Sunday, March 6, 2011

Time to Get Our Rulers

There have been several terrific conversations lately surrounding the need for sponsorship measurement practices. Research shows a continuing gap in comprehensive measurement of sponsorships effectiveness for brands. New heightened emphasis on corporate accountability places into question how companies can sustain sponsorship practices without numbers to justify the expense.

There’s even renewed discussions brewing at the U.S. congressional level to minimize sponsorships by the military, in part, because a lack of understanding and measurement to actually determine the practices impact. As Professor Tony Meenaghan stated in a recent article appearing in Admap, “Given the nature and scale of criticism directed at sponsorship measurement, a range of changes must be anticipated.”

It used to be that in order to measure results, you only needed to measure the number of eyeballs reached. That line of thought is waning. As Meenaghan points out, “the valuation of media coverage is not a valid measurement of effectiveness …It is essentially a measure of publicity and not a measure of the effects of that publicity, or other elements of the sponsorship and its activation.”

While there is some value for adding to the visibility of a brand, according to Kim Skildum-Reid, author the Last Generation Sponsorship, measurement is to be “based on a brand’s alignment with an understanding by its target audience. The sponsor’s measurement should focus on market research as the key element to measure impact.”

Because of sponsorships unique ability to engage consumers within an experience that matches their lifestyle, sponsorship is able to transcend its advertising roots. The sponsor becomes part of the experience. And, its engagement with the target audience embraces their passions, ultimately providing an indelible bond that research proves to be quite lasting. What’s missing is the need to measure the results of this engagement.

While the sponsee has an obligation to report on what elements it delivers on behalf of the sponsor, it is the sponsor that carries the responsibility to measure the results of engagement. Only the sponsor can capture quantifiable activities that showcase their sponsorship effectiveness. And, if a sponsor is going to justify its budget, it’s going to need to quantify the effectiveness.

Having said that – nearly 4 out-of-5 of sponsors currently spend less than 1% of their rights fees to place any type measurement according to IEG’s Performance Research Report. The European Sponsorship Association members also found in a 2007 survey that only 11% of the sponsors believed there ROI measurement was even remotely effective. So, if it is the sponsor obligation to measure results, there are few taking time and budget to do that, and accountability measures are rising, the entire industry may suffer as company budgets are skimmed and scrutinized.

It’s time sponsor professionals request, no require, measurement tools be put into place by our sponsors. Outlining benchmarks and methods to measure results from the sponsorship should be spelled out in agreements right along with describing sponsor benefits and terms. If representatives of properties truly want to elevate the profession and protect our industry from budget erosion, we must build measurement parameters into our relationships.

I realize the radical nature of the idea – but our options are pretty limited given the corporate and congressional climate around budget and spending; either put up – or shut up.