In Depth
Audience Research: Asking The Right Questions To Give Sponsors The Answers They Need
Sponsors require information on who the audience is, what they buy and how they interact with the property.
7/26/10: As sponsors continue to raise the bar for criteria used to both assess prospective sponsorship opportunities and measure the performance of existing partnerships, they are requiring more and better audience research from properties.
In particular, sponsors are looking for research that demonstrates real fit between their target audience and that of the property, including a propensity by fans, attendees and other stakeholders to purchase their products or services.
“The proof of validity for a sponsor investment today requires significantly more research than in the past,” said Mel Poole, president of SponsorLogic, a sponsorship consultancy, management and sales agency. “Properties have to give sponsors as much compelling evidence as they can to make an investment, and it has to include research.”
“The need for research is driven in large part by economic challenges,” said Brian Corcoran, president and founder of Shamrock Sports Group, a sponsorship marketing and sales agency. “Marketers have to show a greater return on investment, and so the proof is in the pudding.”
The investment in gathering information beyond basic demographics—gender, age, household income, education, etc.—can provide several key benefits for sponsorship sellers.
First, having a clear understanding of audience lifestyle traits, passion points and purchase habits can help properties identify and qualify new sponsor prospects based on that information.
Properties also can use that research as ammunition to close a deal. For example, a consumer electronics manufacturer will find it more difficult to turn down a deal with a property that can demonstrate its audience purchases electronic gadgets on a much more frequent basis than the general public.
In addition, rightsholders also can use research findings to improve the activation efforts of existing sponsors, as well as to demonstrate the tie is achieving results.
Every sales agent contacted for this story said in-depth audience data can go a long way in identifying potential companies and categories to pitch, as well as help close or renew a deal.
“The more research a property has that goes beyond household income and the standard male/female breakout, the more it helps me geotarget potential sponsors,” said Tamara Goddard, director of strategic alliances with sales agency California Partnership Marketing Group, which counts shopping malls and other rightsholders among its clients.
For example, Goddard said, information on the types of vehicles an audience drives is critical for Toyota Motor Sales U.S.A., Inc.’s Lexus brand, which frequently activates with free valet service for owners.
“Their marketing agency always asks the question: How many Lexus vehicles come to your building?”
But while every sales agency contacted by
IEG SR expressed a need for in-depth research, they all admitted most properties fall short in providing it.
Case in point: Only about half of the properties represented by sales agency Amplify Sports and Entertainment have conducted meaningful audience research.
“Some are relying on general research, which includes Nielsen or Scarborough data, while the other half is conducting very relevant research,” said Michael Neuman, Amplify president.
As an example of the latter, Neuman points to music promoter and venue owner Bowery Presents, a new client. The company hired Amplify last month to conduct audience research at the Wellmont Theatre in Montclair, N.J.
“They hired us for a consumer engagement study conducted over four concerts, and an extensive online survey to a database of consumers who purchased tickets over the last 18 months, Neuman said.
While many of Amplify’s clients don’t have comprehensive data, some have allowed the agency to ask questions of stakeholders on a one-off basis.
For example, American Bass Anglers surveyed members online to gain information for an insurance company the agency was pitching.
“They asked if insurance was top of mind with bass fisherman,” Neuman said. “Thirty-seven percent said they were interested in learning about a cheaper insurance alternative for their truck or boat.”
Down And Dirty: Tips On Conducting Audience Research
As far as frequency, properties should try to conduct audience surveys at least once every two to three years, said Bill Doyle, vice president of sponsorship research firm Performance Research.
“If there are no drastic changes, audience demographics and buying patterns are not going to change dramatically,” he said.
Changes that would warrant more immediate updates to research could include a new title sponsor or a change in the duration of the event, he said.
Properties that host multiple events targeted at different audiences—a venue that offers family and children’s events, as well as rock concerts, for example—should make sure to conduct research for each segment, he added.
When to comes to conducting research, properties generally have three options: Pay a research firm, find someone who will do it pro bono, or do it themselves.
Below,
IEG SR highlights the pros and cons of each option.
Hiring a third-party professional. While research provided by independent firms is highly credible in the eyes of sponsors, that credibility comes with a price.
Generally speaking, properties that have an up-to-date attendee or participant database can expect to pay roughly $5,000 to $7,000 for an audience survey.
Properties that do not have a database are likely to spend upwards of $25,000, Doyle said. “Labor charges for people with clipboards for five days can rack up very quickly.”
Professional firms also are able to help clients stay on top of a changing environment for market research, much of that due to new technology. For example, smart mobile devices have made a significant impact in how audience research is collected, especially among young adults.
“A third of consumers under the age of 25 are accessing the Internet through a third screen, and traditional surveys do not convert into handheld devices,” Doyle noted. “We have to develop new ways to adapt to this mobile society.”
Doyle recommends properties use more than one survey method, such as overlaying online surveys with on-site intercepts.
Working with a college or university. Some properties that do not have the resources to hire professional researchers have been able to get the work done by a local college or university. Marketing departments frequently look for real-life projects for their market research classes.
“Properties that are afraid of the cost of research can go to a local college or university and talk to them about engaging their students,” said Poole, who enlisted the help of a class from The University of North Carolina at Charlotte to conduct audience research on a NASCAR team the agency represented.
While colleges and universities can provide free or low cost expertise, there is one potential drawback: The amount of time it takes to conduct the research.
“Speed is not their general forte; it’s generally a learning process, so it usually takes longer,” Doyle said.
Doing it yourself. Properties can conduct research themselves, but it can be difficult. After all, most properties do not have the knowledge or wherewithal to compile surveys and sort through the data collected.
In addition, most sponsors will look less favorably on research conducted by properties than by a third-party.
“It’s hard to provide an objective report that says how great your property is,” Doyle said.
Generally speaking, the need for credible research increases as rights fees go up, he added.
“You don’t need to provide the most credible research in the world for a company with a $5,000 title sponsorship.”
For those who want to take the DIY route, Doyle has a note of caution. Although the proliferation of low-cost online tools such as SurveyMonkey has made it easy for properties to poll their audiences, that ease has come with a price: survey fatigue.
“With these tools and the number of surveys generated through them flooding the market, response rates are going down,” Doyle noted.
As a result, properties need be careful about how many times they survey their audience, he said. “Be prudent, and don’t over-saturate the market.”
Sources
Amplify Sports and Entertainment, Tel: 212/812-8966
California Partnership Marketing Group, Tel: 415/705-5565
Performance Research, Tel: 401/848-0111
Shamrock Sports Group, Tel: 207/400-1678
SponsorLogic, Tel: 704/788-9915