Every year at The Sponsor, we conduct a survey of our audience of brand and marketing leaders to ascertain what they look for in a sponsorship opportunity. The research highlights the most common factors that need to be present for brands to maximise their return on investment. The survey reveals the evolving priorities and insights on what truly defines a perfect sponsorship partner.

The perfect sponsorship partner is not merely about having a broad reach or an impeccable reputation. It’s a multi-faceted relationship that blends visibility with value alignment, audience engagement and a mutual commitment to making a positive impact.

Reputation 

Unsurprisingly, all sponsors identified the size and reach of the team or event’s audience as paramount. For some brands, particularly in the FMCG industries, this was their first, second, and third consideration when judging a new sponsorship opportunity. However, a significant portion of the respondents, particularly those from the finance and B2B sectors, identified values-based alignment as the primary area of examination.

Within these values-based alignments, responses predominantly considered a partner’s history, examining past successes and achievements. When was the team or event founded? How successful has the team or event been during its history? How does this help communicate our own heritage and trust?

Being seen as the leader or go-to provider in the market was a common theme for many sponsors. Consequently, a significant number of respondents consider a partner's perceived quality as a key criterion. What is the team or event’s current performance and reputation for success in modern times?

For tech brands in particular, infrastructure and how up to date the team or event’s physical and digital facilities are were important evaluation areas. Several luxury brands highlighted this measure by placing importance on association with best-in-class service. The final reputational brand characteristic considered by most sponsors was cultural relevance. How does the team or event behave off the pitch, and what action are they taking towards societal issues? This was particularly true of respondents from FMCG brands from the fashion and retail industry.

Audience

Despite the need for strong brand alignment between two partners, increased brand exposure remained paramount to almost all sponsors surveyed. Indeed, the single greatest benefit of sponsorship for most brands is supercharged brand awareness.

Beyond reach and exposure many individuals highlighted not only the number of eyeballs reached but whose eyeballs. One common theme was frustration with a lack of credible audience data around demographics, fan behaviour, and activity.

The results across demographics were diverse, highlighting each brand's different target audience groups, particularly concerning age demographics and affluence. However, a common thread that did emerge was the emphasis all brands place on gender ratios; even for sponsors operating in traditionally male-dominated sponsorship arenas, there was a very clear consideration of the female audience.

Social Contribution

An increasing number of sponsors identified social contributions and actions towards social challenges as important factors during the evaluation of potential partners. This theme was highlighted during the research, with 93% of respondents evaluating a team or event’s actions towards sustainability as part of their evaluation process.

85% of respondents also highlighted inclusion and equal support for female artists and athletes. These factors were followed by support for grassroots development and, most notably, support for the partner's associated community.

Experience

Collectively, across the board, the other consideration most sponsors highlighted was the extent to which clients and VIPs could be entertained through corporate hospitality. Large employers also highlighted the importance of volunteering and employee engagement within their partnership consideration and the responsiveness of those individuals charged with managing their partnership on a day-to-day basis.

Surprisingly, only a small number considered how their internal skills and know-how could help improve their partner’s offering. This is an important factor as it determines how a sponsor has helped improve an event for the fans or the wider community through their involvement. Those sponsors that demonstrate this are more likely to be perceived favourably by audiences, which impacts all those great measures of brand strength we track, like loyalty, advocacy and, most importantly, consumer behaviour, especially at the point of purchase.

While not all brands can find or afford a sponsor that ticks every one of these boxes, it is important to articulate what each brand’s perfect sponsorship partner looks like. Only then can we evaluate our hypothetical ideal sponsorship against real-world opportunities.

The post What makes a perfect sponsorship partner? appeared first on The Sponsor.

Reaching high-net-worth and even ultra-high-net-worth audiences is not particularly hard, but engaging them is where it gets tricky. Hundreds of brands spend millions of dollars in sponsorship fees each year seeking to generate brand awareness amongst this valuable audience, but what is awareness without engagement?

These discerning consumers, with their keen intellect and deep concern for societal issues, demand an approach that transcends traditional sponsorship and resonates on a profound level.

In this article, we delve into innovative strategies for engaging high-net-worth audiences through sponsorship, exploring how brands can authentically align with their values and create unforgettable experiences that leave a lasting impact.

Demonstrating Shared Values

The first step in engaging high-net-worth audiences through sponsorship is by demonstrating an authentic commitment to shared values and passions. As Michel Driessen, Head of EY’s art sponsorship programme, aptly puts it:

"Art holds immense importance for both our society and our organisation, and it's equally valued by our clients. For us, it's not about displaying our logo at the biggest exhibitions. Instead, it's about reflecting and demonstrating our core values through the art we support. This unique approach enables us to establish meaningful connections with many of our clients in a context outside of work and the office. When asked what clients associate with EY beyond our audit and consulting services, our dedication to the arts always comes back top of mind."

Brands that support causes aligned with their audience's values foster stronger connections and long-term loyalty. This alignment demonstrates authenticity, builds trust, and taps into emotional resonance, leading to deeper bonds with clients differentiating themselves and driving sustained loyalty.

Exclusive Experiences

Another effective way to engage high-net-worth individuals through sponsorship is by providing them with unique experiences that money can't buy. Dr. Thomas Girst, Global Head of Cultural Engagement at BMW Group, highlights the success of BMW's Opera For All events, stating:

“BMW’s Opera For All events brings thousands of people together in major squares around the world to listen to extraordinary achievements that human beings are capable of. As part of this, we go for dinner with 50 of our Seven Series Excellence Club members together with the Chief Conductor of the London Symphony Orchestra and some of its musicians. This is a unique experience available only to our members and it helps build long-term loyalty with these highly valued clients.”

While anyone can buy a ticket with enough money, sponsorship allows brands to create truly unique, money-can't-buy experiences for valued clients. By leveraging their position as sponsors, brands curate experiences that resonate deeply, leaving lasting impressions and often lifelong memories. This is especially important for high-net-worth individuals who are accustomed to purchasing the most expensive tickets but value something more—unique experiences that money alone cannot procure. These exclusive opportunities foster strong bonds with clients, enhancing loyalty and affinity in ways that traditional transactions cannot achieve.

Audience Filtering

While value-based partnerships are essential for connecting with high-net-worth audiences, brands wishing to target this group at scale must find ways to filter the audience to target the right individuals. Sport sponsorship remains a popular choice for engaging this audience in large volume, but it remains a mass market event. Sponsors must therefore be willing to accept that a large proportion of the reached audience will never be customers and be able to pay a premium for exclusivity. Most crucially however, brands engaging in this form of sponsorship must work hard to activate their partnerships in a way that filters the general fanbase and specifically targets the desired audience.

Qatar Airways' sponsorship of Formula 1, for example, targets high earners through an exclusive partnership centred around the Paddock Club hospitality area, ensuring that their sponsorship efforts are geared specifically towards high-net-worth audiences. Luke Drake, VP of Commercial Partnerships at Qatar Airways, explains:

“Qatar Airways Formula 1 partnership includes being the presenting partner of the Paddock Club. It’s essential for us that everyone who comes into the Paddock Club has a great experience. We want to share the great experiences our business flyers have onboard with fans in the Paddock Club, giving them the best quality access, views of the track, and food and beverage. Our aim is to use our know-how and experience in service to keep moving the product quality up in Formula 1.”

Authenticity Is Key

Finally, authenticity is paramount when engaging high-net-worth audiences through sponsorship. This audience in particular is savvy and protective, and any attempts to plaster brands all over an event are likely to induce a negative reaction. When targeting HNWs brands must approach sponsorships with authenticity and genuineness, focusing on supporting and growing specific sports, art forms, or cultural events that resonate with their audience.

In conclusion, engaging high-net-worth audiences through sponsorship requires a delicate balance of aligning on values, providing unique experiences, and being authentic in actions. By filtering the right audience, aligning with shared values, and adopting a gentle approach, brands can create meaningful connections that drive long-term loyalty and success.

For those considering new sponsorships targeting high-net-worth-audiences The Sponsor has taken a look at 5 of the best events to consider here. You can also join The Sponsor and a small group of marketing leaders as we discuss best practice in the engagement of high-net-worth audiences at our upcoming roundtable debate on 25th June at the Sofitel St James, London, Register your interest here.

The post Engaging High-Net-Worth Audiences Through Sponsorship: A Delicate Balance of Values and Virtues appeared first on The Sponsor.

Sponsorship serves as a potent tool for B2B brands, extending beyond mere brand awareness to enhance perceived stature, demonstrate core values, strengthen client relationships, inspire employees, and generate leads. While B2C brands can broadly target audiences based on demographics such as gender, age, and economic status, for B2B brands, the primary audience filter is job title.

Traditional sponsorships, often seen in cricket, rugby, and golf, are effective for large B2B brands with ample budgets targeting affluent audiences. However, for many B2B brands operating within tighter budget constraints, such an approach is inefficient, as it allows for wastage with the realisation that much of the reached audience may never become clients.

Consequently, many B2B brands find themselves limited to participating in industry conferences or awards, missing out on the benefits that sponsorship can bring. However, there exists an alternative approach.

For B2B brands aiming to target audiences by job title, a smaller partnership with a brand ambassador who authentically represents the company's values offers a compelling solution. Rather than relying on a sponsorship partner to generate widespread brand awareness, B2B brands can engage clients and enhance their perception by partnering with an ambassador who resonates with their values. This partnership can then be effectively communicated through existing channels, such as websites, social media platforms, or even email signatures.

While this approach requires additional research to identify the ideal partner, the results and value for money make it a worthwhile investment. By strategically leveraging brand ambassadors, B2B brands can achieve targeted sponsorship benefits at a fraction of the cost, ensuring that their messaging reaches the intended audience with precision and impact.

The post B2B Sponsorship Success: Harnessing Brand Ambassadors appeared first on The Sponsor.

Show me the money! The pressure on Marketing Directors to justify sponsorship investments is unrelenting. Summoned to the boardroom, clinging to the familiar crutch of media value equivalency (MVE) calculations, hoping to prove the worth of multimillion-dollar endeavours. Yet, beneath the surface of these seemingly concrete figures lies a gaping chasm of inadequacy.

MVE, the go-to metric for measuring sponsorship, offers a simplistic view of success: Did we get a good price? But the truth is far more complex. MVE fails to capture the intangible yet invaluable shifts in brand perception and consumer behaviour that truly drive revenue growth. As Marketing Directors are forced to defend their sponsorship decisions, they must continue to grapple with the fundamental question posed by Finance Directors that MVE fails to answer: How does this sponsorship actually generate revenue for the company?

In this article, we delve deep into the shortcomings of MVE in sponsorship measurement, uncovering why it falls short of providing a holistic understanding of sponsorship impact. From overlooking changes in brand perception to neglecting the CFO's demand for tangible revenue generation, we explore the inherent limitations of MVE and propose alternative approaches to accurately evaluate sponsorship ROI.

MVE is, without doubt, a helpful benchmark for assessing sponsorship strength. It is particularly useful for brands whose sponsorship campaigns place visibility as the first, second and third priority. However, as Solo Stove’s viral Snoop Dogg ‘Giving Up Smoke’ partnership showed, increased brand visibility does not automatically equal increased sales. Remarking on the partnership Solo Stove Chief Financial Officer Andrea Tarbox said:

“while our unique marketing campaign raised brand awareness of Solo Stove to an expanded and new audience of consumers, it did not lead to the sales lift that we had planned, which, combined with the increased marketing investments, negatively impacted our EBITDA.”

While, of course, this could simply be a case of over-forecasting, the point remains that increased awareness only tells half a story. The true value of sponsorship is the ability to alter and enhance stakeholder behaviour both in the short and long term.

What are the values that drive demand in the banking sector? Trust? Integrity? Security? All are true, and consumers' perceptions of such attributes can all be enhanced through sponsorship. Yet MVE overlooks increases in perception of these key brand values brought about by sponsorship. Consequently, when conducted in isolation, an MVE calculation serves to undermine and undervalue an effective sponsorship campaign's true worth.

In contrast to the limited scope of MVE, a more comprehensive and accurate measure of a sponsorship's worth lies in the market approach. This method considers a wide range of data points, including but certainly not limited to a comprehensive MVE calculation, to ascertain the strength of a sponsorship opportunity. The approach considers broader factors concerning the reputation, history, fan demographics, reach and social behaviour of a team or event. By applying these factors to the commercial realities of sponsorship deals agreed upon within the industry, the market approach offers a more holistic understanding of sponsorship's true value. This is also the approach used by The Sponsor in the annual study of Premier League Fair Market Value calculation which you can view here.

Unfortunately, this is all before we consider the fact that both MVE and the market approach fail to address the burning question raised by CFOs: How does this sponsorship generate revenue for the company?

For this, a more complex and rigorous valuation model is required: The income approach. The income approach is a methodology commonly used by tax authorities when valuing intangible asset transfers or CFOs when undergoing merger and acquisition transactions. Firstly, it assesses the fundamental role of the brand in generating revenue for the company within its respective industry. This involves analysing historical royalty rate agreements to determine the typical value of a brand's contribution to revenue generation. Secondly, the approach evaluates how changes in brand strength, facilitated by sponsorship investments, can enhance this revenue-generating capacity over time. By quantifying the impact of sponsorship on brand sentiment and consumer behaviour, the income approach establishes a direct link between sponsorship activities and their potential to boost revenue. Furthermore, unlike MVE, it speaks in a language familiar to the boardroom, which marketing proponents find particularly helpful when negotiating next year’s budget!

Each of these sponsorship measurement and valuation approaches has its own strengths and applicability depending on the specific needs and objectives of your sponsorship initiatives. For personalised guidance tailored to your unique requirements, we invite you to connect with The Sponsor's dedicated consulting team here. Schedule a complimentary consultation today to explore how we can assist you in accurately quantifying returns and justifying your sponsorship investment.

The post Justifying sponsorship returns: How media equivalency undervalues your sponsorship and exploring alternative measurement approaches appeared first on The Sponsor.

Many organisations unintentionally find themselves entangled in a web of diverse and often disjointed sponsorship commitments. This situation typically arises when brands succumb to various requests from employees and key customers or grant local branches autonomy in making sponsorship decisions. While these seemingly innocuous partnerships may appear harmless at first, they can lead to a range of challenges that undermine the brand's identity and strategic objectives.

Mixed Messaging: A Brand's Silent Nemesis

One of the primary pitfalls of diverse sponsorship initiatives is the emergence of mixed messaging. When a brand sponsors a multitude of unrelated causes or events, customers may struggle to decipher the core values and identity of the brand. This lack of clarity can dilute the brand's message and leave customers questioning what the brand truly stands for.

The slippery slope of valuable resources

Granting numerous small sponsorship requests can be a slippery slope, with each approval leading to a cascade of additional commitments. As these sponsorships multiply, the brand may find itself stretched thin, struggling to recall the extent of its sponsorship portfolio. The more sponsorships in play, the greater the demand on resources, both in terms of time and costs, to address the inevitable challenges that arise.

Budget control: A tangled web of costs

Small-scale sponsorships may seem inconspicuous, but their cumulative costs can add up rapidly. Brands may discover that a significant portion of their budget is tied up in these diverse sponsorships, yielding minimal growth for the business. Exit strategies become challenging, leaving marketers rueing missed opportunities to allocate budget where it could have a more substantial impact on brand growth.

The path to redemption: A unified sponsorship strategy

The solution  to this fragmented disjointed sponsorship portfolio lies in the development and implementation of a single, consistent sponsorship strategy that operates seamlessly at all levels.

1. Craft Ideal Sponsor Profile: Begin by meticulously defining the qualities of your ideal sponsorship partner. Consider factors such as shared values, target audience alignment, and resonance with your business objectives. This profile will serve as a benchmark for evaluating current and future partnerships.
2. Evaluate Existing Partnerships: Conduct a comprehensive assessment of your current sponsorship portfolio. Analyse each partnership in terms of how closely it aligns with the criteria set in your ideal sponsor profile. Simultaneously, evaluate the time, effort, and resources invested in each partnership.
3. Exit Misaligned Partnerships: Swiftly identify and exit partnerships that do not align with your ideal criteria. Prioritise those showing a significant misalignment, freeing up resources and reducing the potential negative impact on your brand's messaging and identity.
4. Enhance Alignment Through Activation: For partnerships with lower alignment that cannot be immediately terminated, develop strategic activation plans. Implement initiatives that align these partnerships more closely with your key values and objectives, maximising their impact within the defined criteria.
5. Articulate Ideal Profile Criteria: Clearly define the criteria derived from your ideal sponsor profile. These criteria should guide all future sponsorship decisions, ensuring a consistent and intentional approach to partnership selection.
6. Transition to Proactive Strategy: Move from a reactive stance of approving or rejecting incoming requests to a proactive approach. Actively seek out sponsorship opportunities that align with your established values, objectives, and target audience. This proactive shift allows you to curate a portfolio that strategically contributes to your brand's growth.

In conclusion, sponsors must carefully assess the impact of small-scale sponsorships on their overall brand image. Redirecting funds towards more strategic initiatives is essential. Investing in a cohesive sponsorship strategy helps brands avoid the pitfalls of mixed messaging, regain control over valuable resources, and strategically allocate budgets for maximum impact—ultimately fortifying brand identity and contributing meaningfully to growth and success.

The post From chaos to cohesion: Strategies to mend fragmented sponsorship and strengthen your brand identity appeared first on The Sponsor.

Image: M&C Saatchi Sport & Entertainment's new strategic collective, Passion Pulse

M&C Saatchi Sport & Entertainment commemorates two decades of creativity by introducing its groundbreaking 'Passion Pulse' offering. As part of this milestone, the agency boldly departs from the traditional fandom model, embracing the forward-thinking 'Fancom' approach to fan engagement.

Celebrating 20 Years with Passion Pulse

M&C Saatchi Sport & Entertainment marks its 20th anniversary with the introduction of 'Passion Pulse,' a transformative offering that redefines the dynamics of fan engagement. This strategic move underscores the agency's commitment to staying at the forefront of the industry by understanding and adapting to the evolving nature of consumer passions.

Fancom: A Paradigm Shift in Fan Engagement

In a departure from the conventional fandom model, M&C Saatchi introduces 'Fancom' to revolutionise the concept of fan communities. Fandom traditionally implies a mass, homogeneous following with a single attitude. Fancom, on the other hand, recognises the contemporary fan as a dynamic participant in coalescing communities centred around intersectional interests and behaviours.

Laura Coller, Managing Director, emphasises this shift, stating, "There has been a demonstrable move away from the tropes of traditional fandom towards what we call Fancom. Away from mass homogenised groups and towards communities coalescing around intersectional interests and behaviours."

Alongside the announcement the agency has also published a new report, 'Fandom is Dead. Welcome to Fancom' which you can access here.

Passion Pulse Leadership and Expert Team

Overseeing the Passion Pulse initiative is Strategy Partner Neil Hopkins, who leads a team of 12 experts. These experts, known as the Passion Pulse team, are strategic passion specialists with in-depth knowledge across sports, entertainment, and various sub-passions and communities. Their role is to decode the intricacies of fan communities, ensuring clients can authentically integrate with diverse passion spaces.

Coller comments on the team's significance, stating, "I’m proud to launch Passion Pulse, an expanded strategic offer comprising the brightest thinkers at the heart of sport and entertainment culture."

A Shift in Audience Needs and Behaviour

Recent research commissioned by the agency highlights a fundamental shift in audience needs and behaviour. The study reveals that 63% of people utilise their passions as a means to engage with others in real life, emphasising the importance of connecting consumers not just to brands but to each other through shared interests.

Emphasising the shift Coller stated, "This demands a shift in how we look at audience needs, and we believe there has been a demonstrable move away from the tropes of traditional fandom, towards what we call Fancom."

As M&C Saatchi Sport & Entertainment enters its third decade, the launch of Passion Pulse and the adoption of the Fancom model under the leadership of Managing Director Laura Coller position the agency as a visionary leader, continuing to forge authentic connections between brands and their audiences in the ever-evolving landscape of passion marketing.

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An estimated $105 billion was spent on sponsorship globally in 2023. The allocation of these significant budgets and the entities they support is entirely at the discretion of the purchasing brand. To quote the common proverb, ‘With great power comes great responsibility’.

At The Sponsor, we champion sponsorship as a force for good. We believe the best partnerships are those that not only provide a return to the sponsoring brand but also seek to make a positive contribution to the communities they impact.

Authenticity and engagement are the keys to a successful partnership. When brands go beyond advertising-based sponsorship and actively make a positive contribution, they are viewed more favourably by audiences, increasing audience propensity to sample, purchase intent, loyalty and advocacy. In simple terms, people buy things from people they like; this is as true of sales as it is for brands and sponsorship.

So how can brands use sponsorship as a force for good to authentically engage audiences and positively shift stakeholder perception?

Enhancing audience Experience

The first step for almost all brands moving beyond simple logo placement is to use their position as a sponsor to enhance the audience's enjoyment or experience of an event. This can be straightforward, like tech brands giving fans greater insights with real-time sports data analysis. There are simple examples outside the tech realm, such as behind-the-scenes content giving fans , free event transportation, or exclusive meet-and-greet experiences. Such activity ensures that exposed audiences are not only aware of the sponsoring brand but have developed an enhanced perception. Partnerships lacking this most basic form of activation are, in reality, nothing more than very expensive advertising.

Gender Equity

Women’s sports have seen tremendous growth in recent years, driven partly by the fantastic work of early adopters such as Barclays. The bank has not only been a long-term supporter of women’s professional game but has also contributed immense support for youth with gender equity through its Girls’ Football School Partnerships. The campaign has grown significantly in recent years and is now active in over 10,000 schools, with 85% of teachers agreeing that the campaign has positively impacted young girls' perception of football.

Earlier in the year, The Sponsor sat down with Rosie Guest, Chief Marketing Officer of Apex Group, and sponsors of Sail GP. The company had a pre-existing aim to improve gender equity across financial services, and this transfers through to its sponsorships. At present Sail GP has no female captains but Apex, working together with Sail GP, is seeking to use it’s position as a sponsor to change this.

“I firmly believe that when we empower women and provide them with the necessary tools, resources, and support, they can excel in any field, including the traditionally male-dominated sport of sailing. By breaking down gender barriers and fostering a culture of inclusivity, we can unleash the full potential of talented female sailors and create a more balanced and dynamic competitive landscape.”

You can read the full article here.

Actions speak louder than words, and such public action transcends written statements of inclusivity and diversity, demonstrating a genuine commitment that is not lost on stakeholders.

Supporting Youth Development

Brands can build positive associations by using their sponsorship budget to support youth development in a particular field. For example, Under Armour compliments its high-profile sponsorships with significant support and development of young talent, improving access to sports equipment for millions of teenagers. What impact does such an activation have on those young people, their friends and families when shopping in the local sports shop?

Similarly, many large financial brands are seeking to enhance perception through their support of young musicians and artists. American Express, for example, hosts the Amex Gold Unsigned, giving young, relatively unknown artists a powerful platform to showcase their talents, play at festivals and build a following. In the art world, American Express’ reputation is enhanced by such activity, not because they put their logo on it but because they make a meaningful and authentic contribution.

Sustainability

Perhaps the one topic that transcends all sports, cultural events and industries is sustainability. Sponsors can provide invaluable know-how to make events more sustainable; they can provide access to expensive tools and technology and use their immense purchasing power to only partner with events demonstrating a genuine commitment to sustainability.

For example, Formula 1 as a sport has come under increasing pressure from sponsors to cut emissions. This pressure has resulted in significant changes to the sport, including the introduction of sustainable fuels, resulting in up to 96% carbon emission reductions as part of its ambitious 2030 net zero pledge.

Sticking with Formula 1, The Sponsor spoke with Arjan Sissing, Global Head of Brand at DHL, to learn how the company is using its position as a sponsor to provide efficient, environmentally friendly logistics for Formula 1’s travelling circus of nearly 35,000 tonnes of racing freight each year.

DHL used Formula 1’s huge platform to build its own brand and raise awareness about sustainability amongst F1 fans.

“At the Brazilian Grand Prix, for example, we used our partnership to raise awareness of marine plastic pollution. We partnered with NGOs and 90 volunteers to collect over 500 kilos of waste. With the help of a local artist, we used this waste product to create a beautiful Formula 1 car sculpture at the track.”

These sustainable activations do not disappear into thin air, they resonate and resurface at key points in the consumer decision-making cycle.

Charity

The most philanthropic sponsorship activity brands can employ when seeking to use sponsorship as a force for good to enhance perception positively is to support charitable events such as Standard Life’s support for Cancer Research Race for Life.

Perhaps the most charitable sponsorship of all was BNY Mellon and Newton Investment Management’s sponsorship of the Oxford Cambridge Boat Race. Having secured the rights to the world’s most famous rowing race, the firm gifted the sponsorship and all its associated brand awareness to the event charity partner, Cancer Research UK. Such an act may indeed reduce BNY Mellon’s brand exposure, but to its existing clients and stakeholders, it undoubtedly increased loyalty and advocacy.

"We're not fussed about the actual coverage of our name this year – we're handing that over. This goes to the heart of businesses being responsible to society and connecting with communities. I feel very strongly that this is what it takes to be a modern and responsible business, we hope that others would then follow suit and we would see more companies thinking actually how could we use our sponsorships in different ways?"  Helena Morrisey, Former Chief Executive, Newton Asset Management.

Conclusions

When sponsorships are strategically harnessed for the greater good, they yield tangible benefits for the community and exert a transformative influence on brand reputation, leading to enduring financial returns that persist long after the partnership has drawn to a close.

By aligning corporate support with meaningful social initiatives, sponsors contribute to the community's welfare and forge a lasting connection with consumers who appreciate and remember the positive impact. This synergy between altruism and brand promotion creates a ripple effect, amplifying the resonance of the partnership and solidifying the brand's position as a socially responsible and ethical entity. Consequently, the dividends reaped extend far beyond the initial collaboration, establishing a legacy of goodwill that continues to shape the perception of the brand in the marketplace. continuing to deliver benefits long after the partnership concludes.

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Sponsorship can be a game-changer for brands seeking to elevate their presence and connect with their target audience in a meaningful way. However, diving into the world of sponsorship requires careful consideration and strategic planning. To ensure your sponsorship venture is fruitful, finding the right partner is essential. Here are six crucial components of successful sponsorship planning that brands should prioritise when considering sponsorship for the first time.

1. Brand Alignment – Shared Attributes

The first and foremost element to consider in sponsorship planning is brand alignment. It’s not just about the visibility; it’s about shared values and synergy between partners. A successful partnership reflects the desirable values that audiences associate with a team or event, quickly applied to your brand. By aligning your brand with an event or team that shares your values, you can authentically demonstrate your brand's ethos, articulating it swiftly and effectively to your audience.

2. Brand Awareness – Making Your Mark

Sponsorship offers a unique opportunity to boost brand awareness significantly. Your partnership should enhance recognition and recall among your target audience. Consider Carabao, whose sponsorship of the Carabao Cup in England led to millions of people becoming aware of their energy drink. Sponsorship provides immediate growth in awareness that would otherwise be challenging to achieve, making it a powerful tool for emerging brands.

3. Positive Contribution – Shaping Perceptions Through Actions

While traditional advertising can increase brand awareness, sponsorship goes a step further by shaping audience perceptions and behaviours. A successful sponsorship partner doesn’t just promote their brand; they positively contribute to the event or community. By enhancing fans' enjoyment, supporting young talent, or benefitting the local community, sponsors can create a positive association with their brand. It's not just about being known; it's about being liked, as people tend to buy from brands they have a positive perception of.

4. Exclusivity – Standing Out in the Crowd

In a competitive market, exclusivity matters. Being the sole industry provider associated with an event amplifies your impact. Successful sponsorship planning is about identifying opportunities aligned with your values where your competitors are less active, allowing you to own that specific sponsorship category. By doing so, your brand becomes top of mind for the audience, ensuring your marketing spend isn’t wasted by being drowned out by competitors with larger budgets.

5. Targeted Approach – Reaching the Right Audience

A targeted approach is crucial to the success of any sponsorship. Rather than sponsoring the biggest event your budget allows, focus on smaller events that align closely with your values. Leveraging these events through your own media channels ensures your message reaches your specific audience. Integrating sponsorship details into your website, social media, company documents, and even employee email signatures creates a cohesive and targeted approach, minimising wastage and maximising impact.

6. Longevity – Cultivating Long-Term Partnerships

Successful sponsorships are not short-term endeavours but partnerships that grow over time. Look for teams and events where your involvement can evolve from a standard partnership to a headline partnership. Planning for longevity is essential. Consider long-term objectives developed in collaboration with the event organisers. By foreseeing growth opportunities and investing in them, your sponsorship benefits increase over time, providing a stable foundation for your brand’s growth.

In conclusion, sponsorship isn't just about putting your brand out there; it's about finding a partner that aligns with your values, amplifies your message, and helps you create a positive impact. By focusing on brand alignment, awareness, positive contribution, exclusivity, a targeted approach, and longevity, brands can forge successful partnerships that leave a lasting impression on their audience and contribute significantly to their growth and recognition in the market.

At The Sponsor, our dedicated consulting service is designed to help sponsors discover their ideal partnership. With our expertise, we guide brands through the intricate world of sponsorship, ensuring they find the perfect match for their values and objectives. For more information on how we can elevate your brand through strategic partnerships, click here.

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The ongoing debate surrounding the permissibility of brands associated with the fossil fuel industry sponsoring the arts has gained renewed momentum. Notably, a consortium of 50 authors, including prominent figures like Zadie Smith, Ali Smith and Katherine Rundell, recently penned a letter urging the Edinburgh International Book Festival to sever its ties with Baillie Gifford due to the company's fossil fuel investments.

The challenge lies in distinguishing between genuine support and greenwashing tactics. While it's tempting to view any affiliation between fossil fuel companies and cultural events as a cover-up of negative impacts, the reality is nuanced. The arts sector, grappling with scarce funding, relies on corporate support to sustain and expand events like the Edinburgh Book Festival. Acknowledging this, it becomes imperative to consider the fine line between sponsorship that conceals and sponsorship that empowers.

Past instances, such as BP's sponsorship controversy, demonstrate how sponsorship can be manipulated to veil environmentally harmful practices. However, Baillie Gifford presents a contrasting narrative. Rather than hiding behind sponsorship, they channel their resources into events that candidly discuss environmental concerns. Is this a strategic diversion from negative actions or a genuine effort to seek solutions? The ambiguity lingers.

To thwart greenwashing, sponsors must embrace transparency and align with events that actively raise awareness. Baillie Gifford's case appears compelling, 2% of their clients' money is invested in companies with more than 5% of their revenue coming from fossil fuels against the industry average of 11% and a robust investment in renewable firms combating the climate crisis, again surpassing industry standards.

While scrutiny is necessary, a broader perspective emerges. The involvement of these brands in the discourse is essential for ushering in change. The arts serve as a powerful medium for climate communication and education. However, dwindling government funding and limited alternate sponsorship sources necessitate a pragmatic approach. Brands and cultural events must collaboratively engage to strike a balance that both propels change and sustains crucial initiatives.

In essence, the discussion isn't simply about whether fossil fuel brands should sponsor the arts, but rather how they can contribute meaningfully. A transparent partnership that prioritizes education and awareness over mere branding might hold the key to a sustainable future—one where artistic endeavours inspire dialogue and catalyse action on climate change.

The Sponsor recently interviewed Michelle McLeod, Sponsorship Manager at Baillie Gifford and Helen Chomczuk, Head of Development at the Edinburgh Book International Book Festival to discuss this partnership. You can read their comments here.

Similarly to Baillie Gifford both Ford and Coca-Cola have supported green events in the past few months and received considerable backlash for doing so. You can read about Coca-Cola's sponsorship of COP 27 and Ford's sponsorship of Ride London by following the links.

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Baillie Gifford is an Edinburgh-based global asset manager that has sponsored the Edinburgh International Book Festival since 2001. Alongside their notable Baillie Gifford Prize for Non-Fiction, the partnership endures as an active example of how best to support cultural events. In this interview, we spoke with Michelle McLeod, Sponsorship Manager at Baillie Gifford and Head of Development of the EIBF, Helen Chomczuk. The topic: why this partnership works and what others can learn.

How did Baillie Gifford’s partnership with the Edinburgh International Book Festival come about 22 years ago and what do you see as its intended goals?

Michelle: It started off as part of our corporate social responsibility approach. The Edinburgh International Book Festival (EIBF) was one of our local arts organisations supported as part of our philanthropic activity, we support a lot of the arts. The relationship has evolved over the years into something much bigger becoming part of marketing through sponsorship.

In terms of sponsorship, we're completely aligned with literature. For the last 15 years, we've been supporting festivals across the UK and have expanded to cover North America and Asia. We also have The Baillie Gifford Prize for Non-Fiction - the largest of its kind in Britain. It's always been a genre of the art that we believe in, allowing us to support thought leaders, academics, and big thinkers who write nonfiction. They’re people that we're interested in learning from. Moreover, the audience that attends book festivals are very closely aligned with the type of people who invest in our funds. We look at it from two angles: what we can gain from an investment research perspective, and also  engaging with an audience with a similar profile to our retail clients.

What do you think the benefits are to sponsorship of such an important cultural event?

Helen: I can't overstate the generous financial support enough. It has enabled us to expand and scale up our work at an extraordinary level. We really want to make sure that we're providing great experiences for young readers, so it's really important that we have Baillie Gifford’s backing to begin that process on our side. Many of the people who come to our public children's program are from fairly affluent families, so it’s important from our perspective that we are reaching out to children who might not come, who might not automatically be brought by their mums and dads or their family unit. I have to say thank you to Michelle because Baillie Gifford and the festival have been able to make it totally free. We’re now also able to offer a free book related to the event that the kids are coming to, to every person who attends an event in the school's program. It’s just been phenomenal.

Michelle: At the venue itself, our branding talks about who we are, our curiosity about the world, the thinking, and what our world looks like. It's all illustrated, so it fits in with the environment. As Helen mentioned, we support the schools and the children's program because these are our thinkers, our readers, our writers and our workforce of tomorrow. We create our own artwork, which brightens up the children’s area and while it doesn't necessarily carry any of our branding, it's a project that our internal designers get to work on. From a staff perspective, that adds something different to have fun with and use their creativity.

Have the internal benefits been there since inception, or have you learned to leverage them over time?

Michelle: We've always had staff engagement in terms of ticket allocation, but that has grown over the years. Last year, we had a much bigger engagement coming back from the pandemic, where we really wanted to encourage staff back to the festival. It's always a really popular event in our calendar each year. We also cover the more academic events going on that the investors go to. Then we have a lot of authors that come into the office for private events with our staff.

This is a question for both of you. How do you think this partnership has broadened or changed perceptions of your respective brands across 22 years?

Michelle: You'd have to ask the audience, but one thing that I’m certain has come across is that we're aligned with literature. It's one thing that we are known for in the UK, particularly. We want people to recognize us as an intelligent business, a business that is interested in the world and wants to know what's going on in the world. That happens predominantly through our own magazine, so we don't go out and promote Baillie Gifford as such and all our branding encourages engagement with our magazine Trust. It’s our way of introducing our investment philosophy and our culture and what we're all about and that lands really well. This partnership on top of that adds so much weight to our core values in terms of perception.

Helen: I would add from the festival’s perspective, Baillie Gifford is a very generous company who support a lot of local causes. You’re also quite understated - your sponsorship is never plastered all over things. Perception is built in a very consistent and quite gradual way. For us, it lends weight to the festival that Baillie Gifford has been a partner and supported us for such a long time. In terms of that long term investment approach, a perception of endurance and commitment is central to your business. In the last few years where the pandemic changed our approach, we had to do a lot of things quite differently. Frankly, from a sponsorship benefit point of view, we weren't able to do everything that we had said that we could do, but that hasn't affected the sponsorship.

Baillie Gifford stuck by us and helped. We really appreciate that loyalty. The audience is certainly people who are local to Edinburgh and who maybe have knowledge of the business community here. It's a partnership that from that brand association point of view that both we and the community constantly see the benefits of.

Michelle: I agree, because we are long term investors. That's our strategy and most of our sponsorships are over 10 years old. Like Helen says, it's not all about instant, massive impact that we're looking for through our relationships. We have the same values and are authentic in what we’re supporting. If you come into our offices, there's books everywhere. We've got our own library and books are very accessible to staff and we encourage staff to learn from books. Over the pandemic, we started up our own book festival internally which came from our literary partnerships, Beyond Words, which was focused on diversity and inclusion and that was a collaboration with our HR Department.

Have you been able to measure any response to the partnership itself in terms of public response?

Michelle: I always have a bit of a challenge with some of the metrics around sponsorship. I think you have to look at return on objectives before return on investment, because the latter is so hard to track. We do look at the metrics, but we think qualitatively about the relationship and the culture we’re fostering. We look at all the stats, but actually it's the stuff that we can bring to the festival that is far more powerful for us. The festival does have a survey, however.

Helen: Yeah, we do. So, we do a post festival survey that gets opinions on a range of things, including sponsor brand recognition. Baillie Gifford is consistently up there as one of the most recognised - 70% of people who come to the big events recognise Baillie Gifford as a sponsor. Over 5,000 people take the survey, so it's a sizeable and representative chunk of our audience.

Michelle: It's a strong response because we don't put our logo up very much. We’re conscious that too much branding from one sponsor can push out other sponsors as well.

Do you have any advice for other heads of marketing who are already looking at sponsoring community-focused cultural events?

Michelle: One thing with these events as a corporate sponsor is to remember the art. Leave the art form as it is. Don't get involved in the art form and remember that you’re not the centre stage, so find out how you can be useful. Understand what you're doing and what you're wanting to get out of it and go for something that is authentically aligned to you. If you're authentic about your sponsorship, when something happens like a pandemic, it doesn't matter as much whether your usual assets are getting delivered because you're in it for the long term. It’s all about what your values are at the end of the day. That’s why I’d focus on return on objectives, rather than investment.

Helen: My advice would be around making sure that there's a really wide understanding amongst the whole organisation and your own team around the partnership. Especially in terms of: what are the strategic objectives that we have as a festival, why are we being supported by Baillie Gifford etc. The relationship needs to be supported by everybody within an organisation and a partnership. It won't work if it is just one team who are championing.

Michelle: You get the most amazing projects and initiatives going when you have that relaxed, open, honest relationship. We've obviously had this relationship over a very long time, but it hasn't always been myself and Helen managing the partnership. I'm sure it’ll continue long after I have retired.

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