Sponsorship
Measurement
(This article is reprinted from the January, 2003 issue.)
How
to Make the Most
of
Your Sponsorships
Pick the right opportunity,
leverage your exposure,
and aim for 8 to 1 ROI.
By Rodger
Roeser, APR
Sponsorship
is notorious for being a gray area within the public
relations discipline, fraught with curious and unstandardized
measurement techniques, and the need for significant return on
investment that advances a given public relations objective.
Sponsorship is a multimillion-dollar business, and for some it
has been a multimillion-dollar mistake. Big or small, opportunities
for sponsorship abound and tactically superior public relations
professionals are able to take advantage of these opportunities
and properly recommend them as part of their arsenal.
Building
a brand through sponsorship alone and expecting quick results is
flawed thinking. But with time and the right merchandising, sponsorships
can be a powerfull tool. Keep the following points in mind to ensure
a successful sponsorship program.
Seek
many opportunities
Whether you are serving a client for a firm or as the professional within a
corporation or organization, you must carefully weigh sponsorships for return
on investment. Look carefully at your objectives and see how a properly aligned
sponsorship can assist in the achievement of a given goal. The first step is
to seek many opportunities and see what is available.
Some
groups do the same sponsorship over and over again because that’s
how it has always been done, as opposed to seeking fresh and exciting
opportunities that may be a better fit and provide a more powerful
return on investment. Look at the core objectives and mission statement
of your organization, understand the target audience implicitly,
go in with a clear understanding of what you hope to accomplish,
then seek those opportunities that fit. Based on those basic ideas,
you may be surprised at the current return, either pleasantly or
otherwise.
What’s
in them for you?
As a former corporate public relations executive, I never had a shortage of
sponsorship opportunities. Rarely a day went by that some organization, professional
sport or cause did not solicit sponsorship dollars. These solicitors tend to
be quick to ask for sponsorship dollars and offer promises, but rarely do they
take the time to understand how your cause may be a solid “marketing partner” with
their cause—but that is the key. Although I would typically listen at
least to the opening pitch, it is best for everyone considered to cut right
to the chase: What is in it for my organization?
If you
clearly state your objectives to the solicitor, a good sponsorship
professional will be able to work with you to tailor some ideas to
your objectives, as well as presenting a variety of options. Unless
something is grossly off the wall, let them know what you need and
have them draw up a proposal. It surely cannot hurt to check it out
and keep it in your files. If, after looking through the proposal,
it is not a fit, do not “string” the solicitor along; use
professional courtesy and tell them so, if for no other reason than
they stop calling you.
Leverage
that logo: Spend twice as much on leverage
When proposals come in, even if it’s with an existing relationship that
is up for renewal, understand how this sponsorship can be leveraged. Again,
I’ll draw on some personal experience. As the former public relations
director for the #88 NASCAR team, one of my tasks was indeed to showcase to
potential sponsors how their involvement, their “marketing partnership,” could
work. Slapping stickers on a 200 mph car going around in circles for three
hours may not be the best investment in the world; it is how it is leveraged
that is most salient. In this specific case, logo and signage are simply the
keys that open other doors. Sponsorships are leveraged through contests and
promotions, point of purchase displays, event tickets and the like. It is recommended
that for each dollar spent in sponsorship, the sponsor spend twice that much
to leverage the sponsorship, and that is true no matter how large or
small the project.
ROI:
The 8 to 1 rule of thumb
When it comes to return on investment, another good rule of thumb is the 8:1
ratio, which also holds true to good public relations in general. For each
dollar spent, a solid sponsorship (or PR program) should yield at least $8
for each $1 invested. And this is where things can get tricky. PR folks will
tend to look at the biggest number they can come up with, as evidenced by everyone
(we’ve all done it) turning in Neilsen/Arbitron numbers and print circulation
statistics to show return. And, when it comes to ad equivalency data, pick
your voodoo.
The important
thing to keep in mind is to make sure you understand how the numbers
are arrived at, and that you are working from the same platform as
the number provider. Companies like Joyce Julius, VMS and PRTrak
all provide event sponsorship data, but each works from different
data computing platforms. I’m not sure a glimpse of Tide or
UPS on a racetrack televised on ESPN is worth $30,000, although that
is likely the figure you would see and would thus report. Take some
of the figures with a grain of salt, use some common sense, and see
how a given sponsorship is moving your mountain and what is important
to the organization you represent. Again, some are in it for TV time
and branding, some are in it for client relations and some are in
it for fun and goodwill. A successful sponsorship accomplishes the
correct goal, with a strong return.
Local
goodwill sponsorships: Use them wisely
With simple goodwill sponsorships—like sponsoring the local chapter of
an organization, a local charity or academic program—be sure that there
are indeed leveragable activities that can be undertaken from these programs.
Getting your business involved to build camaraderie, positioning your organization
strategically and being able to capitalize on that position—each is a
realistic goal of such programs. Although these tend to be “lighter fare,” the
rules still apply. Be sure these sponsorships fit within the corporate objective
and that larger opportunities may result from this partnership.
Lastly,
when you have made your decision(s) on what program(s) to become
involved in, iron everything out in advance. Oftentimes, several
programs can be leveraged together and in concert. Agree on a reporting
method and whose responsibility it is to provide it, ask who prints
and positions logos and signage and what leveraging and merchandising
opportunities you have—from client/employee entertainment and
official status with use of their logo, to personal appearances and
presenting/article opportunities. There is a host of leveragables,
so ask for everything. 
Rodger
Roeser, APR, is the president of Eisen Management Group, an integrated
marketing and communications firm specializing in business-to-business,
non-profit, and entertainment clients. Roeser is the former senior
public relations consultant with HSR Business To Business, general
manager of VMS Ohio and public relations director of ERA Franchise
Systems. He is a Cincinnati PRSA Board Member and Chairman of the
Sponsorship Committee.
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