12 th Annual IEG / Performance Research Sponsorship Decision-Makers Survey

1. 12th AnnualIEG / Performance ResearchSponsorship Decision-Makers Survey

2. Table of Contents I. METHODOLOGY p. 3 II. EXECUTIVE SUMMARY p. 5 III. RESPONDENT PROFILE p. 13 IV. SPONSORSHIP SPENDING & INVOLVEMENT p. 17 V. RESEARCH CONSIDERATIONS p. 41 VI. PROPERTY PERCEPTIONS p. 52

3. Methodology 12th AnnualIEG / Performance ResearchSponsorship Decision-Makers Survey

4. Methodology From a sample of over a thousand sponsorship decision makers invited worldwide, a total of 105 participants completed an online questionnaire about their sponsorship decision-making process. Respondents were screened by IEG, Inc. to be sponsorship decision-makers from small, medium and large corporations worldwide. Data collection was conducted in January and February of 2012. Research objectives included, but were not limited to, determining the benefits and services that are most important to companies when making sponsorship decisions and estimating how companies are budgeting for measurement and activation.The margin of error for this study is approximately + 5%. This study was conducted in conjunction with IEG, LLC. www.sponsorship.com

5. II. Executive Summary 12th AnnualIEG / Performance ResearchSponsorship Decision-Makers Survey

6. Source: IEG Sponsorship ReportMarch 19, 2012 www.sponsorship.com/IEGSR.aspx Decision-Makers Survey: Old Habits Do Die – Sponsor Survey Sees Less Reliance on Ads, Signage While they embrace ways to engage better, sponsors still come up short on measurement. The 12th annual IEG/Performance Research Sponsorship Decision-makers Survey indicates that sponsors are letting go of some of the more traditional and less engaging ways to communicate and evaluate their partnerships. In terms of activation, traditional advertising was used far less as a leveraging tool than in any previous year. Although 72 percent of sponsors still buy media to activate, that figure is a long way from the high of 86 percent in 2005. The survey added social media as an activation channel this year and not surprisingly it appears as one of the five most popular leveraging tools, alongside public relations, internal communications, advertising and hospitality.

7. Source: IEG Sponsorship ReportMarch 19, 2012 www.sponsorship.com/IEGSR.aspx Decision-Makers Survey: Old Habits Do Die – Sponsor Survey Sees Less Reliance on Ads, Signage (continued…) Hospitality was significantly more popular this year (75 percent of sponsors using it vs. 63 percent last year), pointing to its resurgence after falling out of favor during the recession, especially among financial services companies.Another old standby that fell somewhat out of favor this year was on-site signage. Just over half of respondents said it was a highly valuable benefit (giving it a score of 9 or 10 on a 10-point scale) compared to 63 percent in 2011. Another exposure-related benefit—identification in the property’s media buy—fell out of the top 10 benefits this year, replaced by the right to promote co-branded products and services. Category exclusivity remained the most valuable sponsorship benefit.

8. Source: IEG Sponsorship ReportMarch 19, 2012 www.sponsorship.com/IEGSR.aspx 8 Decision-Makers Survey: Old Habits Do Die – Sponsor Survey Sees Less Reliance on Ads, Signage (continued…) Also, generating awareness is no longer alone at the top in terms of how sponsors are evaluating success. Two other measures—attitudes toward the brand and sales—moved into a virtual tie for the top spot among most valuable metrics. Also of note, measuring televised logo exposure fell out of the top ten metrics, replaced by the response of trade/channel partners.Finally, when assessing the importance of various objectives, increasing brand loyalty joined creating awareness and visibility as the top goals of sponsors. When asked about their 2012 plans, sponsors demonstrated the cautious attitude noted in IEG’s projections of slowed spending growth this year.

9. Source: IEG Sponsorship ReportMarch 19, 2012 www.sponsorship.com/IEGSR.aspx 9 Decision-Makers Survey: Old Habits Do Die – Sponsor Survey Sees Less Reliance on Ads, Signage (continued…) Although still a majority, the number of sponsors who said they were considering new sponsorships in 2012 dropped six percentage points from 2011. Similarly, the number of decision-makers who indicated they were looking to drop current deals not up for renewal rose six percentage points from last year, although remained in the minority. Responses about the direction of 2012 spending were nearly identical to 2011’s, with just about half of sponsors holding budgets steady, while 36 percent will spend more and 17 percent plan to spend less.Overall, spending on sponsorship fees—not including activation—will account for a smaller portion of total advertising, marketing and promotion budgets than last year—17 percent versus 19 percent.

10. Source: IEG Sponsorship ReportMarch 19, 2012 www.sponsorship.com/IEGSR.aspx 10 Decision-Makers Survey: Old Habits Do Die – Sponsor Survey Sees Less Reliance on Ads, Signage (continued…) When asked specifically about activation spending, about half of sponsors said they would shell out the same for leveraging this year as last, while 42 percent will allocate more money and 11 percent will lay out fewer dollars. The average ratio comparing activation spending to the amount spent to acquire sponsorship rights rose for the third year in a row to $1.70 on leveraging for every $1 spent on rights fees. In 2011, the comparison was $1.60 to $1. Despite other signs that sponsors are growing savvier about sponsorship, the survey reveals that more than one out of five still spend nothing on activating their partnerships.

11. Source: IEG Sponsorship ReportMarch 19, 2012 www.sponsorship.com/IEGSR.aspx 11 Decision-Makers Survey: Old Habits Do Die – Sponsor Survey Sees Less Reliance on Ads, Signage (continued…) More sponsors than ever indicated that their return from sponsorship was growing, with nearly six out of 10 seeing better results over the past few years, while just five percent saw a decline in their return. Another one out of five sponsors reported they had not determined whether their return was improving or not.That’s despite the vast majority of sponsors who say the need for meaningful results continues to grow.

12. Source: IEG Sponsorship ReportMarch 19, 2012 www.sponsorship.com/IEGSR.aspx 12 Decision-Makers Survey: Old Habits Do Die – Sponsor Survey Sees Less Reliance on Ads, Signage (continued…) Continuing a long-term pattern of wanting better measurement but not allocating resources for it, this year’s survey found nearly one-third of sponsors allocating no money to measure the success of a given partnership, while another 44 percent spent an amount equal to one percent or less of the sponsorship fee to evaluate their return. As for how properties can best service their partners beyond delivering the rights and benefits committed to, sponsors placed more value on property-provided research into audiences’ attitudes toward and images of sponsors, as well as research on the audiences’ propensity to purchase sponsor products.

13. Decision Making Responsibilities “Within your organization, which of the following describes your responsibilities regarding sponsorship?”

14. Sponsorship Programs by Region “In what regions do your sponsorship programs operate?”

15. Personal Location by Region “In which region are you personally based?”

16. IV. Sponsorship Spending & Involvement 12th AnnualIEG / Performance ResearchSponsorship Decision-makers Survey

17. Choosing Property to Sponsor “How do you typically go about choosing a property to sponsor?” 18

18. When Sponsorship Budget is Decided “During which time period does your company determine its sponsorship budget?” 19

19. Likely Sponsorship Spending Compared to Prior Year “How will your overall sponsorship spending in [2012] compare to [2011]?”

20. Sponsorship Spending in Prior Year “About how much did your company spend on sponsorship in [2011]?” 21

21. Percentage of Marketing Budget Spent on Sponsorship [*Based on those who responded] “Approximately what % of your organization’s overall marketing budget do sponsorship rights fees represent?”

22. Considering Dropping Any Current Sponsorships Not Up for Renewal “Is your company seeking to drop out of any current sponsorships (those not up for renewal)?” 23

23. Considering New Sponsorships in the Coming Year “Is your company considering new sponsorships in [2012]?” 24

24. Leveraging/Spending Ratio Average Ratio of Activation Spending to Rights Fees 2008 – 1.5:1 2009 – 1.4:1 2010 – 1.4:1 2011 – 1.6:1 2012 – 1.7:1 [*Based on those who responded] “As best as you can estimate, what is your company’s typical promotional spending ratio?”

25. Likely Direction of Leveraging & Activation Spending in 2012 “How will your spending, specifically on sponsorship leveraging and activation in [2012], compare to [2011]? Will it…?” 26

26. Agency Used for Support “What types of agencies, if any, do you use to help leverage/support your sponsorship program?”

27. Marketing Communication Channels Used [Top 5 Results] “During the past 12 months, which of the following marketing communication channels have you used to leverage your sponsorship programs?”

28. Marketing Communication Channels Used [Results 6-9] NA “During the past 12 months, which of the following marketing communication channels have you used to leverage your sponsorship programs?”

29. More likely to be Involved in Sponsorship Category than Prior Year “Compared to [2011], how much do you expect your company to be involved in the following types of sponsorship in [2012]?”

30. Less likely to be Involved in Sponsorship Category than Prior Year “Compared to [2011], how much do you expect your company to be involved in the following types of sponsorship in [2012]?”

31. Sponsorship Objectives [Top 5 “9” & “10” Ratings] “Using a scale of 1 to 10, where 1 is not at all and 10 is extremely, please rate the following objectives as to their importance to you or your marketing team's decisions when you evaluate which sports or properties to sponsor.”

32. Sponsorship Objectives [Other Top “9” & “10” Ratings] “Using a scale of 1 to 10, where 1 is not at all and 10 is extremely, please rate the following objectives as to their importance to you or your marketing team's decisions when you evaluate which sports or properties to sponsor.”

33. Sponsorship Objectives – Business To Business [“9” & “10” Ratings] “Using a scale of 1 to 10, where 1 is ‘Not at all’ and 10 is ‘Extremely,’ please rate the following objectives as to their importance to you or your marketing team's decisions when you evaluate which sports or properties to sponsor.”

34. Sponsorship Objectives – Sales & Promotional [“9” & “10” Ratings] “Using a scale of 1 to 10, where 1 is ‘Not at all’ and 10 is ‘Extremely,’ please rate the following objectives as to their importance to you or your marketing team's decisions when you evaluate which sports or properties to sponsor.”

35. Sponsorship Objectives – General [“9” & “10” Ratings] “Using a scale of 1 to 10, where 1 is ‘Not at all’ and 10 is ‘Extremely,’ please rate the following objectives as to their importance to you or your marketing team's decisions when you evaluate which sports or properties to sponsor.”

36. Value of Benefits [Top 5 “9” & “10” Ratings] “Using the same scale of 1 to 10, where 1 is ‘Not at all’ and 10 is ‘Extremely,’ please rate the following benefits as to how valuable they are to your organization.”

37. Value of Benefits [“9” & “10” Ratings 6-10] “Using the same scale of 1 to 10, where 1 is ‘Not at all’ and 10 is ‘Extremely,’ please rate the following benefits as to how valuable they are to your organization.”

38. Value of Benefits [“9” & “10” Ratings 11-15] “Using the same scale of 1 to 10, where 1 is ‘Not at all’ and 10 is ‘Extremely,’ please rate the following benefits as to how valuable they are to your organization.”

39. Value of Benefits [“9” & “10” Ratings 16-20] “Using the same scale of 1 to 10, where 1 is ‘Not at all’ and 10 is ‘Extremely,’ please rate the following benefits as to how valuable they are to your organization.”

40. V. Research Considerations 12th AnnualIEG / Performance ResearchSponsorship Decision-makers Survey 41

41. Importance of Various Types of Analysis [“9” & “10” Ratings] “Using a scale of 1 to 10, where 1 is ‘not at all’ and 10 is ‘extremely’, please rate the importance of the following types of analysis in evaluating whether to change or renew a sponsorship?” 42

42. Information Sought Pre-Sponsorship [Top 4 Results] [Based on those who responded] “Which of the following do you typically analyze when making your decision?”

43. Information Sought Pre-Sponsorship [Results 5-8] [Based on those who responded] “Which of the following do you typically analyze when making your decision?”

44. % of Rights Fee Spent on Pre-Event Research to Evaluate Fit [*Based on those who responded] “Approximately what % of a sponsorship’s total budget is typically spent on pre-selection research to evaluate fit?”

45. % of Rights Fee Spent on Concurrent / Post-Event Research “Approximately what % of a sponsorship’s total budget is typically spent on concurrent / post-event research to measure success?”

46. Change in Need for Validated Results in Past 1-2 Years “How has the need for validated results from sponsorships changed in the past one to two years?”

47. Company Actively Measures Sponsorship Returns “Does your company actively measure return from its sponsorships?”

48. Company Has a Standardized Measurement Process [*Based on those who responded] “Does your company have a standardized process for measuring return from its sponsorships?”

49. Information Sought Pre-Sponsorship [Top 6 “4” & “5” Ratings] [Based on those who responded] N = 87 N = 93 N = 100 N = 93 N = 93 N = 81 “How does your company measure sponsorship’s return on investment and/or return on objectives?”

50. Information Sought Pre-Sponsorship [“4” & “5” Ratings 7-12] [Based on those who responded] N = 97 N = 95 N = 95 N = 99 N = 94 N = 100 “How does your company measure sponsorship’s return on investment and/or return on objectives?”