What are the best ways to measure the ROI of sports sponsorships?

Think about sponsorship as access to IP, not just distribution/awareness. Plan (and negotiate) for as much quality content and differentiated experiences that you can create with the IP of the sponsored brand/team/league. Much like Disney buying Star Wars or Marvel, it's not just about the existing inventory, it's about what else you can create with it.

Typical sponsorship objectives would focus on: 1) revenue generation 2) brand equity 3) indirect sales 4) relationships and lead generation 5) media valuation 6) partner growth

Sports sponsorships offer unique benefits: Increased awareness: Consistent exposure across multiple events and platforms increases brand familiarity and recall among passionate fans. Enhanced image: Association with successful teams or athletes reinforces positive brand associations, fostering trust and loyalty. Emotional connection: Sports evoke powerful emotions, creating a deeper connection between the brand and its audience. Measuring ROI involves balancing: Short-term metrics: Social media engagement Long-term metrics: Brand lift, customer lifetime value Allocate budget strategically: Focus more on long-term brand building: 60% of budget Use short-term activations for immediate impact: 40% of budget

In marketing campaigns, the return on investment can be measured by an increase in sales, the acquisition of new customers, an increase in brand visibility or any specific objective defined by the campaign. Having these thoughts in mind, you can analyse if the investment was worth it.

Beyond measuring ROI, analyzing data unlocks true sponsorship potential. Ask yourself: Did you achieve your objectives? What elements worked well/didn't work? How do you compare to industry benchmarks and competitors? What feedback did you receive from your audience and stakeholders? Use these insights to inform future decisions: Prioritize effective activations, adjust budget allocation, refine your target audience. Develop a plan to improve ROI: set goals, identify key metrics, implement strategies. Remember, sponsorship is an ongoing process. Continuously review your strategy, gather feedback, and adapt your approach based on new data and insights. Embrace a data-driven culture to achieve marketing objectives and drive business growth

It may take multiple years to get the ROI desired. Set Smart goals with a timeline to establish realistic goals that can help you and your company and your sports or entertainment partner achieve its goals

Measuring the Return on Investment (ROI) of sports sponsorships involves assessing both quantitative and qualitative factors to understand the effectiveness of the investment. One thing that I have found helpful is do Brand Exposure Metrics. For example, analyze the amount of brand exposure received through the sponsorship. This includes TV and media coverage, logo visibility on sports gear, banners, and digital platforms. Tools like media monitoring and brand recognition software can quantify this exposure.

Brand Building is A Marathon, Not a Sprint. While short-term marketing wins are tempting, true brand success requires a long-term perspective. Sports sponsorships offer unique benefits like increased awareness, enhanced image, and emotional connection, all contributing to long-term brand equity. Measuring ROI balances short-term metrics like social engagement with long-term metrics like brand lift & customer lifetime value. Allocate budget strategically, focusing more on long-term brand building while using short-term activations to drive immediate impact. By defining clear objectives, tracking relevant metrics, & adapting approach based on data, brands can leverage sponsorships to build a solid & lasting connection with their audience.