Measuring the ROI of Sports Sponsorships: A Guide for Companies

May 29, 2023

In an era where the sports industry generates billions of euros globally, it’s no surprise that companies invest heavily in sports sponsorships and related marketing campaigns. The challenge, however, lies in effectively measuring the return on investment (ROI) from these activities.

In this article, we aim to clarify, offering a step-by-step guide on how companies can do this.

Setting Objectives

The first step in measuring the ROI of sports sponsorships is to clearly define the investment’s objectives. These objectives can vary: increasing brand awareness, improving corporate image, acquiring new customers, boosting sales. Once established, the company can start creating specific metrics to monitor their achievement.

Creating Specific Metrics

The metrics should be clearly aligned with the pre-defined objectives. For example, if the goal is to increase brand awareness, the metrics could include analysing social media mentions, an increase in online brand searches, or growth in social media channel followers. If the goal is to increase sales, the company could monitor sales before, during, and after the sponsorship or marketing campaign.

Collecting and Analysing Data

Once the metrics are defined, it’s essential to consistently collect and analyze data. Digital analytics tools like Google Analytics, social media monitoring tools, and internal sales analysis can provide useful data. These data will not only help understand if the goals have been met but also optimize future sponsorships and marketing campaigns.

Calculating ROI

The ROI can be calculated as the ratio between the benefit obtained from the investment and the investment’s cost. For example, if the company invested 1,000,000 euros in a sponsorship and earned 1,500,000 euros in sales directly related to that sponsorship, the ROI would be 50%.

Analysing External Variables

When calculating ROI, it’s important to also consider external variables that might have influenced the results. These could include changes in the market, competitive activities, or global events.

Sponsoring a Football Team

Let’s imagine that an energy drink company sponsored a popular football team with the goal of increasing brand awareness and boosting sales.

Defining objectives Increase brand awareness by 20% and boost sales by 10% in the year following the sponsorship.

Creating specific metrics Monitor brand mentions on social media, online brand searches, social media followers, and monthly sales of energy drinks.

Collecting and analysing data Use tools like Google Analytics to monitor online searches, social media monitoring tools to check mentions and followers, and internal analysis to monitor sales.

Calculating ROI Let’s suppose that the company invested 2 million euros in the sponsorship and obtained an increase in sales of 2.5 million euros directly related to the sponsorship. The ROI would be 25%.

Analysing external variables Consider any external variables that may have influenced sales, such as a change in consumer tastes or a major sports event.

Marketing Campaign During the Olympics

Suppose a sports apparel company launches a marketing campaign during the Olympics with the aim to improve brand perception and acquire new customers.

Defining objectives Improve the brand perception score by 15% and acquire 10,000 new customers in the six months following the Olympics.

Creating specific metrics Monitor brand perception surveys and the number of new customers acquired.

Collecting and analysing data Use surveys to monitor brand perception and website analytics tools to monitor the number of new customers.

Calculating ROI If the company invested 1 million euros in the marketing campaign and earned 1.3 million euros from newly acquired customers, the ROI would be 30%.

Analysing external variables Consider any external variables that might have influenced the results, such as the performance of the sponsored teams or the general media attention during the event itself.

In conclusion, these practical examples illustrate how companies can apply a structured approach to measure the ROI of sports sponsorships and marketing campaigns, helping them better understand the effectiveness of their marketing strategies and optimize future investments.