Sponsorship benefits refer to the return on investment of a sponsorship campaign. It can be measured in a lot of different ways, mainly depending on the goals and KPIs of the company.
Breaking Down Sponsorship Benefits
Sponsorship yields many temptations for a brand. As a matter of fact, it allows the latter to target a new audience, raise awareness and boost sales.
Nevertheless, sponsors face many obstacles, too. For example, the projects they decide to sponsor can eventually turn out to be a failure (7 sponsorship epic fails). That happens mostly for strategical and branding mistakes more than for downstream ones. As a matter of fact, it’s common to see partnerships and sponsorship activations that don’t work. Many organizations, in fact, associate their brands with events or other companies that are not relevant to their core business. That is, they don’t gain any competitive advantages, for the sponsees have a different target, a bad reputation or they operate in another market.
That said, if you are a valid and skilled sponsorship management, you can minimize the risks and gain many tangible and measurable benefits. Let’s take a closer look at them.
List of Benefits
- Increase brand awareness/visibility: whether you are a newborn brand or a well-established company, sponsoring is an activity that can help you gain awareness or increase your visibility addressing a broader target.
- Increase your sales/acquire customers: this is the ultimate goal for every business. Getting to the top of the mind of new or existing customers not only increase awareness but can also directly drive sales, according to how the sponsorship is coherent with your marketing plan.
- Gain publicity: can you imagine a startup that get to be the sponsor of an important event or sport club? Seems like a natural consequence that media will talk about this. Furthermore, people will share news on social networks. As a result, you can gain good exposure – all this for free!
- Differentiate from the competition: if you find yourself in a very competitive and profit-shrinking market, being the sponsor of a big event or organization can give you the chance to stand out as a leader in your field
- Increase brand loyalty/premium prices: true especially for sport sponsorship. In fact, it is statistically proven that, for example, fans of a particular team are more willing to buy from the sponsor than from its competitors. This leads to brand loyalty, which leads itself to customers being less sensitive to premium prices
- Increase your CSR reputation/brand image: finally, sponsoring a charitable event or a foundation can enhance your brand image as a caring company. As a result you will be able to witness a profit increase on the long term.