In the business world, we all understand the value of event sponsorship. Many business owners frequently receive calls from event organizers, requesting for support. Sponsorship is an important part of the economic cycle, as these small event organizers rely on sponsorships to conduct a good event.
Also, irrespective of the size and reputation of an organization, everybody requires recurring branding.
The typical sponsorship pattern is when a local agency will call you for an affordable sum of money, in exchange of your brand advertisement. However, deciding what to sponsor and when to sponsor, can be a tricky question.
Before investing, you need to make sure that your money does not go wasted. Additionally, sponsoring any event for an organization builds strong relationships, positive image in the society and brand reputation.
It is wise to check all the details before you commit towards a sponsorship. Here are seven things you must know before sponsoring an event:
Event Sponsorship: Critical Factors
Understand your target market
As a sponsor, you should always motivate yourself to ask questions. Sometimes the audience your sponsorship requester is targeting may not be appropriate for you. Remember your basic objective for support is to reach and engage event guests and transform them into your client base.
Classify the kind of audience a particular event is trying to attract by checking objectives and measurements of demographics. Gather every data that can help you select the right sponsorship request. Also, understanding which event is marketing which group of the audience will help you decide your campaign structure and drive success.
Context of sponsorship
Setting up an agreement with a sponsorship requestor regarding objectives, validity and right is not enough. You, as a sponsor, should consider a contextual sponsorship deal. It is essential to know whether you are sponsoring an event, a festival or a television event.
Knowing the context will help you estimate the connected cost, total ROI, the effect on competitors and expected profit out of sponsorship. Also, once the context is understood, the sponsorship requestor would be able to quote you the correct price. The factual analysis in any business deal is always beneficial for both the parties involved.
ROI and Sales
As a smart investor or sponsor, you should ask the sponsorship requestor about the significant ROI, sales, proceedings and monetary benefits. Your sponsorship requestor should be able to give you a well calculated, objective and knowledgeable estimate about the ROI, sale or profit.
Branding and other benefits
Sales are important, but as a sponsor, your primary focus should be on positive branding. If you want to enjoy the benefits of sponsorship, you should never ignore the non-monetary benefits of your brand. Identify, consider and evaluate branding benefits for you, like brand positioning and brand exposure. You should ask your sponsorship requester to give you accurate brand perception for the target market and its mechanism.
The sponsorship requester should also provide you all the tools you can utilize to calculate the level or monetary as well as non-monetary returns.
Teamwork, term setting, and negotiation
Before sponsoring any event, you need to work on many aspects so that you can utilize the sponsorship to the core. Therefore, you should go for a team approach to calculate and estimate the benefits of a sponsorship request.
It is essential to explain all your terms and conditions before entering into a sponsorship deal. Ensure that the sponsorship organizers who work with you do not eliminate the terms and offers that align well with your strategy. Negotiating your terms and conditions before hand will work in favor of your business and give you leverage to include everything in support of your profit. This will eventually give power to your presence at the event sponsored by you.
Set multiple objectives
Being a sponsor may seem an easy task, but if you want to benefit from the sponsorship, you will have to work hard and maintain multiple objectives simultaneously. This objective could be connected to multiple departments or a single unit, but there should be more than one objectives to follow.
Reputation of the sponsorship requestor
Other than your brand value, you should also check the reputation of the sponsorship requester in the market. All the points to consider before selecting any sponsorship applicant are influence on the market, success graph and history, reputation in the market and future growth possibilities.
When you are sponsoring any brand, you are indirectly giving a share of your reputation and support to them. If the brand you are sponsoring does not hold a good reputation or history in the market, you are somewhere putting your reputation at stake. Therefore ensure the reputation and brand value of the requestor before getting into any deal.
If you are a sponsor, remember to ask all of these questions to the requester. However, if you are the one looking for sponsorship support, ensure you have answers to all the questions mentioned above. This will help you understand what a sponsor wants to know, to support you.