Sponsorship Return on Investment
February 24, 2009
The Sports Business Journal has an interesting look at the search for return on investment in sports sponsorships. With the economy failing, all of corporate America is tightening its marketing belt and looking for ways to measure (as well as justify) the benefits of their marketing investments, while conversely leagues are looking for ways to justify the substantial prices they charge for branding at their events.
The return on investment in MMA is a hotly debated topic within the industry, particularly when it comes to fighter placements (as Robert Joyner touched on in an article earlier this week discussing different branding strategies on walk-out shirts). What is the value of a premium placement on top level fighter? Can quantity over come quality? Is there any value in showing up on the lower third of a corner banner (or is there any value at all in the banner now that the UFC has taken the top section). Not to mention the value of putting your name on a promoter’s canvas.
The SBJ sums up the consensus on ROI measures nicely:
There is no groundswell toward one new metric or a group of metrics to measure return on investment. Companies interested in brand building continue to put a premium on data like media exposure and surveys measuring awareness and perception. Those after more direct financial returns are still tracking sales leads and market share.
The development of a metric to measure ROI of these sponsorships is a fascinating concept. The SBJ has one of the most respected ROI’s in the industry for NASCAR with its annual study of TV time for sponsor’s in the Nextel Cup Series. A similar concept for MMA has its appeal, but is so time intensive that is unlikely to be implemented in the near future.
I would love to hear your thoughts on effective ROI measures for MMA at adam_m_swift@yahoo.com.
