Advertising Principles - Evidence-based principles

When Big Companies Sponsor Stuff, Does It Work? - New York Magazine

This story addresses the profitability of investments in sponsoring events, stadiums, and teams. It draws upon evidence in Chapter 4 of Persuasive Advertising. Interestingly, in helping on this story, I learned from an Associated Press story by Anthony McCartney on January 15, 2011, that “Studies commissioned by the United States Postal Service estimated the agency received at least three times the value of the $32 million spent sponsoring Lance Armstrong's cycling teams during their heyday.” This contrasts sharply with the estimate by the independent US Inspector General estimated that increased revenues (not profits) of only $700,000.

 In short, sponsorship lost virtually the entire investment. I would appreciate hearing about well-designed (preferably experimental) research on this issue. I will then report back on this additional research.


Scott Armstrong


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