How Profitable Is Your Sponsorship Marketing Strategy?

Sponsorships offer many brands a high-profile way to advertise to a large audience, but at an equally large cost. Many marketers struggle to prove the impact of their sponsorship strategy–and rightly so, as these types of investments can typically only be measured by reaches, clicks and views–none of which correlate to a brand’s revenue.

Cue 2020, when sponsorship opportunities were hit with yet another curveball: The pandemic’s infection rates and restriction of in-person spectators, resulting in decreased ratings that only continue to decline. While sponsorships can offer brands a unique and appealing way to reach consumers, how are you measuring the financial impact they’re creating for your brand?

It’s time to re-evaluate your sponsorship marketing strategy and align your investment decisions around what tactics will drive profit and future growth.

How The Eckrich Marketing Team Leveraged Keen To Re-Evaluate Their Sports Marketing Sponsorship

Eckrich historically experienced significant success annually investing in a college football sponsorship, but after partnering with Keen to further analyze their investment decisions, the team realized there was some room for extra sizzlin’ results. Keen’s scenarios revealed an increased revenue opportunity for the brand just by redirecting funds previously dedicated to their sports sponsorship into a new channel: Online video.

But Keen’s models delivered an even bigger win after showing how the team could better allocate their dollars across their entire mix to drive even higher returns. After uncovering a high amount of overspending during college football season, the team leveraged Keen to identify several other tactics to invest in year-round, generating six out of seven ROIs in excess of $1, compared to just four in the previous year.

Learn more about the other revenue-generating opportunities the Eckrich team was able to curate for their brand after using Keen to optimize their marketing mix.

Learn More

Nathan’s Famous Brings Keen Up To Bat With MLB Sponsorship Deal

Smithfield Foods’ Nathan’s Famous brand is just about synonymous with baseball, but insights from Keen helped the marketing team determine which mix of tactics would deliver a home run for the brand. Keen’s models recommended $100,000 in budget shifts to optimize returns from this valuable partnership, including increasing investments in online video and social channels while scaling less measurable venue sponsorships back to more appropriate, profitable levels.

The Nathan’s brand team even used Keen to validate their own intuition: The hot dog market was hot year-round. Keen’s scenarios showed the team could increase marketing investments by a whopping 10X and still remain profitable. Discover how the team reigned in the returns of their dogs year-round below.

Learn More

Is It Time To Rethink The Holy Grail Of All Sports Sponsorships?

It might be time to re-think if the G.O.A.T of all sports sponsorships– aka the Super Bowl– is still a winning play in today’s complex market.

With the growing fragmentation of media it’s tough to quantify the short- and long-term financial impact of such a pricey, yet coveted buy. You might be reaching some 96 million people, but how many of them are potential customers? Are you reaching those 96 million in an efficient and effective way that warrants the $5.6 million price tag?

The key comes down to knowing the opportunity costs for your brand, and evaluate other profitable strategies you can implement to invest those dollars.

Keen’s future-focused models consistently validate two realities for brand decision makers:

Over-investing in a concentrated time period can make your program extremely unprofitable (and the impact is likely to decay quickly).

Continuity–on the other hand–builds value over time, like layers of rock.

While a few behemoth brands may pull out a clever ad spot at the next Super Bowl, the winning playbook in today’s marketing landscape is built on consistency, a healthy diversity of online and offline tactics and a keen focus on building sustainable, future growth for your brand.

Learn More