A brand can either receive or give sponsorships, typically in terms of events. If a business hosts an event, for example, it could invite other companies to sponsor aspects of that event in exchange for recognition and additional exposure. In return, the host brand can get access to the sponsoring brand’s audience. The opposite scenario is perhaps more conducive to external marketing—that is, an instance in which a company sponsors an event by donating space, funds, resources, or other assets in exchange for those same kickbacks. Either way, sponsorships can best be described as a promotion by association.
There are many reasons a sponsorship can be beneficial to marketers, including the following:
- Sponsorships are not secrets. In fact, they’re usually highly publicized along with the event promotion. Sponsoring brands, then, have the potential for their logo and/or messaging to be featured across a variety of mediums, reaching a larger and sometimes untapped market. Tip: sponsor early for the largest amount of exposure or reach.
- Lead Generation. When sponsoring companies choose their events wisely, they can put their brands in front of key prospects in their target markets. Capturing—and nurturing—these leads is a key part of sponsorship marketing success. Tip: Statistics prove only 25% of lead captured will convert in year one with 75% of the leads not purchasing until year two or three. Make sure to nurture your leads or you could potentially waste 75% of your marketing budget.
- Brand Awareness. Sponsorships are a good way for brands to advertise without the advertising feel. In other words, attendees can learn more about sponsoring brands without being potentially turned off by traditional sales methods. Building brand awareness is the first step in the path to conversion, and sponsorships can help open that door. If your sponsorship includes a speaking opportunity do not try and sell the audience but rather focus on building credibility and trust.
- Sponsoring an event is an excellent way for brands to engage with their customers first, prospects second. Make sure to align your sales and marketing efforts when sponsoring an event. Notify you’re inside and fields sales teams about your sponsorship so they can invite your clients and prospects to that event. These personal interactions are often the only thing stopping a client from going with your competitor. It cost 5×8 times more to acquire a new customer than keep an existing customer. Show your customers you appreciate them and take every opportunity to build on that rapport.
If you are thinking about hosting our own event you might want to check out martec showcase for our list of event and trade show technologies.