lack of resources , or inadequate activation strategies can result in sponsorships that fail to generate the desired impact and engagement . In a country where we boast of many running and athletics heroes , there has been a skew of sponsorships and endorsements to few athletes . One famous marathoner has endorsed so many brands at times it ’ s confusing to the targeted audience .
Lack of Standardized Guidelines
The absence of standardized guidelines and regulations specific to sponsorships in Kenya can create uncertainties and challenges for both sponsors and sponsored entities . Clear guidelines on sponsorship rights , obligations , and best practices can provide a framework for effective collaboration and mitigate potential conflicts or misunderstandings . When marketing practitioners are not sure why they are getting into an event or sponsoring one , it can be a case of square pegs in round holes .
Competition
There is a lot of competition for sponsorships in Kenya . This can make it difficult for sponsors to get their sponsorships noticed and to stand out from the competition . A sport like golf has consistently been one of the highest sponsored sports - by last count there were more than 5 major brands in the running for the golfing fraternity . Perhaps if 1-2 of these brands was bold enough , they would pick a non-traditional sport , grow , and nurture it to a major extravaganza , remember the Kenya Breweries Limited ( KBL ) sponsoring the KBL Festival of Darts in the 1980s / 90s ?
Limited Financial Resources
Many companies in Kenya face budget constraints , making it challenging to allocate sufficient funds for sponsorship activities . Limited financial resources can restrict the scale and scope of sponsorships , limiting the potential benefits for both the sponsoring company and the sponsored entity . Post-Covid a good number of companies dropped sponsorships altogether focusing on their core business , while others reduced their involvement in sponsoring events or sports-related activities .
Intellectual Property Protection
Safeguarding intellectual property rights and ensuring brand exclusivity can be a challenge in the sponsorship landscape . Unauthorized use of brand logos or sponsorship assets by non-sponsor entities can dilute the value of sponsorships and create confusion among consumers . Intellectual property protection measures need to be in place to protect the rights of sponsors and maintain the integrity of their partnerships . Major brands such as FIFATM and IOC ’ s Olympic Games selfishly work to protect their properties putting heavy fines on infringement or perceived guerilla marketing .
Political and Economic Instability
Political and economic instability can impact the sponsorship landscape in Kenya . Unpredictable regulatory changes , economic downturns , or social unrest can affect companies ' ability to commit to longterm sponsorships or invest in sponsorship initiatives , leading to a more cautious approach from potential sponsors . In 2007- 8 , Kenya faced one of the most enduring moments as a country when certain brands were branded as pro-Government of the day and others were considered to be from the opposition . This hurt many businesses and halted any major sponsorship activities in a period of 6 months . We also remember the Nyayo National Stadium renaming and rebranding fiasco in 2010 / 11 .
Measuring the ROI
It can be difficult to measure the return on investment from sponsorships . This is because there are many factors that can affect the success of a sponsorship , and it can be difficult to isolate the impact of the sponsorship from other factors . ROI has become a sticky subject to many marketing and brand managers who have to report to their leadership team why an event , sports brand or individual needs to be invested in .
Where are the Returns on Sponsorship Investment ?
With all the benefits that brands bring , sponsorship is still one of the most debated topics in the boardroom . Forbes says 78 % of brands report the pressure to validate the financial results of sponsorship activity . This is particularly true for brands that are not in FMCG as it may be more difficult to measure and communicate long-term investment on shareholder and financial performance .
Most of the time the KPI ’ s set aside for the sponsorship activity require a mix of arts , science and commercial tactics to execute . The output is usually intangible and is often termed as growing the existing relationships with the target customers or stakeholders . This is difficult to report in the bottom line as compared to the tangible financial investment that is taken out of the P & L for such activity .
Marketers often are not able to quantify and communicate how these engagements will create financial value in terms of growing brand equity and improving customer loyalty , reducing customer acquisition costs , creating cultural relevance , driving brand value , relationship equity , acquisition economics , and improving engagement with partners , distributors and employees that create significant long-term financial value .
While these numbers are measurable in sales and can be easily quantified as cost of doing business , for marketing and communications professionals it is expensed as a sponsorship as opposed to cost of sponsorship . In most organizations , sponsorships are recorded as expenses instead of assets , even when they involve large long-term investments of up to 3 years on average in the development and acquisition of rights , media , and talent assets that will equate to real financial value and will generate returns over years .
Marketing industry still lacks globally agreed measurements and financial standards for evaluating the return on investment of sponsorships . It is almost impossible to create one as the inputs vary . For example , you can measure the branded space of an area , e . g ., Golf course and say 60 % branded by the title sponsor , you cannot measure the value of a song by a popular musician such as a jingle during the Olympics in the same way you would measure the branded boards . Some people would remember the jingle based on whether they knew the musician or not and not recall the boards based on their frequency of exposure to the brand prior to the event and after the event .
The reality is most marketing professionals do not even try to measure the outcomes of any sponsorship activity and may track it in a Brand Health Tracker Report every quarter , budget permitting , as most marketers either do not have the research
58 MAL54 / 23 ISSUE