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A team sponsor calculates their return on investment by the amount and quality of media coverage. The more the company logo is shown and talked about on TV, the higher the return. Obviously this value is ultimately determined by the company. So if a company invests $2 million and that team consistently runs at the front then they may determine that they received $20 million of value for number of eyeballs seeing the company brand in the course of a year. If the team has a bad year then their ROI may not make sense. At Pala, I suspect GEICO did extremely well by all measurements. The team route for a company is not necessarily the most consistent regarding coverage but it can produce the best return. Also consider the volume of exposure in moto magazines, websites and social media the company receives from team sponsorship.
A series sponsor has a relatively consistent TV exposure, like the GEICO 15 minutes to save 15%, track banners, etc. but relatively little (mags, website, social media) outside the event broadcast.
Obviously the new GEICO CEO made a business decision to go in a different direction. Fair enough. The only criticism I have is that they should have given the team more notice so they could find a new sponsor. We’ve seen the result of their decision and I understand why people are upset but at the end of the day GEICO did a lot of good for our sport. It’s unfortunate that their business decision resulted in the destruction of a top-level team.
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