Activation

Abstract

A sport sponsorship is a formalized partnership between a company or organization and a sport property in which payment is made in exchange for the rights to be associated with that sport property for the purpose of deriving business-related benefits. Activation is a term used to describe the implementation and fulfillment of the sport sponsorship, which may include activities and additional financial investments made by the sponsor, in addition to the fees required to officially obtain the rights of the sponsorship from the sport property. The sponsoring company or organization may need to devote resources for activation in order to capitalize on all of the benefits the sponsorship offers. Sponsorships allow companies to engage directly with consumers in an interactive way. Key sponsorship decision-makers in the industry have reported spending on average $2.20 on activation costs for every $1 on sponsorship rights fees, a 2.2:1 activation ratio.