Why the Sponsorship Industry Needs Better Measurement
- August 29, 2024
- SponsorPulse Staff
The sponsorship industry has faced significant challenges over the past few years, from pandemic-induced disruptions and cancellations to format changes and workforce reductions.
Despite the challenges, there is widespread belief in the industry's potential, with 77% of professionals agreeing that the sponsorship industry has yet to reach its peak.
We can attribute this optimism to the industry's ability to innovate and adapt to changing market conditions. However, to fully realize this potential, the industry will need better measurement tools to provide clear, actionable insights into sponsorship performance.
So, how can we truly measure the success of sponsorships and partnerships? This article explores why improved sponsorship measurement is critical for the industry's continued success.
Reason 1: Demonstrating Value
One of the primary concerns for sponsorship professionals is demonstrating the value of sponsorship compared to other marketing spends.
According to a survey of global sponsorship professionals, 69% agree this is their biggest challenge. Clear metrics and measurement tools make it easier to justify sponsorship investments to internal stakeholders.
As budgets tighten and every dollar becomes more valuable, demonstrating tangible returns on sponsorship investments is more crucial than ever.
Reason 2: Measuring Attribution and Impact
Measuring attribution and impact is another significant challenge, with 66% of sponsorship professionals agreeing on its importance.
Understanding how a sponsorship contributes to brand awareness, consumer engagement, and sales is essential for proving its effectiveness.
This challenge is compounded by the complexity of today's marketing landscape, where multiple channels and touchpoints can influence consumer behavior.
Improved measurement techniques are needed to accurately attribute the impact of sponsorship activities and optimize future investments.This includes quantifying not only whether a sponsorship is working, but more importantly what’s driving that success so that it can continue to be optimized.
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Reason 3: Tackling Transparency in Negotiation
Sponsorship professionals agree that sports sponsorship lacks transparency, a sentiment that is even stronger among those with 6-10 years of experience (71%).
As sponsorship deals continue to be struck, and the value of those deals continues to mount, ensuring there’s a base of trust is critical for the industry. Insights and measurement can help break down trust barriers that may exist.
Reason 4: Complexity and Fragmentation
The sponsorship industry is becoming increasingly complex, with 72% of professionals agreeing that fragmentation is a major issue.
The proliferation of sponsorship opportunities across different platforms and channels can make managing and measuring their effectiveness difficult.
However, this complexity also presents opportunities for those who can navigate it effectively. Improved measurement tools can help sponsors understand and manage this complexity, ensuring their investments deliver the desired results.
Embracing the Potential Growth
Despite the challenges, there are many reasons to remain optimistic about the industry's ability to innovate, adapt, and grow in the coming years.
Technologies such as NFTs, augmented reality, and new content delivery methods are creating exciting opportunities for sponsors.
Additionally, there is a growing demand for more investment in women's sports and emerging alternative sports like eSports and development leagues.
Accurate measurement tools can help identify and capitalize on these emerging trends, ensuring sponsors can effectively engage with new and diverse audiences.
Maximize your Value
Investing in robust sponsorship measurement solutions empowers brands and rightsholders to move beyond the "spray and pray" approach.
Leveraging data to understand what's working and what's not can help the industry build stronger, more impactful partnerships.
Don't let sponsorship opportunities become a guessing game. Create a free SponsorPulse account and access our:
Insights Platform for in-depth data and analysis on thousands of sponsorship properties.
The Benchmark Report, to compare your sponsorship efforts against industry trends and competitor activity.
Opportunity Value to evaluate the potential ROI of a sponsorship opportunity before you invest.
With SponsorPulse, you can confidently make data-driven decisions and navigate the sponsorship landscape 🙌
