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Sponsorship in Sport - The Two Sided Problem

Mon 14th Nov 2016 | Football Sponsorship

Sponsorship in sport is a growing trend; more and more companies have invested their marketing budget in gaining exposure, and in some cases engagement, through the sponsorship of a sport event or club.





However, how do they measure the value? Is their sponsorship helping them gain revenue? How can they monetise from this sponsorship? 


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Team Problem

The problem is not only weighting the return sponsors gain from their sponsorship but also for sport clubs. Sponsorship managers face these challenges all year round;

How do we sign an awesome sponsor for our team rather than another?

How do we keep their sponsors happy and engaged throughout the sponsorship?

What’s the long-term value for our sponsors?

How can we reactivate sponsors after a 3 year deal?

Some of these challenges are increased, as we were told by clubs at SoccerEX in September. Sticking to the example of football, if you’re not in the top 3 or 4 of your league, you’re not a big fish in the eyes of sponsors. Exposure is limited due to TV coverage and Champions league games; as a result they need new ways of enticing sponsors and showing them that they can generate as much exposure and engagement as the other top clubs.

The biggest challenge for a football club is showing the long-term value in a sponsorship as well reactivating a sponsorship deal. When it comes to reactivation, sponsors tend be to looking to gain something extra on top of their current offering and taking it to a new level; this is usually done by offering more exposure. However, there is always the question begging from the sponsor "how do you monetize from exposure?"

Sponsor Problem

Sponsors want to embed their brand name in the mind of their partners’ audience. Not only do sponsors invest a lot in sponsoring a sports team or event, but they also invest heavily in marketing that sponsorship. It is estimated that sponsors spend as much in advertising the sponsorship as they do on the sponsorship itself.

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There are many questions sponsors are looking to answer, and sports clubs and entities should be prepared;

Sports has a massive audience, how do I choose which team to sponsor?

What value am I bringing to the company, compared to other marketing spend?

How can I leverage the sponsorship, to attract a new audience to our brand?

How can I measure success?

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A sponsor wants to carefully position their brand around the team or event their sponsoring whilst still interacting with the team and it's audience. A very tricky balancing act! I've experienced it first hand, whereby getting access to branded assets and content from the sports team is just not enough. So at times the sponsor is looking to the team to become a 'marketing agency' of sorts to deliver new and innovative ways of promoting the partnership. However, not all clubs are equipped to do this.

The end goal for the sponsor is to deliver value and growth for the brand. The ironic thing however is that 30-50% of sponsors are not able to measure ROI!

Our Solution

We’ve developed a technology that gamifies the purchasing process for the customer and links a reward to a live event which is powered by sport.

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We've built our commercial model around a WIN-WIN model. This is what end consumers have said about us, so we want to stay true to our cause.



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