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
OP, your post is an example of this sponsorship money at work.
I never would have thought of Emirates today and same with hundreds of redditors if they never paid for these sports sponsorships that people see and talk about as you have.
The obvious advantage is if you go to book a flight tomorrow and see option a) Emirates Airlines or b) John Smith Airlines. Then you’re almost definitely more inclined to trust the known brand “Emirates” and fly with them. Millions of people see and talk about Emirates due to this reason, that has a measurable impact on their sales figures.
Companies such as Emirates who spend millions on sponsorships conduct research and measure sales figures before and after starting a sponsorship deal. The reason they can continue spending millions of dollars today is because in the past they have spent a little money then measured a larger return on money earned through sales, so now they continue to spend more money on sponsorships that continue to show these kind of results.
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