Make it last longer and matter more
Sponsorship chews up a lot of dollars. The London Olympic Committee raised around one billion dollars for the 2012 event. All the big global names were there – Pepsi, Samsung, MacDonald’s – but so were domestic brands and smaller firms, even local businesses.
The principles of sponsorship apply at all levels. For large corporations, it’s a given. It extends name identification and keeps a brand entrenched. Research suggest that firms engaged in sponsorship grow net income more quickly than those who don’t.
It also boosts valuation. The value of brands like Coke, IBM or Microsoft is estimated to be in excess of $60 billion.
Is it a game worth playing?
For many, the decision is ad hoc; it seems like a good idea at the time. Successful sponsorship, however, is a two-way street that works for both parties. By all means, support a cause you believe in, but while you are at it, check the return on your investment. Rather than short-term tactic, make it a strategy.
There’s a very logical and laudable reason to do that.
For a start, it works best when it is sustained. A sponsored organization benefits far more from a long-term commitment. They will usually be keen to make it work for the sponsor as well.
For the relationship to be sustainable, it must be embedded in your business model. If you get something out of it, you can keep sponsoring. You don’t only do it when you have a good year. Sustainable sponsorship is meant to help you keep having good years.
What should you consider?
Identify candidates you can easily align with. Find organizations that share your values and vision. Do they do things you believe in? Don’t confine this to the purely philanthropic. Are there organizations that help build your industry or raise it’s standards?
Who are your natural partners? Are they users of your product? Does your technology or service help them do things better? Can you provide it at a discounted cost? Do their events help you strut your stuff, demonstrating the value of your product or service?
Or is there a coincidence of interests? West Australian iron ore miner, Andrew Forrest, backed a project to train 50,000 aboriginal workers. He needs skilled manpower; indigenous workers need training opportunities.
If you want local support, support the location. A local greengrocer provided oranges at half time for my under-ten football team. My mother would shop there as a result. Ditto the firm that provided T-Shirts for the cricket team. They were emblazoned with their business name.
It may be that your just want to support something you believe in, but don’t ignore the commercial realities. The more sustainable you make your sponsorship, the more support you can give.
