The 5 Types of Sponsorships

Which Of The 5 Sponsorship Categories Is Best For You?

Now that we understand the critical difference between a media sponsorship (aka expensive ad purchase) and an active sponsorship, let’s explore the categories of active sponsorships that present the most marketing value:

Sports.  Many consider “sponsorship” synonymous with sports, but this is simply one of the categories. Sub-segments include: sports celebrities, teams, naming rights, events, etc. I believe the sports category is the most significant area of sponsorship abuse today, for these reasons.

1. Pricing is absurd, with no basis in reality, i.e. the value provided to the spo spnsor.

2. Comparative valuations drive over-spending.  If NASCAR can get $10 million in sponsorship for a single driver, then $10 million for branding every shirt of an entire soccer team must be a bargain, right? Not necessarily!

3. Sports entities too often dictate the terms. The franchise has the advantage of knowing the going prices within their sport, while too often the sponsors have little inside knowledge.

4. Machismo. Winning is the foundation of sports, and sponsorship fees are just another mark on the scorecard. Competitive emotions help drive this segment to the far edges of restraint.

5. Demand for iconic player participation raises the fees for everyone, whether it’s guaranteed attendance by a track star or golfer. Someone has to pay for this.

Entertainment. A close cousin to sports, which actually is entertainment, of course. For the purposes of categorization this includes pop music concerts, tours, plays, movies, etc.  This category often is overlooked or overshadowed by sports.

Arts. Defined as museum shows, exhibits, theatrical works and non-pop musical series. Arts can be the most efficient and effective way to reach high-income targets and corporate suites. These activities rarely provide any scale to serve as the foundation of a sponsorship marketing program, and too often the organizers lack measurement sophistication.

Not-for-profits. Defined to include certain altruistic for-profits, as well. These include special interests, disease associations, foundations, etc. These don’t seem to come under the return on investment (ROI) microscope as much as other segments, perhaps because the ROI is emotionally or intrinsically inferred.

Major conventions and business gatherings.  Often relegated to “events” management, this segment is sadly under-utilized. The most common application is the dreaded trade show, where a company displays the obligatory booth and interacts with passers-by who have no buying power. Ideally, “shows” should be a voice to a company’s current and prospective customers, demonstrating dominance in product or knowledge.

Selecting the best category for your marketing program must start with a deep understanding of your goals and objectives. At that point, sponsorship marketing can be incredibly effective.