Analyzing price premiums in international sponsorship exchange: What drives marketing costs in Formula One racing?

With increases in sponsorship expenditures outpacing traditional advertising, return on investment warrants greater scrutiny.
Jensen et al

MANAGEMENT SLANT

  • Results in this international context indicate companies high in brand equity should scrutinize sponsorship prices, particularly in cases of shared nationality.
  • Sponsors should take advantage of otherwise congruent and uncluttered sponsorship relationships and strongly consider high-performing teams, because the well-established theoretical benefits may not be associated with significant price premiums in Formula One Racing.
  • For marketers looking for guidance on the investments associated with different levels of sponsorship, this model also quantifies spending at various levels (i.e., title, sponsor, partner, official status, and supplier level) while controlling for other characteristics of...

Not a subscriber?

Schedule your live demo with our team today

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

We’re long-term subscribers to WARC and it’s a tool we use extensively. We use it to source case studies and best practice for the purposes of internal training, as well as for putting persuasive cases to clients. In compiling a recent case for long-term, sustained investment in brand, we were able to support key marketing principles with numerous case studies sourced from WARC. It helped bring what could have been a relatively dry deck to life with recognisable brand successes from across a broad number of categories. It’s incredibly efficient to have such a wealth of insight in one place.

Insights Team
Bray Leino

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands