{"id":1284,"date":"2014-03-25T10:06:05","date_gmt":"2014-03-25T14:06:05","guid":{"rendered":"http:\/\/www.acaweb.ca\/en\/?p=1284"},"modified":"2017-10-24T10:37:30","modified_gmt":"2017-10-24T14:37:30","slug":"the-real-value-of-a-marketing-alliance","status":"publish","type":"post","link":"https:\/\/acaweb.ca\/en\/2014\/the-real-value-of-a-marketing-alliance\/","title":{"rendered":"The (real) value of a marketing alliance"},"content":{"rendered":"

By Simon Cazelais, Partner and Vice-President, Account Services, Bleublancrouge <\/em><\/strong><\/p>\n

\"Simon
Simon Cazelais<\/figcaption><\/figure>\n

The Olympic period is always very interesting for the sponsorship world. For brands that want to establish mobilizing messages on a global level, clearly associate a spokesperson with their companies and, most of all, derive tangible results from their alliances, the Olympics are a unique learning laboratory.<\/p>\n

The question of value is central to these considerations. How much is a medal worth? How much is an alliance worth during the Olympic games, which offer a world of possible associations? The coming weeks will show us who will be the winner of the Games\u2019 commercial battle, but everything suggests that the impact of this event on purchase intentions is variable. A recent study<\/strong><\/a> by Experian Marketing published by AdWeek reveals that Americans are 9% more likely to choose a brand that sponsored the Games than one that did not. However, this picture is reversed when it comes to products and services endorsed by an athlete. Consumers are curiously 43% less inclined to consider them. This surprising fact illustrates that all Olympic alliances do not enjoy the same credibility and that this credibility has a direct impact on their commercial value.<\/p>\n

The question of value has always been of interest to me. It was even the subject of my master\u2019s thesis and led to the Sponsorship Insight Model in 2008.<\/p>\n

What is the real value of an alliance? <\/strong><\/p>\n

Why do we do sponsorships? To achieve objectives that brands cannot achieve alone. Sponsorship is not a must (Apple does very little). It must enable companies to accelerate the achievement of their objectives in an economically valid way.<\/p>\n

For example, the TD Bank uses sponsorship to get closer to Quebecers, to make its brand more accessible. It is associated with the Montreal International Jazz Festival, the Journ\u00e9es de la Culture and it has even created its own foundation. The bank uses these channels because alone it cannot achieve its objective quickly enough, or because traditional communication methods do not suffice.<\/p>\n

Assessing the value of a marketing alliance is part of an opportunity cost analysis. This is the real question that marketing managers have to answer. Before focussing on sponsorship at the expense of other marketing activities (since budgets have limits), the most efficient path must first be determined. This means concentrating on the return on objectives before considering the return on investment.<\/p>\n

What is the difference? <\/strong><\/p>\n

Beyond impressions, the intangible benefits and interactions that the alliance generates should create a measurable positive difference. In other words, you must be able to answer the following question: if this alliance ends tomorrow morning, how would that impact my brand? In attempting to answer this question, marketers and properties must equip themselves with key arguments to build strong, strategic and sustainable alliances.<\/p>\n

Without the Olympic Games, we\u2019re talking about millions of dollars less in contracts for GE (during the London Games, the American company announced more than $100 million in financial benefits). Similarly, the Olympics also helped UPS conquer certain Asian markets. Procter & Gamble confirmed that the London Games helped it generate $500 million in revenues. The P&G\u2019s Olympic platform, integrating more than 34 different brands led to a return on investment that was twice as high as what it would have been with a traditional one brand centric marketing approach.<\/p>\n

The value of an alliance is measured by changes in behaviour and by the direct impact on favourable predispositions. The case of Loto-Qu\u00e9bec is an interesting illustration of this. The public corporation established its own formula to measure the value of partnerships five years ago. Powered by Performind from the Montreal company Sponsorium, their formula ensures not only that clear objectives are achieved, but also that the performance measurement system is balanced and transparent.<\/p>\n

\u201cThe public corporation oversees a brand that walks a fine line between being disliked or admired. Sponsorship enables Loto-Qu\u00e9bec to showcase the impact its investments have had on citizens\u2019 lives. The event sponsorship sector, which is the one we favour, helps our brand shine above and beyond its products, while it also creates a favourable impression about these same products. It\u2019s also another way to create winners!\u201d says Lucie Lamoureux, Corporate Director, Sponsorships and Social Commitment at Loto-Qu\u00e9bec.<\/p>\n

Appearances can be deceiving <\/strong><\/p>\n

Sponsorship evaluations based only on media equivalencies, monetary value based on industry comparisons, or standard online solutions often offer inadequate ROI calculations.<\/p>\n

The analysis of the real value of a marketing alliance requires more depth. This type of analysis should include all the aspects of the company and take into account the impact that the alliance can produce (such as brand, internal motivation and sales.). The value is not a magic number, a price to pay or to negotiate, but the result of the study of the impact of an alliance added to the marketing portfolio of a brand. An alliance does not exist in a vacuum, but in synergy with the entire investment portfolio.<\/p>\n

The analysis of the value therefore has nothing to do with comparing yourself to others. Rather, it is about comparing yourself to yourself according to the strategic vocation that the company gives to sponsorship.<\/p>\n

Establishing the value of an alliance is a more complex exercise than a simple calculation. It a cooperative process that takes into account the unique role that marketing alliances play in achieving a company\u2019s business objectives.<\/p>\n

\n

Simon Cazelais<\/strong><\/span>
\nSimon has been working in marketing communications for more than a decade. He started out by setting up his own company, then moved to client-side marketing at Loto-Qu\u00e9bec\u2019s sponsorship department. He then joined Bleublancrouge, where he was quickly promoted to higher positions, eventually becoming head of client services. In 2013, he was part of Marketing <\/em>magazine\u2019s “30 under 30” list recognizing Canada\u2019s smartest young thinkers in marketing. Simon also teaches the French ACA course Rendre vos investissements en commandite rentables<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By Simon Cazelais, Partner and Vice-President, Account Services, Bleublancrouge The Olympic period is always very interesting for the sponsorship world. For brands that want to establish mobilizing messages on a global level, clearly associate a spokesperson with their companies and, most of all, derive tangible results from their alliances, the Olympics are a unique learning […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[77],"tags":[57,111,58,277,278,279,72],"acf":[],"yoast_head":"\nThe (real) value of a marketing alliance | Association of Canadian Advertisers<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/acaweb.ca\/en\/2014\/the-real-value-of-a-marketing-alliance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The (real) value of a marketing alliance | Association of Canadian Advertisers\" \/>\n<meta property=\"og:description\" content=\"By Simon Cazelais, Partner and Vice-President, Account Services, Bleublancrouge The Olympic period is always very interesting for the sponsorship world. 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