SPONSORSHIP

Sponsors in the UK now invest more than 1 billion pounds annually in sport.

What is Sponsorship?

A COMMERCIAL DEAL - Sponsorship is one of the means open to a company to bring itself or its products to the attention of consumers and present them in a favourable light. Advertising is the most frequently used marketing tool and speaks to a consumer in a direct way. It announces the availability of a product and creates an image for a brand. It can also provide information on product quality, characteristics, price and performance.

Sponsorship seeks to enhance these messages by association with an event, club or team that shares similar image qualities and values as the brand. This association can be very powerful because it is perceived as an endorsement of the brand by an independent third party. Consumers are aware of the costs of sponsorship but the message retained is more subtle than that from the more overtly paid-for advertisement.

Sponsorship is a commercial agreement between a company and a sport to enter into a joint venture to promote their mutual interests. In return for a financial contribution a sports organisation will allow the use of its name in commercial activities. These activities can be as varied as the imaginations of the participants. Some of the most obvious are:

• Display of the brand name on kit, banners around the venue, advertisements in programmes, and on other merchandise.
• Use of the club, event, team or individual in advertisements and other promotions undertaken by the brand.
• Personal endorsement of the sponsors products by teams or individuals by use of their products, kit or equipment
• Production of joint websites or developing close links between separate websites. For examples of this in action you only have to think of the Vodafone sponsorship of Manchester United, Tiger Woods endorsement of Nike products or the website work done by Guinness as a sponsor of the Rugby World Cup.

Most sponsorships are paid for in cash, but in-kind sponsorship can be useful and effective. Instead of money, the sponsor provides equipment, services or management expertise as all or part of its fee for the rights to a sporting activity. Companies may also provide money to sporting organisations in other ways.

• Charitable donations - No commercial return is expected although a company make use donations to be seen as a good corporate citizen.
• Corporate patronage - A half-way house between donations and sponsorship, patronage generally provides only some recognition of a company’s activity among a relatively small, though influential, group. It is more common in the arts than sport.
• Corporate hospitality - The opportunity to meet customers and contacts in informal enjoyable circumstances to pursue business objectives. It is often part of a sponsorship package.
• Public/community relations - Sponsorship of sport can be used to meet objectives on a company’s social or political agenda. The aim is not to sell products but to improve a company’s image as an employer, corporate citizen or contributor to the economy.

Why Companies Sponsor Sport? top

ADDED VALUE - Sponsors look to sport to add value to the brand proposition. In almost all sectors of all markets there is intense competition among companies and brands. Often there is little to choose from in terms of quality, content or price. In order to make a brand stand out from the crowd a sponsor will use sport to create a unique position in the mind of the consumer.

At the highest levels, sport involves gold medals, world records, championship cups and global awareness. A world-wide, leading brand such as Coca-Cola wants to associate itself with such excellence and ubiquity so has chosen the Olympics and football World Cups for its sponsorships. But in order to personalise and localise its image and activity, Coca-Cola also supports grass roots sport to reinforce its global message.

Smaller companies can also benefit from improved, awareness images and sales through sponsorship at a local or regional level: the principles are the same, the only difference is scale. Companies use sports sponsorship for a variety of reasons, and to attract sponsorship it is important to understand which objective a company is addressing:

• Brand/Corporate awareness: seeks to put a name in front of the consumer so that he will give it favourable recognition when exposed to other, specific marketing messages.
• Brand/Corporate image: attempts to create a personality and style which distinguishes a product from another in the market and allows, for example, premium pricing.
• Customer relations: sports sponsorship can open dialogue between companies, showing the sponsor as a global player worthy of recognition and suitable to do business with. Sponsorship can also provide suitable hospitality vehicles to meet and do business with clients.
• Employee relations: sports sponsorship can encourage company pride and loyalty to help attract and retain staff.
• Community relations: sponsorship can show that a company cares about it community and is prepared to invest in its future and the welfare of its citizens.

What Companies are Looking For? top

A UNIQUE PROPERTY - Sponsors are looking for sports properties that can make a valuable and quantifiable contribution to existing or planned brand communications. To do so the sponsorship must have a good fit with the brand’s personality and, ideally, be unique to that brand so that there is no consumer confusion.

A sponsor wants to create activities that are enjoyable and memorable for audiences and participants and provide them occasions to build the brand values and to develop sales opportunities and volumes. A beer company, for example, will gain national television awareness through sponsoring a rugby international but will also have the chance for thousands of spectators to sample its products in a favoured environment leading, hopefully, to repeat purchase away from the match.

Top of the list of most sponsor’s requirements is media coverage. Sporting events create thousands of opportunities for exciting and interesting newspaper photographs and television images showing sponsor logos on shirts or banners. Such exposure creates brand familiarity for consumers making the logo stand out from competitors when consumers are in the supermarket or high street looking to spend money.

Naming rights are important: it is far better to be the Heineken Cup than the European Cup sponsored by Heineken. Naming rights for sports venues is a growing trend although this can backfire if the old name is well recognised and liked.

Perhaps above all, the sponsor wants the opportunity to communicate with the customer in the setting where he is enjoying a quality leisure time experience and is favourably disposed to anyone who has made the occasion possible or better.

Some sponsors need to talk to thousands, or millions, of consumers to make volume sales. Others may need to communicate with just a handful of the right people to sell expensive equipment.

Sponsors and their employees want to feel comfortable with a sport and feel that they are getting good value for money.

How to Develop a Sponsorship Package top

HOMEWORK - Before seeking sponsorship a sport should evaluate what it has to offer, what it can deliver and who it will reach. The organiser also needs to understand what a company needs. This is difficult in detail but in broad terms the sponsor’s product defines its market: older/younger, affluent/cut-price and so on.

REASONS FOR PARTNERSHIP - Complete an audit of your sponsorship package. Quantify number of events, participants, spectators and secondary audiences through newspaper, television and radio. Find out how many people play the sport in your area and where the sport is played. Research the socio-economic status of players and spectators and find out proportions of male, female and ethnic groups.

Try and think of ways in which your sponsorship would fit in with other marketing activities of your target companies. Detail the places and times there will be opportunities to display the sponsor’s logo, not just at the event but on promotional items, posters, programmes, letterheads or vehicles.

The history of your event and organisation is important to establish credibility, as is your organisational capacity to deliver. Good financial controls and reporting will encourage sponsor confidence. If you have been sponsored before prepare case histories to show activity and results.

Learn as much about your target sponsor as you can: use annual reports, company newsletter, press cuttings or personal contacts to find out what interests the company, its management and employees.

Finally, put together detailed costings for the venture. These may be tiered to reflect levels of expenditure which would just ‘make it happen’, to more sophisticated versions that reach more people with extensive publicity.

How to Approach a Commercial Sponsor top

QUALITY NOT QUANTITY - It is generally better to chose a few targets and work hard at personalising the pitch than using a shot-gun approach giving brief details to a large number of companies.

KNOCK ON THE DOOR - Getting in to companies can be difficult. Personal contact is responsible for more than half of Sportsmatch-backed sponsorship but if that is not available research in local or trade papers to get names and functions. Hollis Sponsorship and Donations Yearbook lists 1,000 sponsoring companies, their interest areas, budgets and contacts. There are a number of trade publications for sponsorship and a growing number of websites trying to match sponsors and companies. The Sports Sponsorship Advisory Service produces a regular list of sponsorship projects that is circulated to companies. (See useful contacts)

Companies respond well to organisations that take the time to think about their point of view and speak their language. The sporting benefits of the sponsored project, whilst important, are secondary to the commercial returns available to the sponsor. Increasingly, companies are looking for returns on investment that are more complex than just an increase in sales.

The creation of subsidiary benefits to the sponsorship creates the maximum promotional possibilities for the sponsor even allowing them to communicate with several important audiences using the same vehicle.

Birmingham Midshires Building Society, for example, have sponsored a late night football league that significantly reduced crime figures in their area. They gained extensive brand awareness and also improved their image as a company that cared about issues that affected families and their homes.

Outline methods for evaluating the project and reporting back to the sponsor should form a major part of the approach to the sponsor. Concentration on results and delivery from day one will help create a positive response to the proposal.

Running a Sponsorship top

TAKE THE MONEY AND RUN IT - It is essential that the sports project runs smoothly, delivers high quality experiences to participants and spectators but this should not be to the neglect of sponsors’ interests. Involvement with the sponsor will maintain interest and demonstrate the value of the investment.

WORKING TOGETHER - Work closely with your sponsors and communicate delivery of the sponsor benefits set out in the presentation document. Work hard on the personal elements to ensure that the sponsor has sufficient tickets for itself and guests and a chance to meet participants. Have a clear reporting procedure to the sponsor with regular updates to ensure everyone knows who is doing what.

Look for ways to increase the news-worthiness of the event by creating interesting photo-calls or background features. Try and attract a celebrity to the event or the launch announcement to increase press interest. The press, and local radio in particular, will often run joint promotions or act as media partners to the event. If a sponsor has retail outlets - estate agents or building societies for example - window displays or leaflet dispensers offer another means of communication.

Branding of an event and support materials is a key sponsor requirement. Sponsor logos must have prime position at any event and in all supporting material. Remember, too, that Sportsmatch is often an equal partner in the sponsorship and requires its own branding.

For the commercial success of a sponsorship the company’s product needs to be as close to the sponsorship as possible. Product displays, sampling opportunities, even a sales kiosk at the launch and event are important means for the sponsor to reach its target market. Sponsors and organisers should work together to devise longer lasting links such as discount vouchers for future purchases for those who attend the event.

The sponsor’s employers are an important audience and should be kept informed through the company’s usual channels. Some companies will second an employee to help run the sponsorship and provide management expertise that the organiser may lack.

Evaluating your Sponsorship top

OBJECTIVE ASSESSMENT - Self evaluation of a project is an essential tool to measure performance against objectives and to provide a reporting process for the sponsor. It demonstrates to a sponsor that their investment is valued, what return they have achieved and provides data to help sell future sponsorships.

KEY PRINCIPLES

• Measuring participation - A sponsor wants to reach a specific sector of the market so data on participants that details age, sex, ethnic origin or socio-economic groups can help measure success.
• Measuring skills - Achievement of sporting objectives can be measured by noting before and after performance levels of participants. Sportsmatch needs to know this and the data will aid the search for future sponsorships.
• Photographic record - One of the best ways of showing the impact of a sponsorship is photographs: participants, spectators, sponsor branding will all help tell the story of your success.
• Media Monitoring - Collect press clippings, count column centimetres of coverage and the number of photographs and sponsor mentions. Record or note broadcast mentions and keep copies of advertisements and other branded materials.

Present it to the sponsor as a record of your achievement and the success of the sponsorship. Download our Sponsorship Evaluation leaflet now for further guidance. top