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Economics +
Sponsorships
   lizzie nirenberg
DEFINITION
             Acquisition of rights to affiliate
             or directly associate with a
             product or event for the
             purpose of deriving benefits
             related to that affiliation or
             association.
History Lesson:
  Sponsorship Growth
1971: The Big Ban Theory
Marlboro Ladies of NASCAR
What can a
sponsorship
accomplish for
b u s i n e s s ?
Association

Recognition

Value

Exposure

Opportunity
Logo
       Special Phrase
$80 Billion
Global Sport Sponsorship Spending

                     NFL, 14%
                                 Olympics, 9%
Soccer, 34%
                                         Golf, 6%


                                              Basketball, 4%



                                              Other, 11%



                                Venues, 12%
  Motorsports, 10%
$195 million
Amount Tobacco firms
spent on sport
sponsorships in 1997   95%
                       Percentage of the $195M
                       spent in the area of motor
                       sport
IN MILLIONS



 |     |
255
      245    |     |
            190   180    |
                        160
Official Sponsor

for every $1
spent on
sports
marketing



 $3 profit

+300%
Sponsorships vs.
Advertisements
30second
             Advertisement


$3 million
Sponsorship




$10 million
What is the cost of
breaking through clutter?
✔   Increase public awareness

✔   Reinforce public reception

✔   Identify with particular segments

✔   Get involved in the community

✔   Generate Media Benefits

✔   Achieve sales objectives

✔   Showcase unique attributes

✔   Create an advantage over competition




                                    R O I

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Sports sponsorships

Editor's Notes

  1. Sponsorships began to rise in the late 70’s and continued well into the 90’s.
  2. Also could include: an exclusive association within a product or service category, entitlement to an event or facility, right of service or right to use the product in conjunction with the event, the right to conduct promotional activities in conjunction with the event