Whether it’s through traditional sales and marketing or through new, innovative tactics like geo-targeted social media promotions, most brands are looking at ways to generate revenue. Every brand, no matter what the market, is fighting for consumer's eyeballs and wants you to think of them first when considering a product.
Just think about the last time you went to the store. How many different brands did you see when you were shopping? Why did you choose the ones you did? Price may have been the ultimate deciding factor, but when you were comparing, we are sure some sort of marketing came into play.
Although there are hundreds of marketing tactics out there, one of those tactics that has withstood the test of time and has countless success stories is sponsorship. So, why do brands choose to use sponsorship as one of their marketing tools? In this blog, we will discuss three (3) common reasons why brands sponsor.
Sponsorship is a great way to put their brand in front of competitors, while engaging with an entire audience of an event at multiple levels. Most sponsorships are structured to bring awareness to the brand before, during and after the event to maximize visibility.
- Before: Promotions, radio spots and advertisements leading up to the event that use the logo, name or likeness within each.
- During: On-site signage and displays that incorporate a branded premium item that’s distributed to each attendee.
- After: Post-event follow up through a branded email or mailer to each attendee.
As a result, when the consumer thinks about that event, they associate the brand with their experience. Hopefully it was a positive one.
Sponsorships create opportunities for consumers to interact with brands on a personal level. Whether it’s seeing the product for the first time, touching the product or using the product, sponsorships can create unique ways to have consumers interact with the product or service that brands can't get through advertising alone.
Brands also use sponsorships to capitalize on a captive and targeted audience to unveil a new or never before seen product/service. What better time to unveil a new product than when they have their target market right in front them?
Finally, one of the main reasons why brands sponsor is so they can build up their sales funnel with quality and targeted leads. Have you ever been to an event and someone asks you if you want a free t-shirt, then you reply yes and they ask you for your information?
Well, they’re giving you that t-shirt in return for your information, so they can add you to their database. For example, an automotive brand will likely ask you for some more targeted information such as what kind of car do you drive and are you in the market for a vehicle, so they can pinpoint what type of consumer you are.
All of this is tied back to maximizing their return-on-investment (ROI) for the sponsorship.
So, let’s recap, at the end of the day sponsorships are a useful marketing tool to increase brand awareness, interact with consumers and generate revenue by growing the sales funnel via lead generation.