Sponsorship Evaluation: Moving from Theory to Practice

Abstract

Corporate spending on sport sponsorship continues to escalate, up 3.7% over 2002 with several companies reportedly spending over $100 million each year (IEG, 2002). Sport sponsorship has been shown in the literature to be a viable component contributing to market strategy. Of late, the downward movement in many corporate stocks through 2003, projected earnings shortfalls, and decreased company profitability has caused some shareholders to question sport sponsorship as an appropriate expenditure of funds because little empirical evidence of return on investment has been provided. However, many corporations have failed to assess sponsorship's effectiveness in meeting their objectives. Perhaps the lack of assessment exists because the process for evaluation has not been solidified in theory or practice. Thus, an evaluation model for sport sponsorship based on the myriad of contributing factors is needed. This article explores the literature in the field, examines current practice in the profession, and forwards such a model.