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Hydro-Quebec recently yielded to the demands (not to say the assaults) repeated journalists to finally reveal the amounts it pays annually in donations and sponsorships. While this strategy may seem appropriate for the philanthropic sector, this beautiful transparency might also create perverse effects and serious harm to the Quebec industry sponsorship. Here's how and why:
1 - The race to the bottom
Since Hydro-Quebec (just like the SAQ and Loto-Quebec) is often perceived as the department sponsorship of the Government of Quebec politicians and pressure groups of all stripes and all regions of Quebec s seek to demonstrate that their region is poorly served by contributions from the Crown corporation. Thus, investments in Sponsorship will not be guided by strategic or commercial reasons, but rather by political considerations. We discriminate positively towards events
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s, and even if they do not attract the critical mass that would have been required to appear on the radar of media advisers. There will nonsense to promoting the suburbs (because there are few events in proportion to their populations), even though these suburbanites are more than happy to attend major events on the island of Montreal (Jazz, Just For Laughs, Grand Prix, Francofolies, etc.).. The major consequence is that you attend a race to the bottom as some worthy events will be ignored in order to "encourage "cultural or sporting events in the region.
The impact apparently This race is benign, however real and could even affect tourism to Quebec. Whether we like it or not, tourists are interested in major events and the pride of Quebec in respect of festivals will be severely tested.
2 - A loss of power in negotiations with Hydro-Quebec
Since all event organizers know the Quebec Hydro investment partnership, they will be very quick to establish equivalence gates and request as much money as the event which will have achieved the best agreement with Hydro-Quebec.
3 - An incentive for Hydro-Quebec no longer operate its sponsorship.
In partnership, there are generally two types of investments: the first concerns the so-called right of association. This is the amount that a sponsor pays for power in particular receive visibility at the event. However, it is generally acknowledged that partner pulls greater benefits from its association when it can "exploit" their sponsorship through its own advertising, contests or activities on the venue. This is the second type of investment. Since the operation of the sponsorship represents additional amounts to the rights of association, it is more than possible that Hydro-Quebec is limited to sponsorship "dry "in order not to show statistics even worse (in the eyes of journalists, it goes without saying).
4 - The perpetuation perception of poor governance government.
It is so easy for journalists and the media to position corporations like big spenders. For most Quebecers, it is inconceivable to spend millions of dollars annually in sponsorship (while billions are spent on advertising). Non-participants in the events (which incidentally, are always more numerous than the participants) will never be satisfied with the investment of Hydro-Quebec. 5 - A drop in income for events
The obligation to broadcast all of its expenses partnership is a real incentive to inactivity if you ask me. However, if Hydro-Quebec to withdraw from certain events, it is the organizers who will be negatively affected. As the market is already aggressively raked by these events and the likelihood that the government take over is near zero, the events will diminish in scope, which brings us back to point 1.
Tomorrow: Following the end but not (in any case, I hope).
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