Measuring Sponsorship, is it possible; an example of how sponsorship adds value to a brand other than creating awareness?

BANK OF Ireland has deemed its sponsorship of Irish golfer Pádraig Harrington to be out of bounds due to the credit crunch.

The Irish Times published an an article claiming that the bank, which is now 15.7 per cent directly owned by Irish taxpayers, has decided not to renew its sponsorship of Harrington when its three-year deal expires at the end of May.The decision to pass on its option to renew the sponsorship is one of a series of cost-cutting measures being implemented by the loss-making bank, as it seeks to stabilise its financial position.
Reports at the time the deal was announced in May 2007 suggested that it was worth €750,000 over the three years plus performance bonuses. But informed industry sources yesterday estimated that the figure was as high as €400,000 a year, including bonuses.

Bank of Ireland declined to comment while IMG, the global sports management agency that represents Harrington, could not be reached for comment.
An informed source said Bank of Ireland’s decision not to renew was part of an “unrelenting focus on costs” at the business.

The sponsorship deal with Harrington was agreed in May 2007 and covered a period when the Dubliner scaled the heights in golf, winning three major titles (the British Open twice and the USPGA) and rose to number three in the world rankings.
Under the terms of the deal, Harrington, who is currently ranked 10th in the world, wears the Bank of Ireland logo on his shirt and also participates in three corporate golf outings per year for the financial institution. These corporate golf days were used by Bank of Ireland to raise the profile of its business internationally and were hosted in Ireland, Britain and the United States, where Harrington plays on the lucrative PGA tour.
Bank of Ireland’s decision to sever its link with Harrington means that rugby is now the main focus of its sports sponsorship. It has major shirt deals with the Leinster, Connacht and Ulster provincial teams. In 2007, the bank withdrew from its sponsorship of the GAA’s All-Ireland senior football championship.

Bank of Ireland is one of 12 companies listed on Harrington’s own website as a sponsor. His other backers include global consulting firm FTI; sports equipment maker Wilson Staff; golf ball maker Titleist; and the Oceanico Group, an Irish-backed property developer and golf course operator in Portugal.
Harrington signed three sponsorship deals in 2009, with mobile phone group 3 Ireland, watch company Citizen and golf shoe maker Footjoy.

I feel that when looking a sponsorship as a medium of advertisement one must look at its role as part of an overall communications strategy. In this instance I beleive BOI to be rather short sighted and udervaluing the importance of the golf days used for not only client retention but business and brand development.

I will be posting a more detailed article in the coming weeks detailing how systems have been developed which make sponsorship results more quantifiable to accountancy departments in order for companys' communications strategys to remin focused on the long term rather than making decisions based on the short term quantifiable costs.

Stay tuned for more on this subject and a wide range of other interest!

Its only just begun...

Sean Wiemann