the most from it. As a property, you’re the vehicle that companies use to promote and sell their brands. But, the rights fees also need to include creating an integrated relationship that the sponsor uses to enhance our audience experiences.<br /><br />A logo on a sign in the stadium, or in a TV ad, and calling that “sponsorship” does not enhance the experience for our audience. In fact, it doesn’t do anything except line your pocket. And if it doesn’t do anything for anybody except put money in your property – then it really doesn’t do any of us any good.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-7716664335814808802010-01-27T11:13:00.000-08:002010-01-27T13:23:28.595-08:00Revolution or evolution: State of the MediaI attended a state of the media Webinar hosted by <a href="http://www.vocus.com/">Vocus</a> today. The state of the media industry is anything but rosy for sure. The 3rd largest broadcast company files for Chapter 11 last month, major newspapers - and some 1070+ others - folded in 2009, and major magazines with a million readers - decide to publish no more! At the end of the Webinar - I felt like playing taps.<br /><br />But, is this the demise of the traditional media industry or an evolution occurring in the media industry? Are newspapers and magazines being weeded out or is this the complete demise of an industry the way we knew it? And the big question, did traditional media fail to utilize new media in time to survive?<br /><br />The Wall Street Journal and the NY Times are two good examples of print media that have overcome the new media blitz - and in fact - have become major players. You may say - yes but they've always been. But, so were pubs like the Chicago Tribune and Gourmet magazine? They were major players too - and look what happened to them.<br /><br />My take - whether it's local media or national media - you can no longer rest on your laurels as having a built-in audience. Your media product has to become relevant to your audience and always - always available; on-line, on my phone app, podcast whenever the audience WANTS to consume. Rebecca Bredholt called it the <span style="font-style: italic;">Green Eggs and Ham</span> syndrome. <span style="font-style: italic;"> I want the content in on my phone or in my home, in my car or at the bar. I want my content Sam I am</span>..<br /><br />But just as important, the product needs to be relevant - and that means the brand - yes the brand of even the local radio station has to be relevant to the audie<span style="font-size:100%;">nce. </span><span style="font-size:100%;">So, you can</span> put more wattage in my cottage - but if your brand means nothing to me...you lose me and your advertisers.<br /><br />Some advise? Look at how you promote yourself OUTSIDE of your medium. Showing up at the local chamber meeting is nice, doing a radio remote at the local car dealer's ok. But go out and provide unique experiences that only you can provide that taps into your potential audiences interests.<br /><br />Products like the Wall St. Journal are still valid because those organization's invested in the brand years ago, and continued to do so as the media "weeding" began. So, ask yourself Mr. Editor, Mr. GM - what experiences can you create for your audiences that will make you more valuable to your audiences?<br /><br />Experiential marketing programs, sponsorships in locally meaningful activities? Just a thought.<span style="font-weight: bold;"><span style="font-weight: bold;"><br /></span></span>David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-62542857113165154792009-12-14T15:33:00.000-08:002009-12-14T16:12:06.919-08:00Dead Celeb SocietyAdmittedly, I'd love to post something juicy about the Tiger Woods sponsorship issue. But everyone already has - and I couldn't shed any new light on the situation - less of course he was dating my sister.<br /><br />However, there are an extremely few number of sponsorship opportunities that involve connecting your brand with a high profile sports figure "brand" that won't end up carrying SOME type of negativity along the way.<br /><br />Do you account for this at the beginning of your relationship or do you just measure all of that upside the agent is providing? When you do your evaluation - do you take into account the cost associated with your new crisis PR plan?<br /><br />Dan Beeman gives a great reason to account for this in his blog from <a href="http://www.linkedin.com/news?viewArticle=&articleID=94378287&gid=59380&srchCat=WOTC&articleURL=http%3A%2F%2Fsponsorshipinsights.com%2Fblog%2F%3Fp%3D740&urlhash=Hye7">Sponsorship Insight Group</a>.<br /><br />I had proposed a couple of months ago that if companies want to play the celeb game, consider looking at connecting their brands with DEAD celebs instead. Silk products can brand themselves with Genghis Khan, the man credited for solidifying the silk trade route. James Dean recently made an appearance for South African investment firm Allan Gray. Monte Blanc pens provided a great example by connecting Ghandi with their pen co. in support of his worthy foundation.<br /><br />Point is - if you're gonna do the dance with Iverson, Vick, Phelps, Woods, Rose and so on... be sure to take into account the negative "intangibles" (there's no such thing as intangible - but I'll save that for the Christmas break) and for goodness sake don't put your company in a situation where all your eggs are in one basket.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-63804269217732039412009-10-06T08:38:00.000-07:002009-12-14T15:28:37.628-08:00The Mont Blanc CauseI typically don't run around in the circles of those in the market to spend $20 grand on a pen. But that's not by choice and by no means the purpose of this blog. It came to my attention the a couple of months ago that Mont Blanc (that's a pen company for us regular folk) has struck a deal with the Mahatma Gandhi Foundation, a worthy cause, to support the foundation's peace efforts. Apparently the pen company has a penchant for cause-marketing options, such as their partnership with UNICEF enabling underprivileged children to learn to read and write. By all means, this makes great sense.<br /><br />Is it me, though, or does it seem a bit against the grain for a foundation representing someone that stood for peace and minimalist ideals, to develop a cause tie-in with a pen company that is selling a pen for a mere $22k? ($200 - $1000 of which will support the foundation). Gandhi's grandson signed off on the deal.<br /><br />Carrie Triblet and Nora Rifon's study from Feb. 2006, (reported in the International Journal of Nonprofit & Voluntary Sector Marketing) revealed that consumers respond more positively to marketing efforts when the image of the sponsoring company or brand is compatible with the sponsored event or activity.<br /><br />I'm all for cause-marketing. It's one of the more effective tools in solidifying a brand and creating a purpose for purchase - and is a great measuring tool. But, synergies have to exist between the brand and organization - otherwise it doesn't work. <br /><br />Just my opinion.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-80107592888165224562009-09-17T11:37:00.000-07:002009-09-17T12:39:05.074-07:00The case for AnalyticsIn today’s economic environment, marketers are faced with tough decisions. Many companies are cutting their marketing budgets, but unless they figure out a way to stop customer attrition, companies must continue to market. The question is: What should they give up?<br /><br />In these difficult times, Analytics may be the best budget investment. The simplest definition of Analytics is "the science of analysis". Marketers may choose to make decisions based on past experiences or rules of thumb, or there might be other qualitative aspects to decision making. But, unless data is involved in the process, it would not be considered Analytics.<br /><br />Analytics should play a vital role in the decision-making process. Analytics should be considered a "need to have" in tomorrow's economy. Marketers should never saddle themselves with cost-cutting decisions without first reviewing some type of performance indicators.<br /><br />You may be using Analytics to measure the impact of your POS or shelf space program, measuring your media schedule against SKU movement. Yet,what Analystics are using to measure the efficacy of your sponsorships? <br /><br />There are products to support your measurement of value against your sponsorship spend that will give you data to justify the spend and data on where to cut the spend. I invite you to look at the<a href="http://www.sponsorshippro.com/"> SponsorshipPro+</a> program and <a href="http://www.pinpointsponsor.com/PINPOINTSESdemo.mov">Pinpoint SES</a>. Both products offer a cost effective method for determining accountability and value from your sponsored properties.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-40342970882880683902009-08-21T08:49:00.000-07:002009-08-21T08:50:43.556-07:00Auto Industry Ad Execs: Quick - Your Cheese is Moving!2-3-0. I can't seem to get those numbers out of my head.<br /><br />Forget about recession woes for just a second. Eventually, industry will level off to normalcy with or without TARP, Cash for Clunkers or anything else the government invents. And when it does - the two main selling points auto execs tout in their traditional advertising, MPG and PRICE, will be rendered obsolete.<br /><br />Why? Well, the next ad promoting an estimated 30 miles to the gallon will seem like peanuts now that the MPG bar has been raised to 230! Give me 200 MPG or it's not worth talking about. <br /><br />This past Tuesday, a report came out that India's Tata Motors new Nano car passed Euro IV safety tests, which are similar to those required by the US Department of Transportation Safety. With minor modifications - the Tata Nano could start selling in the U.S. by 2011 for as little as $3800. <br /><br />You have to wonder how an auto brand will be able advertise an $18k car that gets even 50 MPG with a straight face. Where's the market differentiation? In horsepower? Color choices? Maybe it'll be the cool music bed that blares in the background.<br /><br />Or, perhaps using the same tactics that endeared a Subaru to a core group of outdoor enthusiasts and created an immediate legacy for the Mini Cooper among consumers through VIP treatment at targeted events will be the new method for marketing car brands. If that's the case (which it should be), properties need to be gearing up to make room for test drives and photo ops so event goers can get a glimpse at the emotional appeal "behind the wheel" of something other than a Nano.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-52749362584771021642009-08-18T09:55:00.000-07:002009-08-18T12:42:29.468-07:00Manufacturers Demand More AccountabilityMark Dolliver reported in AdWeek online today that manufacturers are requiring greater emphasis in utilizing on-line advertising. Two-thirds of the respondents are reporting a shift in their online spend to either spending more than in previous years or at least half their budgets for online ads. <br /><br />Another angle to this story might be that marketers are required to demonstrate greater accountability and ROI in the advertising. Whether its online advertising or sponsorship, over half the respondents are choosing marketing programs that can be measured because of greater pressure to demonstrate results. <br /><br />So, you might start thinking about how you can demonstrate results for your sponsors.<br /><br />And if you cannot demonstrate results? Well, 70% of the respondents indicated that if you're unable to measure the marketing initiative - it's slated for reduction or elimination. <br /><br />Although you may have a great relationship with your sponsors, the CMO is hunting for greater accountability. So, you better be able to demonstrate measurable results. If you don't have benchmarks in place, now might be a good time to talk to your sponsors about how you can integrate metrics so they CAN measure the results. <br /><br />What results are they looking for now? 44% want to generate new customers, while another 29% want to develop leads, 13% indicated that they want to show they can retain customers and 11% were wanting to increase brand awareness. <br /><br />So, those signs and banners at your event may not be enough to excite your sponsors. To create sales and sales leads, your sponsor need to be on-the-ground with your event attendees. And while hospitality benefits may help retain some customers, utilizing hospitality to create customers or customer leads is going to be much more important.<br /><br />As for CMO's looking to build measurable metrics and accountability for sponsorship marketing - you can learn more about Pinpoint SES, an online tool that evaluates potential ROI and measures sponsorship results using company-benchmarks at http://www.pinpointsponsor.com/PINPOINTSESdemo.movDavid Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-89622981160068907942009-08-10T20:25:00.000-07:002009-08-21T06:36:00.444-07:00Measuring Results<meta name="Title" content=""> <meta name="Keywords" content=""> <meta equiv="Content-Type" content="text/html; charset=utf-8"> <meta name="ProgId" content="Word.Document"> <meta name="Generator" content="Microsoft Word 11"> <meta name="Originator" content="Microsoft Word 11"> <link rel="File-List" href="file://localhost/Users/davidrachell/Library/Caches/TemporaryItems/msoclip1/01/clip_filelist.xml"> <!--[if gte mso 9]><xml> <o:documentproperties> <o:template>Normal</o:Template> <o:revision>0</o:Revision> <o:totaltime>0</o:TotalTime> <o:pages>1</o:Pages> <o:words>285</o:Words> <o:characters>1627</o:Characters> <o:lines>13</o:Lines> <o:paragraphs>3</o:Paragraphs> <o:characterswithspaces>1998</o:CharactersWithSpaces> <o:version>11.0</o:Version> </o:DocumentProperties> <o:officedocumentsettings> <o:allowpng/> </o:OfficeDocumentSettings> </xml><![endif]--><!--[if gte mso 9]><xml> <w:worddocument> <w:zoom>0</w:Zoom> <w:donotshowrevisions/> <w:donotprintrevisions/> <w:displayhorizontaldrawinggridevery>0</w:DisplayHorizontalDrawingGridEvery> <w:displayverticaldrawinggridevery>0</w:DisplayVerticalDrawingGridEvery> <w:usemarginsfordrawinggridorigin/> </w:WordDocument> </xml><![endif]--> <style> <!-- /* Font Definitions */ @font-face {font-family:"Times New Roman"; panose-1:0 2 2 6 3 5 4 5 2 3; mso-font-charset:0; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:50331648 0 0 0 1 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman";} table.MsoNormalTable {mso-style-parent:""; font-size:10.0pt; font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style> <!--StartFragment--> <p class="MsoNormal">It was noted in Jim Andrew’s blog recently that Nielsen research revealed that sponsorship marketing, (forgive me for if I offend for adding the term marketing) is the second most trusted form of advertising.<span style=""> </span></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">
<br /></p><p class="MsoNormal">Yet, just the other day I was talking with the Exec VP of a major retail jeweler that didn’t see the need to invest in MEASURING the value they’re obtaining from their sponsorship.<span style=""> </span></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">
<br /></p><p class="MsoNormal">Measuring our results would be a nice to have, but not a need to have.” Sounds just like that old ad agency axiom from the 60’s that “50% of your advertising works, you just don’t know which 50%.”<span style=""> </span></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">
<br /></p><p class="MsoNormal">The main reason companies don’t measure results from their sponsorship is they have no specific metrics in place to evaluate sponsorship value and nothing in place to capture results.<span style=""> </span>These companies continue to make decisions based on established relationships and intuition (It’s true – look up the peer reviewed study in <i>Journal of Advertising Research – v32, i4</i><span style="font-style: normal;"> by Farrelly and Quester).</span></p><p class="MsoNormal">
<br /><span style="font-style: normal;"><o:p></o:p></span></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">That’s like buying TV time based on your favorite TV show and from your favorite ad rep without caring about HH reach or SKU movement during the schedule.</p><p class="MsoNormal">
<br /><span style=""> </span></p> <p class="MsoNormal"><span style=""> </span></p> <p class="MsoNormal">Many companies are learning to activating relationships and measure the results of their sponsorship marketing (yes, there I go again).<span style=""> </span>Not just by what the sales team heard at the VIP tent, but using tangible metrics that value impressions, potential customer extraction and conversion numbers – even if the conversation occurs 6 months after the event.</p><p class="MsoNormal">
<br /></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">Internet advertising, event and sponsorship marketing are 21<sup>st</sup> Century tactics that will maximize brand integration into the consumer lexicon. No longer is it possible to justify spending large chunks of advertising budgets on a fragmented broadcast medium that was in its golden era 50 years ago or in a print medium that is dying under the pressure of Internet news sources in a new economy?</p><p class="MsoNormal">But the need to identify and measure metrics is tantamount to understanding and monetizing those results.
<br /></p> <p class="MsoNormal"><!--[if !supportEmptyParas]--> <!--[endif]--><o:p></o:p></p> <p class="MsoNormal">Did I mention sponsorship is one of the most trusted forms of advertising?</p> <!--EndFragment--> David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-42541813811537107192009-07-02T07:47:00.001-07:002009-07-02T07:47:48.049-07:00Collaboration is King in Sponsorship<a href=http://shar.es/c3vA>Collaboration is King in Sponsorship</a><br /><br />Posted using <a href="http://sharethis.com">ShareThis</a>David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-37911676224835177132009-07-02T06:54:00.000-07:002009-07-02T07:38:45.587-07:00The Best Kept Secrets In Sponsorship MarketingSecret #5: Small Business involvement is key<br /><br />Despite the recession, we’ve been hearing about the continued growth in the sponsorship industry. In the past decade, companies FINALLY have been realizing that the holy grail of marketing products has arrived. After all, meaningfully connecting people and lives with “YOUR” product at an event or activity is pretty powerful marketing stuff, right?<br /><br />I still get the calls.<br /><br />“Hi, we’re a nice small non-profit that needs help in finding corporate sponsors. We had help for years but all of a sudden, our corporate supporter decided they didn’t want to work with us anymore.”<br /><br />The size of the sponsorship marketing industry is expanding, no doubt. IEG, Omnicom, EdelmanPR and many other major players are promoting and defining this discipline to their large clients and activating high profile properties every day.<br /><br />But, the trickle down theory of opportunities for smaller events hasn't quite happened. In fact, because of their lack of sophistication, or more importantly, lack of understanding about how to handle sponsorship, they're beginning to loose out. Without the personnel or resources, they're not able to compete with offerings made available from more sophisticated organizations. They’re just doing what they do best in making a difference where it counts, in their own community.<br /><br />These small organizations need to be armed with the tools to support their developing and maintaining corporate partnerships. Just as important, the small business community must have a stronger understanding of how to utilize local sponsorship opportunities to enable the growth of their business. This would eliminate the need for small non-profits competing for dollars from multi-nationals with large non-profit organizations.<br /><br />Until the sponsorship industry has a stronger educational platform, its use as a marketing tool among small businesses will remain minimal. And, until the sponsorship industry has an association that disseminates best practice and promotes its use, it'll be an uphill battle for those local non-profits.<br /><br />And I'll be happy to take that call.David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-66993107744267398202009-05-07T20:36:00.000-07:002009-05-27T13:17:59.397-07:00The Best Kept Secrets In Sponsorship MarketingSecret #4 The definition of sponsorship<br /><br />First of all, thank you to Dan Beeman for linking this post from the Sponsorship Insights Group. Be sure to read the other three secrets as well to get a perspective of where I'm taking this post. Part serious, part tongue and cheek. But I always welcome your feedback and ideas. <br /><br />It's amazing how many times I need to start conversation by defining the use of the word "sponsorship." Because the practice is fragmented so differently among companies - the idea varies from company to company. Is it a donation? Is it really a marketing or a PR initiative? Would it be a part of media planning , public affairs or even investor relations?<br /><br />Perhaps all sponsorship consultants and property rights-holders need to take the initiative to define "sponsorship." In the 90's, the wireless phone community decided to redefine themselves from being about cell phones to being about wireless communication and transformed the way people connect to each other and their world. While it took new technology to do that, it took an industry to verbalize it first.<br /><br />Europe's Sponsorship Association defines sponsorship as "any commercial agreement by which a sponsor contractually provides financing or other support to establish an association between the sponsor’s image, brands or products and property in return for rights to promote this association and granting of certain agreed to benefits."<br /><span style="font-style: italic;"><span style="font-weight: bold;"><br /></span></span>I like this as a starting point as this defines how a company can market itself to a specific audience through a mutually beneficial relationship. But is that any different than how we can define traditional advertising on TV or radio, or reaching out to newspaper or magazine readers?<br /><br />The secret definition may be that defining sponsorship is not about the property or the sponsor - but the way in which consumers are reached. So, what is sponsorship? Sponsorship is a way to touch, move and inspire audiences toward purchase, a purposeful two-way communication method with consumers.<br /><br />"Hi, can I speak with your consumer inspiration department, please?" Perhaps it's time we let the secret out of the bag.<br /><strong><span style="color: rgb(0, 0, 153);"><em></em></span></strong>David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com1tag:blogger.com,1999:blog-7649388080622982235.post-32100605690598737792009-05-05T06:25:00.000-07:002009-05-07T21:06:47.599-07:00The Best Kept Secrets In Sponsorship Marketing<span style="color: rgb(255, 204, 51);"><span style="font-size:130%;"><span style="color: rgb(204, 102, 0);">Secret #3: Activation matters<span style="font-size:100%;"><br /><br /><span style="color: rgb(0, 0, 0);"><span style="font-family: times new roman;">A good partnership requires buyer and seller due diligence and a strong understanding of how the relationship is to be integrated before the sale is made. Insuring that everyone is involved in understanding their roles in activating a successful sponsorship is key to success.</span><br /><br /><span style="font-family: times new roman;">And, it’s just as important to connect with the right event as it is to try and attempt to activate the wrong one.</span><br /><br /><span style="font-family: times new roman;">Gerard Prendergast and Derek Poon's study appearing in the </span><span style="font-style: italic; font-family: times new roman;">International Journal of Advertising</span><span style="font-family: times new roman;"> (Vol. 25, Issue 4) discovered the importance of product relevance with a sponsorship. How a company or product integrates with an event has a direct affect on consumer response. Little relevance equals little audience connection. So, your ROO is just as important as your ROI, if not more so.</span><br /><br /><span style="font-family: times new roman;">A successful sponsorship requires three things:</span><br /><br /><span style="font-family: times new roman;">1. The corporate partners internal buy-in so that all parties within an organization BELIEVE it's a good fit.</span><br /><br /><span style="font-family: times new roman;">2. A level of creative engagement to insure that sponsor products/services can be intelligently activated with some relevance to attendees.</span><br /><br /><span style="font-family: times new roman;">3. Corporate partners plan spending an additional $1.50 for every $1 spent on rights fees to activate the relationship in and out of the event. (This is the average according to IEG/Performance Research March 2008).</span><br /><br /><span style="font-family: times new roman;">Sponsors and rights-holders focusing on each other's needs and objectives throughout their partnership insures greater returns and better yields for renewals.</span><br /><br /><span style="font-family: times new roman;">Up next: Defining Sponsorship</span><br /><br /></span></span></span></span></span>David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com2tag:blogger.com,1999:blog-7649388080622982235.post-91863271442104990962009-04-28T14:42:00.000-07:002009-04-30T12:54:28.774-07:00The Best Kept Secrets In Sponsorship Marketing<span style="font-size:85%;"><span style="color: rgb(204, 102, 0);"><span style="font-style: italic;font-family:arial;font-size:130%;" >Secret #2: The actual value of a sponsorship opportunity</span><br /><span style="font-family:times new roman;"><br /></span><span style=";font-family:times new roman;font-size:130%;" ><span style="color: rgb(0, 0, 0);"><span style="color: rgb(204, 102, 0);"><span style="font-family:arial;">R</span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" >umor has it that the metrics for how companies derive the value of a sponsorship have been hermetically sealed and stashed away in a drawer somewhere. It’s a major conspiracy by all who hold the title of CMO. </span><span style="font-size:100%;"><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" > </span><span style="font-size:100%;"><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" >That’s probably a bit of a stretch. But I think there are three flawed factors at play in determining the value of a sponsorship opportunity:<br /><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" >1. While a company or an agency may evaluate a property, it’s likely they’re using traditional advertising metrics to determine “value.” Often times the company fails to measure the value associated with an integrated consumer activity and other factors linked to a personal connection with event. Limiting value to just the potential impression or reach removes that “relationship factor” that sponsorship creates (find Derek T.Y. Poon and Gerard Prendergast study, <span style="font-style: italic;">A New Framework for Evaluating Sponsorship</span>, International Journal of Advertising, 25(4).)<br /><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" >2. The vast majority of fees for smaller sponsorships are derived solely from where the dart landed on the board. Many of these sales efforts are led by volunteers who have little background in marketing and advertising but they make up for it through the passion of supporting “their cause.” These skewed dollar figures become the basis by which other sponsorship requests are evaluated.<br /><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" >3. Relationships and trust. The <span style="font-style: italic;">Farrelly –Quester </span>study in the Dec. 2003 Journal of Advertising Research confirmed that the antecedent for sponsorship renewals are based primarily on the relationship between buyer and seller, rather than from empirical, quantifiable values derived through evaluation and benchmarks. So, if a sponsor is paying too much for a property because of the relationship with that property – that’s going to affect how your proposal is evaluated.<br /><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" >A logical solution for these misguided efforts might be in the creation of an association that could provide some framework for industry standards to guide the valuation process. A professional sponsorship association could be the catalyst that outlines the parameters for these values and establishes a more common, disciplined approach. The result would be enhanced understanding and credibility for sponsor seekers and truer valuations of properties for marketing executives. </span><span style="font-size:100%;"><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" > </span><span style="font-size:100%;"><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" >We also need to keep in mind that part of the “intangibles” associated with sponsorship marketing comes from buyer intuition and seller creativity. It’s what makes sponsorship such a unique marketing vehicle. To evaluate the value of a relationship based solely from number crunching would be a mistake.</span></span></span></span></span></span><span style="font-size:85%;"><span style="color: rgb(204, 102, 0);"><span style=";font-family:times new roman;font-size:130%;" ><span style="color: rgb(0, 0, 0);"><span style="color: rgb(204, 102, 0);"><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" ><br /></span><span style="font-size:100%;"><br /></span><span style="color: rgb(0, 0, 0);font-family:arial;font-size:100%;" >Unfortunately, until standardized guidelines are established and implemented for the whole industry, the value for a sponsorship opportunity and how it's evaluated will remain secret, eluding property holders and potential sponsors. Dart board anyone?</span></span></span></span><br /></span></span>David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com0tag:blogger.com,1999:blog-7649388080622982235.post-83890349886343944492009-04-21T07:34:00.000-07:002009-04-29T08:05:26.335-07:00The Best Kept Secrets in Sponsorship Marketing<span style="color: rgb(204, 102, 0);font-size:180%;" >I</span><span style="font-family:arial;">t seems as though the idea of using sponsorships as a means to market a company/products is finally hitting Main Street. It is no longer just the beverage and communication, big insurance firms and banks – but smaller businesses are delving into the idea behind sponsorship marketing too.</span><br /><br /><span style="font-family:arial;">Madison Avenue has been dabbling in the practice for a few decades, but until recently, measured results from sponsorship were attributed to the "intangible" category. Peer reviewed studies have started to measure its true effectiveness. What we always intuitively knew was working, finally has some research to back it up.</span><br /><br /><span style="font-family:arial;">The shift in more use of sponsorship widens the number of new players in the industry who have a lot of questions about various aspects of sponsorship marketing. And since we don’t have a professional organization in the North America to help shape and formalize the practice, some truths and not so truths have crept into the discipline as a result.</span><br /><br /><span style="font-family:arial;">We're now a group of “haves and have nots.” Many have noted there seems to be industry "secrets" which have become apparent by the same questions that are asked on many sponsorship listserves. As an example, "what is the REAL value of my sponsorship and how is it derived? Is it done based on impressions, the size of a sign in a venue or something far more reaching" and secretive.</span><br /><br /><span style="font-family:arial;">Well, I’m choosing to use this space to bring about these questions that hopefully I can quell or at least put them out there for debate. Each week, I’ll post a new "secret" and perhaps uncover a few from you. Don’t be shy – post your best questions and secrets about sponsorship marketing.</span><br /><br /><span style="font-family:arial;">I think we should begin by tackling the biggest secret first – Is sponsorship marketing really all that effective? And, if it is – how do we position its use so that it's effective?</span><br /><br /><span style="font-style: italic; color: rgb(204, 102, 0); font-weight: bold;font-family:arial;font-size:100%;" >Secret #1: The most effective method of building consumer connections is with Sponsorship Marketing.</span><br /><br /><span style="font-family:arial;">In short, unequivocally, sponsorship marketing creates consumer intentions to make a purchase. Not only that, but sponsorship aids in the effectiveness and recall of those seriously expensive Madison Ave. ad campaigns. However, the effectiveness of sponsorships are attributed to:</span><br /><span style="font-family:arial;">1) how deep the sponsorship has been accepted by a company internally and</span><br /><span style="font-family:arial;">2) how a company chooses to leverage their relationship with sponsored properties.</span><br /><span style="font-family:arial;">Bottom line: Sponsorship is effective </span><span style="font-style: italic;font-family:arial;" >with</span><span style="font-family:arial;"> internal "buy-in" across the corporate culture and </span><span style="font-weight: bold;font-family:arial;" ><br />little buy-in equals little success.</span><br /><br /><span style="font-family:arial;">The Sneath, Finney, Close, and Lacey study appearing in the Dec 2006 issue of the Journal of Advertising Research provided the foundation that event marketing serves as a powerful lever to engage the consumer. Consumers that attend community-related activities are more receptive to marketing messages because the experience engages sensory, emotional, relational and cognitive values together. But, these elements cannot be delivered by the property alone. The sponsor needs to engage the consumer using the property as the vehicle to tap into the emotional connection. Too often, company decision-makers want turnkey solutions without having to lift an internal finger which ultimately results in half the partnerships potential.</span><br /><br /><span style="font-family:arial;">In an article from the same journal, Measuring the Effectiveness of True Sponsorship, Harvey, Gray and Despain report that what causes persuasion in the sponsorship context appears, however, to be logically different from what causes persuasion in the advertising context. Advertising appears to work by causing improvements directly in brand perception, whereas sponsorship appears to work by causing improvement directly in the perception of the sponsoring company and often indirectly by halo effect in the brand perception. However, even when brand perception is not affected, sponsorship can result in increased purchase intent, apparently as result of gratitude toward the sponsor. So, why wouldn’t a company WANT to take advantage of this across their marketing platform? Because the decision-makers are often too worried about how their latest FSI is going to drive case sales and no one is there to point out that the sponsorship can improve the value of a POS and FSI.</span><br /><br /><span style="font-family:arial;">As a profession, it is important that we provide the educational context to help businesses understand that, without their total internal commitment to activating their sponsorship across their marketing platform, it's unlikely they’re going to achieve consumer acceptance. They also need to understand that consumer activism is drastically shifting how purchases are made.</span><br /><br /><span style="font-family:arial;">Aligning with consumers through sponsorships is even more important. The ability for companies to capture the hearts of consumers through consumer activism will not be dissuaded by a slower economy. Fact is, companies that utilize sponsorship within their organization and for their audiences will be given the keys to the new kingdom; consumerism with a soul.</span><br /><br /><span style="font-family:arial;">Put that in your digital recorder and TiVo it!</span>David Rachellhttp://www.blogger.com/profile/13500390636253398161noreply@blogger.com2