Just a few years ago, standard, and often rigid, sponsorship structures set most sponsors on the same level. But as brands get better at crafting their own narrative, generic platforms with properties are no longer working to create goodwill. Brands need to find a clear positioning for their sponsorship portfolio as well as within each property.
Sponsorship can be extremely effective at reaching communications and business objectives. However, building the equity of a partnership requires a lot of time, mainly because audiences need to naturally associate the brand with a property, especially if the sponsor is replacing another brand from the same category. The good news is that the positive effects will last as well.
Using Tech to Empower Decision-Making
How do you know if you’re making the right sponsorship choices? This is a hard question to answer because sponsorship is a complex industry with lots of moving parts. But when you start with the data and use tech to track your progress, it empowers you to make better, more informed decisions.
Data measurement. We talk about it so much that it almost registers as a trending topic. And yet, despite all of our chatter, the truth is that sponsorship initiatives often go largely if not completely unmeasured, and, when we do attempt to quantify success, we often go about it wrong.
There are three gaps that undermine most attempts to measure sponsorships....
For a sports property looking for sponsorship, finding companies that are willing and able to enter into partnerships is no mean feat. But before plunging into a deal, what are some of the considerations the sports property should consider about to ensure success? There are plenty of risks and pitfalls which could harm the property’s prosperity and brand. Taking time to assess risks before making a sponsorship agreement ensures that the property can mitigate some of these potential issues in the planning stage.
In 2014, the Canada Sponsorship Landscape Study noted a 6.7% decrease in sponsorship spending in the country after years of steady increase. This sector is once again seeing growth—IEG predicts a 4.5% increase in 2016—in large part due to the arrival of new players and the increase in activation budgets (which is often taken from the amount paid in rights). As a result, several properties are facing a cap on their sponsorship revenues, especially in high-level professional sports and important music festivals.
Because anything can be sponsored—or almost anything—you’d think that companies would be busy transforming their sponsorship portfolio every time a new trend hit the market. Instead, they tend to focus on their existing partnerships because long-term relationships have a way of paying off.
We are seeing a stabilization of partnerships in the major sponsorship categories, which suggests that brands are adopting a more strategic approach. The average duration of a partnership has also gone up. There is less movement in the marketplace overall, with the exception of brands pulling out during more difficult economic periods.
Relevent15 conference review
By Joey Franco
The terms “pioneer” and “trailblazer” come to mind when describing Tom Moser’s career in the entertainment/sports sponsorship marketing field. Moser, a mastermind marketer for British American Tobacco, including its Canadian subsidiary Imperial Tobacco Company Canada has run the gamut in high profile tobacco sponsorships; from IndyCar racing to jazz festivals and of course, Formula One.
Due to tobacco legislation restricting more traditional forms of advertising and promotion; sponsorships became one of the only communications vehicles for marketers at tobacco companies. “It was actually a benefit in some ways,” says Moser as he describes those transformative years.
While this magazine can’t possibly do justice to all of the insight and effervescence that speakers and participants alike brought to the three-day event, we hope it will give you a little taste of the amazing discoveries we shared during this first edition. Hopefully it will also whet your appetite to join us next year for the opportunity to get even better at what you already do so well.
The number of organizations that have jumped into the sponsorship ring in the hope of growing their revenues has skyrocketed in recent years, resulting in an overflow of requests in sponsors’ inboxes…
Is there a simple tool out there that can spare a promoter the futile hassle of filling out lengthy forms and save a sponsor from drowning under a sea of requests? There is now!
How many times have you heard that sponsorship is no longer about visibility but all about engagement? Pretty often, I’d wager. While this is true enough in principle, the fact remains that 1) sponsorship can still be an effective way to build brand recognition and 2) before even thinking about engagement, you’ve got to first be sure consumers are going to remember who you are. Almost in all cases, the link between sponsor and property needs to be made before moving on to more complex objectives.
The vast choice of sponsorships can by tempting for any company, especially if you assess each one in a vacuum. It’s easy for a sponsor to feel like a kid in a candy shop when so many options abound, but the wrong choice can lead to a scattered portfolio. Such an approach can sometimes yield positive results for a sponsor, but a well-structured selection can enhance your performance tenfold. Here we’ve broken down the strategies successfully leveraged by major brands, and drawn a few important conclusions. Here are six sponsorship strategies worth taking note of:
Sponsorship is an evolving area and the recent 2015 Relevent Conference shed light on a new way of approaching sponsorship. The speakers addressed numerous issues that are gaining traction in the sponsorship field such as the increased usage of social media as an important channel for activation, the effectiveness of the performance evaluation, the need to clarify precise objectives beyond awareness and finally is the logo dead? What the speaker Ian Malcolm, President of Desperado Inc. agency, would call the in-ice-logo dilemma, which stresses the fact that sponsorship is no more about visibility but way more about engagement.
You spend years building a partnership between a brand and a property and then, for various reasons—objectives not being met fast enough, lack of vision at the management level, a changing of the guard or simply the strategic realignment of a scattered portfolio—and the time comes to call it quits.
No matter how good the reasons are for leaving, every brand needs a solid exit strategy. There are multiple players involved, from the property to the media to fans and the general public, and their reactions should not be underestimated. You don’t want to run the risk of having years of hard work crumble with a single news story.
All good things come to an end, and partnerships between sponsors and properties are no exception. Financing sponsorships is becoming an increasingly costly endeavour, and when a contract comes up for renewal, there are times when a brand decides to walk away. The results of the above study suggest that even if pulling out of a sponsorship is negatively perceived by consumers, brand sponsors can mitigate that response by paying special attention to how they announce the news and when they decide to make it public.
Check out BrickRoad™, a simple software that works to manage donations, sponsorships or influencer requests. It was created by sponsorship experts who know the drill from managing hundreds of real partnerships.
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