Nowhere is the warning ‘caveat emptor’ (or buyer beware) more apt than in the purchase of football sponsorship rights. So why is the process so fraught with uncertainty; surely it’s no more difficult than buying any other type of media exposure I hear you ask?
There are several reasons why this is not the case. These include:
- > The arbitrary nature of valuation which is often determined more by the price a purchaser is willing to pay rather than the intrinsic media value of the rights on offer
> The measures used to define brand reach which in the case of most leading football clubs is simply the number of fans in each territory to which they lay claim
> The lip service paid by rights sellers to the level of engagement demonstrated by their global fan base. In many cases this equates only to the number of Facebook or other social media registrations
Despite these obvious pitfalls for the unwary, there are some simple steps that can ensure brands obtain value from their sports sponsorship investment. These include:-
- Setting out in advance a clear objective or purpose for using sports sponsorship as a preferred marketing channel. This may include an element of increasing brand exposure or affinity in a defined territory, but should also include a harder measure such as an increase in incremental revenue or in sales of a specific product
- Asking a few pertinent questions when presented with a slick presentation suggesting that your chosen sponsorship platform has a global fan base comprising a high proportion of the Earth’s human population.
- These could include:
- > How were these figures derived and by what statistical model are they projected for each territory?
- > How many fan contact details are held and are currently available for marketing purposes in each territory?
- > How may of these fans has the club actually transacted with in the past year?
The answers to these questions alone should begin to give an indication of the gap between the proposed price of the sponsorship rights package and the incremental value a brand should be able to leverage from the deal. If in doubt, give me a call.
Steven Falk is director of Star Sports Marketing a consultancy providing insight and advice on sponsorship activation, CRM, brand and affinity marketing. You can follow him on Twitter @steven_falk or visit www.starsportsmarketing.co.uk
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