Marketing Week recently quoted a report from Ebiquity stating that amongst global advertisers, 42% plan to increase their spend on Performance Marketing in 2025 while only 24% plan to increase their branding spend. AI and the digitisation of advertising is causing a noticeable shift in marketing tactics and this news might send a cautionary signal to the sponsorship world.
Sponsorship for Brand
Sponsorship is typically perceived to be more toward the ‘brand’ end of the marketing spectrum as it draws more on emotion and aims for more long-term intangible elements like reputation, loyalty and affinity. If technological advances are steering marketers toward Performance Marketing (aimed at driving specific measurable outcomes like clicks and online purchases) and away from brand, this might send the sponsorship alarm bells ringing.
But what does this really mean for sponsorship? Is the logo-slapping industry at risk? My answer is yes… and no.
The good news is that sponsorship remains the best way to reach a targeted audience in an authentic way precisely where their passions and emotions are piqued. That hasn’t changed… and won’t.
Performance Conundrum
The challenge comes with the realisation that product marketers are increasing sophisticated in their use of data to both inform activity and measure performance. This is a good thing, but some see it as a choice. Performance or Brand?
The more advanced sponsorship brands and rights-holders are figuring out how to merge the two disciplines. They are using the passion for the property (sport) and emotion of the fans to bring audience and brand together, but then implementing performance-based activations and measurement frameworks to assess progress against objectives. The ‘brand and hope’ approach is shrinking in the rear-view mirror… or at least it should be. QR codes, discount codes, custom URLs, pre/post surveys, and other CTAs are all sponsorship tactics that have elements of ‘performance’ baked in.
Measure for Better
So, what does it all mean? Is Performance Marketing killing sponsorship? No, it’s actually making it better. If we can measure it, we can more clearly assess it… and make better strategic decisions to improve the next iteration (click to read about iterative sponsorship).
If the question is “Performance Marketing or Sponsorship?” we’re not under threat… we’re just asking the wrong question.
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