The hidden gem of marketing
It works for KIA and the Australian Open, NAB and the football, Emirates and the Melbourne Symphony Orchestra – and it could work for you too!
What is sponsorship?
- Sponsorship is part of promotion in the Marketing Mix.
- It is a transaction between a business and an organisation where marketing benefits are delivered for a fee.
- Sponsorship can be in-kind or cash.
Why is sponsorship such a powerful marketing tool?
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- Industry standard dictates that a sponsor should receive 50% more value than the cash being paid. For example, if a company was sponsoring an organisation or event for $50,000 then the value the sponsor should receive in return should be around $75,000. Now that’s definitely getting more bang for your buck!
- Sponsorship can generate goodwill for your business. Often organisations are very grateful to have sponsors and will provide positive PR for your business or products.
- Sponsorship can provide the competitive edge by bringing you closer to your customer base, providing access to a difficult to reach audience or giving you a unique point of difference.
Myth Busters
Sponsorship costs a lot of money and is not appropriate for small to medium size businesses.
False: Sponsorship can be as little as $250 for the local football team up to millions of dollars for the Commonwealth Games.
Sponsorship is the same as donating money to an organisation.
False: With sponsorship you receive benefits in return for money. It is a business arrangement not a philanthropic donation.
Sponsorship is just getting your logo put on things.
False: A successful sponsorship can provide many creative benefits such as a football coach coming in to motivate your sales team.
The best sponsorships are really creative community partnerships between business and the community. To get maximum value out of your sponsorship it is best to sponsor for at least a two year period. It is important to find a good match between your business customers and the organisation you are sponsoring. If your customers are predominantly women then sponsoring the local men’s basketball team is not such a good match as the local women’s netball team.
Like anything in marketing in order to be successful you need to do your research and then develop a plan. With creative and thoughtful planning, sponsorship can be the marketing boost your company needs.
