What is the story about?
What's Happening?
The sponsorship industry is facing a call for an effectiveness revolution due to challenges in measuring its impact. The newly launched Sponsorship Effectiveness Forum aims to establish industry-agreed standards to elevate sponsorship's role in marketing. Despite being one of the fastest-growing areas of marketing, sponsorship lacks the robust evidence base that advertising enjoys. The forum, led by industry figures such as Charlie Dundas of GSIQ and Sarah Kendall from The Football Association, seeks to develop shared benchmarks and standards. This initiative is driven by the need to convince CFOs and media planners of sponsorship's role in growth, as current reliance on vanity metrics like social media sentiment is insufficient.
Why It's Important?
The push for better measurement in sponsorship is crucial for its recognition as a serious growth driver in marketing. Without clear metrics, sponsorship is often seen as a 'soft' channel, limiting its potential impact. The establishment of shared standards could lead to more accurate valuations of sponsorship assets, encouraging investment in creative output and transparency. This shift could position sponsorship alongside advertising in terms of strategic importance, providing marketers with the tools to demand better measurement frameworks. Ultimately, this could lead to increased investment in sponsorship, benefiting brands, agencies, and rights holders by demonstrating its commercial growth potential.
What's Next?
The Sponsorship Effectiveness Forum's launch opens the door for future collaboration and benchmarking within the industry. As the forum develops shared standards, it is expected to foster a culture of knowledge-sharing, moving away from competitive secrecy. This could lead to more informed debates and decisions based on hard data, encouraging media agencies to treat sponsorship as a growth-driving channel. The forum's efforts may also inspire other brands to follow successful sponsorship models, like Lidl's partnership with UEFA Euro 2024, by providing a business case for continued investment in sponsorship.
Beyond the Headlines
The move towards better measurement in sponsorship could correct its historic undervaluation and elevate it to the heart of the marketing mix. By shifting from competitive secrecy to collaborative knowledge-sharing, the industry can unlock the full potential of sponsorship as a strategic marketing tool. This change in attitude could lead to a more transparent and effective sponsorship landscape, benefiting all stakeholders involved.
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