Analyzing Return-on-Investment in Sponsorship: Modeling Brand Exposure, Price and ROI in Formula One Automotive Competition
Journal of Advertising Research, 54(4), 435-447
18 Pages Posted: 11 Sep 2013 Last revised: 22 Dec 2014
Date Written: 2014
Determining return-on-investment (ROI) for corporate sponsorship of events, teams, and leagues remains an evolving science. To advance ROI analysis in sponsorship, we utilize data on sponsorship prices and the televised brand exposure of sponsors in Formula One (F1) motor racing. Results validate a strong link between sponsored team performance and both sponsors’ realized brand exposure and price paid, which is also influenced by sponsorship level and congruence factors. Surplus ROI is more likely for sponsors of better performing teams, sponsors that affiliate at a high level and sponsors outside of the automotive industry.
Keywords: sponsorship, Formula One, ROI, brand exposure, sport marketing, return on investment, marketing costs, motor sport, naming rights, price
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