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Assessing corporate demand for sponsorship: marketing costs in the financial services industry

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  • Jonathan A. Jensen

    (Department of Exercise and Sport Science, University of North Carolina at Chapel Hill)

Abstract

Despite increased interest in nontraditional marketing activities such as sponsorship, the ability of brand marketers to quantify the return on investment from such approaches is a continued challenge. Given their proprietary nature, investigations of sponsorship costs are particularly sparse. Therefore, this study utilizes a dataset of more than 700 sponsorships undertaken by competitors in the financial services industry to investigate the influence of a variety of factors on costs. Results indicate that costs are not simply reflective of firm size, and costs of title and naming rights sponsorships are significantly higher. Evidence of agency conflicts are found in increased costs for sponsorships of events, organizations, and venues residing within the marketers’ home market. Sponsorships of sport organizations are significantly more costly than those of arts, entertainment, and nonprofit organizations, presenting a challenge for marketers seeking to engage today’s consumer via sport sponsorships in an increasingly competitive environment.

Suggested Citation

  • Jonathan A. Jensen, 2017. "Assessing corporate demand for sponsorship: marketing costs in the financial services industry," Marketing Letters, Springer, vol. 28(2), pages 281-291, June.
    • Handle: RePEc:kap:mktlet:v:28:y:2017:i:2:d:10.1007_s11002-016-9410-5
    DOI: 10.1007/s11002-016-9410-5
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    References listed on IDEAS

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    Cited by:

    1. Iordanis Kotzaivazoglou & Garyfallos Fragidis & Eugenia Papaioannou & Costas Assimakopoulos & Ioannis Nanos & Nektaria Astrini, 2023. "Supporting Culture to Improve Corporate Image: The Case of Greek Banks," Sustainability, MDPI, vol. 15(5), pages 1-16, February.
    2. Jensen, Jonathan A. & Bettina Cornwell, T., 2021. "Assessing the dissolution of horizontal marketing relationships: The case of corporate sponsorship of sport," Journal of Business Research, Elsevier, vol. 124(C), pages 790-799.

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