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Home / Business

<i>John Drinnan:</i> Big sponsors sailing into stormy water

John Drinnan
By John Drinnan,
Columnist·NZ Herald·
8 Dec, 2008 03:00 PM2 mins to read

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KEY POINTS:

Big sports sponsors such as Audi are running for the hills rather than shelling out millions on big events and players.

And it will be even harder for sports bosses to attract sponsors next year.

All advertising is about selling products.

It is especially hard to prove that
pumping millions into sponsorships leads to more sales.

The value of sports sponsorships is never easy to quantify.

When economic times are good - as they have been for many years - sponsors' cash is easier to get.

Sponsorships can be sold to advertisers as "building the brand" maintaining a place on the global stage - and matching the competitors.

It may well have been good for the image of Audi to have their logo on the German boat and at the corporate events that surround the Cup.

But how good? And how do you work out what impact it had getting an Audi on the road?

It is Ground Zero for all sponsorships right now.

Even before the crash, advertisers were demanding agencies prove what they were getting for their advertising or sponsorship buck.

It is called the ROI - the return on investment.

Some key events such as the 2011 Rugby World Cup are already advanced.

Agencies say the sponsorship market will ease up, but it will be a tough 2009.

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