I always thought that the whole thing amounted to a company giving money away for nothing (having a company's logo represented in some random spot). How about how they have like 100 baseball card-sized logos stuck on one spot of a car, that wouldn't be seen so well while the car is running.
Why does Coke, Budweiser, or say McDonalds even need to spend anymore on advertising? Is it only a scheme to keep ad agencies guaranteed employent? I mean its unlikely coke or any of the top ten companies would ever lose ground as far as sales. Right?
Can someone break it dwon in #'s & sales…What is an example of a cinderella story where some athelete won something and the sponsors revenue skyrocketed?
Is there a textbook case where the negative acts of a sponsored athelete shut that company down (comsumer product item)?
Its the idea of getting extra free publicity that is often available during sporting events. Photographers and media camera tend to feature sports idols in their uniform. People being people will idolise the stars and they will look at who is sponsoring what.
Most of the time it does not directly translate into sales but rather will lead to sales. The brand recall factor will help. Look at F 1 , Warsteiner beer is not sold everywhere in the world but since it is one of the main sponsors for F1 McLaren , Its penetration into other areas in the world is easier.
Johnny Walker whiskey sales have been improving since it sponsored F1 too. The are accorded status as official partner and this can be used in their merchandise.
Even Nasa allows some product to mention that it is being used by NASA.
As far as top ten company will lose ground if the don't sponsor, it is more likely that they competition will gain ground that they are worried about.
Moreover , its all business expenses that can be tax deductable.
I hope this answers help you to see the other side of the fence.
BTW if it doesn't work, why the fuss about keeping ciggarettes ads away from sports 🙂