Pre pandemic, I met with the Atlanta agency of an automotive client. They spend tons on sports sponsorships, including local auto exclusives. I asked why this dominated the budget and heard what I hear so often: block competition, prestige connotation, dealer/client pressure, tickets. But one exec, in a fabulous drawl, hit the nail on the head: "I'll go to bat on this if you show me the juice ain't worth the squeeze!"
Marquee properties are a measurement dream:
A/B testing, pre-post or "intent design" can work. Intent design captures intent to view, then splits intenders into actual viewers/nonviewers to track results. Life happens: With big events you can find respondents whose intended viewing just didn't occur.
There is juice in marquee properties … just not enough.
Modern measurement can quantify context value: relevance, involvement and perceived quality enhance brand perception metrics. For businesses where perception drives sales, that lift has full funnel impact.
Having measured dozens of initiatives across verticals (fashion, beverage, retail, finance, B2B) and properties (Super Bowl, award shows, sports, specials) I've seen big wins. But most do not drive positive ROI, even with long-tail advanced measurement.
Lift is usually less than the enormous premium paid for these high-demand properties. Pricing for prestige properties has been driven by market forces and "media myths" that don't match results.
Surprising big successes:
Surprising unsuccessful initiatives:
You can value "added value."
The popular measurement critique is "this buy has benefits beyond advertising". Let's look at that because most can be quantified with effort.
The brand can approach doubling the response for the money or match response and divert $2.3MM to other initiatives:
Although ads in the Super Bowl work 25% harder than typical TV and offers tickets, it's not enough to overcome the premium. Yes, the Super Bowl has other perks like PR, billboards and so on. Those can also be valued/equivalized, and the $2.3MM just saved can more than deliver.
Be candid about the "why behind the buy."
One rationale for sponsorships is to block or limit competitors from the program. Two thoughts here:
Buys happen for "non-business" reasons every day. It's a fact of business life. Measure the impact of those choices and ensure finance understands "the why behind the buy" -- yet another reason why partnering with finance is so important. I once directed a youthful brand whose C-Suiters were upscale adults 40+. We launched each new initiative with a spot each in "NCIS" and "The Big Bang Theory" at a huge target premium. I no longer heard "I never see our spots." (CBS, you're welcome.) Sophisticated brands acknowledge "non-business" costs and account for them in post-campaign analytics.
Is the juice worth the squeeze? Be the brand that knows for sure.
Marquee properties are generally overpriced versus pure business value, but the ones that deliver are precious jewels indeed. It's critical that you find those gems and take a harsh look at the rest in today's accountable world. The great news is that they can now be measured in their totality with smart research design.
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