What has happened?
Sports data agency, Two Circles is forecasting that global brand revenue on sport sponsorships will grow to $65 billion across 2019. However despite this projected growth, sports rights-holders are predicted to miss out on $26 billion in potential revenue due to underutilisation of their asset portfolios, particularly within the digital space. Two Circles identified that in order for rights-holders to overcome this, they need to embrace the shifts in audience consumption and leverage the power of data to greater satisfy the objectives of brands.
The Media Store Take
For brand marketers with sponsorship properties, the challenges of rights-holders do not directly impact individual measures of success because there is a non-linear relationship between revenue and sponsorship ROI. There is no “one size fits all ROI” for sponsorships, given each brand has different requirements based on their own objective(s). Our advice for brands? Be clear on the problem you are trying to solve with a sponsorship and apply measures of success accordingly. And our advice for rights-holders? Work with your partners to understand their individual objectives and package assets accordingly, rather than false fitting brands into a pre-existing sponsorship portfolio.
For more content on sponsorship leverage best practice, listen to Sandra Wiles on the Managing Marketing Podcast with Darren Woolley from Trinity P3.