Good for sports but are big sponsorships worth spending the money on?

Australia’s flag-bearers at the Paris Olympic Games – Hockeyroo Eddie Ockenden and kayaker Jess Fox. Picture: Michael Klein

Australians love sport. It is ingrained deeply in our culture and national identity. It is hard to think of a pastime that fills Australians with more pride, more excitement and more passion than cheering on our Olympic heroes or favourite sporting team.

Where there is sport in Australia, there is sponsorship.

And for good reason. Sponsorship not only funds elite sporting teams and leagues, but it is also the life blood of many grassroots and community programs. It funds sporting infrastructure, and it means we can all watch our favourite footy team for free on television.

Sponsorship is also big business. It is estimated that sports sponsorships in Australia are worth $1.5bn a year. That investment accounted for more than 21 per cent of the marketing budgets in 2022.

Sport in Australia is a unique and emotive platform that enables brands to foster authentic human connections around shared passions.

It is scale personified and offers brands incredible exposure and the opportunity to stand out from the crowd nearly all year round.

The key question is: are these big sports sponsorships worth it?

I asked some of the most well-known brands that sponsor some of our biggest sporting teams and moments why they do it, whether it is worth it and what their advice is for others who thinking about it. What they said was remarkably consistent.

Let’s start with nomenclature. Sponsorships done well are a long-term commitment. It becomes a mutually beneficial partnership. And we all know, most long-term partnerships only work if there is alignment of values, purpose and strategy.

“The keys to success are ensuring a clear match of values and ambition,” said Michelle Klein, marketing chief at IAG, one of the biggest sponsors of Nine’s broadcast of the Olympic Games this year.

Dianne Everett, brand, partnerships and creative lead at Commonwealth Bank, which has sponsored the Matildas since 2021, said: “Our partnership investment decisions are fuelled by our purpose of building a brighter future for all and work best when integrated into key pillars of organisational strategy.”

Katrina Gorry in action for the Matildas. Picture: Getty Images

The alignment to purpose and values dovetails neatly into the need for authenticity and a permission to play in these impassioned environments.

“There needs to be a genuine fit and an authentic reason to partner and meaningfully connect with audiences through these emotive platforms,” said Mim Haysom, Suncorp’s marketing chief.

The “why” you should invest in partnerships is not just about making your brand stand out from the crowd and reaching new audiences at scale.

Nor is it just about delivering a return on the marketing investment – although this is crucial. For many brands it is about giving back to the community and creating impactful change at the community and grassroots level.

After 25 years of sponsoring women’s sport, CBA had the runs on the board to authentically partner with the Matildas way before they were cool or popular. That long-term partnership has paid immense dividends for women’s sport and the lives of so many girls (and boys) who play soccer in Australia.

When Suncorp elevated women’s sport with the launch of the Suncorp Super Netball league in 2017, it also launched the “Team Girls” initiative, with Netball Australia, to encourage girls to participate in sport and benefit from the lifelong skills team sport provides.

“Our mutually beneficial partnership with Netball Australia has helped support the growth and popularity of the sport, and for Suncorp we’ve gained measurable business and brand impact through our association and connection with the community, our customers and netball fans” Haysom said.

Everyone I spoke to agreed that you need to go beyond the logo. Partnerships need to be so much more than logo placement. The initial investment is just the beginning. You need to build fully integrated marketing and activation strategies around it. These can cost two to three times the initial investment and are critical to squeeze out the best return from your investment.

Australia’s Courtney Bruce challenges New Zealand goal shooter Grace Nweke in the netball the Constellation Cup series. Picture: Getty Images

“Participation in sport, particularly from a grassroots level, is very aligned to our customer base, so these sponsorships have allowed us to engage our customers in different ways and through different platforms,” ,” Everett said. “The CommBank Matildas and cricketers have featured in our employee programs, financial fitness education materials, small business and everyday banking campaigns, social media content and community grants initiatives.”

And as Florencia Aimo, MasterCard’s marketing chief in Australia, explains: “By thoughtfully integrating with such events like the Australian Open, brands can go beyond logo placement to create meaningful interactions that resonate deeply, leaving audiences with memorable moments and a genuine connection to the brand that helped make it possible.”

Robust measurement frameworks that include brand reputation and brand health metrics are essential and must demonstrate a clear return on investment tied to business strategy. If you can’t measure the results, you will have a hard time securing the investment.

Finally, creativity and innovation are the superpower. This is the biggest stage in the nation. If you want to stand out on that stage, be brave, have fun and take a chance.

Successful partnerships build lasting value for brands and communities. With the right alignment of purpose, authenticity and strategic activation, brands can foster deep connections, support local sports and create memorable experiences for fans. These investments not only drive business results, but also enrich the broader sporting landscape.

Josh Faulks is the CEO of the Australian Association of National Advertisers.