Making sponsorship pay - insights and case studies from IEG
While the overwhelming majority of marketers insist they want metrics to support their sponsorship programs, most also don't want to pay for the required research.
In a presentation entitled "Moving Sponsorship Measurement from Lip Service to Full Service" at the 2013 IEG Sponsorship Conference in Chicago, Laren Ukman, the chief executive of IEG, and Jim Andrews, the organization's svp, content strategy, revealed that 87% of participants in its 2013 Sponsorship Decision-Makers Survey desired greater validation for their expenditure.
But the practice of financial commitment seemed to be lacking the necessary second stage: fully 27% of corporations - "a pitiful amount", according to Andrews - allotted none of their sponsorship budget to measuring return on investment.
Another 45% spent 1% or less of their resources on this activity. "If we're talking about a $1 million sponsorship, we're talking about spending less than $10,000 on measuring whether the $1 million was well spent," is how Andrews put it. Exactly 25% of companies dedicated 1% to 5% of their budget to this area, and only 2% expected to commit at least 5% of the available funds to measuring the efficacy of their output.