S P E C I A L F O C U S
Sponsorship Insights from IEG
According to IEG (International Events Group), sponsorship has been the
fastest-growing form of marketing for the past decade,
and prospects look good for park districts
INTERVIEW BY ANN M. LONDRIGAN FOR IP&R
Paula Oyer Berezin heads the
consulting division of IEG, Inc., a
Chicago-based sponsorship
consulting company with clients
that range from Olympic governing bodies to the
Skokie Park District. IEG advises organizations that
sell sponsorships on maximizing their sponsorship
revenues and consults with sponsors on increasing the
return on their investments.
Prior to joining IEG in 1991, Berezin served as
executive director for two Olympic national governing bodies, introducing sponsorship to each sport:
McDonald's and Elizabeth Arden to U.S. Synchronized Swimming and more than $4 million in new
sponsorship income to U.S. Rowing. Both organizations revenues increased more than 300 percent
during her tenure. Prior to that, Berezin worked for
PepsiCo in its sports marketing department.
Here she shares her expertise with IP&R readers.
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IP&R: What are the top five or so keys to developing a successful sponsorship program for a
festival?
Paula Oyer Berezin: "For any sponsorship opportunity, leveraging all your resources is key... from sales
rights to the festival to recognition in all communications. It's really making sure that all the possible
benefits are centralized and one person can see how
they can be leveraged.
"Make sure that somebody has the authority to look
at all the marketable assets and allow one-stop shopping
for a sponsor. Sponsorships for any organization are
usually driven by somebody with marketing experience
and who really understands the needs of the sponsors,
who's not only looking at what you need as the park
district. Sponsors will not renew unless they get a
benefit back. Usually the successful sponsorship
programs are driven with the sponsor in mind, knowing
that they have to get a return on their investments.
"Communicating to the audience the role of the
sponsors rather than just sticking up signs and logos.
The sponsors should be positioned as bringing things
that make the festival more enhanced. For example,
they are helping bring more value to the festival
attendees. The only way the consumer can feel good
about the sponsor is if there is a value perceived by the
festival-goer—the sponsorship keeps the ticket prices
down, adds value, and this is communicated to people
so they know it exists.
"Educating the consumer is important. You can use
tag lines with the signage: 'Proud partner' or 'Bringing
you this entertainment is....' The program book talks
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September/October 2000 ¦ 25
S P E C I A L F O C U S
"If you position sponsors
so that they are protecting
the parks and adding
better value for the
residents, this fits into the
trend of 'experiential
marketing/ They are a
sponsor who brings
experiences to people."
— Paula Oyer Berezin
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about what the sponsor has done
for the event, not 'We'd like to
thank our sponsors,' but 'Without
this company, these entertainment
acts would not be possible at this
event.'
"One thing that you want to do
is encourage (sponsors) to leverage
their sponsorship through
promotion of the event. It's not
just the cash that a sponsor can
bring. The sponsor's promotion
might drive more attendance and
build up the festival's recognition
level. Promotion can drive
incremental ticket sales or
concession or merchandise sales.
Getting promotion can turn into
more value.
"A lot of people always think 'We
don't want in-kind (sponsorships).' The NBA exchanged
their $26 million (in cash sponsorship) for $100 million
in promotion and marketing commitment from Coke to
help build their brand because they figured they needed
Coke's marketing. And if the NBA feels they need that
help, every park district in America does too.
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"Basically people know about the parks but sponsors
can drive people to park programs or events and increase
concessions, incremental park registrations or event
attendance."
IP&R: As public agencies, sometimes park districts
struggle with the public's view that their services
are funded by taxes so why should private monies
infiltrate? If you were on the marketing staff of a
park district faced with this community or internal
agency mind-set, what would you say or do to
change the mind-set?
Berezin: "I think that they have to communicate to
the consumers or taxpayers that there's not enough
money to fulfill (the event) and the sponsors are filling
up the gap. It's no skin off the taxpayer's back. (The
sponsor) is keeping the costs of producing or attending
the event lower or paying for better programming.
People are always responsive to that if it's something
meaningful."
IP&R: Many park districts and forest preserves are
now good at getting $ 1,000 and $2,000 sponsorships for their festivals and events. How do they
get to the next level and even higher, in the tens of
thousands of dollars?
Berezin: "By not selling one event at a time and
instead tying in sales rights as well as some of the jewels
like major events. For the park districts, they must still
go through the RFP process for the products that are
sold through park district concessions. One way to go to
the next level is to create a proposal for sponsorship and
one for the RFP. All things being equal in price and
quality, you can integrate sales rights with sponsorship.
"Another way is instead of selling one event at a time,
offer year-round access to park district events and
programs or a combination of things. This way the
audience can be reached year-round.
"Within festivals or events, to get the sponsors to pay
at higher levels is to reserve key benefits. Don't offer
sampling ala carte. Why bother sponsoring at a high
level if you get a key benefit? Reserve key benefits like
sampling or the rights to use the marks and logos for the
event or a real key position as far as exposure at the
event, or a proprietary event. You can't be the sponsor of
the main stage unless you are a title sponsor."
IP&R: How far in advance of a festival or event
should districts seek sponsors?
Berezin: "Ideally you have twelve months, at a
minimum nine months. If you find that you don't have
that you have to be realistic about your expectations.
The sponsor is not there for that weekend only and if
they are going to prepare and promote, they need more
time. If you are three months away you might ask (the
sponsor) to be in for two years and the first year they get
a serious discount but get their feet wet and experience.
That (kind of agreement) is really for the higher level
sponsors that will promote and leverage their sponsorship."
IP&R: Skokie Park District is one of the first park
districts we know of to go through a sponsorship
audit and others are interested in making that
kind of investment. What is a sponsorship audit
and can it be done for a single festival or event?
Berezin: "For a park district, the value (of a sponsorship audit) will lie in their year-round assets. If you
have a single event that is a 'mega event,' you can use it
as a catalyst for other sponsorships.
"The way we work with parks is to look at all of their
assets and events and develop a multi-tiered system of
sponsorships not just for an event. Our methodology for
helping a park district is to analyze how the agency can
maximize its revenues without over-commercialization.
"We've helped many other events and venues earn
six- and seven-figure increases. We don't sell sponsorship or collect commissions, so we're in a unique
position to give objective advice on what will earn our
clients the most revenue while protecting their image.
IP&R: What's your prognosis for festival and event
sponsorships for park districts?
Berezin: "I think it's huge because if you look at the
trends with sponsorship, local is much more appealing
than global. People care more about their own backyard
26 / Illinois Parks and Recreation
SPONSORSHIP INSIGHTS FROM IEG
than the rain forest. A park district is something that
every community has, citizens of every community
cherish.
"If you position sponsors so that they are protecting
the parks and adding better value for the residents, this
fits into the trend of 'experiential marketing.' They are
a sponsor who brings experiences to people.
"For it to be successful, sponsors coming in to the
forest preserve or park cannot commercialize it. Like
Skokie, successful park districts will educate themselves
and become marketing driven and think as a partner."
IP&R: What's your personal
experience with local parks?
Berezin: "Just to bring it home,
the park is where my daughter
(Caroline) goes with her nanny
(Blanca) during the day. Other
moms and nannies are there. The
park is her world right now, and
it's a close-knit community. It's
where we gather.
"With the trend of the
Internet, we don't have to go
outside to buy things: companies
have to come find us so they have
to go where we go. They can't
expect us to go to the store and
tell us what to buy.
"So if I see that the craft
mobile is coming to the park
every Tuesday and Wednesday
from the Chicago Park District
and if it was made available by
some company and if my daughter likes the craft
mobile, then I feel better about that company. If
McDonald's renovated the playgrounds, I feel better
about McDonald's. That's a way to not only reach me
but that adds value to our experience at the park.
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"The NBA exchanged their
$26 million (in cash
sponsorship) for $100 million
in promotion and marketing
commitment from Coke to help
build their brand because they
figured they needed Coke's
marketing.
"And if the NBA feels they
need that help, every park
district in America does too."
— Paula Oyer Berezin
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"When it's done right, sponsorship is not at all about
commercialism. What's different is that it's not a
commercial transaction: there's an underlying degree of
altruism.
"You can't have a sponsorship that's just about
hanging up signs. Sponsors have to make deeper,
authentic commitments that are meaningful to
consumers." •
ANN M. LONDRIGAN
is the editor of Illinois Parks & Recreation magazine and the publications director for the
Illinois Association of Park District
Explore the "IEG Network" at www.sponsorship.com
From the home page of IEG's Web site (www.sponsorship.com):
"Sponsorship is the world's fastest-growing form of marketing. In
2000, corporations around the globe will spend more than $22 billion
sponsoring sports, arts, entertainment, causes and events, according to
IEG Sponsorship Report's annual survey."
Some "free" sponsorship information is
available at the site and many resources are
offered for purchase. Here's a sample of what
you'll find on the "IEG Network."
About IEG
The who, where, why and how of IEG, Inc.
Regional Seminars
At the top of the home page, click on "Selling
More Sponsorship Seminar," IEG's more
affordable alternative to the sponsorship audit
for learning how to package, price and sell
sponsorship. This annual seminar series includes
one in Chicago, Oct. 10, 2000 (cost: $440,
$350 for nonprofits with a subscription to the
IEG Sponsorship Report).
Forum
Explore this area for resources such as a glossary
of sponsorship terms and articles for successful
proposals at www.sponsorship.com/forum/
success.html
IEG 2001 Sourcebook Listing
At the top of the home page, see "Complete the IEG 2001
Sourcebook Free Listing Forms Online" and click here to add your
agency's events to the "Sponsorship Opportunities Free Listing."
Products and Services
Here you'll find publications, conferences, consulting and valuation
for the sponsorship industry. Note IEG's annual Event Marketing
Conference, March 11-14, 2001, in Chicago - where sponsors and
sponsor sellers come together for education and networking.
Request Information
Request two complimentary recent issues of the IEG Sponsorship
Report and ask about IEG's services.
Sponsorship Links
Sponsorship links to events, organizations, agencies, sponsors and
vendors. •
— compiled by Ann M. Londrigan
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September/October 2000 ¦ 27