Benefits of sponsorship: 13 reasons companies should do it
- Drive brand awareness. At its most fundamental level, sponsorship is another form of advertising a company can...
- Generate positive PR. In an extension of the Bumble example, a sponsorship can help generate positive PR – be it news...
- Define how people perceive a company. Not only do companies want to...
What is corporate sponsorship and how does it work?
To determine whether you’re ready for corporate sponsorship, ask yourself:
- Recognition A corporate sponsor wants to be appreciated for their generosity. ...
- Measurable results When it comes to corporate sponsorship, the companies you work with want to see evidence that their investment is coming back to them in some way. ...
- Creativity
How to attract corporate sponsors?
Refining your corporate sponsorship program: How to get started
- Know your platform and audience Attracting a corporate sponsor requires you to know a great deal about two groups of people. ...
- Promise something unique As mentioned above, corporate sponsorship comes with the expectation of a financial return on the behalf of your sponsor. ...
- Create a business pitch
What are the advantages and disadvantages of sponsorship?
While sponsorships can help create a good public image, brand awareness, and loyalty, they can also present some risks, including the perception by participants of manipulation and negativity towards changes brought about due to the sponsorship.
How to get corporate sponsorship?
- On Instagram, it can seem like the hashtags #ad and #sponsored are ubiquitous.
- Sponsorships with brands are how many influencers make an income on social media.
- Dozens of influencers have explained to Insider their strategies for getting sponsored.
How do companies make money from sponsorship?
Profits are typically generated through the sales associated with your business or event which the sponsors made possible. However, with a well-planned and executed sponsorship recruitment plan and business or event marketing plan, you might exceed your contribution goals.
What do companies want from sponsorships?
By sponsoring events, companies enjoy a set of perks that typically include the following:Increased brand exposure through the event itself, event advertising, and media coverage.In-event speaking opportunities that help boost their brand equity.Direct contact with an audience full of relatively warm leads.More items...•
What do sponsor get in return?
What sponsors get in return? There are many benefits to event sponsorship, including: branding, targeted marketing, public perception improvement, lead generation, content development, and audience insights.
How event sponsorship can benefit your marketing and sales?
5 Key Benefits of Event Sponsorship1) Events provide an audience. ... 2) Sponsorship packages are flexible. ... 3) Events are becoming more digital. ... 4) Positive Publicity. ... 5) Boost Business Relations.
Why is it important to have sponsors?
As you can see, having sponsors is quite beneficial for any business entity, especially small business owners. Sponsorship dollars can catapult your business or organization to higher revenue in no time . If you want to grow head and shoulders above your competition, consider working with corporate sponsors and start building the relationships that will yield money for your company. You’ll be glad you did.
Why do small businesses need sponsors?
3. It reaches a wider demographic. Sponsors, especially corporate ones, allow your company to reach a wider audience because their audience is wider than yours.
Why is it important to maintain a positive brand image?
It goes without saying that every company strives to maintain a positive brand image, respected identity and favorable public opinion — whether the brand is local, national or global. When sponsors associate with your brand, their positive image and identity benefits yours and lends you credibility.
What are the benefits of working with a sponsor?
The investment for you is primarily your time. The bonus is that once a sponsor invests in your brand, it's free money that you don't have to pay back. Working with a sponsor can provide your company with long-term benefits that extend further down the line, and may potentially offer an ROI far beyond the initial requirement of time or effort it would take to secure the deal.
How can the customer experience be improved?
The customer experience can be improved as long as there is money being spent to address the customer interaction with a given organization. One of the remarkable things about sponsors is that their investment enables you, the small business owner, to enhance your customer experience in a positive way.
How much money did Shutterstock spend on sponsorship?
From 2007 to 2017, sponsors have spent over $60 billion (paywall) worldwide.
When a customer has a favorable experience with a brand, they tell everyone they know and encourage others to patron?
Likewise, when customers have a negative experience, they tell everyone they know and discourage others from patronizing that business. The customer experience can be improved as long as there is money being spent to address the customer interaction with a given organization.
How do sponsorships help a company?
Sponsorships can provide a great source of new material for a company's content strategy. By promoting your involvement in an event or activity, you can drive traffic from the event and increase your engagement. A great way to do this is by creating content themes and hashtags.
Why is sponsorship important?
People typically enjoy supporting brands that invest in their community and spread positive messages. By sponsoring an important cause, you can attract media attention, set your company apart from larger brands and inspire brand loyalty. Determine what your target audience cares about, and choose causes that align with these values in some way.
Why sponsor an event?
By sponsoring events, you can gain exposure to prospective customers and highlight the human side of your company. Additionally, when a representative of your company attends the events you sponsor, you can learn valuable information about your customers, develop a mailing list and promote your services or products.
How do sponsorships increase brand recognition?
This often happens through mentions in the press or social media and event advertising, like radio spots, signs and featured ads. You can take advantage of this exposure by offering attendees free branded materials through promotional giveaways.
Why do companies sponsor events?
Unlike advertising, which shares specific messages about a company or product in the hopes that it will increase sales, sponsorships improve a brand's recognition and reputation because they support specific events that your target audience cares about. As a result, prospective customers associate your company with the event or activity.
What happens when a company sponsors an event?
When a company sponsors events or organizations, people often assume that it is reputable and reliable. As a result, consumers have a higher likelihood of purchasing services or products associated with the brands sponsoring high-profile events.
Why do community events need sponsors?
Community events often rely on the support of sponsors so they can minimize costs and provide exciting programs. For the sponsors of large business functions, charity events and trade shows, these promotional opportunities typically sponsor things like: Branded merchandise, such as tote bags. Shuttle buses. Display computers.
What are the benefits of sponsoring a business?
Direct benefits may include increased name or brand recognition and an improved public sentiment towards the business.
What is a sponsorship package?
This is generally a document that outlines the specific benefits of sponsorship to the business. There are often several sponsorship levels, each of which can offer different benefits for corresponding amounts of money.
Why do marathon runners need sponsors?
Marathon runners typically seek out sponsors, with donated money being given to charity. There are often indirect benefits of sponsorship as well. Many businesses choose to sponsor local groups and activities in order to help improve the community. Local youth sports, community events, and homeless shelters are all ways ...
Can a business sponsor a sports team?
A business sponsoring a sports team may get to print their logo on the team's uniforms. There are a variety of different benefits of sponsorship from a business perspective, though the specifics can vary depending on the particular sponsorship package. The main benefits of sponsorship can be categorized based on whether they directly help ...
Is sponsorship tax deductible?
If the organization that is being sponsored is a qualifying charity, sponsorship donations may be tax deductible.
What is the benefit of sponsorship?
Sponsorship benefit #4: Measurable outcomes over promises. Sponsors have outcomes they’re seeking to achieve, like increased brand exposure or new customer acquisition. No matter the outcome, they’ll want to measure every aspect of their sponsorship to ensure they’re on track.
Do brands invest in sponsorship opportunities?
Brands will not invest in a sponsorship opportunity unless they think they’ll gain a return on investment (ROI). Some companies have an ROI ratio that they use. 4:1, for example, is a fairly common one, and it means that a sponsor would want to make four times the value of their investment in order to justify the marketing spend.
Is sponsorship a philanthropic activity?
It may sound heartless, but sponsorship is not philanthropy. And it’s certainly not the same as advertising. Savvy sponsors expect you to wield your event’s in-person influence to give them a warm introduction to your event audience.
Why do you sponsor events?
Driving awareness about your brand is one thing. Inspiring respect and admiration are another. Thus, event sponsorships are a great way to drive positive PR and build credibility. You can also use events to position your brand in your niche accurately. For smaller players, events are active venues to be cast alongside heavyweights.
What does an event sponsor do?
Almost all event organizers gather data with surveys, ticket sales, and social media activity. You can’t get enough of these so demand them at the onset.
Do potential leads attend events?
Certainly, potential leads and warm prospects are not the only ones attending events. Competitors, vendors, and other ecosystem players also do. It’s your opportunity to build meaningful and long-lasting industry/community relationships.
Can you use events to launch a new product?
You can use events to launch a new product or updates to an existing feature. Likewise, if you run a pre-promo social media campaign announcing swag/other incentives, that’ll only bring you more users.
Can sponsorships do more harm than good?
Event sponsorship is not as simple as it sounds. Sponsoring the wrong event can probably do more harm than good. That's why it's important to ask yourself these questions before you sign up:
Kinds of Corporate Sponsorships
There are many different kinds of sponsorships, but today Lori and I are discussing corporate sponsorships. These are partnerships where corporations pay us to be associated with our brand or company.
Benefits of Sponsorship
A business can see many benefits from doing a sponsorship, but there are three main ones: credibility, cash flow, and connections.
Believing in and Protecting Ourselves
As Lori was learning how to start and run a business, she made some mistakes, as we all do. She said the biggest failure she’s made was doubting herself, not being her authentic self, and falling prey to imposter syndrome.
Key Takeaways
Thank you so much Lori for sharing your stories and insights with us today. Here are some of my key takeaways from this episode:
Why is sponsorship important for a business?
Strengthening your business image is one of the most valuable benefits of event sponsorship. Customers love brands that care about spreading positive messages and helping the community. Linking your business to a worthy cause can draw lasting support and media attention.
What does sponsorship do for a business?
Sponsorships put your brand visuals in front of large audiences who haven’t heard of your business. The bigger the event, the more press and social media mentions you get before, during, and after the event day. With many sponsorships, you get featured ads, signs, or radio spots that boost brand recognition.
What does it mean to sponsor an event?
What does it mean to sponsor an event? Sponsors offer funding or products and services to support events, trade shows, teams, nonprofits, or organizations. In exchange, you get business exposure and a chance to connect with new customers.
What happens if you plan promotional giveaways?
If you plan promotional giveaways, a huge number of people will be toting your branded swag. Quality matters, so choose events with a track record of attracting good press and customers.
How does public perception affect business?
Public perception can make or break your business. On the other hand, customers form positive opinions when your business is tied to high-profile events. Customers will assume your business is reliable and reputable if you can sponsor other organizations. In a 2016 survey, the Event Marketing Institute found that 74 percent ...
Why is it important to create an image of success and authority for your business?
Creating an image of success and authority for your business is a smart way to win more customers. People are comfortable doing business with companies they trust to meet their expectations. If your business looks profitable, customers believe you can deliver what they need.
How do consumer events help you?
Along with leads, consumer events allow you to rack up sales on the spot. Picture a restaurant that sponsors a local music venue or sports team. Setting up a branded booth to feed hungry fans is an easy way to get new business. Many companies make the bulk of their purchases at trade shows, and you can quickly earn their respect as a sponsor.
What is the purpose of getting a sponsor?
The main purpose of getting a sponsor is to get money or kind through them to use for the festival.
How to go about sponsorship?
The best way of going about sponsorship is to first know what do you have in your hand to give to sponsors. Do you have a large audience? Do you have advertisements on media where you can include them? What is your market size a
What is sponsorship in a fest?
Sponsorship is one task that needs to start way ahead of the fest depending on the size of the fest. Sponsorship forms the foundation of a fest as money talks in everything you do. From prize money for the winners to the branding and scale of your fest depends on the money you can clock in.
What is a proposal for a festival?
The Proposal consists of a brief Idea about your Festival, where you show them your main highlights and mainly the numbers like Footfall, Public Outreach, scale of events etc. Most important should be to show and convince them why this would be a good/best way to reach out to their target audience. And at last what deliverable are you expecting from them, and in return what you can offer them in terms of their branding.
Why do we sponsor youth festivals?
Youth festival and event sponsorship helps in creating increased brand visibility , doing research , collecting data for further usage , reaching out to right audience and influencers , economical way of promoting brand and campaigns with youth in short as well as long term brand building if done in right way in preplanned manner.
Why is low brand loyalty important?
Low brand loyalty among college students makes it easier for companies to increase its market share at the expense of its competitors.
Does increased visibility among the student demographic lead to a bigger consumer base?
Increased visibility among the student demographic may directly lead to a bigger consumer base.
