On University of New England College of Business Week: Sponsors are changing the way they use their marketing dollars.
Norm O’Reilly, full professor and Dean of the College of Business, explores how.
Norm O’Reilly, Dean of the College of Business at the University of New England, where he is also Executive Director of the Center for Sport & Business Innovation and a full Professor. Dr. O’Reilly has co-authored 20 books and more than 160 management journal articles.
Sponsorship in 2025
Sponsorship is a well-known marketing tactic when a brand uses its marketing dollars to partner with a property that aligns with its target audience(s). Examples include major global partnerships between Coca-Cola and the Olympic Games, Adidas and the FIFA World Cup, Rolex and the Academy Awards (Oscars), and Apple Music and the Super Bowl halftime show.
Our recent research has shown that the total spending by brands on sponsorship has returned, and in some cases increased, since the pandemic, but they are being much smarter in how they spend, “with activation” increasing relative to rights fees. Activation is the amount invested in addition to a rights fee paid for the ability to associate with a given property and its marketing assets. This represents a more sophisticated and effective approach to the marketing tool, as return for the brand is much higher when they can activate it more.
For example, in 2018, let’s say a brand spent $100,000 for the right to associate with a professional women’s basketball club, and they set aside another $100,000 to amplify the impact of that investment with additional media spots, athlete ambassadors, a dedicated social media channel, and an email marketing campaign. This results in a 1:1 activation ratio.
In 2025, if we assume that this sponsorship is representative of all sponsorships and that inflation is held constant, it is likely that this sponsorship is now approximately $80k in rights fees and $120k in activation. The only challenge is that the rights fees going to properties in return for their marketing rights are under pressure. To illustrate this dynamic, if you’re a music festival and you’ve felt this shift, you have a partner who is likely happier with the return on the sponsorship due to more activation, which is good, but with less money going directly to your operations to help run your festival.
Read More:
[University of Toronto Press] – Business the NHL Way
[Routledge] – Sports Business Management: Decision Making Around the Globe
[Routledge] – Sport Sponsorship Insights
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