How To Get Title Sponsorship Right - Key Lessons From The Industry
Title sponsorship of sporting events offers brands a unique opportunity to showcase their identity, connect with audiences, and amplify their presence on a global stage. However, getting title sponsorship right requires strategic planning, creative execution, and a deep understanding of the target audience. Too many times you see a brand slapped on an event and it has not been used anywhere close to its full potential.
Below, we delve into the key considerations for brands looking to maximise their title sponsorship of sporting events, drawing insights from successful examples across the world of sports.
David Rothenhaeuser
Published on September 3rd, 2024
In this Insight:
Choosing the Right Event
Selecting the right sporting event to sponsor is crucial for maximising brand impact. Brands should align with events that resonate with their target audience and reflect their values and brand identity.
For example, Red Bull's title sponsorship of extreme sports events like the Red Bull Air Race and Red Bull Rampage aligns perfectly with its brand image of energy, adventure, and excitement.
Nielsen Sports, the leading source of sports measurement and analytics around the world, has seen that on average, a 1% gain in brand metrics such as awareness and consideration drives a 1% increase in sales.
Creating Memorable Experiences
Brands can leverage their title sponsorship to create memorable experiences for fans both on-site and online. Activation zones, interactive exhibits, and branded giveaways enhance the fan experience and leave a lasting impression.
Nike's sponsorship of the "Breaking2" marathon event exemplifies this approach, even though there were not thousands of fans present when Eliud Kipchoge first attempted to complete a marathon in under two hours. The estimated 800 people in attendance at the Formula One track in Monza were provided with immersive experiences, including live music and exclusive merchandise, enhancing the overall event atmosphere.
In addition to the exclusive in-person experience, Nike’s sponsorship of the “Breaking2” marathon managed to create memorable online experiences for fans. 13.1 million people tuned in to the live streams on social media, with 500,000 simultaneous viewers at its peak, making it Twitter’s biggest-ever brand-driven live event. This marathon received eight times more viewers than the New York, Boston, or Chicago marathons - despite just three men running in the event. The #Breaking2 hashtag received over 2 trillion impressions.
Both Nike and National Geographic made documentaries about the race, and Nike also invited viewers to download their app and attempt to “Break2” on their own. They earned early access to the Zoom Fly shoe, the commercial version of the shoes worn by the athletes.
Integrated Marketing Campaigns
Nike showed successful title sponsorships go beyond event day activations. Brands should leverage integrated marketing campaigns across multiple channels to maximise reach and engagement. This includes leveraging social media, influencer partnerships, and content marketing to generate excitement before, during, and after the event.
Coca-Cola's title sponsorship of the FIFA World Cup is a prime example of an integrated marketing campaign that extends beyond the event itself, with global advertising campaigns, branded content, and digital activations reaching millions of fans worldwide.
During the 2022 FIFA World Cup in Qatar, Coca-Cola featured its 'Believing is Magic' campaign, strengthening its connection with football fans by providing them with opportunities to elevate their unique celebrations and rituals. The campaign introduced a musical component by debuting an exclusive rendition of a classic song.
Another notable first was the Coca-Cola FIFA World Cup Trophy Tour visiting all 32 qualified nations as part of a 51 countries Tour, further strengthening FIFA’s ambition to reach every one of its 211 Member Associations by 2030, with the goal of bringing fans worldwide closer to the exhilaration of the game.
The work also saw Coca-Cola team up with Italian collectable company Panini to produce a digital sticker album which had over 27 million football fans signing up globally.
Coca-Cola saw net revenues grow by 12% to $11.3 billion in Q2, 2022, shortly after the release of the campaign.The integration of digital and physical platforms, and linking consumption patterns with consumer passions were key to success of the campaign globally.
Measuring ROI
It's essential for brands to measure the return on investment (ROI) of their title sponsorship to gauge its effectiveness and make informed decisions for future partnerships. Key performance indicators (KPIs) may include brand visibility, social media engagement, website traffic, and sales metrics.
Dubai headquartered Airline company, Emirates, has had a long-standing partnership with Premier League club Arsenal since 2004, adorning the front of shirt sponsorship for the club, and the naming rights of the stadium, The Emirates Stadium. Through the brand visibility at the stadium (both in person and through the media) and merchandise, Emirates can quantify the value of their sponsorship.
Expand this with Arsenal’s audience reach, ticket sales, events and hospitality at the stadium, as well as brand perception and further co-branded partnerships such as The Emirates International Break, and you can see how Emirates is maximising its connection with the club.
Sustainable Partnerships
Building long-term, sustainable partnerships with sporting events can yield greater brand benefits over time. Brands should look for opportunities to align with events that share their commitment to sustainability, diversity, and social responsibility.
For instance, Xylem’s partnership with City Football Group shows the power of leveraging a sporting heavyweight in Manchester City to create a compelling narrative around global water issues. Man City manager Pep Guardiola has been the face of a number of campaigns of Xylem, which continued into the club’s 2024 pre-season tour of the United States, featuring powerful & creative digital marketing spots.
In the first six campaigns of the partnership, there were over 1 billion interactions with the Xylem brand worldwide, and more importantly, a 20% increase in water action.
Maximum impact
Title sponsorship of sporting events offers brands a powerful platform to elevate their brand visibility, engage with audiences, and drive meaningful connections. By choosing the right events, creating memorable experiences, leveraging integrated marketing campaigns, engaging with fans, measuring ROI, and fostering sustainable partnerships, brands can maximise the impact of their title sponsorship and leave a lasting impression in the world of sports.
As exemplified by successful brands across various sporting events, strategic planning, creativity, and audience engagement are key to unlocking the full potential of title sponsorship opportunities.
Sponsorship FAQs
Measuring the return on investment (ROI) in sports sponsorship involves evaluating the financial gains relative to the costs incurred.
Define Objectives: Clearly articulate the goals and objectives of the sports sponsorship. Whether it's brand awareness, lead generation, or sales, having clear objectives will guide your measurement efforts.
Establish Key Performance Indicators (KPIs): Identify the specific metrics that align with your objectives. These may include brand exposure, social media engagement, website traffic, lead generation, and sales.
Quantify Sponsorship Costs: Calculate the total costs associated with the sponsorship, including sponsorship fees, activation costs, marketing materials, and any other related expenses.
Measure Brand Exposure: Evaluate the visibility of your brand during sponsored events. Track logo placements, mentions, and any promotional materials to quantify brand exposure.
Social Media Analytics: Monitor social media metrics related to the sponsorship, such as likes, shares, comments, and follower growth. Assess the impact of sponsored content on social media platforms.
Website Analytics: Analyse website traffic during and after the sponsorship period. Look for increases in visits, page views, and user engagement attributed to the sponsorship.
Lead Generation and Conversion Rates: Track leads generated through the sponsorship and assess the conversion rates. Connect leads to specific sponsorship activities to understand their origin.
Sales Attribution: Attribute sales to the sports sponsorship by tracking customer purchases during or after the sponsorship period. Use unique identifiers like promo codes or dedicated landing pages.
Customer Lifetime Value (CLV): Assess the impact of the sponsorship on customer retention and CLV. Determine if the sponsorship contributes to long-term customer loyalty.
Calculate ROI: Use the formula ROI = (Net Profit ÷ Total Cost) x 100. Net Profit includes revenue generated directly from the sponsorship, such as increased sales or customer value.
Consider Intangible Benefits: While ROI is often associated with financial metrics, consider intangible benefits such as improved brand perception, strengthened partnerships, and long-term relationship building.
Benchmark and Compare: Compare the calculated ROI against industry benchmarks or previous sponsorship initiatives to provide context and evaluate the success of the current sponsorship.
By systematically assessing these factors, businesses can gain a comprehensive understanding of the ROI of their sports sponsorship and make informed decisions for future sponsorships and marketing strategies.
The duration of naming rights agreements for stadiums can vary widely and is subject to negotiations between the sponsoring company and the entity that owns or manages the venue. Naming rights deals typically last for a specified number of years, and the duration can range from a few years to several decades.
Short-term agreements might last between 3 to 5 years, while longer-term agreements can extend to 10, 15, 20 years, or even more. The length of the deal often depends on factors such as the prominence and popularity of the venue, the financial terms of the agreement, and the strategic objectives of both the sponsor and the sports entity.
In some cases, naming rights agreements include options for renewal or extension, providing flexibility for both parties to continue the partnership if it has been mutually beneficial. The terms and duration of naming rights deals are typically outlined in the formal contracts negotiated between the sponsor and the venue.
The value of naming rights for stadiums is influenced by various factors, and it can be challenging to pinpoint an exact figure. Several elements contribute to determining the value of naming rights:
Venue Size and Popularity: Larger and more prominent stadiums or arenas in popular sports leagues often command higher naming rights values due to increased visibility and audience reach.
Market and Location: The geographic location of the venue and the market it serves play a crucial role. Naming rights for venues in major cities or regions with higher population density and market demand tend to have higher values.
Sports Team Success: The success and popularity of the sports teams that use the venue contribute to naming rights value. Successful teams attract more attention and a larger fan base.
Economic Conditions: The economic climate at the time of negotiation can impact naming rights values. During economic downturns, companies may be more conservative in their sponsorship spending.
Duration of Agreement: Longer-term agreements often result in more substantial overall values. Companies may negotiate favourable terms for extended commitments.
Additional Benefits: The inclusion of additional benefits, such as marketing opportunities, hospitality access, or exclusivity clauses, can enhance the overall value of naming rights.
To determine the value, organisations typically engage in negotiations based on these factors, and the final value is agreed upon through a mutually beneficial arrangement between the sponsoring company and the venue owner or management. Values can range from millions to tens of millions of dollars over the term of the naming rights agreement.
Measuring success in sports marketing and sports sponsorship involves a comprehensive evaluation of various quantitative and qualitative factors. Here are key metrics and approaches to assess success:
Brand Visibility and Exposure
Measure the reach and impressions of marketing materials, including logo placements, advertisements, and mentions.
Track media coverage, both traditional and digital, to quantify the extent of brand exposure.
Social Media Engagement
Monitor social media metrics, including likes, shares, comments, and follower growth
Analyse the impact of sponsored content and campaigns on social media platforms
Fan Engagement
- Evaluate attendance at sponsored events, fan participation, and interaction with branded activities
- Assess the impact of promotions, giveaways, or fan experiences on engagement
Market Research and Surveys
- Conduct surveys to gauge brand awareness, perception, and recall among the target audience
- Use market research to understand the effectiveness of sports marketing campaigns in influencing consumer behaviour
Lead Generation and Conversion
Track leads generated through sports marketing initiatives and sponsorship activations
Analyse conversion rates and attribute sales or conversions to the influence of sports marketing efforts
Return on Investment (ROI)
Calculate the financial return on investment by comparing the costs of sports sponsorship against the revenue or business generated as a result
Use specific financial metrics, such as cost per acquisition or customer lifetime value, to assess the efficiency of marketing spend
Partnership Impact
Evaluate the strength and impact of partnerships formed through sports sponsorship
Assess how collaborative efforts contribute to mutual goals and objectives
Brand Image and Alignment
Assess how well the sports sponsorship aligns with the brand's values and image
Monitor whether the association with sports properties positively impacts brand perception
Media and Broadcast Metrics
Analyse television ratings, online streaming metrics, and other broadcast-related data to understand the audience reached through sports events
Long-Term Relationship Building
Evaluate the potential for long-term relationships with sports organisations, athletes, or fans
Consider the sustainability and growth of brand affinity beyond the immediate sponsorship period
By combining these quantitative and qualitative metrics, businesses can gain a holistic understanding of the success of their sports marketing and sponsorship initiatives. Regularly reviewing and adjusting strategies based on these measurements helps optimise future campaigns for even greater impact.
Companies buy naming rights to stadiums for various strategic reasons, leveraging the association with sports venues to achieve specific marketing and business goals. Here are some key motivations:
Brand Visibility: Naming rights provide extensive visibility, as the company's name becomes an integral part of the venue's identity, reaching a broad audience through broadcasts, media coverage, and fan engagement.
Brand Recognition: Associating with a well-known sports venue enhances brand recognition, creating a lasting impression on consumers and contributing to long-term brand recall.
Marketing and Advertising: Naming rights serve as a powerful form of marketing and advertising, allowing companies to integrate their brand into the sports culture and conversations.
Community Engagement: Supporting a local or favourite sports team through stadium naming rights fosters a sense of community engagement, positively impacting the brand's relationship with local consumers.
Competitive Edge: Securing naming rights provides a competitive advantage by differentiating the brand and establishing a prominent presence in the sports industry.
Corporate Image: Sponsoring a stadium aligns the brand with the excitement and passion of sports, influencing the corporate image and portraying the company as dynamic and involved in the community.
Revenue Generation: For the sports venue, selling naming rights generates significant revenue, helping fund operations, facility upgrades, and other expenses.
Overall, acquiring naming rights to stadiums is a strategic investment that goes beyond traditional advertising, offering a unique and impactful way for companies to integrate their brand into the fabric of sports culture.
If you are interested in becoming a sponsor, the specific contact person or department will depend on the entity or property you want to sponsor.
Sports Marketing Agencies: Agencies like SPORTFIVE specialise in connecting sponsors with sports opportunities. Contact their business development or sponsorship departments.
Sports Teams or Clubs: Contact the sponsorship or partnership department within the sports team or club.Look for information on the team's official website regarding sponsorship opportunities and contact details.
Sports Events or Leagues: Reach out to the event organiser's sponsorship or partnership department. Event websites often have dedicated sections providing information for potential sponsors.
Athletes: Contact the athlete's management or agent, who typically handles sponsorship inquiries. Some athletes manage their sponsorships independently, and contact information may be available on their official website or social media.
Sports Federations: Reach out to the sponsorship or business development department of the relevant sports federation. Check the official website of the federation for sponsorship guidelines and contact information.
For specific details, visit the official website of the entity you are interested in sponsoring or directly inquire through the provided contact information. If the information is not readily available, consider reaching out to the general contact line or email provided on their official platforms, and they can direct you to the appropriate department.
