Marketers want sponsorship and event metrics but lack necessary capabilities: ANA/IEG survey

While client-side marketers say that measurement, evaluation and accountability are critical to measuring the success of sponsorship and event marketing programs, 65 percent are not taking the necessary steps to determine the results of those activities, a new survey by the ANA (Association of National Advertisers) in partnership with IEG concludes.

This inconsistency is leaving marketers unprepared to answer the key question of value when it comes to these activities, concludes the report.

Key findings of the study are:

  •  Only 35 percent of respondents "always or almost always" measure their sponsorship and event marketing activities returns.

  •  Nearly half of firms with annual revenues of $5 billion or more measure results always or almost always, as compared to 25 percent of firms with revenues under $5 billion.

  •  At the same time, nearly 8 in 10 respondents said the need for validated results for their sponsorship and event marketing initiatives has increased in the past two years as a result of having to justify expenditures to senior personnel.

  •  More than half of respondents (53 percent) do not have a standardized process for measuring sponsorship initiatives.

Among marketers that do have a standardized measurement process:

  •  Fourteen percent are "completely/very satisfied" with their company's abilities to measure sponsorship/event marketing ROI.

  •  Eighteen percent are completely/very satisfied with their company's abilities to measure those programs' ROO (return on objective).

"Accountability reigns supreme in all aspects of marketing", said ANA President and CEO Bob Liodice. "This survey should serve as a wake-up call to marketers, urging them to define ROI/ROO metrics for success and hold themselves accountable, as upper management is sure to do".

"It is time for sponsors and event marketers to stop taking the easy way out when it comes to evaluating success and make the necessary investment of resources to determine whether their partnerships in sports, entertainment, causes, etc. are delivering the proper return", added IEG CEO Laren Ukman.

The survey found no universal tool for measuring effectiveness of sponsorship initiatives.

Metrics most widely used by respondents included:

  •  Sales activity (61 percent).

  •  TV logo exposure (55 percent).

  •  Lower customer acquisition cost (49 percent).

  •  Lead generation (48 percent).

Metrics most widely valued by respondents included:

  •  Sales activity (93 percent).

  •  Attitudes toward brand (81 percent).

  •  Lead generation (78 percent).

  •  Response to sponsorship/event-related promotions/ads. (76 percent).

Despite being the second-most utilized metric, TV logo exposure ranks among the lowest in terms of value (52 percent).

Other survey highlights included:

  •  Fifty-nine percent of respondents do not have a dedicated sponsorship/event marketing measurement budget.

  •  On average, roughly two percent of sponsorship expenditure is budgeted for measurement.

  •  Sixty-two percent of respondents believe it is extremely/very important for the property sponsor or event organizer to provide measurement information.

The information respondents most often seek from partners included:

  •  Audience demographics (85 percent).

  •  Audience research on sponsor recognition/recall (72 percent).

  •  Audience research on attitudes toward sponsors (70 percent).

  •  One-third of the firms surveyed (34 percent) report that they outsource the measurement of their sponsorship initiatives.

Outsourcing measurement is greater among B-to-C companies (41 percent) as compared to B-to-B companies (28 percent).

This study was conducted online in May 2010, among a sample of 102 client-side marketers in companies which were involved in specific initiatives for sponsorship and/or event marketing, and which actively measured the return from these initiatives at least some of the time.

It will air on PBS locally (with a total of 500,000 to 1,000,000 viewers) 6-12 times over the next three years.

"We are delighted to help bring this film to New Yorkers", said David Bough, MD of ENTA. "I think we can all learn a great deal from Mr. Beers".

ENT and Allergy Associates is the largest ENT doctor, allergy and audiology practice in the tri-state area, with over thirty offices in Westchester, Putnam, Orange, Dutchess, Rockland, and Nassau counties in New York, New York City (NYC-Manhattan) and Somerset, Morris, Bergen, Hudson, Middlesex and Passaic counties in New Jersey.

Racing legend Ron Fellows, a resident of Mississauga, Ontario, has a distinguished racing record. He is the first non-American to win in the NASCAR Nationwide Series and won the NASCAR Nationwide race in Montreal in 2008. Ron will be racing the No. 88 Chevrolet Impala in the NASCAR Nationwide Race at Circuit Gilles Villeneuve on August 29th.

"I'm thrilled to partner with Canadian Tire and represent Canada's leading automotive retailer at one of this country's biggest auto racing events," said Ron Fellows. "I'm really looking forward to competing in this year's Montreal NASCAR Nationwide Series race as a member of the Canadian Tire team".

Canadian Tire's 2010 racing program includes:

  •   Title Sponsor of the NASCAR Canadian Tire Series and Official Automotive Retailer of NASCAR in Canada

  •   Official sponsor of the Honda Indy Toronto

  •   Official sponsor of the Honda Indy Edmonton

  •   NASCAR Canadian Tire Series race as a companion to the Nationwide

  •   Race at Circuit Gilles Villeneuve

  •   Sponsor of race car driver, Ron Fellows, in the NASCAR Nationwide race in Montreal

  •   Sponsor of race car driver, Scott Steckly in Canadian Tire car No. 22

  •   Sponsor of race car driver, Mark Dilley in PartSource car No. 9

Milverton, Ontario, resident Scott Steckly is in his second racing season driving for Canadian Tire. A 2008 NASCAR Canadian Tire Series champion, Scott is driving the No. 22 Canadian Tire Dodge Avenger, and posted a top five finish at the Vortex Brake Pads 200 at Mosport this past weekend.

Mark Dilley of Barrie, Ontario, is in his first season driving the No. 9 PartSource Dodge Avenger as part of the Canadian Tire family of drivers. Mark is a veteran driver and most recently posted a top ten finish at the Vortex Brake Pads 200 at Mosport.