The complex world of sponsorship ROI

The global sports sponsorship market is on track to hit an astounding $190bn by 2030. This presents a tremendous opportunity for South African brands looking to boost their visibility and strengthen their market positioning by  this method. However, navigating the space successfully demands more than just signing a cheque — it requires a detailed strategy and effective measurement techniques to maximise return on investment (ROI). 

Measuring ROI in sports sponsorship is challenging because it involves more than just brand visibility; it's about how consumers engage with your brand during and after the sports event. Many sponsors aim for three to five times their investment value, but achieving this requires access to the right data points, such as media exposure, social media engagement and fan sentiment. Unfortunately, many sponsors receive performance data too late, often after the sponsorship cycle, leaving little room to adjust underperforming campaigns in time. 

Timely and accurate reporting is key to getting the most value out of a sports sponsorship. Timely access to data allows sponsors to gauge immediately how their involvement is being perceived and to make any necessary changes to ensure optimal results. For instance, if fan sentiment turns negative, sponsors can quickly react to mitigate any potential damage to their brand. On the other hand, positive sentiment can be leveraged further to boost engagement. 

Real-time insights also allow for more dynamic campaigns, where adjustments can be made based on actual performance. Whether it’s tweaking digital activations or adjusting in-stadium branding, the ability to act on real-time data helps brands stay agile and responsive, ensuring that they maximise the value of their sponsorship. 

Before entering into any sponsorship deal, make sure your goals are clearly defined. Is it increased brand awareness, lead generation or community engagement that you aim for? Having a clear objective will guide your decisions throughout the sponsorship period. 

Use tools and services that provide accurate and timely insights. This allows you to act quickly, whether it’s amplifying successful initiatives or course-correcting underperforming ones. 

Understanding how your sponsorship is perceived by fans and the public is essential. Both positive and negative sentiment can have a major impact on your brand, so ensure you have mechanisms in place to track and respond to this. 

When selecting monitoring services, opt for local pricing, as this can significantly reduce costs. In South Africa, where many solutions are priced in dollars, finding a rand-based service can make a big difference to your bottom line. 

Sports sponsorships are a powerful tool for enhancing brand visibility and loyalty, but success relies on a data-driven approach and the ability to adapt quickly.

Joe Hamman is a director of Novus Group.