What is the story about?
What's Happening?
The sponsorship industry is facing challenges in measuring its effectiveness compared to traditional advertising channels. The newly launched Sponsorship Effectiveness Forum aims to address this by establishing industry-agreed standards to better quantify the impact of sponsorship deals. Despite the growth in sponsorship spending, particularly in sports, the sector lacks robust evidence and shared standards to demonstrate its commercial effects. The forum seeks to change this by developing benchmarks and case studies that highlight successful sponsorships, such as Lidl's partnership with UEFA Euro 2024, which significantly increased brand recognition and app user engagement.
Why It's Important?
The push for better measurement in sponsorship is crucial for convincing CFOs and media planners of its role in driving growth. Without clear evidence of effectiveness, sponsorship is often seen as a 'soft' channel, limiting its potential as a serious marketing tool. Establishing rigorous standards and benchmarks can elevate sponsorship to the level of advertising in terms of strategic importance. This shift could lead to more accurate valuations of sponsorship assets, justify significant investments, and unlock untapped opportunities for brands and rights holders. Ultimately, it could redefine sponsorship's place in the marketing mix, enhancing its contribution to brand profitability and cultural resonance.
What's Next?
The Sponsorship Effectiveness Forum plans to develop an evidence base of case studies and establish recognized benchmarks for success. This initiative aims to foster collaboration and transparency within the industry, moving away from competitive secrecy. By providing marketers with tools for better measurement frameworks, the forum hopes to encourage more brands to invest in sponsorship as a growth-driving channel. The forum's efforts could lead to a cultural shift in how sponsorship is perceived and utilized, potentially increasing its strategic importance in marketing decisions.
Beyond the Headlines
The forum's initiative could have long-term implications for the sponsorship industry, promoting a culture of knowledge-sharing and collaboration. This change in attitude may correct the historic undervaluation of sponsorship, allowing it to play a more central role in marketing strategies. By demonstrating the commercial growth potential of sponsorship, the industry can attract more investment and innovation, ultimately benefiting brands, agencies, and rights holders.
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