The sponsorship wheel is the framework we use to map out a sports sponsorship project: three stages (decision making, activation and measurement) and fifteen elements arranged in a circle around the brand. It is a wheel because sponsorship does not end when the results are measured: every season starts again from there, with more data and more experience.

As we have said many times on these pages, sports sponsorship is a marketing tool that is as effective as it is three-dimensional. Its strength lies precisely in working on several levels at once, so that it can reach many objectives at the same time and boost processes already under way, such as digital communication, events, sales promotions and above the line advertising.

It would be wrong to call sports sponsorship “complicated” (there is nothing difficult about how sponsorship works; in fact it is so effective precisely because it is immediate), but it is fair to say that it is a multi-layered object made of many pieces, which have to work in unison to deliver the best results. To people outside the industry, such an elaborate structure can sometimes look intimidating.

It is the job of sports marketing agencies and sponsorship agencies to defuse this “myth of complexity”, doing justice to the many voices of sponsorship without making it look like a many-headed monster that nobody can fully understand or overcome.

The diagram below, which we often show our prospects and clients as an example of “next steps”, is a graphic representation of how a sponsorship project unfolds. It works not only as a checklist of the things to check as the project moves forward, but also as a small roadmap that shows at any moment where we are and what we are doing.

The three stages of sports sponsorship

In this example we have divided the sponsorship project into three stages:

• sponsorship decision making,
• sponsorship activation,
• sponsorship measurement.

Sponsorship decision making is the most strategic part of the journey: the stage in which decisions are made, directions are chosen and, above all, the parameters of the project are compared with the soul and the specific features of the company, that mission, vision, purpose and values so often called upon.

Sponsorship activation is the most tactical part, the one in which the potential of the sponsorship is put into practice. It is the most creative stage, certainly the most exciting and also the most visible. This is where communication, events, social media marketing and so on come in.

Finally, sponsorship measurement is the most analytical part of the whole process. This is where the real effectiveness of the tool becomes clear, where any areas for improvement are identified and where the fine tuning is prepared.

The sports sponsorship wheel

Another obvious point is that this diagram is, as the name says, a wheel. It has a starting point, the start, but it draws its strength from repetition. In fact, it gets better and more powerful with every extra turn of the wheel.

The idea, simple but important, is that sponsorship does not end with the measurement of its performance; on the contrary, that is where it draws new strength. Every sports season and every completed project should be an opportunity to analyse the results and go back to the strategic stage with more information and more detail.

As we explained when writing about how long a sponsorship should last, it takes at least two seasons, and sports sponsorship reaches its full effectiveness after three or four, because of its effects on the cognitive and emotional parts of the brain. These are nothing more than turns of the wheel, revolutions of this diagram, each one improving every element in it.

Sponsorship decision making: the elements

• Objectives. As always, the whole process can only start from defining the marketing objectives you want to achieve with the sports sponsorship. They must be SMART: specific, measurable, achievable, realistic and time-bound.
• Budgeting. The second step is allocating an operating budget for the sponsorship, covering both the cost of the sponsorship itself and the cost of activating it.
• Sport / Property choice. Only at this point can you choose the sport, team, event or athlete you want to sponsor. It is an important moment, in which gut feelings often prevail. It is better to get help from a competent, professional agency that can work and advise with objectivity and independence.
• Negotiation. This is the stage in which, together with the sports property and the agency, you build the perfect tailor-made plan. The aim is to strip away everything superfluous and keep a clearly defined, essential package of benefits that fits the objectives you want to reach. There are no standard packages in sponsorship: everything is made to measure, based on what you want to achieve.
• Legal reviews & signing. The last step of decision making is the all-important legal review and the signing (unless, of course, it is a multi-year contract and you are already on the second or third turn of the wheel). The legal review is essential not only to protect yourself and understand the size of the playing field, but to put every point discussed in black and white, in detail, and avoid problems in the present and above all in the future.

Sponsorship activation: the elements

• Release notes & announcements. With a new partnership, the announcement of the sponsorship is a key moment. It should be coordinated with the sports property, ideally during an event or a dedicated media moment. The start of the year is always a good time for this, because the press and fans are hungry for news after the break.
• Marketing & graphic materials ready. The second step of activation is preparing all the communication materials, visual and otherwise, needed for marketing activities. From banners to POP materials, from video spots to social media graphics, this is where the sponsorship starts to take shape, colour and substance.
• Content & social media planning. An editorial plan that takes into account races, events and sporting and corporate moments is essential for a successful year on social media and in everyday communication. Planning communication activities means you never have to sail by sight or improvise at the most stressful moments.
• Activities and events scheduling. Still within activation, it is important to schedule the events, trade fairs, conventions and corporate moments in which to use the sponsorship benefits. Show cars and show bikes, appearances by riders, drivers and management, hospitality and licensing agreements (to name just a few examples) must be planned in advance to ensure maximum effectiveness and proper organisation.
• Last minute & low hanging fruit. Sport is unpredictable and there are many last-minute opportunities and quick wins to seize during the year. An unexpected comeback victory, a surprise award, a memorable Sunday: these are just a few examples. Being ready, following closely what happens on the pitch and on the track, and having materials prepared for every eventuality is absolutely necessary.

Sponsorship measurement: the elements

• Reports & meetings. Teams, events and sports properties in general send regular reports on how the sponsorship is going and organise meetings to show progress and take stock. This is usually the first, and an important, opportunity for sponsors to compare notes. It is important to make these meetings productive and not to hesitate to ask questions, just as it is wise to read and file the reports carefully.
• Digital & social reporting. Website analytics and social media statistics can often give useful insights into how communication activities are performing. Sports sponsorship works particularly well when it comes to engaging audiences on social media, and it is not unusual to see big peaks of interest exactly when sport becomes part of the story.
• AVE & TV audience. Advertising Value Equivalent and TV audience analysis often go hand in hand. AVE answers a key question: “how much would I have to spend on advertising to get the same visibility I got through the sponsorship?”. For major series such as Formula 1 and MotoGP, TV audiences and the data that come from them are impressive both in numbers and in geographical reach. AVE alone is not enough, though: the Barcelona Principles 3.0, published by AMEC in 2020, point out that advertising value equivalents do not measure the value of communication. That is why we use AVE as one indicator among several, never as the only one.
• Customer satisfaction questionnaires. For one-to-one activities, below the line communication, sales promotions and the like, surveys and satisfaction questionnaires are often important to get an accurate sense of how the activities went. Hospitality, trade fairs and events return different data from traditional statistics, but that does not make them any less measurable.
• Sales reports. Finally, a very important figure comes from analysing sales after the sponsorship, or at least some time after it began. The impact on the bottom line matters to every company, whatever its origin, size or industry, and, although it is not the only figure to consider, it is always an important indicator of how things are going.

Instructions for use

Like every diagram, this “sponsorship wheel” is a simplification. Many elements can be added to it, or taken away: no two cases are alike, precisely because no two sponsorships are alike. The purpose of this exercise is to show the circular nature of the tool and the many stages and components that make up every project. If you are looking for the step-by-step path in linear order instead, you will find it in our article on the 8 stages of the sports sponsorship process.

Every sports sponsorship agency knows that tailoring this path is the first step towards a successful sponsorship. In our case, if you would like to know how this wheel can be applied to your sponsorship project in Formula 1, MotoGP and the other top motorsport series, you can write to us at info@rtrsports.com or use the contact forms on this site.