NG Farrell Marketing

Today’s blog post is primarily intended for our corporate followers. In it, we will try to explain why sponsoring arts and sports organizations is a good thing. But here is the premise: sponsoring arts and sports allows you to reach that customized marketplace which eludes you in other marketing channels.

Sponsorship of arts and sports can be a valuable way for companies to engage with the public, and develop strategic positioning.  Businesses interested in developing this kind of marketing tactic will benefit from knowing that as public funding for non-profit arts and sports organizations continues to fracture, these organizations present ripe opportunities for companies who wish to look outside of traditional marketing and advertising vehicles - and at great value!

In its most basic form, sponsorship is an arrangement between a corporation and an event, organization or venue through which the corporation will promote a product or itself. A sponsorship arrangement provides support through financial contributions, in-kind services, or merchandising. In return, corporations gain rights and privileges to connect intimately with the arts or sports organization, and ultimately their members or audiences.

Faced with the increasing cost and reduced effectiveness of traditional advertising, corporations of all sizes can now truly start to consider the sponsorship vehicle to reach target consumers with meaningful messages. Whether it is with a sporting event, performing arts company, or umbrella organization like a Provincial Sport Organization (PSO), sponsorships reach a clearly defined consumer and create a positive impression of the corporation as supporting the lifestyle activities, tastes and values of their customers.

Businesses that are refining their positioning, sharpening their image or facing new competition for market share are missing out by not considering sponsorships as a key component of their marketing plans. However, companies who do include sponsorship in their plans will be investing in a relationship that goes beyond the traditional reach of display advertising, but garnering the same benefits.

The ROI businesses can expect from sponsoring the arts and sports is evaluated alongside PR and brand awareness. However, the 10:1 rule is considered to be optimal. That is, for every $1,000 spent, a sponsor should expect at least $10,000 worth of publicity and/or direct sales. Corporations should be confident that this is a highly cost-effective ratio, especially if one compares the expected ROI on $50,000 of traditional media (not much), versus the return you will receive on a $50,000 sponsorship of a high profile, broadcast sport tournament, that puts you directly in front of tens of thousands of customers, their families, fans and TV viewers.

In short, sponsoring the arts and sports can and should be an integral component of the marketing of any kind of business, large or small. There are organizations and events of all sizes, scope, reach and segment to get involved with.  Canada is full of lean, ambitious, and well-organized arts and sports organizations that are willing to go the extra mile and work alongside your marketing team to create a sponsorship relationship that will endure and create a win-win situation for all parties.