Predicting Return on Investment In Sport Sponsorship

ABSTRACT Although the benefits sought by engaging in non-traditional marketing tactics such as sponsorship are well documented, determining return on investment (ROI) remains an evolving science. To advance ROI analysis in sponsorship, the authors of this study utilized data on sponsorship prices and the televised exposure of sponsors in Formula One motor racing. Results validated a strong link between team performance and sponsors9 realized brand exposure and price paid. Price also was influenced by sponsorship level, functional congruence and, at the lowest level of sponsorship, shared nationality. Finally, overall the authors found that positive ROI is more likely for sponsors of better performing teams, for sponsors that affiliate at a high level, and for sponsors outside the automotive industry.