If events or supporters of charitable events

If you have been to a charity or sporting event, you probably have been exposed to sponsorship advertising. In this lesson, you’ll learn about sponsorship advertising, including its advantages and disadvantages. A short quiz follows.

Definition of Sponsorship Advertising

Sponsorship advertising is a type of advertising where a company pays to be associated with a specific event. In fact, sponsorship advertising is very prevalent with charitable events. Besides from charitable events, companies may sponsor local sporting teams, sports tournaments, fairs, and other community events.

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The idea is to get your name out and be viewed positively as a participating member of your community.

Criteria for Sponsorship

Author Jim Karrh suggests four criteria for a business to use in determining whether to sponsor something:Relevance – The event, organization, or cause you are considering sponsoring must have some degree of relevance to the services or products you provide. For example, a running shoe company may consider sponsoring a local marathon, but it really doesn’t make much sense for a local brewery to do so. You want to match your sponsorship of events or organizations to those that involve your target market.

Brand fit – Your brand fit must fit the event. A computer company sponsoring a gaming event using a game that is not compatible with its computer makes no sense and may be counter-productive.Mission alignment – The interests of the event or organization should not conflict with the interests of the company. A tobacco company sponsoring a cancer awareness walk may not work out that well for the tobacco company.Business result – The company must have a reasonable basis to believe that the sponsorship will create a tangible business result.

It doesn’t necessarily have to produce a profit, but it should at least increase company awareness, brand awareness, or help foster a positive view of the company.

Advantages and Disadvantages

So what are the advantages and disadvantages of sponsorship advertisement?AdvantagesSponsorship advertising provides some distinct advantages. It’s a somewhat passive form of advertising where you are not directly pushing yourself on the consumer.

Fans of sporting events or supporters of charitable events often react positively to companies that sponsor their events or causes. It’s also a good way to not only build brand awareness and loyalty, but also to create a positive view of your brand and company. All of these factors help to increase the probability of sales.DisadvantagesSponsorships are not without some disadvantages. You do risk some degree of negative reactions.

Fans or supporters of events may view your sponsorship as just another form of advertising and a means of manipulating them. In fact, fans or supporters may be rather hostile to changes a sponsor may make to traditional events, resulting in a negative public image of the sponsor. Finally, companies need to be careful not to alienate a segment of their markets by sponsoring hot-button issues that are controversial, such as events in support of or opposition to a war or other social issue where there is not a high degree of social consensus.

Lesson Summary

Sponsorship advertising is a form of advertising where a company will sponsor some event or organization. Examples include the sponsorship of sporting events, charity events, and athletic teams.

Companies should consider such factors as the relevance of the event or organization to its business, brand fit, any misalignment of interests, and the probable business result of a sponsorship before pursuing it. While sponsorships can help create a good public image, brand awareness, and loyalty, they can also present some risks, including the perception by participants of manipulation and negativity towards changes brought about due to the sponsorship. Additionally, a company must be mindful to select sponsorships that do not alienate segments of its market.

Sponsorship Advertising: Key Terms

Right sponsor for the right event
advertisingsponsors
Terms Definitions
Sponsorship advertising a type of advertising where a company pays to be associated with a specific event
Relevance event, organization, or cause you are considering sponsoring must have some degree of relevance to the services or products you provide
Brand fit your brand fit must fit the event
Mission alignment interests of the event or organization should not conflict with the interests of the company
Business result company must have a reasonable basis to believe that the sponsorship will create a tangible business result

Learning Outcomes

When this lesson ends, you’ll be able to:

  • Define sponsorship advertising
  • Detail the elements necessary for sponsoring events
  • Outline the advantages and disadvantages of sponsorship advertising
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