When you see the word “sponsorship,” you probably think of race cars covered in brand logos. Or, perhaps you remember a time you saw a character on a TV show clearly use a branded product. While these are both examples of sponsorship, the strategy is not limited to passive signage or branding. Like most trends in the marketing industry, sponsorship is taking lessons from experiential marketing and adding experiences to the standard sponsorship package. 

What Is Sponsorship Marketing, and Why Is It Important?

Sponsorship marketing is when a business funds an event, an organization or a talent in exchange for advertising. Two parties are involved: the sponsor (the business) and the sponsee. The goals of sponsorship marketing are to boost the sponsor’s brand, product or service and increase conversions.

The sponsor can offer monetary support (donating products or services) or media sponsorship. Some examples include sports sponsorship, where a shoe brand sponsors an NBA player, or an event sponsorship, where an organization financially supports an event. Read further to learn how sponsorship marketing can help a business.

Four Largest Benefits of Sponsorship Marketing

You can reach a wider audience by supporting an organization, an event or talent via financial or in-kind sponsorship. The benefits include increased brand awareness, improved client relationships, more high-quality leads and, ultimately, more conversions. You can expand your reach when the talent or business you’re sponsoring has a large following. As a result, you get high-quality leads that may be converted into a sale. Through engagement, you create a positive image for your brand and improve customer loyalty. 

Key Points for a Successful Sponsorship Marketing Strategy

You need to plan ahead to succeed with sponsorship marketing. First, determine what your sponsorship objectives are. Do you want to increase brand awareness or generate more revenue for your business? Start the sponsorship process only after determining what your goals are. The next step is to look for an event or a talent that can help achieve your objectives. Ensure you have your target audience in mind when choosing a sponsee or an event for the sponsorship. Set a budget and discuss your terms with the sponsee before moving forward. 

Be specific and clear with your goals to increase success with sponsorship marketing. Don’t forget to set your metrics and measure your efforts by using media analysis, sales data or surveys. Analyzing the results of your sponsorship program can improve your strategies. 

Are you looking to sponsor an event or a talent as part of your marketing strategy? Our team can help you find the right talent for your brand. Get in touch with us today.