Does sponsorship work?

Sponsorship spending increased 70% from over the past dozen years (2006-2018) and people still ask, “Does sponsorship work?”

  • Yes, sponsorship works. Sponsorship works when fans make the connection between the brand and the team. We call that sponsorship recall.
  • Why does sponsorship work? Sponsorship works because passion transfers from the team to the brand. The stronger the ties that bind the brand with the team, the greater the passion transfer.
  • What builds strong ties? Brands build strong ties when they share brand meaning through the team via multiple channels of communication.

Average Sponsorship Recall & Brand Lift

Average NFL sponsor recall1 was 38-39% across eight teams over the past two years (2017-2018). Among 11 teams this year the average recall from preseason is up to 43% in the NFL. Adding eight more teams from the NBA and NHL, average recall remains about the same (44%). The increase is due to (a) adding teams measuring strong partnerships, (b) teams selecting more partners above a given spending threshold, and (c) our partners getting smarter in sharing brand meaning with fans. However, with 165 brands represented, it’s safe to say average recall across the leagues hovers near 40% (+/- a few points) over the past three years.

The data visualization demonstrates the biggest differences are across categories. Hover over each category to see the distribution within that group of sponsors. Above average recall comes from the brand’s active use of the team’s marks and often some kind of entitlement or dedicated branded space (gates, training facilities, etc.). Below average recall often occurs in the first years of a contract in non-exclusive categories. Nonetheless, 25% recall among an NFL team’s fan base of four million is still one million passionate fans.

Below the recall comparisons by category we can see the effects on the key brand metrics of differentiation2 and preference3 On average for the NFL, when fans recall brands as the partner of the team, they improve brand relevance, differentiation and preference by over 60%.

Note: All results are based on a scientifically designed sample of the team’s database accurately reflecting season ticket holders, single game buyers and all other registered users. These results statistically infer brand lift without directly asking fans about the relationship between recall and effects (e.g., “If brand X is a sponsor of the team….”).

Thanks to Ian Young for the cool data viz.

The Digital Media Value of Title Sponsorships & Promotions

Google trends for sponsors

Naming rights get plenty of media mentions, but what about directly tracking consumer engagement? What’s the relative payoff?

Including the effects of digital and social media in conjunction with the use of the team’s marks, we measure specific effects brands want fans to take as a result of sponsorship. These include what fans think, feel, or do because of the sponsorship, such as awareness of the Verizon Up campaign, preferring Heinz over Hunt’s, downloading the AT&T app, or owning a Toyota, Mercedes-Benz or Ford.

Tracking Media Engagement

But, one easy, free way to capture or track media engagement is through Google Trends.Entering key terms, we can find how frequently people search for information regarding the team and its sponsor. This speaks to the importance of the title sponsor promoting offers, deals or events connected directly to the team, so that fans search for “Lions” and “Ford” together. Of course, brands and teams get some co-branded search naturally. The question is, what can the brand do to promote more co-branded search?

People search for what they are interested in.

Comparing Naming Rights by Region

We can compare how AT&T’s sponsorship of the Cowboys fares against other naming rights in Texas–and compare it across time.  America’s most valuable team does produce more engagement than others in the state, but the Astros fare about as well and at times when the Cowboys are not in-season (and vice-versa). This chart illustrates the need for sponsors to establish complementary portfolios to reach consumers via passion points year round. (Hover over a point on the graph to see relative scores.)

Compare Naming Rights by League

We can compare with other NFL naming rights. Compared to the Patriots and Gillette, AT&T’s sponsorship of the Cowboys still reigns throughout the season, but the Patriots run lasts longer–right to the Super Bowl. Somewhat surprisingly, Ford’s sponsorship of the Lions fares about as well as the Gillette/Patriots and AT&T/Cowboys until peaking on Thanksgiving.

Compare Promotion Effectiveness

Google trends can also help track the success of promotions compared to other major promotions that might drive search behavior. This comparison shows that the Saints promotion with Verizon and the Texans promotion with the Texas Lottery drives consumers to get online to search for more information on behalf of the brand. Although on a smaller scale, the Lions promotion with Uber to help avoid traffic congestion also drives search behavior.

We continue to look for new ways to capture digital media value. Experienced marketers know the value is not in the exposure level. Everyone has heard of Ford, Verizon, Mercedes-Benz and Uber. The real value is in what people do because of the sponsorship. Measuring search behavior is one step in the right direction.

Brand amplification: The true power of the team’s logo & use of marks

Brand amplification is an industry buzzword for good reason. Organizations partner with properties to leverage the power and the passion fans bestow on the team. Met Life borrows brand equity from properties (Giants and Jets) to bring life and relevance to a brand in a category that fans might overlook. Dunkin’ Donuts leverages passion for the Colts to engage fans to process and act upon their brand messages.

Caring about the brand amplification or the power of the team’s logos & marks is all fine and good. But, it offers an incomplete picture. It oversimplifies the power of the entire package the brand gets in the bargain. Brands should use the marks of the team to clearly link the brand with the team in the minds of fans. But the question isn’t, “How much does the power of the team’s brand amp up the partner’s brand?” This misses the point on two levels:

  1. Assets don’t act in isolation. No one pays for the use of marks without the rest of the tool kit to build an integrated campaign.
  2. Brand amplification does not happen without partnership recall. Unless their fans link Lucas Oil (or Dunkin’ Donuts) with the Colts, Ford with the Lions, Mercedes-Benz with the Saints, or Reliant/NRG with the Texans, there is no amplification.

So, the right question is, “What tool is most effective to link the team’s brand with ours in the minds of fans to improve recall?” Like unto it, “Is the use of marks the most powerful?”

Anchor partners with rights to use the logo and marks of the team typically have the rights to communicate brand messages via the scoreboard & digital signage, fixed signage, gameday promotions & activation, broadcasts (TV/radio), social media, and the team website. The effectiveness of these assets are what separates the Jets from the Giants, Knicks from the Nets, Bears from the Cubs, or any other team from another in the market. What does the data tell us is the most effective?

Getting the Whole Picture

We can analyze the relative effect of the use of marks compared to the other assets–because we measure the effectiveness of all of these assets, across many brands across many teams over time among real people.1 Members in our research community can access average recall by category and assets across all partners. Now let’s answer our questions.

Is the use of marks the most powerful tool to improve partner recall?

The chart below shows the results of a regression equation using data from seven NFL teams, across 117 brand partners, with 103,704 fan responses. Baseline partner recall rate is 24%. In other words, what are the odds fans will guess a brand is the partner knowing nothing else? About one in four.2

Now, what is the biggest influence on increasing recall? Use of the team’s marks bumps recall 17%, followed very closely by gameday promotion & activation (16.7%). On average, if fans recognize the use of marks and gameday activities carried out by the brand, recall should be about 58% (24%+17%+17%). If fans recognized the rest of the assets–along with a highly passionate fan base 3–then recall approaches 100%. Of course, not every fan recalls every asset4 and not every fan is highly passionate. As shown elsewhere, average recall across all teams and brands is 40%. Read more here on how to improve it.

How does partner recall amplify the power of the team’s brand?

An important KPI of any partnership is brand differentiation, making the brand stand out from competitors. We ran another equation to show the effects of partner recall and assets on the partner’s differentiation (score range: 0-100). The baseline score is about 35. If fans recall the partnership between the brand & the team, differentiation jumps almost 20 points, which is five times the effect of any individual asset alone. You can add 2-4 points for each of the other eight asset categories recognized by fans. Click chart (right) to view. We get similar results, with different effects (weights) of each asset, on other KPIs such as brand relevance, trust, preference, usage and purchase.

The point is that without partner recall, little else matters. The best tool in the toolbox is the use of marks to increase recall. Each of the other tools play an important role to enhance recall of the right partner in a sea of competitors. Brands and teams need to know how effectively each and every asset performs to reach shared goals throughout the run of the contract, not at a single point in time for a brand not their own. That’s why members of this community transparently share scientifically and statistically sound results to make better business decisions.

What should brands do?

To flip the script, if brands want to increase recall and amplification, the #1 requirement is co-branding with use of the team’s marks. The biggest failures we see are brands paying for rights and dropping the ball by not using the marks. Most often these are national brands not integrating local or regional deals into their national campaigns. These national brands, and local brands with rights, need to capitalize on opportunities to display the team logo on websites, point-of-purchase, packaging or other avenues to fully activate the partnership and cement the brand-team linkage in the minds of fans.