How Sponsorship Fuels Brand Visibility: SPORTFIVE’s Strategy For Elevating Global Brands

Sponsorship is the financial support for a sporting event, organisation or athlete by an outside body, for the mutual benefit of both parties. At the professional level this tends to be by companies, to raise the profile of their brand by associating it with the athlete.

The company aims to generate brand awareness and customer recognition, whilst the event, organisation or athlete receives a boost in funding.

A popular example is a brand logo printed on a team shirt. Visibility is guaranteed, even more so in the modern world with social media and online highlights.

In the land of media and marketing rights today, there is no cookie-cut solution for brands, and a simple logo placement will not provide the sufficient return on investment (ROI) for sponsorship, nor does it give their target audience the “why?” - the reason to spend their money and engage with the product.

Companies investing in sports sponsorship need to look at the bigger picture to engage with fans and not rely on just one piece of inventory.

Sponsors get the opportunity to showcase their brand and products to a greater audience of varying demographics. The global nature of sport today means that athletes feature within competitions that attract millions, sometimes billions of viewers worldwide. By placing their brand within this sphere, organisations can catch the attention of people around the world.

In modern times, the value of social media cannot be underestimated. Even traditional forms of sponsorship are likely to appear on social media, opening the brand up to an even wider audience - even appearing in new territories.

Through placements on jerseys and advertising boards, sponsors get a high visual presence and become part of the action. If visibility is the core objective, then it's a surefire way to succeed, whether that’s inside the stadium, TV or online.

It is the emotional engagement which sets sponsorships in sport apart from almost all other forms of advertising and sponsoring initiatives. Traditional advertising platforms such as TV can attain similar reach figures to sport, but can’t compete with sports fans’ engagement.

In modern sports, several different types of partnerships exist, all of which can generate significant value.

Sponsorship deals are perhaps the most common form of sports partnerships. Companies invest in sports teams or events in exchange for advertising and brand exposure. These deals provide financial support to the teams and help sponsors connect with their target audience.

Strategic alliances involve two or more sports organisations coming together to achieve common goals. This could include sharing resources, facilities, or even talent. Such partnerships can lead to improved facilities, enhanced scouting networks, and ultimately, better performances on the pitch.

Successful sports teams recognize the importance of engaging with their local communities. Community partnerships involve initiatives such as youth sports programs, charity events, and education. These partnerships not only create goodwill but can foster a committed and engaged fan base.

In today's digital age, media collaborations are key. Sports teams and media outlets often join forces to collaborate on engaging content, including exclusive interviews, behind-the-scenes footage, and live broadcasts. These partnerships boost visibility for both parties.

Sports sponsorship lets brands create emotional content and become an integral part of fans’ daily lives. Every year, over 58 billion euros* are invested in sports sponsorship around the world as a way of reaching and acquiring customers through fan engagement.

€58bn* global volume in sports sponsorship in 2018

To find sponsorship opportunities in the sports industry, individuals, teams, or organisations can explore various avenues:

Professional Agencies: Sports marketing agencies, like SPORTFIVE, specialise in connecting sponsors with sports properties, facilitating mutually beneficial partnerships.

Industry Events and Conferences: Attending sports industry events and conferences where networking opportunities can lead to potential sponsorship deals.

Local Businesses: Reach out to local businesses that may have an interest in supporting community sports teams or events.

Sports Federations: National and international sports federations often have guidelines and programs for sponsorship, providing opportunities for collaboration.

Networking: Engage in networking within the sports industry to build connections with potential sponsors, leveraging relationships to secure sponsorship deals.

By exploring these channels, individuals and entities in the sports industry can identify and secure sponsorship opportunities that align with their objectives and contribute to the growth and success of their sports endeavours.

Measuring the return on investment (ROI) in sports sponsorship involves evaluating the financial gains relative to the costs incurred.

Define Objectives: Clearly articulate the goals and objectives of the sports sponsorship. Whether it's brand awareness, lead generation, or sales, having clear objectives will guide your measurement efforts.

Establish Key Performance Indicators (KPIs): Identify the specific metrics that align with your objectives. These may include brand exposure, social media engagement, website traffic, lead generation, and sales.

Quantify Sponsorship Costs: Calculate the total costs associated with the sponsorship, including sponsorship fees, activation costs, marketing materials, and any other related expenses.

Measure Brand Exposure: Evaluate the visibility of your brand during sponsored events. Track logo placements, mentions, and any promotional materials to quantify brand exposure.

Social Media Analytics: Monitor social media metrics related to the sponsorship, such as likes, shares, comments, and follower growth. Assess the impact of sponsored content on social media platforms.

Website Analytics: Analyse website traffic during and after the sponsorship period. Look for increases in visits, page views, and user engagement attributed to the sponsorship.

Lead Generation and Conversion Rates: Track leads generated through the sponsorship and assess the conversion rates. Connect leads to specific sponsorship activities to understand their origin.

Sales Attribution: Attribute sales to the sports sponsorship by tracking customer purchases during or after the sponsorship period. Use unique identifiers like promo codes or dedicated landing pages.

Customer Lifetime Value (CLV): Assess the impact of the sponsorship on customer retention and CLV. Determine if the sponsorship contributes to long-term customer loyalty.

Calculate ROI: Use the formula ROI = (Net Profit ÷ Total Cost) x 100. Net Profit includes revenue generated directly from the sponsorship, such as increased sales or customer value.

Consider Intangible Benefits: While ROI is often associated with financial metrics, consider intangible benefits such as improved brand perception, strengthened partnerships, and long-term relationship building.

Benchmark and Compare: Compare the calculated ROI against industry benchmarks or previous sponsorship initiatives to provide context and evaluate the success of the current sponsorship.

By systematically assessing these factors, businesses can gain a comprehensive understanding of the ROI of their sports sponsorship and make informed decisions for future sponsorships and marketing strategies.

Measuring the effectiveness of sports marketing and sponsorships involves assessing various key performance indicators (KPIs) to determine the impact on brand visibility, engagement, and business outcomes. Here are specific steps to measure effectiveness:

Define Clear Objectives

• Clearly articulate the goals and objectives of your sports marketing and sponsorship initiatives. These could include brand awareness, customer acquisition, or enhancing brand image.

Brand Exposure Metrics

• Measure the reach and frequency of brand exposure, including logo visibility, mentions, and advertisements during sports events.

• Utilise tools for media monitoring and analytics to quantify the extent of brand visibility.

Social Media Analytics

• Monitor social media metrics to assess the impact of sports marketing campaigns. Track likes, shares, comments, and follower growth.

• Analyse sentiment analysis to gauge audience perceptions and engagement.

Fan Engagement

• Evaluate attendance at sponsored events and fan engagement with branded activities.

• Track participation in promotions, contests, or interactive experiences initiated through sports marketing efforts.

Market Research and Surveys

• Conduct market research and surveys to measure changes in brand awareness, perception, and recall among the target audience.

• Assess the effectiveness of specific sponsorship activations in influencing consumer behaviour.

Lead Generation and Conversion Rates

• Track leads generated through sports marketing initiatives and sponsorship activations

• Analyse conversion rates to understand how effectively the marketing efforts translate into tangible business outcomes

Return on Investment (ROI)

• Calculate the financial return on investment by comparing the costs of sports sponsorship against the revenue generated.

• Use financial metrics like cost per acquisition, customer lifetime value, and overall ROI to assess the efficiency of marketing spend.

Brand Image and Alignment

• Assess the alignment of the sports sponsorship with the brand's values and image.

• Measure whether the association with sports properties positively influences brand perception.

Partnership Impact

• Evaluate the impact of partnerships formed through sports sponsorship. Assess collaborative efforts that contribute to mutual goals and objectives.

Media and Broadcast Metrics

• Analyse television ratings, online streaming metrics, and other broadcast-related data to understand the audience reached through sports events.

Long-Term Relationship Building

• Evaluate the potential for long-term relationships with sports organisations, athletes, or fans.

• Consider the sustainability and growth of brand affinity beyond the immediate sponsorship period.

Regularly analyse and compare these metrics to the predefined objectives to gauge the overall effectiveness of sports marketing and sponsorships. Adjust strategies based on insights gained to optimise future campaigns.