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

See all articles by Jonathan A. Jensen

Jonathan A. Jensen

University of North Carolina at Chapel Hill

Joe Cobbs

Northern Kentucky University - College of Business

Date Written: 2014

Abstract

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

Suggested Citation

Jensen, Jonathan and Cobbs, Joe, Analyzing Return-on-Investment in Sponsorship: Modeling Brand Exposure, Price and ROI in Formula One Automotive Competition (2014). Journal of Advertising Research, 54(4), 435-447. Available at SSRN: https://ssrn.com/abstract=2322589

Jonathan Jensen

University of North Carolina at Chapel Hill ( email )

308 Woollen
Chapel Hill, NC 27599
United States

Joe Cobbs (Contact Author)

Northern Kentucky University - College of Business ( email )

Highland Heights, KY 41099
United States

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