A useful distinction
Google Search Central describes rel="sponsored" for links associated with advertising or paid placement. The attribute qualifies the specific anchor. Its presence is not a promise of ranking, a disclosure certification or approval of the linked product.
Put it into practice
Inspect the anchor in your own authorised publishing workflow and confirm which link the attribute belongs to. Keep the destination and visible wording accurate. Recheck after an editor or template changes the link, and use current documentation instead of assuming every external source link is a paid placement.