Sponsorship brings mixed results for brands

17 November 2009

MONTREÁL: Many sponsorship opportunities do not currently meet the needs of brands which partner with organisations and events in an effort to engage with their target audience, according to research from Sponsorium.

The Montréal-based firm, which offers sponsorship management tools and has worked with clients including Pepsi, BMW and Heinz, released a new report – more details of which are available here – discussing whether sponsorship deals are delivering on marketers' objectives.

It analysed client data covering 61 brands, 35 countries and 10,000 sponsorship opportunities available around the world between January 2008 and June 2009.

Each initiative received a rating out of 1,000 points, based on metrics such as brand image, target groups, leverage, contract profile, included advertising, event profile, visibility and audience.

Overall, the study found there was a broad spectrum of scores, ranging from an average of 769 points for the top 10% through to just 117 points for the bottom such group.

The global average of 448 points, however, indicated that less than 45% of brands' targets in undertaking such initiatives are being achieved at present.

Mark Cornish, head of marketing at Sponsorium, said "at its best, the top 10% of sponsorship opportunities meet 76.9% of criteria."

"And increasingly, those who are successful at meeting the needs of brands are steering away from the standard rights package, or buyer–seller relationship, and are adopting a more flexible and customised approach".

Sponsorium also found that the average recorded rights fees over the period surveyed stood at $75,000 (€50,113; £44,843).

However, within that period, fees fell by a full 50%, from $90,000 in 2008 to $45,000 in the first half of 2009, indicating the full impact of the global financial crisis and ensuing recession.

Warc subscribers can view more data from Sponsorium's analysis here.

Data sourced from Sponsorium; additional content by Warc staff