5 Benefits of Using Sponsorship as a Marketing Strategy
| 3 minutes read
As we all know the year 2022 has come to an end and we will move into the next year with new strategies and passion. You might all know the FIFA World Cup 2022 is going on in Qatar. Companies like Adidas, Coca-Cola, Hyundai-Kia, Qatar Airways, Visa, Hisense, and many others companies are the sponsors of the FIFA World Cup Qatar. It is the platform where these companies encash the opportunity, not only this their product sales touch sky.
We are not saying to sponsor grant events like FIFA because it cost too much. But you might have gotten an idea of how sponsorship is a great way to do marketing.
Sponsorship refreshes nearly all the parts of a business that other marketing channels cannot reach. Disciplines such as advertising, public relations, social media, and experiential can each tick a few boxes, and all have their place in any good marketing mix.
What is Sponsorship?
A sponsorship is a form of marketing where one company advertises/promotes its brand or product on another platform, it might be an event, sports, movie, or any occasion. The company pays a certain amount to organizers or to the company for sponsorship. Most large companies and also many local businesses use sponsorship as a promotion vehicle.
Businesses can promote themselves by sponsoring sports teams, youth clubs, theatre productions, or other public activities. However, there is always the risk that if someone they sponsored does something unacceptable to others, they will need to stop their involvement.
How Sponsorship Covers The Entire Marketing Funnel?
However, only sponsorship can potentially address every stage of the marketing funnel – Awareness, Consideration, Conversion, Loyalty, and Advocacy – as well as cover other areas of the business such as corporate social responsibility, human resources, and even product development. Thus, it can deliver a much wider business-wide return on investment far beyond the initial sponsorship fee.
Sponsorship is the best way for companies to multiply their customer reach by approaching influential personalities to promote their products. This marketing tool has become an essential part of every business by redefining the market approach. From Roger Federer sporting Uniqlo outfits to James Bond with the latest Rolex watches, it’s all about business through sponsorship.
Here are the 5 Benefits of Sponsorship you should not miss.
1. Brand Building
One of the biggest benefits of sponsorship is the obvious brand enhancement and credibility for sponsors. Various brands have used this sponsorship tactic to increase their brand reach in the marketplace. Advertisers also find that they can offer some creativity and originality to their ads. For example, they can use celebrities, movie trailers, sporting events, or other forms of entertainment to promote their product or service.
2. Generate Positive PR
Sponsorship can help generate positive PR – be it news coverage or the reaction it engenders in the people who come across it. An example is Virgin Media which helped address the issue of high-ticket prices in soccer which are increasingly ruling out the average fan. Through its sponsorship of English team Southampton and the Football Supporters Federation, Virgin took part in the “Twenty is plenty” lobby that campaigns to cap ticket prices for away fans at $20. Fans who spent over $20 could send their ticket to Virgin who would refund the difference.
3. Target Audience Efficiently
Unlike any other type of brand awareness, sponsorship allows you to choose exactly who you want to target and you can precisely craft how they would feel about your brand through the sponsorship by giving them an unforgettable experience.
If you were to spend a limited amount on giving brand awareness but would like to target your most potential customers in as many ways as possible, sponsorship is your way forward. There you have it, the benefits of sponsorship marketing. Hopefully, the points above have helped clarify them.
4. Increase Sales Volume
Sponsorships also provide advertisers with extra benefits in terms of sales volume. During the FIFA World Cup, the sales of Adidas shoes touch the sky. The number of shoes they sell the whole year, but during the World Cup, they sell more shoes within one month.
It indicates that it’s possible to see increased revenue by being involved in sponsorship activities.
5. Direct Access to Ideal Customer Profile (ICP) Data
As an event sponsor, you’ll have stronger opportunities to learn more about your ICPs. Almost all event organizers gather data with surveys, ticket sales, and social media activity. You can’t get enough of these so demand them at the onset.
In summary, sponsorship is a marketing tactic involving a business relationship between two parties.
One party is the sponsor who provides support in the form of funding, resources, or services to the other party (beneficiary), who allows access to the sponsor for rights and associations used for commercial advantage.
This article has discussed the sponsorship benefits and at the end, you will get to know how sponsorship is an effective marketing tool that has the potential to take your business skyrocket.
Thank You for reading.