Sports sponsorships have evolved from simple logo placements to complex partnerships that demand detailed measurement and strategic evaluation. With sports fandom growing exponentially every day, brands have the potential to gain massive visibility and reach in new and innovative ways.
But how do we define, measure, and model the success of such partnerships in a meaningful way?
B&T sat down with some experts from Analytic Partners, Publicis Sport & Entertainment ANZ and Australian Open Major Partner, Kia, to better understand the inner workings of this intricate process.
What Does Success Look Like?
At its core, the success of a sponsorship lies in its ability to deliver on business objectives. While the metrics may vary depending on the brand, one common denominator stands out: revenue impact.
“Ultimately, the real thing brands want to achieve is incremental dollars for the business. You can’t tell shareholders you’ve driven up brand sentiment without showing its value in dollars. Sponsorships must tie back to revenue,” explained Jo-Ann Foo, senior director at Analytic Partners.
For Dean Norbiato, chief marketing officer of Kia, success is all about growth. Reflecting on Kia’s 22-year partnership with the Australian Open tennis grand slam, he explained: “The Australian Open has been instrumental in building the Kia brand in Australia. We’ve experienced a 6-7% compound annual growth rate in sales during January since 2017. It’s not only a tremendous brand builder but also a sales slingshot into the year.”
For Kia, the Australian Open provides an opportunity to achieve both short-term boosts and long-term brand equity. This dual focus allows the carmaker to maximise its investment year after year.
“We also maximise our ESOV by using the AO as an integrated launch platform for new models, like our new EV range of vehicles,” Norbiato explained.
What Metrics Matter?
Success cannot be measured in a vacuum. The metrics used to evaluate sponsorship effectiveness must align with the brand’s goals and the nature of the sponsorship itself.
A Multifaceted Approach: Kia’s Framework
Kia employs what Norbiato describes as a “mosaic” of measurements. These include:
- Stakeholder engagement: How well the sponsorship resonates with key audiences.
- Website traffic: Tracking online activity linked to Australian Open campaigns.
- Share of search: Measuring increased online interest in Kia during the tournament.
- Brand sentiment: Analysing shifts in perception using ongoing brand tracking.
Additionally, Kia uses innovative tools to monitor and evaluate its activations.
“We use digital tools to monitor sessions on the Kia website and then overlay our integrated marketing campaign to ascertain a rudimental causality. Granted it may not be perfect, not much in attribution is, but it does give us a better chance to understand how our various leverage assets may drive actions from audiences. It is an iterative approach across many years, as we constantly test what may be having an impact on the brand,” Norbiato explained.
Tailored Measurement: Publicis Sport & Entertainment ANZ’s View
For Will Koukouras, national director at Publicis Sport & Entertainment ANZ, there’s no one-size-fits-all approach.
“We take a holistic view to creating sports partnership measurement plans, guided by the brand’s sponsorship objectives and specific assets inclusions,” he explained. “It’s important to consider the type of sponsorship when formulating success measures. We will assess a grassroots sponsorship differently based on its strengths versus a major code level sponsorship that generates different outcomes, and again for a talent deal”.
“Our Publicis Groupe connected platform of experts allows us to track and measure all key metrics with the support of our media and rightsholder partnerships. All data sources are considered to build a full picture of the total sponsorship impact, from brand exposure to on-ground activations and everything in between,” Koukouras explained.
Publicis Sport & Entertainment ANZ uses a mix of tools, including:
- Brand exposure tracking: Analysing how prominently and frequently the brand is seen during the event.
- Consumer engagement: Measuring digital interactions, such as clicks and content shares.
- Sales results: Identifying revenue spikes linked to the sponsorship.
Real-time monitoring also plays a key role.
“We also have a suite of media measurement and monitoring tools to assess brand exposure and visibility, as well as keep a pulse on any real-time conversations consumers might be having via social listening. Meanwhile, we work closely with our partners to connect with the fan conversations happening during on-ground consumer activations. This ensures we can be dynamic in our approach,” Koukouras said.
Connecting to Revenue: Analytic Partners’ Insights
Foo emphasised that all metrics must ultimately point back to dollars. “Marketers get caught up in the idea that the purpose of what they’re doing is brand equity or to drive awareness and engagement with the brand. But ultimately, the real thing brands want to be achieving is dollars to the business”.
By incorporating data from social media, digital platforms, and on-ground activations, brands can also gain a holistic view of their sponsorship’s effectiveness – something many have a tendency not to do, Foo pointed out.
“Nine out of every ten dollars spent on sponsorships isn’t tracked. That’s like me investing $100 in something and only looking at how $10 that is performing,” she explained.
“When you’re looking at valuing the importance of and what a sponsorship brings to the business, the fact that a lot of investment is being ignored is a huge amount of wastage”.
Overall, balancing short-term gains with long-term value in sponsorships requires understanding both immediate and future impacts. Short-term wins, such as increased visibility and sales during events, are often driven by activations and social media engagement. Effective social media integration can also significantly boost returns by creating immediate brand awareness and engagement.
However, the actual value of a sponsorship is realised over time, with long-term ROI often taking years to materialise. Sponsorship success should be measured over three to five years, with post-event analysis playing a crucial role in optimising future campaigns.
How Do We Address Data Challenges?
Despite advancements in analytics, measuring sponsorship success remains a challenge. Data gaps and inconsistencies can hinder accurate evaluation.
Emerging technologies are helping to bridge these gaps. As Foo explained, AI-driven tools are making it easier to track brand visibility and engagement across events, providing more actionable insights and enabling brands to understand the impact of their investments better.
Sponsorships involve many moving parts—on-ground activations, digital campaigns, social media, and more. Brands, as Foo explained, need to ensure they’re capturing the full spectrum of activity.
Adaptability is also essential in keeping on top of the ever-changing landscape. “Each year, we refine our measurement framework, incorporating new tools and insights to improve accuracy,” Norbiato explained.
As brands continue to refine their sponsorship strategies, integrating advanced analytics, focusing on long-term outcomes, and embracing digital and social media can help sponsors unlock the full potential of their investments.
Ultimately, the question isn’t whether sports sponsorships work—it’s how effectively they’re measured. As Foo puts it, “Success has to be grounded in data. If you’re not measuring everything, you’re not capturing the full value”.
