What is the value of a sports sponsorship? Is it the visibility that the business gets? The goodwill that the company enjoys with the public? The ability to reach new customers? There is no definitive answer to this question. Every sponsorship is different, and every business has different goals for its sponsorship investments.
In order to be successful, businesses need to be able to adapt and change with the times. However, sometimes it can be difficult to do this when certain trends take hold. This is especially true in the sports world, where sponsorship deals are becoming more and more common. In order to help you navigate these tricky waters, we've put together a list of five trends to avoid as they will cost your business revenue. Keep an eye out for them, and make sure you're prepared. By avoiding these pitfalls and roadblocks, your sports sponsorship engagement will be pointed in the right direction and on the path to continued success.
1. Minimal or Zero Investment in Measurement and Evaluation
One of the most important aspects of any sponsorship deal is measuring and evaluating the return on investment (ROI). Without doing this, it's impossible to know whether or not the sponsorship is actually worthwhile. Unfortunately, some businesses don't invest enough in this crucial process, which can cost them dearly in the long run.
There are a number of reasons why measuring ROI is important. First and foremost, it allows you to determine whether the sponsorship is worth the investment. Without measurement and evaluation, it's impossible to know whether or not you're getting a good return on your money.
Second, measuring ROI can help you improve your sponsorship deals in the future. By analyzing what works and what doesn't, you can make sure that you're getting the most out of your sponsorships. This can lead to increased revenue and a better ROI for your business.
Finally, for rights holders, measuring ROI is essential for maintaining good relationships with your sponsors. Sponsors want to see that their money is being put to good use, and by measuring the ROI you can show them that their investment is paying off. This will help keep your sponsors happy, which is essential for any successful sponsorship deal.
Make sure you're putting enough resources into measurement and evaluation, or you could end up wasting a lot of money.
2. Use of Subjective Data Sources
One of the biggest problems with subjective data is that it can be unreliable. This means that businesses can't trust it to make important decisions about their sponsorship deals. This can be costly, as companies may end up making bad decisions based on inaccurate information.
Another problem with subjective data is that it can be inconsistent. This means that data can be different from one source to the next, making it difficult to compare. This can make it hard for businesses to make apples-to-apples comparisons, which can lead to them making bad decisions about their sponsorship deals.
Finally, subjective data is often provided at irregular intervals. This means that businesses may not have up-to-date information when they need it. This can be problematic, as things can change quickly in the world of sports sponsorship. Having outdated information can lead to businesses making bad decisions about their deals.
For these reasons, it's important to be careful about using subjective data sources when evaluating your sponsorship deals. Make sure you're getting your information from reliable and consistent sources, and that you're keeping up to date with the latest information. Furthermore, confirm that your data is serving your end goals and KPIs. Perhaps viewership data matters. Maybe your business is best served by tracking social media engagement. Whatever the outcome you are after, make sure the data you are ingesting and analyzing fits your overarching goals.
It is critical that data be immutable and available in near-real-time to sports sponsors. Additionally, it is important that sponsors and rights holders alike find alignment on what KPIs will be measured to ensure success. Without this alignment and consistency in data, the chance of success in the sponsorship will be negatively impacted.
3. Confirmation Bias
Confirmation bias is another issue that can lead to problems with sponsorship deals. This is when businesses only look for information that confirms their existing beliefs, instead of considering all the evidence. As a result, they often make decisions that aren't in their best interests. If you're not careful, confirmation bias can cost you a lot of money.
Confirmation bias is bad in sports sponsorships because it can lead to businesses making decisions that aren't in their best interests. When businesses only look for information that confirms their existing beliefs, they often miss out on valuable insights. This can cause them to make mistakes that cost them money.
It's important to be open-minded when it comes to sponsorship deals and to consider all the evidence before making a decision. This will help you make the most informed decision possible, and avoid costly mistakes.
4. Lack of Flexibility to Change Course During a Campaign
Another common mistake businesses make is being too rigid when it comes to sponsorship deals. Once a deal is signed, they often don't have the flexibility to change course if the campaign isn't going as planned. This can be a costly mistake, as it may mean you're stuck with a bad deal for longer than necessary. Make sure you have the ability to optimize campaigns on the fly and make changes if things aren't going well.
For rights holders, being inflexible can hurt your relationship with your sponsors. Sponsors want to see that their money is being put to good use, and by being inflexible you're not showing them that you have their best interests in mind. This can cause them to rethink their sponsorship agreement and leave you for another rights holder.
Make sure you're flexible enough to make changes if the campaign isn't going well, or you could end up making some costly mistakes.
5. Inability to Turn Insights Into Action
Finally, many businesses fail to turn their sponsorship insights into action. They may have all the data they need to make informed decisions, but they don't know how to actually use it. As a result, they end up making the same mistakes over and over again. If you want to avoid this, make sure you have a plan for turning your insights into actionable steps.
Making decisions based on data can be a huge benefit for businesses. When you have data-driven insights, you can make proactive decisions that improve your chances of success. This is especially important in the world of sports sponsorships, where making the wrong decision can be costly.
If you want to make sure you're turning your insights into action, here are a few things you can do:
- Identify the key decision-makers in your organization and make sure they're involved in the process.
- Develop a clear plan for how you'll use your data to make decisions. This should include who will be responsible for each step of the process.
- Make sure you have a system in place for tracking your progress and measuring success. This will help you identify areas where you need to make changes.
By taking these steps, you can avoid making costly mistakes in sports sponsorships and improve your chances of success.
The Right Path for Sports Sponsorship Success
When it comes to sports sponsorships, making the wrong decision can be costly. That's why it's important to avoid these common missteps and make sure you're taking the right path to success. By being able to optimize and change course during a campaign, and by turning your insights into actionable steps, you can avoid making costly mistakes and improve your chances of success.
Relo Metrics helps companies like Black and Decker and Germania Insurance get the most out of their sports sponsorship investments. By bringing objective and actionable data to the table, Relo gives brands like these the confidence to drive their businesses forward with decisions based on data, not guesswork. To learn more about how Relo Metrics can keep your sports sponsorship initiatives on track, contact us here.