I was chatting recently, with a bunch of my friends, about the array of large sports events on offer this year. There are the Rio Olympics, Euro 2016, the Tour De France, the Cricket Series and the Ryder Cup, to mention but a few. The conversation came around to money which led us, inevitably, on to sponsorship.
Some of you that know my background will appreciate that this topic is one of my favourites.
In fairness, my friends stayed with me as I espoused brand fit and awareness, crowd loyalty and the attitude of rights owners. They know that brand communication is what I do for a living, so they were sympathetic.
As usual, I ended up discussing (arguing) the difference between advertising and sponsorship – even if I knew they were just doing it to get me going.
For the record, guys, of course, both advertising and sponsorship have massive power and they do go hand-in-hand mostly. But, I believe there are different reasons for using them separately.
My discussion prompted me to write this post about sponsorship. I will outline 3 important pre-sponsorship agreement areas to attend to and then list 9 reasons why event sponsorship is effective.
Advertising is perfect (and necessary, we could argue) for establishing a brand and raising awareness. It usually is a campaign so it is for a specific duration with measurable results.
Sponsorship, on the other hand, is usually a long-term commitment between a business and an event. The objective is to build a strong and sustainable relationship with an audience. Preferably the audience should be mutually sought after by the business and the event. With a good partnership, research shows that good event sponsorship can lead to high levels of awareness, recognition and loyalty.
Event sponsorship is best where businesses genuinely have a joint objective, with the rights holder. In essence, it should fit both of their images, values and audiences.
From a sponsor’s point of view, they should be relevant to the nature of the sponsorship (similar attitudes as the audience). They should have some similar demographics e.g. geographical, and should be in it for the long term. As a result, they will have a greater chance of affecting the attitude of their target audience.
As I’ve pointed out in previous posts on sponsorship, changed attitudes can lead to changed behaviour. At the end of the day, with clear marketing communication objectives, a business will be able to decide whether to use advertising, sponsorship or both.
Sponsorship is best where businesses genuinely have a joint objective with the event owner. In essence, it should fit both of their images, values and audiences.Click to tweet
An up-front effort will ensure that you start off on the right foot.
Traditionally there have been seven sponsorship platforms:
- Arts & Culture
You could probably add digital (eGaming), on to that list now. To a certain extent, nearly all of them can be approached in the same way. This is because the most important part of a sponsorship is that the partnership is a win-win-win situation i.e. for the audience, the event owner and you, the sponsor. You getting bang-for-your-buck is, of course, essential if the partnership is to endure.
We would suggest three essential things to do before entering a sponsorship arrangement.
The first one is at the identification stage. You really should undertake research to determine what relevant opportunities are available. Needless to say that there will be many events looking for a sponsor. However, you should only consider those that have the same values, audience and attitude as your brand. We call this, having a good brand fit.
When you have a list of potential prospects, be tenacious when meeting with them by asking pertinent questions. For example, determining the timing and place of the event is important because it must fit your business calendar or portfolio of other sponsorships.
Also, find out if there is a communications / event theme (does it match yours?), is there a marketing budget / team (will you have to do it all?), what is the size of the database (will they get the audience they propose?) and who are the other sponsors / suppliers (any competitors in there?).
The second most important thing is determining if your business audience is the same as the event audience. It’s best to have a narrow focus rather than accepting a general description such as male / female / young / old etc.
The third is, determining what value you will receive for your investment. I do not mean simple branding opportunities here. If you have certain objectives that you want to achieve (speaking opportunities, meetin’ greets, VIP hospitality etc.), make sure all of them are achieved and ignore the distractions of signage / tickets / mentions etc. if not required.
You may or may not be the sponsorship decision maker
If you are a small business and the sponsorship investment is large, the decision may have to go to a Board. In a medium to large business, if you’re not the final decision maker you will have to make the case internally. In either case, the best suggestion we can offer you is to include the results of your research, outlined above.
Your outline should include such items as, brand fit, audience profile, predicted ROI, benefit packages and your personal recommendation. These are the basic necessities and if the decision maker needs more information, at least they’ve shown an interest in pursuing the proposal further. Negotiations with the rights owner can commence.
Outsourcing vs In-house
It might be that you are a business owner and you don’t have time to undertake the research above. Your options would be to outsource the job or employ a sponsorship manager. The difference is usually experience and cost.
From my own background, I am aware that a sponsorship manager wears many hats. These hats can be business development, events manager, marketing, social media or even a CSR expert!
Anyway, whatever ‘hat’ the person is to wear, you should look for as many of the following attributes as possible. If hiring a sponsorship manager they should be / a:
– good negotiator – proactive but patient
– somewhat creative – self-confident and committed
– great communicator – multi-tasker (team player if relevant)
– good with people – decision-maker
I’m not sure where I read the following quote but it stuck in my mind ever since.
“We hire people based on the skills we are looking for, and we fire them based on the people they are”.
If you are thinking about outsourcing, here are a few questions to consider:
– do I / my team have the time – look for experience of sponsorship previously
– do I / my team have the experience – are they active in the industry and online
– do I have the budget – get specific references from other experts
Tips and Timesavers for Event Sponsorship
More and more marketing communication options are becoming available due to technology. At the same time, the CFOs (or your business partner) are looking for more powerful ways of differentiating your brand from competitors. Whilst you could argue that traditional marketing channels have lost some impact, one option that doesn’t appear to have lost its effectiveness is event sponsorship.
Here are 9 reasons why it’s still a powerful way to achieve business objectives:
- Brand awareness and recognition
- Targeted marketing (see above)
- Brand credibility enhancement
- Online / offline media exposure
- Lead generation and new business partnerships
- Community impact
- Sampling / special offers
- Data-base / mailing-list usage
*I smile when I think about the traditional ad measurement of ‘opportunities-to-see’ loved by the media so much. This is like counting how many people look at your shop window but don’t go in and buy anything. I mean, what’s the point?
Bad sponsorships have been guilty of measuring the wrong numbers also. Logo exposure, name recall, share-of-voice, anyone? Businesses now realise that these common measurements have no effect on the bottom line. An example of what should be measured would be loyalty, propensity to buy and brand perception.
Event sponsorship is still a powerful marketing communications tool. As a sponsor, however, it is important to have your sponsorship objectives linked to your business objectives. Also, a business benchmark should be agreed prior to the event (Guinness do this by installing pumps in surrounding bars before an event and measuring any increase in sales + pouring rights revenue, of course).
A final heads-up is to be realistic with your target figures. Make sure they are achievable and measurable. If you have business measurement tools in place – include sponsorship in them.
Event sponsorship offers you the privilege of connecting with people and building relationships with them through something that they care about. Get it right, at the start.
“Thank you for reading our blog post today” – Aidan & Jim.
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[…] Event sponsorship is best where a business has a joint objective with the event owner. In essence, they are obliged to achieve each other's objectives […]
Fantastic read. Really enjoyed it. It cleared up some things for me.
Thank You for your kind words Barbara – let me know if I can cover any other marketing topic you would like to engage with.
Thank you so much for posting this!
I found it very informative and it also helped to readdress the meaning and the direction of where we would like our event to go and how to intertwine our ethos with that of prospective sponsors.
Thank you, Stephen, if you require any assistance contact us through the website. Good Luck with your event.