by Venchito Tampon Jr | Last Updated on May 20, 2022

What is sponsorship marketing?

Sponsorship marketing is a form of marketing in which a company sponsors an event or activity in order to promote its brand or product.

Sponsorship is more of a form of marketing than advertising, as it seeks to persuade customers to make purchases by sharing certain information about a product or company.

Sponsorship spending grew by a remarkable $65.8 billion worldwide in 2018. Additionally, around 40% of organizations in the US spend around 20% of their total event budget on sponsorships.

These numbers alone should speak volumes about how sponsorship is an important aspect of every organization seeking to promote their business or brand.

 

Types of sponsorship marketing

There are several types of sponsorship marketing, each with its own advantages and disadvantages. The following are some of the most common types of sponsorship marketing:

Cash sponsorship

Cash sponsorships involve giving money to an organization in exchange for promoting your brand or product. The advantage of this type of sponsorship is that it’s a straightforward way to gain exposure for your brand. However, the disadvantage is that you have less control over how your brand is promoted and what values are associated with it.

In-kind sponsorship

In-kind sponsorship involves giving products or services to an organization in exchange for promoting your brand or product. The advantage of this type of sponsorship is that you have more control over how your brand is promoted and what values are associated with it. However, the disadvantage is that it can be more difficult to negotiate than cash sponsorship.

 

Event sponsorship

Event sponsorship involves sponsoring a specific event, such as a concert, sports game, or festival. The advantage of this type of sponsorship is that it allows you to gain exposure for your brand through a high-profile event. However, the disadvantage is that you have less control over how your brand is promoted and what values are associated with it.

Cause sponsorship

Cause sponsorship involves sponsoring a specific cause, such as environmentalism or healthcare. The advantage of this type of sponsorship is that it allows you to gain exposure for your brand while also promoting positive values. However, the disadvantage is that you have less control over how your brand is promoted and what values are associated with it.

Talent sponsorship

Talent sponsorship involves sponsoring a specific talent, such as an athlete, musician, or artist. The advantage of this type of sponsorship is that it allows you to gain exposure for your brand through a high-profile talent. However, the disadvantage is that you have less control over how your brand is promoted and what values are associated with it.

Choosing the right type of sponsorship marketing

There is no wrong or right type of sponsorship marketing, as each type has its own advantages and disadvantages. The key is to choose the type of sponsorship marketing that best suits your brand’s needs and objectives.

For instance, if you want to gain exposure for your brand through a high-profile event, event sponsorship may be the best option. However, if you want to promote positive values along with your brand, cause sponsorship may be the better option.

 

It’s also important to consider the organization you want to sponsor. Make sure that the organization is a good fit for your brand and that its values align with your own. You don’t want to sponsor an organization that could damage your brand’s reputation.

Why do companies do sponsorships?

There are several reasons why sponsorship marketing has become so popular in recent years. Here are just 5 of the mains ones:

1. It’s an effective marketing tool – Sponsorship marketing is an effective way to reach new audiences and promote your brand or product. For instance, sponsoring celebrities and athletes could boost your brand’s reach as their followers could bring new followers to your brand.
2. It builds brand awareness – Sponsorship marketing can help you build brand awareness and create goodwill among potential customers. Take the example of a company sponsoring a charity event. Customers will see that your company is generous and cares about giving back to the community, which could make them more likely to purchase your products or services.
3. It enhances brand image – Sponsorship marketing can help improve your brand image by associating your brand with positive values. It could bring new light to your brand’s reputation and make it more appealing to potential customers.
4. It’s cost-effective – Sponsorship marketing can be more cost-effective than other marketing strategies, such as advertising. This is because you only pay for the sponsorship, not for the ad space or time. Additionally, sponsorships often come with perks, such as free tickets to the event or product discounts, which can save you money.
5. It’s a long-term strategy – Sponsorship marketing is a long-term marketing strategy that can provide continuous exposure for your brand or product. For instance, if you sponsor a sports team, your brand will be associated with the team for as long as the team remains active in the scene.

How can small businesses use sponsorship marketing?

There are many ways that small businesses can use sponsorship marketing to promote their brand or product. Here are just 5 of the most popular:

1. Sponsoring local events – Many small businesses sponsor local events, such as festivals, parades, or fairs. This is a great way to gain exposure for your brand in the community and build goodwill among potential customers.
2. Sponsoring local sports teams – Sports teams are always looking for sponsors, so this is a great option for small businesses. This type of sponsorship will give you continuous exposure for your brand as the team competes in its events.
3. Sponsoring charities – Charity sponsorships are a great way to promote positive values along with your brand. This type of sponsorship will show potential customers that your company cares about giving back to the community.
4. Exhibiting at trade shows – Trade shows are a great way to reach new audiences and promote your brand or product. Many small businesses exhibit at trade shows to gain exposure for their business.
5. Advertising in local publications – Local publications, such as newspapers, magazines, and websites, are always looking for advertisers. This is a great way to reach potential customers in your community and promote your brand or product.

For more sponsorship marketing tips, you can check out this guide on local link building strategies. 

Sponsorship Marketing Plan: How To Do It  Right

Now that you know the benefits of sponsorship marketing and how small businesses can use it, it’s time to create a sponsorship marketing plan. Here’s how to do it right:

Step 1: Define your goals.

Before you start reaching out to potential sponsors, you need to define your goals. What do you hope to achieve with your sponsorship marketing campaign? Do you want to increase brand awareness, build goodwill, or improve your brand image? Once you know your goals, you can start reaching out to potential sponsors.

 

Step 2: Research potential sponsors.

Once you know your goals, you need to research potential sponsors that could help you achieve them. There are many factors to consider when choosing a sponsor, such as the size of the company, the products or services they offer, their values, and their target audience. You should also consider the benefits that each sponsor can provide, such as exposure to their audience, discounts on products or services, or free tickets to events.

 

Step 3: Create a sponsorship proposal.

Once you’ve chosen a potential sponsor, you need to create a sponsorship proposal. This document should outline the benefits of sponsoring your event or activity and how it will help them achieve their goals. Be sure to include information about your audience, your marketing plans, and your sponsorship package options.

 

Step 4: Negotiate the terms of the sponsorship.

After you’ve created a sponsorship proposal, you need to negotiate the terms of the sponsorship with the potential sponsor. This includes deciding on the level of support they will provide, what benefits they will receive, and how long the sponsorship will last.

Step 5: Activate your sponsorship.

Once you’ve negotiated the terms of the sponsorship, it’s time to activate it. This includes developing marketing materials, such as logos and banners, and promoting the sponsorship to your audience. You should also create a post-event report that outlines the results of the sponsorship and how it helped you achieve your goals.

Sponsorship Marketing Examples

Now that you know the benefits of sponsorship marketing and how to create a sponsorship marketing plan, let’s take a look at some sponsorship marketing examples.

Coca-Cola 

Coca-Cola is one of the most well-known brands in the world and they use sponsorship marketing to reach new audiences. For example, they sponsor the Olympics and FIFA World Cup, which give them exposure to millions of people around the world.

McDonald’s 

McDonald’s is another well-known brand that uses sponsorship marketing to reach new audiences. They sponsor events like the Olympics and the FIFA World Cup, as well as local events like soccer tournaments and marathons.

Nike 

Nike is a leading athletic apparel brand that uses sponsorship marketing to reach new audiences. They sponsor athletes, teams, and events, such as the Olympics and FIFA World Cup.

Samsung 

Samsung is a leading electronics brand that uses sponsorship marketing to reach new audiences. They sponsor events like the Olympic Games and the FIFA World Cup, as well as product placement in movies and TV shows.

Subway 

Subway is a leading fast-food chain that uses sponsorship marketing to reach new audiences. They sponsor events like marathons and triathlons, as well as local sports teams and schools.

Sponsorship Marketing Proposal Template [FREE]

Cover Letter:

The first page of your proposal should be a cover letter that introduces your organization and briefly summarizes your proposal.

Example Cover Letter:

Dear ________________,

I am writing to introduce you to ______________________________ (name of organization/event). We are a ___________________________ (type of organization) that is dedicated to ___________________________ (purpose of organization). We are hosting a ___________________________ (type of event) on ___________________________ (date of event) and we are looking for sponsors to help us make it a success.

 

As a sponsor, you would receive ___________________________ (exposure/benefits). This is a great opportunity to ___________________________ (connect with our audience/promote your brand/support our cause). We are confident that this event will be a success and we would be honored to have your support.

Thank you for your time and consideration. If you have any questions, please do not hesitate to contact me at ___________________________ (contact information).

Executive Summary:

The executive summary should be a one-page overview of your sponsorship marketing proposal. It should include your goals, objectives, target audience, and proposed sponsorship package.

One-Page Sponsorship Proposal Template

1. Introduction 
2. Event/Organization Overview 
3. Sponsorship Opportunities 
4. Benefits of Sponsorship 
5. Marketing Plan 

Proposed Sponsorship Package:

This section should outline the benefits that your sponsor will receive by supporting your organization. Be sure to include information on your target audience, media coverage, and any other benefits that you can offer.

You can create a table or list to outline your sponsorship package. Be sure to include pricing information and a call-to-action (CTA).

Sample Sponsorship Package:

Gold Level Sponsorship – $5,000

• Logo placement on event website 
• Logo placement on all print and digital marketing materials 
• Prominent logo placement on event signage 
• Logo placement on event t-shirts 
• Complimentary booth space at event 
• 10 complimentary tickets to event

Silver Level Sponsorship – $2,500

• Logo placement on event website 
• Logo placement on all print and digital marketing materials 
• Logo placement on event signage 
• Logo placement on event t-shirts 
• 5 complimentary tickets to event

Bronze Level Sponsorship – $1,000

• Logo placement on event website 
• Logo placement on all print and digital marketing materials 
• Logo placement on event t-shirts  
• 2 complimentary tickets to event

Frequently Asked Questions:

How does sponsorship increase sales?

Sponsorship can increase sales in a number of ways. First, it can create awareness for your brand and increase brand recognition. Second, it can help you reach new audiences that may be interested in your products or services. Third, it can build goodwill and positive associations with your brand. Finally, it can provide you with an opportunity to upsell and cross-sell your products or services.

What is the difference between sponsorship and direct marketing?

The main difference between sponsorship and direct marketing is that sponsorship is a long-term investment, while direct marketing is a short-term strategy. Sponsorship also allows you to build brand awareness and create positive associations with your brand, while direct marketing is focused on generating immediate sales.

What makes a good sponsorship?

A good sponsorship should align with your brand and marketing goals. It should also reach your target audience and provide you with a way to connect with them on a deeper level. Finally, it should offer you value for your investment, whether that be in the form of brand awareness, sales, or goodwill.

What is the main goal of a sponsorship presentation?

The main goal of a sponsorship presentation is to convince potential sponsors to invest in your event or organization. To do this, you will need to provide an overview of your event or organization, as well as the benefits that sponsors will receive by supporting you. You will also need to have a solid marketing plan in place that outlines how you will reach your target audience and generate awareness for your event or organization.

What makes a sponsorship successful?

There are a number of factors that can contribute to a successful sponsorship. First, it is important to have clear and achievable goals. Second, your sponsorship package should be attractive to potential sponsors and provide them with value for their investment. Finally, you need to have a solid marketing plan in place that will reach your target audience and generate awareness for your event or organization.

What are some common goals of sponsorship?

Some common goals of sponsorship include increasing brand awareness, reaching new audiences, building goodwill, and generating sales.

Why your marketing plan should include sponsorship?

Your marketing plan should include sponsorship because it is a proven way to reach your target audience, build brand awareness, and generate sales. Sponsorship also allows you to build goodwill and create positive associations with your brand.