Predicting Return on Investment in Sport Sponsorship: Modeling Brand Exposure, Price, and ROI in Formula One Automotive Competition

Although the benefits sought by engaging in non-traditional marketing tactics such as sponsorship are well documented, determining return on investment (ROI) remains an evolving science.

Predicting Return on Investment in Sport Sponsorship: Modeling Brand Exposure, Price, and ROI in Formula One Automotive Competition

Jonathan A. Jensen

The Ohio State University

Joe B. Cobbs

Northern Kentucky University

Management slant

  • Exposure is a precursor to brand awareness and, therefore, a key factor in return on investment (ROI) estimations.
  • In an analysis of televised exposure for sponsors of Formula One (F1) Racing, 80 percent of the variance is explained by the on-track performance of the sponsored team.
  • In modeling sponsorship costs, half the variance is explained by sponsorship level, contribution of value-in-kind products/services, industry or nationality congruence, and...

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