The news this week that Jack Daniel’s is quitting its NASCAR team and Anheuser-Busch’s Michelob Ultra is not renewing title of its LPGA Tour stop in Virginia are but two examples of the scores of sponsors dropping title of pro golf tournaments and motorsports teams.
It is a tough environment for everyone selling sponsorship, but among the most challenged are pro golf events and motorsports teams. Rightsholders in these sectors have often sold on media visibility, and that’s a dangerous path for anyone in sponsorship.
On merely a CPM basis, sponsorship cannot successfully compete with advertising. When times were flush, marketers were willing to pay the higher CPM because intuitively they understood that sponsorship offered more. But intuition is no longer enough, and treating sponsorship as the “added value” piece and media as the main event, no longer works.