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SUCCESSFUL SPONSORSHIP PRODUCES SALES
By Lesa Ukman

Successful sponsorship produces sales increases. So cutting back on sponsorship when the economy weakens end up costing money, not saving it!

But unless companies have documentation that the cost not to sponsor is greater than the cost to sponsor, sponsorships will be viewed as an expense to be cut rather than a revenue generator to be saved.

Whether a buyer or seller, the key to preserving and growing sponsorship, is to get a grip on the numbers. While performance indicators will vary depending on a sponsor’s industry, meaningful metrics can be measured for every category.

RECALL – Awareness of the sponsorship is rarely an end to itself, but for a sponsorship to work the audience must be able to recall the sponsor. Changes in awareness over time can and should be tracked.

PASSION POINTS – Forget demographics as a key indicator, people’s identities are no longer constrained by gender and age. And, forget impression figures and media equivalencies. Emotion is the key to every decision, so we need to capture feelings.
a) Which sports, causes cultural activities does the customer love?
b) Which are they most fervent about?
c) What do the love about them?
d) What components do they relate to most?

HALOS AND ATTITUDES – Halos are the degree to which the sponsor can tap into the audience’s enthusiasm for the property. Positive shifts in consumer attitude can be anticipated by knowing the various dimensions of the property’s image that a sponsor can borrow:
a) How does the audience feel about sponsors? Dies it like them better because of their support? How much better?
b) How does the sponsorship affect its image of the brand? How does the audience’s attitude toward the brand compare to a control group not exposed to the sponsorship?
c) Which audience segments are most effected?

PURCHASING – How do attitude changes translate into increased usage or conversion?
a) What is the penetration level among the audience for the category overall, i.e., how many people buy or use the types of products/services the sponsor markets? What percent plan to purchase within the next 12 months?
b) What is the sponsor’s penetration level prior to the sponsorship?
c) What is the level of purchase consideration prior to and following the sponsorship?
d) What is the penetration level for the sponsor and for the category overall following the sponsorship?

RETURN ON INVESTMENT AND INCREMENTAL VALUE ADDED – ROI represents the incremental sum generated by the sponsorship minus the costs. IVA measures the return a sponsorship earned beyond what would be expected from an equal investment in other media. For example, if a company spends $100,000 on a direct marketing campaign that expects to bring in $100,000 in new accounts and a $100,000 sponsorship would generate $150,000 in new business, the IVA would be 50 percent.

Article courtesy IEG Sponsorship Report. For more information call 800-834-4850 or e-mail to ieg@sponsorship.com.

END

Kart Marketing Group, Inc.
Post Office Box 101
Wheaton, IL 60189 USA
Telephone: 630-653-7368
Fax: 630-653-2637
Email: karting@msn.com

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