A study of nearly 200 leading sponsorship decision-makers provides crucial insight into why companies sponsor, how they research opportunities and how they budget.

The International study, commissioned by IEG and conducted by Performance Research conducted in March, includes responses from executives responsible for sponsorship sign-off at a range of companies, from international to local, who manage properties of all types and sizes.

Among findings: While companies are spending an increasing amount on rights fees, they devote surprisingly little to activating their deals and even less to measuring ROI.

For example, just over two-thirds (70%) of respondents reported spending $1 or less on activation for every rights fee dollar, despite conventional wisdom that suggests a ratio of at least $3-to-$1 to maximize sponsorship value.

Just under three-quarters (72%) of respondents reported they allocate either nothing or no more than one percent of their sponsorship budget to concurrent or post-event research.

Pre-event research fared no better, more than three-quarters of respondents reported spending $5,000 or less per deal on external research prior to making sponsorship decisions.

The study also revealed a startling disconnect between sponsors’ objectives, and methods for evaluating success. Despite reporting brand loyalty as their top objective, at renewal time less than one-half, (47%) of the respondents reported using or commissioning primary consumer research. Despite key targets being outside corporate offices, nearly all (94%) executives reported they gather opinions from their own colleagues. Internal feedback also far outstripped factors such as sales / promotional bounce back, and media analysis.

Companies tend to rely on data from properties, in fact respondents deemed post-event reports and fulfillment audits the most valuable service properties provide.

Beyond the service they seek from properties, the most valuable sponsorship benefits for companies were reported as a mix of tangible and intangible benefits, led by category exclusivity, on-site signage, title of a proprietary area, and ID in the property’s media buys.

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