The Annual Sponsorship Business Survey 2012 - Sporsora

The Annual Sponsorship
Business Survey 2012
IFM Sports Marketing Surveys

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Contents
Introduction 3
Methodology 4
1.0 Executive Summary 5
1.1 A Brief Overview 5
1.2 The State of the Industry 5
2.0 Growth of the Sponsorship Market 6
2.1 Overview of 2011 and Predictions for the Future 6
2.2 Sports Sponsorship by Region 7
2.3 Major Sports Events and Sponsorship 8
2.4 Disparity in Sports Sponsorship 8
2.5 Innovative Ways of Sponsorship Generation 8
2.6 Challenges for Sponsorship Generation 9
3.0 Social Media 10
3.1 The Industry’s Outlook on Social Media 10
3.2 Individual Endorsements 10
3.3 Traditional Advertising 10
3.4 Social Media Research and Evaluation 11
4.0 Community and Social Responsibility 12
4.1 Corporate Social Responsibility and Brand Corporate Value 12
4.2 Organisations and Social Responsibility in Sport 12
4.3 The Environment 12
4.4 Urban Branding 13
4.5 Partnerships through Corporate Social Responsibility 13
4.6 Evaluation Concerns 13
5.0 The Need to Evaluate 14
5.1 Evaluation within the Sponsorship Industry 14
5.2 Return on Investment 14
6.0 Conclusion 15

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Introduction
We are particularly
pleased to see that the
results of this year's
Sponsorship Business
Survey are once again very
encouraging, pointing to
the sector being in a very
healthy position despite other sectors of the
economy having struggled in 2011. Our findings
also demonstrate that the future looks optimistic
with many of the industry's key decision makers
indicating that they will maintain or increase
sponsorship investment in their sector in 2012.
This feeling is felt most strongly in North America,
supporting PWC's recent findings that the North
American sports sponsorship market will grow
6% compounded annually through to 2015. The
NBA's pre-Christmas flurry of multi-year
sponsorship announcements with Budweiser,
Gatorade, Under Armour and AutoTrader.com
serves as further evidence.
The proliferation of social media use has certainly
not gone unnoticed with significant support
amongst industry peers for the inclusion of its use
in sponsorship campaigns, yet there is recognition
of a potential over reliance on this communication
and the subsequent neglect of other
communication possibilities moving forward. We
expect individual endorsements to become more
important as a result of social media putting our
favourite athletes right in the middle of where
passionate fans congregate.
We predict growth in community-based and social
sponsorships as the economy continues to stutter
and consumers continue to expect more relevant
campaigns that benefit the individual. More major
brands will engage in these activities to deliver
corporate value and we expect this to be
particularly the case in the banking sector, where
community based and social sponsorship activity
can help to re-build reputations.
The challenge that both social media and
community sponsorships bring is how to achieve
measurement of their returns. There is no doubt
that research and evaluation has been of greater
priority in recent times and we see the next couple
of years as exciting times in our development of
our single source, evaluation, research and
advisory services for senior decision makers in the
sponsorship community.
So, what lies ahead in 2012? More investment
from the BRICs? The emergence of the CIVETS? I’m
particularly interested to see what comes out of
Turkey in their year as The European Capital of
Sport.
Jon Stainer
Deputy Managing Director
IFM Sports Marketing Surveys

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Methodology
Our services cross many sectors, countries and companies – all within the realms of sports, leisure and
entertainment. In undertaking this work we issued a questionnaire covering many topics to key contacts
around the world in the sponsorship business sector. Each of our 10 international offices and other
international contacts distributed the survey by email, and invited people to contribute. In addition the survey
was hosted on IFM Sports Marketing Surveys’ website for visitors to complete and posted within Marketing
Week articles.
The questionnaire routed respondents through to their own specialist areas to maximise the quality of
comments and feedback. Through profiling we are able to analyse by organisation, area of work and, of
course, by operating areas. In total, we had 392 replies from 27 countries around the world. Respondents are
sponsorship decision-makers and have been split between agency (125), brands (103), rights holders (103) and
others (61).
Whilst the report is based around the findings of our Sponsorship Business Survey, this review is supported by
other sources such as the TWSM Annual Review 2011, PricewaterhouseCoopers’ Outlook for the global sports
market to 2015 and ZenithOptimedia figures.
The topic areas covered in the report are:
� Budget Forecasts
� Events and Promotions
� Market Trends
� Research and Evaluation
� Responsibility to the Community
� Social Media
� Sponsorship

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1.0 | ��ecuti�e �u���ry
1.1 A Brief Overview
IFM Sports Marketing Surveys’ annual research among key players in the global sponsorship business
illustrates that the sponsorship market remains buoyant even in these difficult economic times. It
shows a growing confidence in sponsorship’s ability to deliver excellent returns for all concerned
when the right mix of brand and platform is achieved.
It also, however, identifies some challenges ahead for the profession. Chief among these is the need
to make effective use of social media; the growing importance of community and social
responsibility projects; and the growing need to demonstrate the impact and effectiveness of
sponsorship campaigns.
1.2 The State of the Industry
There is evidence that the sponsorship industry continues to grow.
� 44% of respondents from sponsoring brands say their sponsorship spend in 2011 increased
when compared to 2010; 22% reported a decrease.
� 59% of all respondents reported a real terms increase in sponsorship or no change in real
terms investment in their industry sector in 2011; only 30% reported a real terms reduction.
This splits 61% to 18% among respondents from North America.
� 67% either predict a real terms increase or no change in sponsorship investment in their
industry sector in 2012; only 28% predict a real terms decrease. This sentiment is felt most
strongly in North America where the corresponding figures are 92% and 4%.
� 72% of respondents from our survey believed that community projects are becoming
increasingly important to a brand’s corporate value; only 4% recorded active disagreement.
� 60% saw the importance of researching return on investment as likely to increase within
their organisation; only 3% considered it likely to decrease.
As a result, sponsorship is becoming more integral than ever before to the marketing strategy of
businesses.
� 63% report a growing acknowledgement among businesses that sponsorship needs to sit
centrally within the marketing strategy; only 8% don’t agree that such an acknowledgement
exists.

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�.0 | �ro�th o� the ��onsorshi� M�r�et
2.1 Overview of 2011 and Predictions for
the Future
Evidence suggests that despite negative
perceptions of the current position of the global
economy, the sponsorship industry continues to
grow.
41% of respondents of the Sponsorship Business
Survey said that their organisation’s sponsorship
spend in 2011 increased in comparison to the
previous year.
Furthermore, 59% reported a real terms increase
in sponsorship or no change in real terms
investment in their industry sector in 2011. In
addition, the TWSM Annual Review 2011 reports
that the cars/automotive industry were the top
sponsoring industry in 2011 with 210 reported
deals.
41%
Sponsorship spend:
2010 v 2011
Increased Remained
the same
29% 27%
4%
Decreased Unsure
With regards to 2012, two-thirds of respondents
predict a real terms increase or no change in
sponsorship investment in their sector this year.
Just 28% predicted a real terms decrease, whilst
North Americans had the most positive outlook for
the year, where the corresponding figures are 92%
and 4%.
26%
41%
Sponsorship spend prediction
for 2012
24%
52%
20%
33%
45%
47%
Overall UK Europe North America
Increase
No Change
These encouraging results from the Sponsorship
Business Survey are supported by figures recorded
by other studies of the sponsorship market.
PricewatherhouseCoopers’ (PwC) report of the
global sports market to 2015 suggests that
sponsorship, alongside media rights, will be an
area of growth, putting the traditional dominance
of gate revenues under great pressure. PwC
project that global revenue from sports
sponsorships will increase from $35bn in 2010 to
$45.3bn in 2015, which is a 5.3% compound
annual increase.
This provides positive reading following difficult
times for the industry in 2009. PwC’s recent
forecasts are healthy, whilst the Sponsorship
Business Survey findings indicate that key industry
decision makers are willing to maintain or increase
their sponsorship investment for 2012.

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2.2 Sports Sponsorship by Region
2.2.1 North America
PwC’s report of the global sports industry suggests
that North America will remain the largest market
for sports revenue up to 2015. The study also
forecasts growth of the sports sponsorship market
for the next three years of 6.1% for the continent,
which is slightly higher than the 5.3% global
average. Its thriving nature is evident with a series
of large sponsorship deals in the continent’s
leading sports, such as BBVA’s $100m deal with
the NBA, whilst a revival of the US automotive
industry has seen companies in this sector
increase their spend in sponsorship.
Despite this, results of the Sponsorship Business
Survey found that North American respondents
were not as receptive as elsewhere to the notion
of sponsorship having a wider impact than
advertising. When asked this question, 39%
agreed it was more effective. This was a lower
level of agreement than their European (63%) or
UK (70%) counterparts.
2.2.2 Europe
Despite the financial difficulties of the Eurozone,
the European Sponsorship Association values the
European sponsorship market at €23.33bn, which
is higher than previously forecast. The ratio of
sport to non-sport sponsorship is 70:30, suggesting
that sport is the most attractive proposition for
businesses considering sponsorship. Karen Earl,
chairman of the European Sponsorship Association
(ESA), argues that sponsorship is becoming more
appealing because brand marketeers understand
how to activate sponsorships better. With major
events such as the London
Olympics and the 2012 European
Football Championships in
Ukraine and Poland, sponsorship
in European sport will continue to
be an attractive proposition.
2.2.3 The Middle East
In recent years, the Middle East has risen in
prominence in the sporting world. Bahrain and
United Arab Emirates have been hosts in the
Formula 1 Circuit, whilst Doha and Dubai are
integral to the ATP World Tour in tennis. However,
the most significant
announcement last
year was that Qatar
will hold the 2022
Football World Cup.
In terms of sponsorship, two significant
partnerships involved Middle Eastern based
companies. Qatar Foundation became the first
shirt sponsors of World Club Champions FC
Barcelona in a five-year deal worth £123m, whilst
Etihad Airways announced a partnership with
Manchester City Football Club valued at £400m,
the largest deal of its kind in sporting history. The
club’s Eastlands home was renamed The Etihad
Stadium as a consequence.
2.2.4 BRIC Nations
Growth in the sports market among the BRIC
countries (Brazil, Russia, India and China) is
expected to continue. PwC predicts a growth rate
of 4.5% from $8.3bn in 2010 to $10.4bn in 2015.
These countries will continue to enhance their
international profile through branding for and
hosting major global sporting events. Following
China’s 2008 Olympics in Beijing, Brazil will be
hoping for similar success in 2016 in their hosting
of the event. Furthermore, Brazil and Russia have
the next two Football World Cups in 2014 and
2018 respectively. India continues to be a hotbed
of sport enthusiasts. Advances in media
technology have exposed the Indian population to
a vast array of sports such as tennis, football and
Formula One, and this has led to an influx of
sponsorship interest from global companies
including a giant deal totalling over $60 million by
Nike to extend their deal with the Board of Control
for Cricket in India.
Sponsorship is an important revenue source for
BRIC nations. Whilst the biggest component of the
sports market in North America and Europe is gate
revenue, sponsorship is the largest in these four
countries. In China, sponsorship accounts for 48%
of total sports revenues (PwC). The BRIC nations
are expected to see their sports sponsorship
markets increase in the foreseeable future.

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2.3 Major Sports Events and Sponsorship
The impact of major sports events on the current
strength of the sponsorship market cannot be
overstated. As highlighted in the analysis of
regions, there are several high-profile events that
will generate serious sponsorship spend. These
events aim to create a lasting legacy of sportrelated
economic activity.
In 2011, the Rugby World
Cup was held in New
Zealand. A report
conducted by MasterCard
stated that increased
tourism, civic sponsorship
and business development in New Zealand as a
result of hosting the tournament would total
NZ$1.44bn by the end of the decade. The next
Rugby World Cup will be held in England in 2015.
The International Rugby Board (IRB) received a
welcome boost when it agreed a deal with
Heineken to extend its contract for the next
tournament.
This year is an Olympic year, and the summer
event will take place in London. By September
2011, the London 2012 Organising Committee
(LOCOG) had met its upper domestic sponsorship
target of £700m. One of the event sponsors,
Lloyds TSB, is already reaping the benefits of its
association with the Olympics. The company
stated that 70% of their customers were aware of
their sponsorship of London 2012, and of those
who were aware, 40% would recommend Lloyds
TSB as a result of its partnership programmes.
London 2012 does not provide sponsorship
opportunities just for large organisations. The
Financial Times (29 th December 2011) reported
that Olympic organisers have created a
sponsorship programme specifically for small and
medium sized enterprises (SMEs) in order to fill a
funding gap for training British athletes. These
SMEs receive a link to the
Olympic brand and have
access to networking
events.
With other major global tournaments being held in
the BRIC countries and the Middle East in the next
decade, there is much hope of sponsorship
generation and the establishment of a longstanding
legacy of sporting economic activity in
these regions.
2.4 Disparity in Sports Sponsorship
Whilst sports such as football and the Olympics
have been successful in their sponsorship fund
generation, others have struggled.
There appears to be an acute difference between
male athletes and sportsmen in comparison to
females. The New York Times (December 2011)
compared two Olympic gold winners at Beijing
2008. Sprinter Usain Bolt is aspiring to be the first
track and field athlete to earn $10m per year,
whilst discus Olympian Stephanie Brown Tafton
expects $25k for a year’s worth of sponsorship
from Nike. In the UK, The Commission on the
Future of Women’s Sport believe that women’s
teams and athletes are “spectacularly missing
out” on large
sponsorship deals.
Women’s sport
sponsorship
equated to 0.5%
of the UK market.
Channel 4 News (21 st December 2011) reported
that Paralympians are struggling to attract
lucrative corporate sponsorship ahead of London
2012. However Justin King, the head of
Sainsbury’s, believes the best way in which
Parlympians can secure these deals is through
success.
2.5 Innovative Ways of Sponsorship
Generation
In order to secure sponsorship funding, sports
organisations are looking for new and innovative
ways of attracting potential sponsors. The
Sponsorship Business Survey found that
86% of all respondents agreed that sports events
should be more inventive in engaging their fans,
whilst 54% believed that sport can learn from the
arts and entertainment sector on how to better
engage with fans.

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An example of innovation from the arts and
entertainment sector in 2011 was from Blackberry
who had the Foo Fighters playing songs from a
new album, in the garages of eight winning fans in
eight North American cities. Museums are also
using innovative marketing, as MasterCard
cardholders were given the opportunity to take
advantage of a range of exclusive experiences such
as After Hours exhibitions at The Natural History
Museum. In football, Nescau’s chocolate bars and
ice-creams will be available to fans at all stadiums
during the FIFA Confederations Cup 2013 and 2014
FIFA World Cup in order to get closer to their fans
and consumers.
Rangers Football Club has
appointed a Global Partnerships
Director to help secure global
partnerships and increase its
already large global fanbase.
The Scottish champions now
have an office in London, and the UK capital will be
the hub of its commercial deals.
Tottenham Hotspur Football Club has utilised shirt
sponsorship by securing deals with both Autonomy
and Investec. Autonomy is the shirt sponsor for
Premier League fixtures, whilst Investec is the
sponsor for cup competitions. Similarly, to utilise
all of their assets, Manchester United has signed a
deal with DHL for training apparel which is a
phenomenon in the NFL but a trend that is yet to
catch on in UK football.
These examples illustrate the desire of
organisations to stimulate interest from sponsors,
and it is likely that those in sport will continue to
seek and create innovative ideas to generate
sponsorship.
2.6 Challenges for Sponsorship
Generation
Although the predictions for the sports
sponsorship market for 2012 and the years ahead
appear healthy, there remain several challenges.
PwC believe that the globalised nature of sport will
lead to increased competitiveness of the
sponsorship market. Furthermore, the Sponsorship
Business Survey discovered that
83% of all respondents felt that accountability for
sponsorship accounts is greater than ever.
Sponsorship is becoming more integral than ever
before to the marketing strategy of business.
63% report a growing acknowledgment that
sponsorship needs to sit centrally within the
marketing strategy; only 8% do not agree that
such an acknowledgement exists. 58% feel that
this will result in better quality sponsorships.
Therefore, the incorporation of sponsorship into
marketing rather than existing as a single entity
provides a challenge to organisations.
Sponsorship needs to sit centrally
within the marketing strategy
Overall
Rights Owners
Brands
Agency
62%
63%
64%
69%
The measurement of sponsorship, according to
PwC, needs to become more sophisticated. It is no
longer enough simply to monitor media hits.
Reporting must show whether sponsorship is
achieving more ambitious objectives.

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3.0 | Social Media
3.1 The Industry’s Outlook on Social
Media
There is a very strong feeling in the profession that
social media is here, it is here to stay and that it is
essential that the sponsorship business engages
effectively with it.
78% of sponsorship heads agree that social media
is now a must for all sponsorship campaigns; with
only 7% in disagreement.
Despite this prevailing view, only 48% felt that
their industry made good use of social media;
concern on this was felt most strongly in North
America where only 16% of sponsorship heads
agreed that social media was being put to good
use.
We as an industry make good use of
social media
25% 27%
Agree Disagree
50% 48% 49%
16%
UK Europe North America
With the explosion of social media use and the
continual improvements and developments
occurring within digital media, there is no surprise
that many heads believe their social media
campaigns are not reaching their full potential. It is
only recently that Twitter has started to take
brands seriously by differentiating brands’ pages
from other users, allowing closer integration with
other forms of media and increasing opportunities
for engagement with their fans. With social media,
it is now easier to reach a global audience. Ali
Russell, Chief Operations Officer at Rangers
Football Club, stated that the club is looking into
social media and all the different ways they can
leverage the social networks to connect with their
5 million global fans. Similarly, Arsenal Football
Club is ramping up digital marketing activity and
social media initiatives to engage its international
fans.
3.2 Individual Endorsements
Social media allows fans to
communicate directly with
their idols, allowing sponsors
to embed their brand and
gauge fans perceptions. The
resulting goodwill between
the fan and sports star ultimately leads to the
athlete having the power to influence fans’
purchasing behaviour globally. Kaka and Cristiano
Ronaldo are among the most followed sports stars
on Twitter with over 8.1 million and 6.5 million
followers respectively, highlighting the vast global
reach that social media provides. TWSM reports
that personality sponsorship increased by 13% in
2011 and we expect this trend to continue growing
in 2012. Sponsors must however be aware of the
risks that arise from the use of stars that are
increasingly prone to overstepping the boundaries
and posting controversial comments on Twitter.
Social media has also escalated the pace at which
negative press spreads across the world making it
imperative that sponsors cite expectations of
appropriate behaviour in contracts with their
sports stars.
3.3 Traditional Advertising
The impact of social media in sponsorship has
contributed, many think, to a reduction in the
benefits achievable from traditional advertising,
such as viral email advertising (which is only used
by 30% of businesses surveyed). With a
sponsorship focused audience it is not surprising
that advertising continues to be seen as giving a
poorer return than sponsorship. Despite this,
ZenithOptimedia predicts global ad expenditure to
accelerate to US$486 billion in 2012 – a 4.7%
growth. The results of our survey do however
provide a reminder that the traditional forms of
communication matter too.
44% believe that there is a real risk within the
industry of over reliance on social media and
consequent neglect of other communication
possibilities; only 27% actively assert their
disagreement with this.

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3.4 Social Media Research and
Evaluation
A major concern with industry bosses surrounds
the ability to effectively evaluate social media
campaigns.
47% agreed that it is more difficult to evaluate
the impact of social media on sponsorship than
traditional forms of communication; only 30%
disagreed with this.
With the improvement in research and evaluation
methods for social media, companies are slowly
starting to partake in invaluable research; the
London Stock Exchange and a range of brands
recently appointed an agency to provide daily
insight and analysis from social media sites. With
sponsorship heads all around the world aware of
the cost efficiency, global reach and power that
social media provides, we predict that 2012 will
see many companies explore further avenues to
engage with their global audience.
Which of the following social media has your business used this year in
sponsorship campaigns?
Social Networking Sites (Facebook/MySpace/Bebo)
YouTube to post videos
Twitter - Running stories/campaigns
Blogs and Forums - seeding concepts and ideas
Mobile Apps
Targeted advertising on social networking websites
Viral emails
B2B Social networking sites (LinkedIn/Plaxo)
26%
30%
38%
37%
37%
56%
64%
85%

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4.0 | Co��unity �nd �oci�l �es�onsi�ility
4.1 Corporate Social Responsibility and
Brand Corporate Value
There is widespread acknowledgment of the
growing importance of businesses demonstrating
corporate responsibility to the community.
72% of respondents from our survey believed
that community projects are becoming
increasingly important to a brand’s corporate
value; only 4% recorded active disagreement.
These findings are supported by recent studies by
Forbes Insights, which analysed corporate
philanthropy. In this research project, 79% of
respondents agreed to some extent that
demonstrating social purpose is crucial to
shareholder value, whilst 78% felt that their
community efforts were critical to the way the
company differentiates itself in the marketplace. In
terms of motivation for Corporate Social
Responsibility (CSR), EMEA respondents were
more concerned with the commercial benefits of it
in comparison to those from the Americas and
Asia-Pacific, who were more likely to be motivated
by “the betterment of the community and world”.
4.2 Organisations and Social
Responsibility in Sport
It is clear that leading brands are placing great
importance on community projects and CSR.
According to the Korea Herald (2 nd January 2012),
Lee Kun-Hee, the chairman of Samsung, said that
social responsibility will be a key area for the
organisation for 2012.
Sport remains
an important
source of CSR
for companies.
Procter &
Gamble is to
use sales from
its leading brands, such as Gillette and Pantene, to
fund a £3.3m investment in youth sport initiatives
globally. The youth sports activity will sit under
P&G’s “Thank you Mom” campaign as part of the
company’s strategy to make consumers’ lives
easier. Sainsbury’s is another brand that has used
sport for CSR initiatives. The Company has
extended its support and funding of the UK School
Games. Sainsbury’s has pledged to donate £10m
over the next four years to the programme.
However, there are some organisations whose
associations with sport and social responsibility
have been viewed with scepticism by some. Dow
Chemical, a sponsor of the London 2012 Olympics,
was involved in past controversies in India, and its
partnership with The Games has been condemned
by the Indian Olympic Association (IOA).
McDonald’s has extended its sponsorship of the
Olympics to 2020, with a global campaign for
children’s wellness. But their involvement in sport,
alongside another sponsor in Cadbury’s, has been
criticised due to their association with unhealthy
food products.
When asked a question on this subject, Sainsbury’s
Justin King defended McDonald’s and Cadbury’s:
I'd say we want to encourage big
companies to do the right thing and if
there are sporting initiatives that are getting more
young people playing sport isn't that a good
thing…to be doing? We should be encouraging that
and not disparaging it.
4.3 The Environment
Just as in 2010, the proportion of money going
towards the environment was considerably greater
than for any other sector. One such environmental
project is the Barclays Cycle Hire scheme, which is
a scheme designed to encourage more cycle
journeys in central London, a more
environmentally friendly mode of transport.
Transport for London (TfL) recently published a
report stating that three quarters of scheme
subscribers started to cycle in London as a result of
the scheme, whilst 80% of subscribers think it
makes a positive contribution to London. The deal
with Barclays was renewed in 2011 for another
£25m.

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There have been initiatives involving solar power
producers recently. Dow Solar sponsored the US
Department of Energy Solar Decathlon 2011,
where the design and building of energy-efficient
homes was promoted. Schneider Electric was also
involved in similar initiatives in China and Europe.
4.4 Urban Branding
An increasing number of urban projects are
becoming sponsored as hard-pressed cities
continue to look for sponsorship opportunities. In
Holly Springs, Georgia (USA), the city council
approved sponsorship of its fleet of police cruisers.
Though the idea had critics, it was seen as a
potential revenue generator, as the council hope
to raise between $35,000-$100,000 a year from
the programme. In London, the commuter boats,
Thames Clippers, secured a sponsorship with
KPMG.
4.5 Partnerships through Corporate
Social Responsibility
Some organisations have developed partnerships
in order to achieve CSR goals. DHL and Manchester
United Football Club, through the Manchester
United Foundation, deliver the Enterprise
Academy. DHL is perceived as the perfect partner
for the Manchester United Foundation delivering
business and enterprise education.
CSR initiatives can also provide a platform for
business networking. Opportunities for SMEs to
sponsor at London 2012 provides these
organisations the opportunity to be involved in
community projects, whilst developing
relationships and partnerships to achieve other
business goals.
4.6 Evaluation Concerns
A major concern reported from the Sponsorship
Business Survey is the lack of evaluation of the
effectiveness of community projects. Respondents
cited a lack of resources available to them.
Indeed, 60% feel that community projects are
often not evaluated due to lack of budget; only
8% actively assert their view that this is not
correct.
This provides a significant challenge for the future.
As the rate in which organisations involve
themselves in CSR and community projects
increases, the need to analyse their effectiveness
will become greater.
Community projects are not evaluated
due to a lack of budget
28%
2%
10% 6%
32%
22%
Strongly disagree
Disagree
Neither agree nor
disagree
Agree
Strongly agree

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�.0 | �he �eed to ���lu�te
76%
57%
49%
68%
48%
68%
Internally Externally -
specialist
sponsorship
research agency
14% 15%
7%
Externally -
advertising agency
5.1 Evaluation within the Sponsorship
Industry
There is strong recognition of the growing
importance of evaluation within the sponsorship
industry. The Sponsorship Business Survey found
that
72% of industry heads feel that pre-valuation of
sponsorships to justify involvement has become
more important over the last 12 months for the
sponsor; only 3% feel that it has not.
This is the view of never less than two thirds of
respondents from the UK, Continental Europe and
North America. It is also the view of a minimum 7
in 10 respondents whether employed by agencies,
brands or governing bodies.
The need for independent evaluation of
sponsorships is also very widely recognised within
the profession.
71% believe that it is essential to have
independent evaluation of the effectiveness of
sponsorships, only 5% disagree.
In addition to this, the Sponsorship Business
Survey found that of the companies who do
evaluate sponsorships,
60% use specialist sponsorship research agencies.
The percentage of respondents who do no
evaluation whatsoever equated to 21%.
The industry tends to prefer a one-stop shop for its
research and insight requirements.
How do you evaluate sponsorship?
Agency Brands Rights Holders
32%
18% 22%
Externally - PR
agency
46%
18% 15%
Externally -
Sponsorship
agency
47% feel that, ideally, research and insight will
come from the same source, whilst only 13% take
the contrary view.
This is the majority preference among respondents
from the UK, Continental Europe and North
America and regardless of whether employed by
agencies, brands or rights holders.
It is essential to have independent
evaluation of the effectiveness of
sponsorships
Disagree Agree
81% 69% 68%
2% 7% 7%
Agency Brands Rights Holders
14%
7% 3%
Externally - Other
5.2 Return on Investment
With sport sponsorship predicted to overtake
ticket sales in revenue generation, it is of
paramount importance that research is
undertaken to ensure sponsors and rights holders
are receiving the best deals and not wasting
valuable money and opportunities. This is a view
shared by the majority of industry leaders
surveyed as
60% saw the importance of researching return on
investment as likely to increase within their
organisation; only 3% considered it likely to
decrease.
The belief that this will increase is shared by the
majority of respondents from the UK, Continental
Europe and North America and the majority of
respondents from agencies, brands and governing
bodies.

T h e A n n u a l S p o n s o r s h i p B u s i n e s s S u r v e y 2 0 1 2 P a g e | 15
6.0 Conclusion
Although the global sponsorship industry is in a healthy position, companies are tightening budgets and
putting sponsorship heads under pressure to prove the value of their investments. With sponsorships worth
thousands, and often millions of pounds, research and evaluation has continually proven to represent value for
money with the benefits of the alterations to rights values or amendments made to branding, resulting from
the research far outweighing the cost of conducting it.
� The sponsorship market has grown substantially in recent times and all the signs are that this will
continue.
� The effective use of social media is key to maintaining best use of the potential of sponsorship in the
future.
� As the sponsorship industry grows, the need for effective, reliable evaluation is greater than ever.
Other topics covered in our survey include:
� Professional Associations
� Profiling
� Tourism
� Training
For further information on this report and IFM Sports Marketing Surveys products and services please do not
hesitate to get in touch.
Jon Stainer, Deputy Managing Director
IFM Sports Marketing Surveys
T: +44 (0) 1932 350 600
E: jon.stainer@sportsmarketingsurveys.com
@JonS_ifmsms
IFM Sports Marketing Surveys
The Courtyard
Wisley
Surrey
GU236QL
T: +44 (0) 1932 350 600
E: info@sportsmarketingsurveys.com
@IFMSMS
Michael Stone, Head of Research & Consultancy
IFM Sports Marketing Surveys
T: +44 (0) 1932 350 600
E: michael.stone@sportsmarketingsurveys.com
@MichaelS_ifmsms