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Leveraging sponsorship: The activation ratio

Author

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  • Norm O’Reilly
  • Denyse Lafrance Horning

Abstract

► This research explores an area of identified research and practitioner need: sponsorship activation. ► The study involves data provided by a leading sponsor corporation. ► The work seeks to establish the ‘activation ratio’ – commonly used in practice. ► Background literature on sponsorship and sponsorship activation provide the basis for the study. ► Practical applications are provided in the form of a suggested framework for the corporation of interest.The accelerated growth of sponsorship has brought increased attention and scrutiny to this relatively new area of marketing and communications strategy. In turn, researchers have focused on defining, understanding and measuring the various aspects of sponsorship. However, detailed research related to the ‘how’ of sponsorship implementation remains limited. A key aspect of implementation is known as activation, which refers to the investment by the sponsor above and beyond the fee required to acquire the official rights to that sponsorship. Activation is normally referred to as a ratio of the additional investment to the cost of the rights fees. Previous studies have offered recommended activation ratios ranging from 1:1 to as high as 8:1 in order to fully reap the rewards of sponsorship. This research seeks to enhance our understanding of sponsorship activation via an in-depth case study, a typical method for exploratory research of this nature. Specifically, we ask (i) what drives activation, (ii) what are the best methods of activation, and (iii) how much should be spent on activation? Findings suggest that management decisions regarding activation focus on the custom development of quality strategies versus increasing the activation ratio. Indeed, a formula based on a variety of factors is recommended since activation tactics and their appropriateness to a specific sponsorship are the cornerstones of sponsorship success. Overall, results present a four-step model including activation drivers, strategic considerations, activation spending, and sponsorship outcomes.

Suggested Citation

  • Norm O’Reilly & Denyse Lafrance Horning, 2013. "Leveraging sponsorship: The activation ratio," Sport Management Review, Taylor & Francis Journals, vol. 16(4), pages 424-437, October.
    • Handle: RePEc:taf:rsmrxx:v:16:y:2013:i:4:p:424-437
    DOI: 10.1016/j.smr.2013.01.001
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    Citations

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    Cited by:

    1. Eshghi, Kamran, 2022. "Are sports sponsorship announcements good news for shareholders? A meta-analysis," International Journal of Research in Marketing, Elsevier, vol. 39(1), pages 268-287.
    2. T. Bettina Cornwell & Youngbum Kwon, 2020. "Sponsorship-linked marketing: research surpluses and shortages," Journal of the Academy of Marketing Science, Springer, vol. 48(4), pages 607-629, July.
    3. Pilinkiene Vaida & Komskiene Diana, 2016. "Macro Economical Tendencies for Sport Sponsorship Development," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 5, December.
    4. Herrmann, Jean-Luc & Kacha, Mathieu & Derbaix, Christian, 2016. "“I support your team, support me in turn!”," Journal of Business Research, Elsevier, vol. 69(2), pages 604-612.
    5. Drenger, Jan & König, Werner & Kaiser, Sascha, 2019. "Zielgruppenansprache im Sponsoring mittels Gamification - Beispiel: mobiles Spiel "schaz"," Marketing Review St.Gallen, Universität St.Gallen, Institut für Marketing und Customer Insight, vol. 36(6), pages 52-58.
    6. John A. Fortunato, 2016. "Business-to-business sponsorship opportunities: Examining UPS’s functional congruence with the NCAA," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 26(1), pages 36-50, January.
    7. Lang, Le Dang & Lim, Weng Marc & Guzmán, Francisco, 2022. "How does promotion mix affect brand equity? Insights from a mixed-methods study of low involvement products," Journal of Business Research, Elsevier, vol. 141(C), pages 175-190.
    8. Kuang-Hua Hu & Fu-Hsiang Chen & Gwo-Hshiung Tzeng, 2016. "Evaluating the Improvement of Sustainability of Sports Industry Policy Based on MADM," Sustainability, MDPI, vol. 8(7), pages 1-21, June.
    9. Daniela Andreini & Giuseppe Pedeliento, 2014. "The multichannel effects of sponsorship: an empirical analysis," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2014(3), pages 65-83.
    10. Teal, Renee & Roberts, Michele & Harrigan, Paul & Clarkson, Jo & Rosenberg, Michael, 2020. "Leveraging spectator emotion: A review and conceptual framework for marketing health behaviors in elite sports," Sport Management Review, Elsevier, vol. 23(2), pages 183-199.
    11. John A Fortunato, 2016. "How the Citi Olympic sponsorship strategy uses the knowledge of the elaboration likelihood model," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 21(1), pages 76-85, March.
    12. Dickson, Geoff & Naylor, Michael & Phelps, Sean, 2015. "Consumer attitudes towards ambush marketing," Sport Management Review, Elsevier, vol. 18(2), pages 280-290.
    13. Parshakov, Petr & Naidenova, Iuliia & Barajas, Angel, 2020. "Spillover effect in promotion: Evidence from video game publishers and eSports tournaments," Journal of Business Research, Elsevier, vol. 118(C), pages 262-270.
    14. Martin, David S. & Bourdeau, Brian L. & Stephan, John, 2020. "Measuring the effectiveness of facility naming rights sponsorships," Journal of Business Research, Elsevier, vol. 110(C), pages 51-64.

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