This whitepaper discusses the importance of considering a financially oriented approach to sponsorship evaluation for Sponsorship Directors, CMOs, CFOs, and CEOs. Sponsorship is defined as a form of advertising in which companies pay to be associated with certain events or rights holder assets to promote their brand. The paper also defines sponsorship as "the totality of market-orientated decision processes about the provision of money, services, know-how or in-kind support of corporations or organizations to individuals, groups or institutions from the area of sports, culture, charity, ecology, education or broadcasting, in order to achieve specified corporate communication goals via the commercial and psychological potential associated with this activity." Despite its definition, sponsorship is seen as one of many tools in the marketer's toolkit, used to influence target customers, raise brand awareness, enhance corporate image, and/or consumer attitudes, which may lead to future purchase intent. However, with high levels of investment into sports sponsorship and the inherent opportunities and risks involved, it is important to evaluate sponsorship against its aims to justify its existence and associated expenditure. In terms of expressing the return on sponsorship investment, a financial audience will typically require an evaluation of the financial impact of sponsorship on the company's bottom line.
