May 2008 Cheat Sheet: Proving sponsorship ROI to exhibitors By Linda C. Chandler
Too often exhibitors are left on their own to determine the ROI on their sponsorships. Show organizers who invest the time to understand an exhibitor’s objectives up front will not only have more satisfied sponsors, but will also be able to generate greater sponsorship revenue in the long run.
Get the right exposure ■ For simple exposure, sponsors can choose to fund easily countable items that are imprinted with logos — lanyards, water bottles, bags, programs, etc. — to guarantee that each attendee at least sees the sponsor’s brand. ■ Pass-by exposure measurements are based on how many and how often attendees pass by a brand name in a day, and whether placement is in a must-see area, such as registration, entrances, escalators or on bus signs. If the sponsor’s signage is located in a high-traffic area, you can estimate the exposure the sponsor receives by tracking how many people visited the area. For a greater investment, RFID badge technology will allow you to track exactly how many people passed by any given spot. ■ Other sponsorships involve creating an experience for the attendee. Sponsoring events open to all attendees may provide the sponsor with microphone time, banners, etc., providing greater exposure. Exclusive, invitation-only events, including demonstrations, receptions or new-product introductions, may better target the demographics the sponsor wants to reach. You can measure the exposure at such events through attendance. However, if the sponsor is looking for leads, an invitation-only event with an attendee contact list might be a better choice. ■ Remember that the Web counts. “Hits” or “clickthroughs” are easy to quantify. Show producers can offer sponsors Web site ads and can include sponsor sites on e-mail marketing blasts. Post-show reports should include the summaries of these numbers.
Keys to success ■ Take time to determine the sponsor’s marketing objectives and their key performance indicators and benchmarks. ■ Customize. Tailor sponsorship packages; don’t take a cookie-cutter approach. ■ Provide ideas to potential sponsors. They may not know your event and your audience, so you may need to help them understand what will work with your attendees. ■ Compare the number of impressions with other marketing vehicles. For example, the cost of a banner or decal that will be seen by x-number of people versus the cost of producing and mailing a postcard to the same audience or the cost of buying print advertising. ■ Determine how success will be measured. Define how you’ll collect data, such as counting coupons or tracking attendance at demonstrations. ■ Develop a reporting strategy to present measurements to the sponsor afterward to prove ROI. ■ Communicate constantly. Keep sponsors aware of changes. ■ Post-show, present the entire story of the sponsor’s results. Include everything from booth positioning to leads to banner impressions. Report not only quantifiable numbers, but also qualitative results, such as demographics, decision makers reached or consumers’ impressions reported in surveys. ■ Be honest if something fails. Admit the error, but have a plan to prevent it from reocurring in the future.
Producing results While sponsors’ individual goals may vary, most relate to increased sales. Simple methods, such as post card deck mailings, coded coupons or punched tickets, can help track which customers acted because of exposure through a sponsorship. Show producers can work with sponsors to help generate other attributable results. ■ New product awareness. Create buzz that fuels sales—you want people to know about a new product, touch and feel it and talk about it. Measure the time people spent examining the product or talking to a salesperson about it. Survey attendees for “memorability” of specific items encountered at the show. Examine orders for a period of time following the sponsored event. Offering this service provides more value for the sponsorship. ■ Drive traffic to local dealerships — as in boats, recreational vehicles, cars or lawn equipment. Evaluate the resulting spike in sales through dealers. Offer show attendees coupons or cards that they must present at the dealership. An exhibitor might choose to do this on his/her own, or you can offer it as a service. ■ Drive consumers to a Web site. Provide a special code or some type of incentive or discount available only through the show. This approach works especially well for show guide advertising or literature placed in the show bag. ■ Marketing exposure — such as in naming rights, co-sponsorship, or using “presented by” language wherever possible. Each time the event is mentioned in press, radio announcements, etc., the sponsor’s name is included, and these impressions are counted and measured for PR value. And don’t forget Web site hits—help your exhibitors track this information. ■ Media coverage. Arrange interviews with press covering the event. Afterward, count the number of stories or quotes from company representatives appearing in stories in trade publications or local/national media. There are also clipping services that can help you do this.
Traffic-tracking technologies ■ Video cameras ■ Radio frequency identification (RFID) ■ Bar code scanners ■ Web site hits and click-throughs
Rules of thumb ■ It’s all about mapping back to each sponsor’s corporate business objectives. You have to know what sponsors want to accomplish before you can suggest an appropriate sponsorship to help them. ■ Stop selling à la carte. Create tiers of sponsorship packages that raise the bar for sponsors’ exposure to your audience, creating higher investment but also higher ROI. ■ Ensure first-time sponsors‘ success. Snap pictures, take executives on a show tour, provide information about your attendees, send copies of press clip files, etc. ■ Arm yourself with research. CEIR (www.ceir.org) has several reports, including one that shows that exhibitors who sponsor hospitality functions can increase qualified booth traffic by more than 100 percent and result in greater sales conversions. ■ If you can’t measure it, it probably doesn’t make sense to try to sell it. Use intangibles as bonus benefits. ■ Measure at pre-established points along the way, not just at the end of the event or sponsorship term. Multi-year sponsorship programs
Multi-year sponsorship programs Many trade shows offer one-year renewable sponsorships. It’s better to try to negotiate a longer-term arrangement — three years, for instance — with right of first refusal when the contract is up for renewal.
Meet the Experts • Charles W. Allen, The CW Allen Group, (205) 263-0555, www.cwallengroup.com • Jeff Chase, Immersa Marketing, (414) 655-2200, www.immersamarketing.com • Bill Chipps, IEG, (800) 834-4850, www.sponsorship.com • Bob Hughes, NACS, (703) 684-3600, www.nacsonline.com • Chris Levy, Encore Media Partners, (310) 497-4656, www.encoremediapartners.com • Eric Udler, SuperPet Expo, (301) 564-4050, www.superpetexpo.com Linda C. Chandler is a freelance writer and editor based in Tyler, TX. She has written for association and convention publications for 19 years and is an active member of Tyler CVB’s tourism committee. Contact her at linda.chandler@earthlink.net. More on EXPOweb.com
A different approach to sponsorships Back in the 1980s, the National Association of Convenience Stores, now known as NACS, Alexandria, VA, eliminated the need to sell sponsorships by establishing the Hunter Club, named in honor of the association’s first executive director. Instead, industry suppliers buy a tiered membership—gold, silver or bronze—for an annual fee that guarantees first choice in booth space as well as year-round recognition and benefits, such as access to buyers, says Bob Hughes, Vice President of supplier relations and expositions. Staffers focus on customer service and relationships, rather than selling, and suppliers see increased ROI.
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