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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

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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.

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

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

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.

"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.

"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

"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

September/October 2000 ¦ 27


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