Why Sponsorship Makes Sense

Sponsorship can help you achieve several goals at once. According to Schmader and Jackson in their book, Special Events: Inside and Out, a company can benefit from sponsorship in many ways, such as:

Reach a Fragmented or Yet-to-Exist Customer

Small businesses typically fly under the radar. Sponsoring events covering small business topics is a great way to reach this fragmented market. In addition, people just thinking about starting a business are even more difficult to reach, unless mass market magazines or websites are used. These are not targeted towards a local audience and can be expensive.

Enhance Image/Shape Attitudes

Often companies want to improve how they are perceived. Sponsoring events that appeal to their market are likely to shape buying attitudes and help generate a positive reaction.

Drive Sales

Sponsorship geared to driving sales can be an extremely potent promotional tool. This objective allows sponsors to showcase their product attributes. Food and beverage companies often use sponsorship to encourage samplings and sales.

IEG’s Complete Guide to Sponsorship cites Visa’s fund-raising effort around its sponsorship of the Olympic Games and the U.S. Olympic Team. They promoted their association by offering to make a donation to the team each time consumers charge a purchase to their card. American Express used a similar strategy by donating to needy causes with their "Charge Against Hunger" campaign. As a result, both companies experienced a significant rise in sales volume.

Create Positive Publicity/Heighten Visibility

Every sponsor is seeking wide exposure in both electronic and print media. Positive publicity helps create heightened visibility of products/services. Various media covering the event may include sponsors names and/or photos. In addition, the kind of media coverage a sponsor may get is often unaffordable if the company were to think of purchasing it, and if it were available. To maximize this objective, it is important for the sponsoring company to have a comprehensive media campaign to augment the regular media coverage promoted by the organizers. Sponsorship can often generate media coverage that might otherwise not have been available.

Differentiate from Competitors

The mere act of sponsoring an event, especially an exclusive sponsorship, is a significant way to create competitor differentiation. Your company name has the opportunity to stand out head and shoulders above the competition. This is particularly helpful if your company wants to combat a competitor with a larger ad budget. Sponsorship allows smaller companies to compete with their industry giants.

Target audiences often perceive sponsorship in a positive way. They see you as making a greater effort to support the event, often allowing more or better activities to take place as a result of your sponsorship.

Help with Good "Corporate Citizen" Role

Another powerful sponsorship objective allows companies to be viewed as a "good neighbor." To be seen supporting the community and contributing to its economic development is extremely powerful and creates enormous goodwill.

Enhance Business, Consumer and VIP relations

Sponsorship that offers hospitality opportunities is always very attractive to companies. Perks may include special exclusive networking settings such as VIP receptions or golf tournaments – opportunities to meet key customers and solidify business relationships. It is important to evaluate each opportunity and look for ways it could tie into your marketing objectives.