Sponsorship, far from being the smallest piece of the marketing budget pie, is projected to be on par with a company’s spending for advertising, marketing and promotion, and in North America (where many of our trends in Australia flow on from) sponsorship spend is set to outpace other forms of marketing spend!
Specifically for the For-Purpose sector, marketing budget driven sponsorship is growing year on year, but excitingly, the landscape of how causes are funded is becoming more fluid as more and more companies choosing to combine marketing-funded programs with initiatives that also look at CSR and philanthropy as ways to engage with our sector.
A big growth area amongst the sponsorship decision makers who were surveyed (and this correlates strongly with our own research) was access to digital benefits, with 95% of respondents saying that social media was extremely important to their outcomes.
The great news is, that respondents also highly valued the benefits of public relations (a sponsor leveraging your good name as a result of your relationship together), on-site interaction (connecting with your community and audience face-to-face) and internal communications (leveraging your own marketing channels – newsletters, magazines, email bulletins and so on.)
One VERY interesting piece to come to light in the survey (and a huge opportunity for our sector) was the fact that the majority of sponsors are looking for assistance in measuring ROI because they are not doing a good job at evaluating the return on their own. Significantly more sponsors are seeing value in organisations and events that can provide reporting and tracking of the sponsorship’s effectiveness.
Interestingly the report reveals that sponsors seem to be most interested in how their brand is perceived what the awareness levels are around their products and company, than metrics around sales. This is something that For-Purpose organisations can easily do, and to be able to promote that during the initial relationship building phase would add potency to your approach.
Seven out of ten sponsors said that they were in the market for new sponsorship relationships and for every $1.00 a company spends on a sponsorship, they spend $1.80 activating (promoting) that sponsorship to make it work for them. Don’t forget that key piece of information when you are thinking about what to value your sponsorship at. A company will always have to factor in activation costs in top of what you charge them. Having said that, remember that to the right company, you are a valuable marketing partner in their brand story. There is worth in who you are and what you do, don’t settle for peanuts.
* ‘What Sponsors Want and Where Dollars Will Go In 2016’ http://www.sponsorship.com/IEG/files/71/711f2f01-b6fa-46d3-9692-0cc1d563d9b7.pdf