Leverage and Activation of Sport Sponsorship Through Music Festivals

Abstract

Research on leverage and activation of sponsorship is an underexplored area in academia, one that is still in its infancy in the event management and sport marketing literature. Much of the existing analyses of sponsorship leverage do not clearly differentiate between activational and nonactivational leverage. It is now common practice for mega-event organizers to create and manage ancillary events for sponsors to leverage and activate sponsorships among attendees. One example is the Austin Fan Fest held each year during the week of the Formula 1 US Grand Prix. However, it remains unclear how leverage differs between main and ancillary events, and what the subsequent impact is on sport consumer behavior. The purpose of the study was to examine whether sponsorship activation by Austin Fan Fest sponsors would have greater results for these sponsors than for Formula 1 sponsors that were limited to using nonactivational sponsorship (i. e., signage, promotions, and public address) during the main event. Results show that activational leverage off site at Austin Fan Fest outperformed on-site nonactivational at the Formula 1 US Grand Prix, as surveyed respondents reported higher ratings on attitudes toward the sponsor, word of mouth, and purchase intentions.