Sponsorship marketing is defined as the financial or in-kind support of an activity in order to improve a company’s public image, attract new customers, increase profitability, and meet business goals. Although sponsorship marketing is very popular with charitable events, it can also be used for community events, sporting events, and fairs. Read on to learn more about sponsorship marketing and why sponsorships can be a great investment for your brand.
Types of Sponsorships
Since there are a variety of ways to sponsor an event, companies have the opportunity to choose the type of sponsorship that works best for their budget, preferences, and targeting needs. For larger companies, cash donations may be a great fit. The level of publicity that companies who donate cash receive depends on the amount of money they give. Prior to sponsoring an event with cash, companies should make sure the advertising they’ll receive in return is worth the investment.
For smaller service organizations or startups who do not have the funds to participate in a cash sponsorship, pro-bono sponsorship is a great idea. Pro-bono sponsorship is when a company offers their services to another business or non-profit organization free of charge. This is an effective way for companies on a budget to use time rather than money to generate positive brand awareness.
Prize donations are another good option for smaller organizations because they expose a brand to a wide range of individuals while giving winners the chance to try their product or service for free. Other sponsorship opportunities include corporate grant programs, fundraisers, company day of service events, and matching gift programs.
Why Sponsorships Are Great Investments
The benefits of sponsorships are endless. Firstly, a sponsorship can help a company target a niche market. Due to the countless types of sponsorship recipients available, organizations can select their ideal audience and market themselves in front of them.
Once the right sponsorship recipient has been chosen, a company then has the opportunity to use a robust and strategic marketing strategy in order to turn the recipient’s supporters into customers.
Lastly, a sponsorship can help an organization distinguish themselves from competitors. A company may offer the same types of products and services as another but if they’re able to demonstrate an ethical commitment to the community, potential customers will be likely to choose them over a competitor.
Examples of Successful Sponsorship Marketing Campaigns
There are various examples of companies who have used sponsorships to their advantage and improved their brand image and profitability as a result. LeafFilter, a national gutter protection company, made its way into the sponsorship world by sponsoring NASCAR driver, Blake Koch and forming LeafFilter Racing. LeafFilter’s sponsorship increased social media buzz, helped educate NASCAR fans on their gutter guard product, and boosted the number of visitors to their website.
Another great example is Red Bull. Believe it or not, the Red Bull energy drink was unheard of when it first entered the marketplace. Initially, Red Bull started to sponsor and host their own events to promote their brand to a variety of individuals who had never heard of them before. Now that Red Bull sponsors some of the greatest athletes in the world over a multitude of sports, it’s globally known as one of the most popular energy drinks.
Through proper strategy and execution, companies of all shapes and sizes can use sponsorship marketing to substantially grow their brand and profit margins. How will you use sponsorship marketing to help your organization thrive?
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