Part I: Understanding the Basics of Sponsorships
Sponsorships, as defined by IEG, the global authority on sponsorship, are cash or in-kind fees paid to a property, such as a sports, entertainment or non-profit event, in return for access to the exploitable commercial potential associated with that property. According to IEG, sports events hold the largest market share of sponsorship dollars, with an astounding 66%. The runner-up in acquiring sponsorship dollars is entertainment and attractions, with only 11% market share.
SPONSORSHIP TYPES
Soft Sponsorships: Relationship-based
Media partners:
Generate free editorial coverage or advertisements in exchange for media materials inserted into event booklets/packets
Offer free participation in the race for news anchors/journalists in exchange for live news segment
Elevate exposure of the event with credible partners
Major retailer/drug store chain
Create credibility for your event by involving a major brand
Create more distribution points for materials
Leverage relationships with retailers to bring in major brands as vendors
Local car dealership
Garner access to courtesy vehicles
Offer sponsored prizes/drawings
Cost-Reducing Sponsorships
Barter partner
Alleviate a traditional expense, such as food, beverage, or even legal advice in exchange for sponsorship exposure
Municipality or Community Association
Access discounted rates traditionally given to non-profit or government organisations
Cash Sponsorships
Traditional sponsorships, such as a title sponsor
Cover expenses
Increase exposure of both the sponsor and your event
Create event credibility
Customise offerings packages rarely succeed
Note: cash sponsorships tend to require a longer sales cycle (at least six months) because actual budgets are involved
SPONSORSHIP STATISTICS
According to recent IEG studies, there are a number of reasons why companies sponsor, as well as number of benefits they expect as a result of their sponsorship.
Why do companies sponsor?
To increase brand loyalty
Create awareness/visibility
Change/reinforce image
Drive retailer/dealer traffic
Stimulate sales/trials/usage
Community/corporate responsibility
Platform for experiential branding
Sample/display products/services
What do sponsors want and expect from events?
Category exclusivity
Onsite signage
ID in propertys media buy
Access to mailing list/database
Broadcast ad opportunities
ID in property collateral
Presence on propertys Website
Participation in retailer promotion
Ad in program book
Remember, there are billions spent annually on event sponsorships, so there is never a bad time to solicit sponsors. Your challenge is applying these statistics and tactics to create unmatched value for companies.
Part II: Determining and Selling Sponsorship Value
BUILD THE PROPERTY
The value of sponsorships is often compared to the value of traditional media buys, such as a print advertisement or commercial. To build the value of your property (your race) you must first take inventory. Examine the Four Ps, or the different categories of assets:
1. Participants. Can you attract more participants or are you limited by space or other requirements?
2. Promotions. How will your event be promoted? What type of collateral will you be producing? Will you have a Website?
3. Partners. Will you partner with local sports clubs for peer-to-peer marketing? Is your charitable beneficiary highly desirable?
4. Parameters. What limits will you put on the event sponsorships? Whats negotiable and whats not? What are the possibilities for sponsors?
DETERMINE YOUR VALUE
Sell value, not costs. Focusing on costs hinders the actual revenue potential of your event. Think like a marketer, know your assets, and be prepared to explain how your sponsorship offering will help the company achieve its goals.
Concrete Assets
Media Value: placements, coverage, on-site impressions, collateral, Website
On-site Activities: sampling, one-to-one marketing, VIP entertainment, expo booths
Lead Generation: mail and email lists, promotional opt-ins
Intangible Assets
Desirability & Prestige: event recognition, popularity in market, exclusivity, market impact, growth opportunities
Comparables: other events, media in market, standard advertising costs
Activation Opportunities: retail tie-ins, sales promotions, hospitality discounts
SPONSORSHIP PROPOSITION
Guidelines, Not Packages: have a plan for relative benefits and number of sponsors, but focus on the consultative process (after all, who really wants to be known as bronze?) Asset Allocation: title sponsors, major sponsors, suppliers, expo exhibitors, etc.
SPONSORSHIP TARGETS
Do your homework: local sponsors, competitors of local sponsors, national companies with local interests, local advertisers Network: talk up your event, seek referrals, attend other events, join associations and trade groups
SALES APPROACH
Be a problem-solver and know that your property will deliver tangible benefits to your sponsors. Be upbeat, confident and process-driven. Believe in what youre selling.
Evaluate all of the benefits of your property, put together a game plan, network and start selling. For cash sponsorships, start reaching out to companies at least six months in advance. And remember, dont sell sponsorship packages. Rather, understand what certain companies need and want, then create a customised solution that benefits the sponsor, your event and your participants. Project and anticipate whats in it for the sponsoring company before making the sale; then follow through to ensure the company sees the benefits.
Sponsorships, as defined by IEG, the global authority on sponsorship, are cash or in-kind fees paid to a property, such as a sports, entertainment or non-profit event, in return for access to the exploitable commercial potential associated with that property. According to IEG, sports events hold the largest market share of sponsorship dollars, with an astounding 66%. The runner-up in acquiring sponsorship dollars is entertainment and attractions, with only 11% market share.
SPONSORSHIP TYPES
Soft Sponsorships: Relationship-based
Media partners:
Generate free editorial coverage or advertisements in exchange for media materials inserted into event booklets/packets
Offer free participation in the race for news anchors/journalists in exchange for live news segment
Elevate exposure of the event with credible partners
Major retailer/drug store chain
Create credibility for your event by involving a major brand
Create more distribution points for materials
Leverage relationships with retailers to bring in major brands as vendors
Local car dealership
Garner access to courtesy vehicles
Offer sponsored prizes/drawings
Cost-Reducing Sponsorships
Barter partner
Alleviate a traditional expense, such as food, beverage, or even legal advice in exchange for sponsorship exposure
Municipality or Community Association
Access discounted rates traditionally given to non-profit or government organisations
Cash Sponsorships
Traditional sponsorships, such as a title sponsor
Cover expenses
Increase exposure of both the sponsor and your event
Create event credibility
Customise offerings packages rarely succeed
Note: cash sponsorships tend to require a longer sales cycle (at least six months) because actual budgets are involved
SPONSORSHIP STATISTICS
According to recent IEG studies, there are a number of reasons why companies sponsor, as well as number of benefits they expect as a result of their sponsorship.
Why do companies sponsor?
To increase brand loyalty
Create awareness/visibility
Change/reinforce image
Drive retailer/dealer traffic
Stimulate sales/trials/usage
Community/corporate responsibility
Platform for experiential branding
Sample/display products/services
What do sponsors want and expect from events?
Category exclusivity
Onsite signage
ID in propertys media buy
Access to mailing list/database
Broadcast ad opportunities
ID in property collateral
Presence on propertys Website
Participation in retailer promotion
Ad in program book
Remember, there are billions spent annually on event sponsorships, so there is never a bad time to solicit sponsors. Your challenge is applying these statistics and tactics to create unmatched value for companies.
Part II: Determining and Selling Sponsorship Value
BUILD THE PROPERTY
The value of sponsorships is often compared to the value of traditional media buys, such as a print advertisement or commercial. To build the value of your property (your race) you must first take inventory. Examine the Four Ps, or the different categories of assets:
1. Participants. Can you attract more participants or are you limited by space or other requirements?
2. Promotions. How will your event be promoted? What type of collateral will you be producing? Will you have a Website?
3. Partners. Will you partner with local sports clubs for peer-to-peer marketing? Is your charitable beneficiary highly desirable?
4. Parameters. What limits will you put on the event sponsorships? Whats negotiable and whats not? What are the possibilities for sponsors?
DETERMINE YOUR VALUE
Sell value, not costs. Focusing on costs hinders the actual revenue potential of your event. Think like a marketer, know your assets, and be prepared to explain how your sponsorship offering will help the company achieve its goals.
Concrete Assets
Media Value: placements, coverage, on-site impressions, collateral, Website
On-site Activities: sampling, one-to-one marketing, VIP entertainment, expo booths
Lead Generation: mail and email lists, promotional opt-ins
Intangible Assets
Desirability & Prestige: event recognition, popularity in market, exclusivity, market impact, growth opportunities
Comparables: other events, media in market, standard advertising costs
Activation Opportunities: retail tie-ins, sales promotions, hospitality discounts
SPONSORSHIP PROPOSITION
Guidelines, Not Packages: have a plan for relative benefits and number of sponsors, but focus on the consultative process (after all, who really wants to be known as bronze?) Asset Allocation: title sponsors, major sponsors, suppliers, expo exhibitors, etc.
SPONSORSHIP TARGETS
Do your homework: local sponsors, competitors of local sponsors, national companies with local interests, local advertisers Network: talk up your event, seek referrals, attend other events, join associations and trade groups
SALES APPROACH
Be a problem-solver and know that your property will deliver tangible benefits to your sponsors. Be upbeat, confident and process-driven. Believe in what youre selling.
Evaluate all of the benefits of your property, put together a game plan, network and start selling. For cash sponsorships, start reaching out to companies at least six months in advance. And remember, dont sell sponsorship packages. Rather, understand what certain companies need and want, then create a customised solution that benefits the sponsor, your event and your participants. Project and anticipate whats in it for the sponsoring company before making the sale; then follow through to ensure the company sees the benefits.
0 comments:
Post a Comment