sponsors constantly question the effectiveness of their investments in event sponsorships and the effect it has on their brand equity, revenue growth, profitability and market share. Sponsors face the difficulty of quantifying, within reasonable time after the sponsorship event, the potential benefits of their investments. Most studies on sponsorship effectiveness are about awareness of sponsoring brands among consumers, and some studies go as far as measuring the impact on consumer attitudes towards brands. We have not found any empirical research conducted on the effect that sponsorship has on one of the most important predictors of future revenue growth – brand recommendation. Research has shown that there exists a strong correlation between a brand’s growth rate (and profitability) and the percentage of consumers who are ‘promoters’ of that brand. These promoters are consumers who say they are likely to recommend the brand to a friend or colleague. As such, brand recommendation could be a sponsor’s most valuable measurement of the success of their sponsorship. In this study conducted by Aha! Research, we measured the impact of brand sponsorship on consumer’s likelihood to recommend the brand. Not only did we look at sponsors’ brands versus non-sponsor brands, but we also looked at consumer perception of sponsors versus non-sponsors. The latter comparison looked at those aware of sponsors being a sponsor versus those not aware, as well as those who thought non-sponsors were sponsors versus those who knew a non-sponsor was not a sponsor. In most comparisons, we found a significantly higher likelihood of brand recommendation of sponsor brands, as well as among consumers who (correctly or incorrectly) recognized a brand being a sponsor. By using this very important measurement, brand recommendation, our research suggested that most sponsor brands may experience higher future growth and profitability compared with non-sponsor brands – but, for sponsorship to be successful, consumers must be aware of the sponsorship. On the other hand, non-sponsors who can create the impression that they are sponsors, also reap sponsorship benefits on the ‘brand recommendation’ and ‘brand attitude’ scales. In an online survey conducted among 1,330 Chinese respondents randomly selected from an online consumer panel provided by GMI (Global Market Insite, Inc.), the Aha! Research study found that the 2008 Beijing Olympics official sponsors enjoyed significant benefits as a result of their involvement. Sponsor brands were shown to have experienced higher brand recommendation and brand attitudes compared with non-sponsor brands. The survey covered 29 official Beijing Olympic sponsors and partner brands. Ranked on recognition of brand being an official sponsor, the top five were Coca Cola, China Mobile, Lenovo, Bank of China and PICC. Those sponsors that achieved less than 20 percent recognition included Manulife, Atos Origin, Johnson & Johnson and BHP Billiton. Among the 41 non-sponsor brands mentioned in the survey, those with high levels of incorrect brand sponsorship recognition were Li Ning (67 percent), China Life Insurance Company (54 percent), Nike (50 percent) and Sina (41 percent). As to why these non-sponsors fared so well, we don’t have any data on ad spend during the Olympics so we can’t say who had more ad activity than others. Some non-sponsor brands such as Li Ning, Nike and Nokia had higher scores most likely because they are so prominent year-round and people believe only winning brands are sponsors of the Olympic Games. Li Ning many believe had the advantage that their founder, Li Ning, lit the flame at the opening show and therefore many people believe as result that Li Ning must be an official sponsor. In the analysis of the survey data, 25 comparisons were made between a sponsor and a non-sponsoring competitor, for instance Air China compared to non-sponsor United Airlines, and Budweiser compared to non-sponsor Heineken. In all but 11 comparisons, the sponsor brand scored significantly higher on respondent’s likelihood to recommend the brand to friends and family than the non-sponsor brands. However, the survey data suggests that recognition of a brand being a sponsor is more crucial. All nine sponsor brands tested on brand recommendation showed a significantly higher score among respondents aware of their sponsorship than those who were not aware. This is also true for non-sponsor brands. Eleven of the 15 non-sponsor brands measured on brand recommendation also scored higher among those who incorrectly identified the non-sponsor brand as a sponsor. These findings clearly show the importance of sponsorship awareness among consumers. The survey measured consumer attitude towards five brand sponsors – Air China, Bank of China, Tsingtao, Samsung and Adidas – against their five non-sponsor counterparts – United Airlines, ICBC, Heineken, Nokia and Nike. All sponsors, except Samsung and Adidas, scored significantly higher for brand attitude than their competitors. However, among all the sponsor brands, scores were significantly higher among respondents who correctly recognized the sponsor brand. Similarly, among the non-sponsor brands, scores were significantly higher among respondents who incorrectly identified the non-sponsor brand as a sponsor – except for Nokia. As with the brand recommendation measure, the survey showed that where respondents correctly recognized a sponsor brand, or incorrectly identified non-sponsoring brands as sponsors, they had a more positive attitude towards the brand. Clearly for sponsoring brands, it is crucial to ensure high consumer awareness of their sponsorship to maximise their return on investment. Survey results suggest that the investment brands made in sponsoring the 2008 Beijing Olympics are possibly justified for most, but likely not all. Millions of dollars were spent this year by the sponsors of the 2008 Beijing Olympics. Our research indicates that most of these brands are enjoying improved recognition, attitudes towards their brand and brand recommendation. But there’s a sting in the tail – it is not enough to be a sponsor – brands must take the initiative before, during, and after the event to communicate their leading role to consumers to make the most of the significant sums they have invested.
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