1.07 Sponsorships

Term Sponsorship: underwriting an event for the purpose of gaining a positive association for a brand with the participants and/or attendees Often considered a partnership between event and sponsor

Sponsorships Big Organizations –M–Major Events –M–Major Activation –M–Major Ad Budgets Small Organizations -Smaller Events -Small/No Activation -Small/No Ad Budgets

Explain benefits of sponsorship Increase sales and profits Introduce new good or service Be identified with an event in which target market is interested Earn goodwill of audience by showing commitment to community Entertain clients, employees, potential customers Enhance company image Enter new/niche markets

Premium Sponsorships Entitlements: one major sponsor for an event (ex: Sprint for NASCAR) Facility Entitlements: company purchases promotional rights to entire stadium (ex: BB&T for the Dash) Product Exclusivity: only one product in a category is granted sponsorship (ex: Food Lion is the only grocery sponsor for the ACC)

How Sponsorships Are Formed Generate leads Contact potential sponsors Create sponsorship proposal

Information for Sponsorship Proposals Information about the event Audience demographics Cost/cost per person reached Length of contract Media coverage Marketing opportunities Sponsorship benefits

Why Sponsorships Fail No budget for activation Not long-term No measurable objectives Insufficient staffing No local extensions

Ambush Marketing Giving the appearance of being associated with an event without paying a sponsorship fee