Landmark Study Reveals Sponsorship Industry Mismeasures Success, Leaving Untapped Potential
LONDON, UK – November 21, 2023 – A new study released today by the Sponsorship Effectiveness Forum (SEF), titled “The Sponsorship Effect,” reveals a meaningful disconnect between how the sponsorship industry measures success and the actual outcomes sponsorships deliver. The report, based on analysis of over 400 sponsorship deals, finds that a vast majority of sponsorships rely on easily reported, yet ultimately limited, metrics like engagement and reach, hindering the industryS ability to demonstrate true value and secure buy-in from senior leadership.
The study highlights a critical flaw in current practices: only 3% of “Tier 1” – the most successful – sponsorship cases prioritized ‘intermediate metrics’ such as engagement or reach as primary measurements. Moreover, the term “ROI” is frequently misused, frequently enough equating to impressions or media value rather than concrete financial returns. This misalignment prevents organizations from understanding what truly drives impact and limits sponsorship’s credibility as a genuine driver of growth.
“When we launched the Sponsorship Effectiveness Forum, we wanted to start a conversation,” said Rory Natkiel, Chair of SEF and author of The Sponsorship Effect. “This report is our first contribution to that conversation. the Sponsorship Effect shows that sponsorship is capable of driving significant commercial outcomes, but most organisations aren’t set up to plan or measure it that way. The contrast between Tier 1 cases and the rest highlights a huge amount of untapped potential. If the industry wants sponsorship to be seen as a genuine driver of growth, it needs clearer objectives, better data and a move away from engagement and exposure as stand-ins for effectiveness.”
The SEF, a cross-industry initiative dedicated to improving sponsorship effectiveness through shared evidence and collaborative research, advocates for a shift towards outcome-focused objectives and more robust data analysis. The Sponsorship Effect is available for download at https://www.sponsorshipeffect.org/ and will serve as the foundation for the Forum’s future research and working program. The study aims to establish consistent measurement standards across brands, agencies, and rights holders, ultimately elevating the strategic value of sponsorship within the broader marketing landscape.
