Two Keys to Better
Sponsorship Measurement
Be clear on your objectives, and measure outputs, outtakes and outcomes.

While much of the urging for better measurement focuses on public relations, another area of below-the-line (i.e., non-advertising) corporate and marketing communications that is often poorly measured is sponsorship. In some cases, sponsorships are managed as part of PR and corporate communication, while in other situations they are the responsibility of advertising or marketing departments. Irrespective, in most cases sponsorships are inadequately measured – and sometimes not at all.

Sponsorships are deserving of particular attention in the measurement debate as many involve large budgets, often in the millions of dollars. Added to cash contributions is expenditure on support materials and often large amounts of staff time. Some sponsorship experts recommend multiplying the cash outlay for sponsorships by two to calculate the total cost to a sponsor.

So how should we measure sponsorships? Like other corporate and marketing communications, there are a number of approaches. But the same number one golden rule applies: Set clear objectives and measure against them.

Sponsorship objectives: CEO whims, or smart PR?

This is where the wheels fall off for many sponsorships. Often they have vague, confused or non-strategic objectives. Many sponsorship decisions are driven by CEO and senior management whims. For instance, CEOs who like motor racing and want to take their friends and business associates to motor racing events get behind Formula One or NASCAR; football and baseball fans are prepared to use the marketing budget to buy a corporate box at big matches; and art loving boards often throw corporate dollars at galleries and the theatre more for personal interests than strategic corporate or marketing objectives.

To be fair, there is nothing wrong with an emotional or personal connection to a sponsored activity. A link or personal passion often helps achieve management involvement and make the activity a success. But what is a wrong step is engaging in such activities without clear objectives that are aligned to the organization's corporate or marketing goals.

There are three common objectives for sponsorships:

Some sponsorships may achieve more than one of these objectives, but it's important to know the primary objective of the activity and to measure it.

Sponsorships can be informally measured to some extent by feedback. But recipients of sponsorship funds and attendees at sponsored events are usually grateful and gracious, making their response less than objective and not necessarily representative of the total market. Formal measurement of major sponsorships is recommended and a number of research tools can be used to do this.

This approach follows the widely circulated advice to measure outputs, outtakes and outcomes and it allows you to put a value on your sponsorships at several levels. With big money going into sponsorships and competition for sponsorship funds, measurement is increasingly critical.

Measurement data allows sponsors to maximize the benefits of sponsorships and negotiate and renegotiate better deals. For instance, analysis of signage exposure during events can result in better placement of signage in future. On the other side, it allows organizations seeking sponsorship to quantify the value and benefits to help them attract and retain sponsors.

Dr Jim Macnamara BA, MA, PhD, is Group Research Director with Media Monitors – CARMA Asia Pacific following the acquisition of the CARMA Asia Pacific franchise by Asia Pacific's leading media monitoring firm. His company conducts media analysis, e-surveys, reputation research and sponsorship analysis. He has a 30-year career in the media and PR in Asia Pacific and is the author of 11 books on media and communication.