Identification

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Identification Evaluation of Your Sponsorship
Assets

• Presented By
• Deborah Wilson
• Performance Sponsorship Group
• www.performancesponsorship.com519 940-4442

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Sponsorship

• Sponsorship can be defined as the exchange of
  cash or in-kind services for a commercial reward.
  Corporate sponsorship is most often driven
  through the marketing department and typically
  the corporation receives crediting on marketing
  and advertising materials, hospitality
  opportunities and on-site sales promotions in
  exchange for the sponsorship fee. Tax receipts
  are not offered for corporate sponsorships.
• .

3
Philanthropy

• Philanthropy can be defined as the exchange of
  cash or in-kind services for little to no
  commercial advantage. Within corporations, this
  type of charitable giving most often originates
  with corporate affairs, or in larger
  organizations, with a specific donations
  department. The corporation receives limited
  crediting and visibility for its gift but unlike
  sponsorship, the corporation may receive a tax
  receipt. Traditionally, Naming Gifts have been
  made in perpetuity but now some donations are
  being made over a limited term.

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Philanthropic Model
Planned Giving Bequests
Capital Giving Major/Special Gifts
Repeat Annual First Time Gifts
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Sponsorship Model
Naming Rights Long-Term Multi-Dimensional
Pillar Presenting Sponsors Special Events
One-Time or Short-Term Special Events
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Asset AnalysisIdentification of Tangible and
Intangible Assets

• Tangible Assets
• Tangible assets are items associated with
  properties/spaces/events that have a quantifiable
  marketplace value as determined by advertising or
  public relations agency benchmarks. Tangible
  assets include such items as print, signage,
  electronic messaging such as billboards,
  posters/ticket backs/brochures/letterhead, etc.
  Typically a cost per thousand is the measurement
  used to determine the value of tangible assets
  e.g.,. .015 per thousand is the assigned value
  for tickets X 600,000 annual tickets X 80 of the
  viewing audience seeing the logo on the ticket
  equates to a value of 7,200.

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Asset AnalysisIdentification of Tangible and
Intangible Assets

• Intangible Assets
• Intangible assets are items associated with
  properties/spaces/events that have no
  quantifiable marketplace value. Intangible
  assets include items such as prestige of
  property, geographic reach, leadership, value of
  exclusivity etc. Some advertising agencies will
  not accept a value for intangible assets that is
  any higher than 50 of the value of the tangible
  assets. An argument could be made that in some
  projects intangible assets outweigh the value of
  the tangible assets. Typically valuation
  criteria is determined, an subjective judgment
  occurs grading that criteria relative to the
  established criteria, the criteria is weighted
  within the industry classification and a total
  value achieved to be used as a percentage of the
  tangible asset total.

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Examples of Typical Facility Assets

• Tangible
• Hosting hospitality
• Tickets
• Signature events
• Access to special privileges
• Signageinternal and external
• Media communicationsmedia kits, press releases
• Stakeholder communicationsposters, brochures
• Advertisingprint and electronic
• Billboards
• Foundation materials
• Direct mail and,
• Online.

• Intangible
• Category exclusivity
• First right of refusal
• Showcase
• Sampling
• Prestige of property
• Management competency
• Networking through access
• Use of wordmark
• Brand Linkage
• Strength of market position
• Corporate culture and,
• Quality of public relations.

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Case StudyOrange Center for the Performing Arts

• Summary of Asset Analysis
• Signage External 308,027
• Signage Internal 440,293
• Offsite Signage 226,000
• Advertising Paid 10 of buy 16,852
• Advertising Electronic 141,000
• Promotional Materials 576,000
• Onsite Promotions 42,000
• Electronic Promotions Web 27,000
• Estimated Annual Value of Tangible
  Assets 1,777,172
• Estimated Annual Value of Intangible Assets
  533,149
• Total Annual Value 2,310,321
• ROI of 41 for an annual fee of 575,000

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Example of Worksheets

• Signage External
• Asset Asset Description Number of
  Impressions Unit Value of Audience Total Value
• Stage door 12 x 36 x 2 signs 12,070,000 0.01
  30 3,6210
• Hall signs 60 x 30 546,352 0.01 40 2,185
• 1st St SE 9th Ave 22 x 5 8,875,000
  (25,000/day x 365) 0.02 25 44,375
• 9th Ave between Mac 1st 22 x 5 6.035,000
  (17,000 x 365) 0.02 25 30,175
• Mac between 8th 9th 22 x 5 8,875,000 (25,000
  x 365) 0.02 25 44,375
• Window graphics 8th Ave 6 x 30 78,455,000
  (17,000 x 365) 0.0015 10 11,768
• Parking on ramp 8 x 60 x 2 signs 82,916 0.01
  5 30 373
• 8th Ave window 8 x 60 x 1 sign 1,073,520 (216
  ped/hr x 14 hr/ 365) 0.015 20 3,220
• 9th Ave window 8 x 60 x 1 sign 994,000 (200
  ped/hr x 14 hr x 365) 0.015 20 2,982
• Temporary banners 8th Ave 30 x 60 x 6
  6,441,120 (216 ped/hr x 14 hr x 365) 0.01 15
  9,661
• Temporary banners 9th Ave 30 x 60 x
  5 30,175,000 (17,000 x 365) 0.01 15 45,262
• Logo on 8th Ave sidewalk 4 x 4 x 1 1,073,520
  (216 ped/hr x 14 hr x 365) 0.01 60 6,441
• On building SW corner 12 x 30
  8,875,000 0.02 40 71,000
• Sub Total 308,029

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Return on Investment

• In Canada, it is common to offer a return on
  investment in the range of 41/51 or for every
  1 spent in sponsorship, the sponsor receives the
  value of 4/5 in return.
• This ROI prevents sponsors from cherry picking
  through a proposal, discarding benefits that are
  of little to no interest to
• the corporate agenda and thus decreasing the
  asking price.

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Packaging - Sell Solutions Not Programs

• In developing the sales package, show the
  prospect how your project provides a solution for
  the sponsor, not how the sponsor provides a
  solution for you!!!

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General Principles15 Keys to Success

• The Opportunity
• Learn your sponsors business and illustrate why
  sponsorship of this project will further the
  sponsors business agenda
• Make the sponsors participation as turn-key as
  possible
• Develop benefits, not features
• Include demographics, trends, and affinity
  information
• Decrease clutter
• Less is best keep it short and to the point.
  When you have your final draft, reduce the
  adjectives and adverbs by 50

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General Principles15 Keys to Success

• The Promotional Overlay
• Generate sponsor value through co-sponsor
  promotions and cross-promotions
• Identify major assets, and where possible, borrow
  assets (i.e., from a Board member) to increase
  value for your sponsor
• Secure a media partner
• Secure a retail partner
• Create one-of-a-kind experiences

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General Principles15 Keys to Success

• The Fee
• Develop benchmarks or performance indicators that
  illustrate success
• Research, research, research
• Offer a substantial return on investment (ROI)

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General Principles15 Keys to Success

• The Close
• Your case is compellingask for the sale!!!!!