Brands’ sponsorship guide: From managing sponsorship requests to exiting a partnership
The health crisis has directly impacted the entertainment sector, with sponsorship expenditure down an estimated 30% for 2021. That said, sponsorship agreements are signed over a long period of time and are not hugely impeded by recessions, as demonstrated by the very slight drop in sponsorship spending between 2008 and 2009.
On the other hand, we should expect to see a sharp rise in sponsorship and donation requests soon, which are likely to overwhelm corporations under pressure to cope with the demand, given their more limited resources, including smaller teams and shrinking budgets.
This will lead to major shifts in many brands’ sponsorship strategies, which have historically remained very stable. A change in strategy means a different sponsorship policy, which acts as a guiding light for decision-making in selecting the right recipients for sponsorships and donations.
As sponsorship spending increases, contracts, proper measurement and financial attribution become bigger and more pressing concerns for marketers. Despite the continued growth of investment in sponsorship marketing in North America and a growing need for improved ways to measure its impact on business, little progress has been made to this end.
Marketers are increasingly under pressure to demonstrate results: the Association of National Advertisers (ANA) and the Marketing Accountability Standards Board (MASB) joined forces to provide deeper insights into sponsorship measurement. The results speak for themselves.
Sponsorship budgets are put under the microscope
- 96% of marketers stated that it is important for them to understand the impact of sponsorship vs. other marketing expenditures.
The impact of sponsorship on business
- 57% of respondents have a sponsorship measurement budget. But only 37% of these have a standardized process for measuring the return on sponsorship investment.
Navigating uncertain waters
This guide offers insights into everything from sponsorship policies and how to manage sponsorship requests: from the selection process and refusals to the impacts of changing properties.
Since 2013, Elevent’s mission has remained the same: to advance sponsorship measurement with a mix of practical expertise, research and technology.
One of our key learnings is that measuring the impact of sponsorship requires a mix of deep industry knowledge combined with sophisticated tools and technology. That means harnessing the insights of both humans and machines to capture all of the nuances required to provide our clients with world-class recommendations.