NG Farrell Marketing

Today, the Conservative Government of Canada presented its first budget since winning a majority government in the 2011 general election.

While striving to accomplish many things, it is a budget of reductions, formulated around a goal of achieving ongoing savings of $5.2 billion, or, 6.9% of the overall review base of approximately $75 billion.

Programs everywhere were reviewed, and savings and reductions were required from almost everyone.

Mindful of the drastic savings being requested of the CBC, one key government organization is seeing its current funding maintained: The Canada Council.

This blogger has lived through many budgets, and has interacted with the Canada Council since the early 1980's. Back then, project funding for artists was often as easily earned by merely filling out an application, and sending it in with some audition materials. No other questions were asked. And no final reports were required. Thanks to the Canada Council, I spent a few lovely summers as a young musician in the south of France, where the wood stove pizzas, beer and beaches of the Cote d'Azur all were extra enjoyable, knowing they were being provided courtesy of the Government of Canada.

But things changed. The spending splurge of the Trudeau era finally came to end.

Now skip ahead to 2012: everyone and anything that depends on monies from the federal government needs to work extra hard and diligently to prove that they are worthy of the support of hard-working, Canadian taxpayers.

We're now in the era of getting down to business, getting lean, cutting the fat, and becoming a model of fiscal responsibility. We are poised to be a global leader in stable banking, and progressive social and immigration policies. We promote innovation and sustainable resource management. But doing this, without also ensuring our nation's soul is nurtured, runs the risk of turning us all into dreary, heartless, unimaginative drones.

So kudos to the Canada Council. By having its funding level maintained in a budget characterized by significant and wide-spread cuts, this organization, whose mandate is to nurture Canada's cultural identity, has achieved a coup. You can almost hear the unbridled enthusiasm in the opening paragraph of a media release issued by the Canada Council within an hour of the budget speech today:

"The Canada Council for the Arts is enormously heartened by the positive message sent by the 2012 budget and the support of the government in recognizing the Council's leadership role," said Canada Council Board Chair Joseph L. Rotman. "This vote of confidence in the Council is a clear signal of support for the arts as the creative heart of the nation. This government and the Minister of Canadian Heritage, the Hon. James Moore, clearly appreciate the sector's positive contribution to the economy and identity of this country. It makes it all the more important that we continue to demonstrate the highest possible standard in our investment of public funds."

In the words of Finance Minister Jim Flaherty himself, "We must avoid falling behind. We must realize the enormous potential of our great country."

Exactly. And the potential of our great country just isn’t in our banking system, or our mines or oil sands. It is in its people.  If we want to be a true global leader, Canada needs its culture, now, more than ever.

Today’s blog post is primarily intended for our corporate followers. In it, we will try to explain why sponsoring arts and sports organizations is a good thing. But here is the premise: sponsoring arts and sports allows you to reach that customized marketplace which eludes you in other marketing channels.

Sponsorship of arts and sports can be a valuable way for companies to engage with the public, and develop strategic positioning.  Businesses interested in developing this kind of marketing tactic will benefit from knowing that as public funding for non-profit arts and sports organizations continues to fracture, these organizations present ripe opportunities for companies who wish to look outside of traditional marketing and advertising vehicles - and at great value!

In its most basic form, sponsorship is an arrangement between a corporation and an event, organization or venue through which the corporation will promote a product or itself. A sponsorship arrangement provides support through financial contributions, in-kind services, or merchandising. In return, corporations gain rights and privileges to connect intimately with the arts or sports organization, and ultimately their members or audiences.

Faced with the increasing cost and reduced effectiveness of traditional advertising, corporations of all sizes can now truly start to consider the sponsorship vehicle to reach target consumers with meaningful messages. Whether it is with a sporting event, performing arts company, or umbrella organization like a Provincial Sport Organization (PSO), sponsorships reach a clearly defined consumer and create a positive impression of the corporation as supporting the lifestyle activities, tastes and values of their customers.

Businesses that are refining their positioning, sharpening their image or facing new competition for market share are missing out by not considering sponsorships as a key component of their marketing plans. However, companies who do include sponsorship in their plans will be investing in a relationship that goes beyond the traditional reach of display advertising, but garnering the same benefits.

The ROI businesses can expect from sponsoring the arts and sports is evaluated alongside PR and brand awareness. However, the 10:1 rule is considered to be optimal. That is, for every $1,000 spent, a sponsor should expect at least $10,000 worth of publicity and/or direct sales. Corporations should be confident that this is a highly cost-effective ratio, especially if one compares the expected ROI on $50,000 of traditional media (not much), versus the return you will receive on a $50,000 sponsorship of a high profile, broadcast sport tournament, that puts you directly in front of tens of thousands of customers, their families, fans and TV viewers.

In short, sponsoring the arts and sports can and should be an integral component of the marketing of any kind of business, large or small. There are organizations and events of all sizes, scope, reach and segment to get involved with.  Canada is full of lean, ambitious, and well-organized arts and sports organizations that are willing to go the extra mile and work alongside your marketing team to create a sponsorship relationship that will endure and create a win-win situation for all parties.

Now in its 11th year, BC Arts and Culture Week, April 18-24, shines a spotlight on the vital impact that arts and culture make on our society, our communities and our individual lives.  Arts and culture in all forms - music, film, dance, publishing, theatre and visual arts  - are part of daily life, and have a lasting influence.

Arts and culture also fuel our economies and bring positive attention to our province. This in turn helps attract tourists, educated and skilled new residents, investment and trade.

Paying attention to the work of our artists and performers makes sense. For all the right reasons.

That’s why NG Farrell is keen to help promote BC Arts and Culture Week and the awesome array of events that are occurring throughout the province next week. We encourage readers to visit the event website to see what is happening in your local community.

And showing your support does not necessarily mean that you have to buy tickets to an expensive show or concert. We understand that for some, the price of those types of events can at times be prohibitive. But it doesn’t cost much to do things such as buy BC-published magazines in your local convenience store, or visit a local art gallery on your lunch break to become acquainted with emerging new artists. Vancouver has some great and innovative film festivals that present internationally-acclaimed films, for really reasonable admission fees. And it can be one of the most rewarding experiences of your life to volunteer on the board of an arts organization or even just help out at performances of your local theatre or symphony orchestra. And for those who like to dine, dance and mingle, there are themed-fundraising events that provide both entertainment and the satisfaction of giving.

Of course, what would make BC Arts and Culture Week 2010 all the more special would be some good news regarding funding. We have heard from a reliable source that information regarding the new 2010 Legacies Fund will be released next week. We’ll keep our eyes and ears open, and invite you to give us a call or send us an email, so we can then help disseminate information on the fund as soon as it becomes available.

In the meanwhile – enjoy BC’s fabulous arts and culture scene. It’s vibrant, it’s exciting and it needs you!

The West Coast Chocolate Festival is an exciting organization lead by a group of creative and caring Lower Mainland individuals who want to make a difference in the lives of youth and young adults.  Launched in 2002, the Festival’s initial goal was to raise funds for youth arts projects in the TriCities, however since that time the mission evolved to create mentored work experiences for youth, in addition to raising the profile of chocolate and showcasing emerging artists and performers.

Recently, NG Farrell was engaged to assist the volunteer Board of Directors, by facilitating a strategic planning session, and synthesizing the results into a strategic plan - including a much needed fund raising component -  to re-launch for the 2010 season.

NG Farrell created a fun and engaging workshop that took the Board through a series of brainstorming and envisioning exercises that resulted in a new mission and vision for the Festival, in addition to the forming of new action groups and related tasks.

NG Farrell is honoured to have been further engaged by the Festival to lead the organization’s new fundraising and marketing teams.

We look forward to helping this vibrant and unique festival provide a wonderful and imaginative new series of festival events in 2010. So keep your eyes open for further announcements regarding the 2010 West Coast Chocolate Festival!

I read with interest an article in the Georgia Straight last week, referencing BC's Culture and Arts Minister Kevin Krueger's recent statements alluding to "faith" in the context of funding for the arts. Notwithstanding that the statements were made in response to the misguided tactics of my friend and neighbour, BC's Opposition Culture Critic, I did find the notion of "faith" an interesting and indeed an encouraging one. I interpreted the comments to suggest the following:

That which is built on a solid foundation, created with passion and faith, will last for years and years, whereas that which is built solely on government handouts probably will not, cannot, endure.

I think it is totally reasonable to suggest that an organization built without a solid, independent foundation - developed through craft, a solid community following, care and committment - probably cannot survive on its own merits. And I think it is crucial to ask whether organizations with such limitations should be subsidized during times of deficit financing. At who's expense? Should the money be borrowed from future generations? Do we have the moral and legal right to borrow from our children? When the Opposition Critic for culture and arts says, "You can try (to eat faith), but it leaves you a little bit hungry", is he not insinuating that government support for the arts is support for artists?

What's next? Welfare for the arts? Let's not go there. Our artists, performers and arts organizations deserve stronger, more meaningful and sustainable funding models. And I think everyone knows that now. But sadly it has taken a deep recession to make us realize it.

My thought here is simple and completely non-partisan:

Let's look at the current situation for what it is. Times are indeed changing, and for a number of reasons, publicly funded support for the arts is dwindling. But it is quite unreasonable to suggest that funding cuts are an attack on the arts. However, the situation is going to force arts organizations to shake up the tree, and to shift perspectives. To think differently about their positioning, their value, and quite bluntly, how and where the money is going to come from.

For some, it may mean some re-positioning, and efforts at a re-invention. But from an artistic perspective, is this necessarily a bad thing?

Maybe not. And for those organizations with strong foundations, faith and confidence? Probably not.