Do you regularly come across sponsorship opportunities that look great but aren’t sure how to assess them for their value to your business?
Most of the time I expect you put them in the too-hard basket and move on to something perceived as more tangible.
The PR professional brings considerable insight into sponsorship management, so here are my five tips that will assist you in getting real business value from a sponsorship arrangement.
1. Added value
You should want more from a sponsorship than just the use of your logo. The aim should be for the organisation to offer you desirable and useful value-added services in order to develop a relationship that delivers mutual benefits. Most successful sponsorships are long term; that’s when it is a win win for both parties.
2. Objectives met
Make sure the sponsorship meets your company and PR objectives. Check your key strategies against what is being offered and make sure their audience is the same as your target market. Look for sponsorships that fit your brand and can be woven into your total marketing program.
3. Multiply the cost
Whatever the actual cost of the sponsorship package, look at doubling your spend, at least. You’ll need extra dollars to market and promote your sponsorship, along with additional resources such as staffing and hospitality to maximise the value. All these extra costs need to be taken into account when calculating the return on investment.
4. The ROI
You need to measure the ROI whether you’ve invested $10,000 or $1,000. Decide in advance the method to be employed, such as pure exposure measured by advertising value, sales growth or an increase in brand awareness. Capture data and measure levels prior to and at the conclusion of the sponsorship to provide you with the results.
5. Be different
Sponsorships can be in business (eg trade shows), the arts (eg live shows and films), charities and sport. A perfect sponsorship marriage was daredevil Felix Baumgartner and Red Bull (see photo above). Be innovative and think creatively in planning your sponsorship looking at doing something that money can’t buy. If your target market is local, contact your council and see what opportunities they have.
Sponsorship provides you with excellent opportunities to promote your brand and engage with new stakeholders with whom you can share your passion and values.
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