In Support of Sponsorship Measurement
If you're reading this, you might wonder about the quirky title. Well, I intentionally chose it because someone needs to advocate for sponsorship measurement, and it might as well be me.
Let's rewind to 2018 when the MASB and ANA conducted a quantitative study on how often sponsorship measurement is utilized by sponsors. Surprisingly, they found that 39% of sponsors had zero budget for sponsorship measurement and most of those who did spend money allocated only 5% or less of their budgets to it. Sadly, I don’t believe this trend has improved much since then, if any.
For those sponsorship managers who view measurement as merely a "check the box" task, I'd like to shed light on what you might be missing.
My argument is straightforward: sponsorship measurement acts as the guide to successful sponsorships, much like a sherpa leading you to the peak of a mountain. How, you ask?
Performance Evaluation
Firstly, measurement allows you to assess your performance. It helps determine whether the sponsorship increased brand awareness, influenced product consideration, or contributed to sales. This is essential because sponsorship is a massive $70 billion industry, and we need to know how well it's working.
Objectivity
Measurement replaces gut feelings with hard data. Making decisions based on data provides an objective path for sponsorship endeavors. As economist Richard Thaler wisely said, "The only protection against overconfidence is to systematically collect data, especially data that could prove you wrong." Remember, knowledge is power.
领英推荐
Accountability
Moreover, measurement establishes accountability. Wouldn't you want to know if a sponsorship lives up to the grand promises made during the sales pitch? After all, if you're investing your hard-earned money in a partnership, you deserve to know if it's money well spent.
Customization
Additionally, measurement allows us to tailor our activations to our audiences. By analyzing how audiences react to our activities, we can fine-tune our strategies for greater impact. This becomes particularly vital for long-term sponsorships, which thrive on continuous improvement.
Long-Term Orientation
Speaking of long-term partnerships, effective measurement fosters stronger and more enduring relationships between sponsors and properties. When both parties witness the value and impact of their collaboration, they can't imagine parting ways.
Considering all these benefits, shouldn't we, as an industry, consider increasing the average spend on measurement? Even a slight bump, say to 6%, could significantly enhance the value and impact of sponsorships.
Native New Yorker ? Straight Talker ? Helping Organizations Deliver Unique, Unforgettable Customer Experiences ? Creating Awareness, Engagement & Preference ? Changing the Trajectory of Relationships & Business Outcomes
9 个月While increasing measurement spend is crucial Ken Ungar, I believe it's just one piece of the puzzle. Our industry lacks a standardized valuation & measurement process, making ROI/ROO validation challenging across diverse brand objectives. Further hindering progress is the perceived complexity of measurement, with brands intimidated by the amount of internal stakeholder support necessary and the costly support of third-party external stakeholders. Adding to the issue, the 2023 Sponsorship Leaders Study by The Sponsorship Marketing Association reveals a significant disconnect between brands and properties regarding the most helpful metrics for determining the value of sponsorship programs. Properties prioritize: 1) Attendance/Audience Size (75%) 2) On-Site Interactions (69%) 3) Lead Generation (60%) Brands prioritize the same metrics as follows: 1) Attendance/Audience Size (36%) 2) On-Site Interactions (31%) 3) Lead Generation (33%) In my mind, the industry needs: 1) Standardized valuation & measurement:?A common framework for all stakeholders. 2) Simplified solutions:?Tools & resources to make measurement accessible. 3) Shared understanding:?Aligning brand & property goals on key measurement metrics. What are your thoughts?
President at Prospect League
10 个月Ken, I think this is very interesting and agree 100%. I would love to speak you sometime. My email, [email protected] Give me a shout. Bruce
Professional Consultant, Coach, Keynote Speaker @ Virtual Wealth Inc. | Amazon Best Selling Author
10 个月Great topic! I could not agree more. Sponsorships need to be evaluated as part of the process.
Marketing | Data | Strategy | Sports
10 个月Nailed it!
President, Grail Ventures | Founder, SU Sports Network | Sports Marketing Consulting Leader | Sponsorship Strategy, Sales, Activation + Data & Analytics | Content & Social Media | Event Management | Advisor | Speaker
10 个月Well done, Ken Ungar! Have had this conversation at length so many times, but unfortunately not a ton of forward momentum since that last 2018 ANA MASB survey. The continuing, unmet need for sophisticated sponsorship measurement & valuation is very real. Larry DeGaris has a strong POV on this as well.