Question came from thinking of Emirates Airline who sponsor Arsenal, Real Madrid and Milan (and others). This costs them over £100m, surely they cannot be seeing a return on that investment?
In: Economics
Welcome to the wonderful world of ad buying. Essentially, when you sponsor anything, all that matters is how much free advertising you receive.
For example, a 30s ad slot on ESPN can cost up to $500k. So if your logo is shown on ESPN in that time slot for 30s, you have just received 500k in advertising. If the benefit of that advertising is less than the cost of your sponsorship, you have a net positive result.
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