Generating an ROI (return on investment) on sponsorship

SPONSORSHIP continues to be an important focus for every sporting club in Australia from the grass roots to the elite level.

There are of course other revenue streams such as merchandise, events, etc but along with membership, sponsorship is often seen as a barometer for the club.

So why do marketers choose to invest in sport sponsorship and more so the Melbourne Football Club?

Very simply, sport and in particular the AFL continues to attract large audiences and in a media world that is fragmenting rapidly, such media properties continue to command a premium with broadcasters and marketers alike.

From a sponsor’s perspective the motivation can be for a host of commercial reasons but generally these can be summarised into four main areas:

1.  
Exposure
2.   Membership
3.   Community
4.   Brand association

Exposure is generated through a raft of media platforms but the greatest exposure emanates from the broadcast of matches and particularly free to air television.
This sort of exposure can create almost instant familiarity with the sponsor’s name or product.

Kaspersky is a wonderful example of this strategy, not only because they have attained the No.2 position in their category in a relatively short space of time, but they have almost exclusively launched their brand on the back of their sponsorship of the Melbourne Football Club. Quite literally!

Even more impressive is that Kaspersky expects to be No.1 within the next 18 months.

Another important aspect is the membership base.

Through the various media platforms with which the club engages with its supporters, sponsor’s can have direct access to the tens of thousands of people who passionately support the club.

While other mediums can also provide access to this group of supporters, none can do so with the same affection and impact.

The other important segment of the membership is of course the corporate base which provides extensive B2B opportunities.

All in all the club provides access to a range of business networking opportunities from young business people; to our major business supporter groups like Coterie and Mates of Melbourne; to the 20,000 SMEs in Casey.

‘Community’ is the newest component of our overall sponsorship package and is also an important part of the club’s overall growth strategy.

As an indication of the extent of our community engagement, last year our players represented the club in over 2000 hours of community activity.

Combine this with the direct investment the Club makes in terms of staffing and resourcing and the total amount is in excess of $2m.

Importantly though, this aspect of the club’s activities also provides a valuable ‘vehicle’ for sponsors to create a one-on-one dialogue with their own consumers and in a very positive social context.

Lastly, for the sponsor it’s about brand association. Sponsors now look at the way a sport and the club carries itself.

It looks at the club values and most important of all, the way it and its people, the players, the management, the staff behave.

Today the Melbourne Football Club is a very attractive sponsorship proposition and largely because of the values and behavior it has demonstrated under the stewardship of our President, our Board, our coach and our CEO.

It’s good to be a Demon again and our sponsors think so too.