Brands Are Pouring Into Sponsorship — but Most Can't Prove It Works
Updated: 6 days ago
New IPA research finds fewer than half of brands are confident their sponsorships deliver business results — and says their reluctance to share commercial data with rights holders is 'self-defeating'.
A confidence gap at the heart of sponsorship
Sponsorship money keeps flowing into shirts, stadiums and events, but new research suggests brands are flying blind. Findings from the IPA and the Sponsorship Effectiveness Forum, presented at the IPA Effectiveness Conference, show just 45% of brands are confident sponsorship delivers business results — and only around four in 10 across all respondents.
The study surveyed 143 brands, agencies and rights holders. For an industry forecast to reach $181.38bn globally by 2034, a confidence level that low is a warning sign, not a footnote.
Why brands are their own worst enemy
SEF co-founder Rory Natkiel called brands' reluctance to share commercial data with rights holders 'self-defeating'. The logic is simple: if a rights holder never sees whether a sponsorship drove sales, it cannot help optimise the next one.
The research found a clear path out. Brands that consistently apply three pillars — setting clear commercial objectives, measuring commercial impact, and integrating sponsorship with wider brand communications — are almost six times more likely to be confident it delivers.
The measurement problem
There is also an industry-level gap. Some 43% of respondents said common measurement standards, or a shared 'currency', would make the biggest difference. Without them, every brand reinvents its own yardstick and comparison becomes impossible.
This mirrors a wider truth in marketing: spend without measurement is just hope with a budget. Sponsorship has long been treated as a relationship expense rather than a performance channel, and that habit is finally catching up with it.
What businesses should take from it
If you sponsor anything — local or global — decide before you sign what commercial outcome you expect and how you'll measure it. Then integrate the sponsorship into the rest of your marketing rather than treating it as a standalone logo placement.
Marketing Minute's take: the brands getting six times the confidence aren't lucky, they're disciplined. Objectives, measurement and integration aren't glamorous, but they are the difference between sponsorship that builds the business and sponsorship that just feels good.
Quick FAQ
What did the IPA sponsorship research find?
That fewer than half of brands (45%) are confident sponsorship delivers business results, and that applying clear objectives, measurement and integration makes brands almost six times more likely to be confident.
Why is sharing data important in sponsorship?
Without commercial data, rights holders can't help brands optimise. SEF's Rory Natkiel called the reluctance to share it 'self-defeating'.
How big is the sponsorship market?
Global sports sponsorship is forecast to reach $181.38bn by 2034, which is why low confidence in its effectiveness matters.
This is the uncomfortable truth about sponsorship: a lot of it is bought on gut and never measured. The fix isn't complicated — objectives, measurement, integration — but it means treating sponsorship as a performance channel, not a relationship perk. Discipline beats hope every time. — Daniel Nikolla, Founder of Merx Marketing
Spend without measurement is just hope with a budget.
Before your next sponsorship, can you say exactly how you'll measure whether it worked?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
Sources: Marketing Week, Campaign, IPA.
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Written by Daniel Nikolla, Founder of Merx Marketing Ltd and Marketing Minute
