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.

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.

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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In the dynamic world of sports sponsorship, businesses face a critical decision: Should they swim with the giants and be a small partner of a renowned event, or dive into uncharted waters as the main sponsor of a smaller team? The choice is far from simple, it requires a thoughtful evaluation of the pros and cons associated with each approach as well as your organisation's sponsorship capabilities. This article aims to navigate the sponsorship landscape, uncovering the opportunities and challenges of being a big fish in a small pond or a little fish in a big pond to help you choose the right approach for your business.

Being a Small Sponsor of a Big Team

Picture this: Your brand's logo shining alongside the giants of the game—a dream for many sponsors. Opting to be a small sponsorship partner of a big team holds undeniable benefits. By harnessing the power of their strong brand name, your own marketing efforts gain instant credibility. You become part of an elite club, elevating your perceived stature among your existing audience and forging a deeper connection with them.

The perks continue. The hottest hospitality tickets in town and access to star players excite your loyal customers and create unique experiences that strengthen their loyalty and affinity for your brand. The association with a well-established team or event can also open doors to networking opportunities and collaborations with more prestigious brands.

Yet, caution is warranted. The glitz and glamour of big teams come with a downside: fierce competition and a sea of sponsors clamouring for attention. Standing out in this crowded space requires astute marketing strategies and a substantial investment of resources. Without dedicated efforts to leverage your sponsorship rights, you risk blending into the background noise and missing out on reaping the full benefits of the partnership.

Being a Big Sponsor of a Small Team

Now, envision a different scenario: Your company as the headline sponsor of an entire event. While their reach may not rival that of the giants, there are distinct advantages to consider. As the headline sponsor, your brand has the opportunity to make a monumental splash within the club's devoted fan base. Unleashing your marketing prowess in this intimate setting can create waves that extend far beyond the pitch.

A smaller team often possesses a fervent and engaged fan community. By aligning your brand with their enthusiasm, you can forge a deep emotional connection and cultivate loyalty. Your new partner’s eagerness to collaborate and support your sponsorship can translate into innovative campaigns and meaningful experiences that captivate both existing and potential customers.

Nonetheless, it's important to acknowledge that the overall reach may be limited compared to partnering with a big team. However, reach alone does not guarantee engagement and really, what is reach without engagement? Focusing your efforts on a specific audience allows for more targeted and personalised messaging, fostering authentic engagement that resonates with fans on a deeper level.

Deciding What’s Right for Your Business

The sponsorship conundrum of choosing between being a small fish in a big pond or a big fish in a small pond demands careful consideration. For established brands with experienced marketing teams and robust resources, associating with a big team offers the chance to amplify your brand's reputation and leverage existing customer loyalty. In this scenario, the success of your sponsorship more than ever will be determined by your ability to effectively leverage your rights to trademarks and other sponsorship rights.

On the other hand, if your goal is to drive new awareness within a specific audience, becoming the main sponsor of a smaller team can generate unparalleled engagement and brand affinity. Ultimately, brands must evaluate their objectives, available resources, and desired impact to make an informed decision in pursuit of achieving their marketing goals. In addition to deciding whether to be a big fish or a little fish the next question facing sponsorship marketers is whether or not it's better to investment the entirety of your budget with a single team or event or to broaden your partnership portfolio, read more on that subject in our article here.

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After it was announced this week that eBay will replace Just Eat as Love Island’s headline sponsor, what have the online marketplace done to separate themselves from the show’s history of problematic partners?  

Why have Love Island partnered with eBay? 

The shift to a more sustainable headline partner addresses widespread criticism for Love Island’s extensive association with ‘fast fashion’ brands. Since the partnership began, eBay’s success has been phenomenal: during series nine, the platform saw a 1400% increase in on-site searches for ‘pre-loved fashion’ compared to series eight. It has further seen a 24% increase in new circular businesses joining the online marketplace so far in 2023.  

For Love Island, distancing itself from Boohoo, whose illegal working conditions and unsustainable practices continue to be sponsorship poison, makes sense. Even last year, users reported that the eBay tab on the Love Island app was hard to find, and that it focused mainly on single use plastic toiletries and makeup. As YouTuber Leena Norms notes, the lifestyle promoted by Love Island is “directly at odds with how we’re going to have to live in the next 30 to 50 years.” More had to be done for a meaningful effort at sustainability, and this renewed, developed partnership certainly helps. 

The aim for eBay is to show the functionality of pre-loved items and drive conversation around fashion circularity; the aim for Love Island is to address their association with environmentally damaging companies. As they replace Just Eat, whose model relies on an enormous degree of single use containers, a sustainability-driven campaign all but adds reliability to both brands. 

What are eBay doing?  

Once again, Amy Bannerman will resume her role as eBay’s Pre-loved Style Director, sourcing clothing from eBay to style the new Islanders. A selection of authenticated sneakers and garments from eBay’s Imperfects range will also be entering the villa’s wardrobe. The company will run a series of idents during the main show’s ad breaks, as well as any catch-up programmes. 

What can we learn from eBay’s success and what are the potential risks looking forward?  

The lessons from eBay’s success run deep. To have a positive impact, your product or service’s strengths should respond to issues within the prospective partner’s model. In circumstances where a current sponsor is negatively affecting said partner, consider how your product or service can address those issues in a public and positive way.  

While it is unclear exactly how this partnership will play out on our screens, eBay’s sponsorship campaign does include gaps of its own. Islanders wear multiple outfits every day – could eBay have allowed items to be reused to confront excessive consumption? Furthermore, selecting items before the Islanders have even been chosen feeds into criticism of contestant control around the show. In sponsoring “the most commercialised show on British television,” eBay run the risk of being associated with the show’s wider problematic image.  

Conclusion 

Ultimately, fashion’s sustainability efforts are confabulated through an amalgam of fast fashion dominance and affordability. Through doubling down on their partnership with Love Island, eBay have advertised the practical uses of their platform exceptionally, as shown by the 20% increase in listings YOY since the initial launch in 2022. eBay have also shown that they are able to respond to specific trends such as Y2K and push the show into representing high-end, better-quality brands. The challenge going forward will be in continuing to leverage the sponsorship to improve perceptions of Love Island as a whole. If they can do so while increasing traffic towards their services, they will cement themselves as practical players in the conversation around fast fashion.  

The post How eBay’s Love Island sponsorship increased engagement by 1400% appeared first on The Sponsor.

Dachshunds are cute. The moving graphic of Vitality's Stanley the Dachshund prancing around the side of a football pitch is hard to ignore. At first glance, this form of fan engagement seems like an effective advertisement, and as advertising goes, it is. However, for sponsors whose strategic goals go beyond pure brand awareness at all costs, the impact of such attention-grabbing promotion could be harmful in the long run.

86% of football fans said moving advertising boards distracted them from watching the game.

Competition for eyeballs is fierce as brands battle it out on the touchline of our screens vying for position. But the more desperate their cries for attention become, the more they serve only to irritate the loyal and passionate fan who, above all else, wishes to consume the content they love, ideally ad-free and without distraction. In a recent survey conducted by The Sponsor, 86% of football fans said moving advertising boards distracted them from watching the game.

Brands like YouTube, Spotify and, more recently, Netflix know this; it’s why they offer a premium ad-free subscription.

For many, brand awareness amongst the target audience remains the first, second and third objective of any sponsorship. However, for those brands willing to work a little harder, an opportunity exists to build deep-rooted long-lasting positive brand associations.

The Goodwood Revival celebrates classic motor racing in period theme attracting 150,000 visitors each year. Alongside the cars racing around the track, fashion parades and air shows is a dedicated car park for pre-1960s vehicles. Many festival attendees visit the area to see the rare and beautiful vehicles. However, the cars parked here were done so in the order they arrived. As a result, many of the most desirable and sought-after were hidden away simply because their owner arrived late.

When the wealth manager, Smith and Williamson, decided to partner with the festival, it would have been easy to simply position some logos and advertisements around the track. However, the company decided to provide a positive contribution to the event by transforming the pre-1960s car park into a competition and show. Their activation involved bringing the rarest and most beautiful vehicle's front and centre to be enjoyed by all visitors. The owners of these expensive cars fitted the sponsor’s target market profile and were subsequently invited to trackside hospitality. The area and competition were renamed the Smith and Williamson Owners Club, resulting in hundreds of new business leads.

This is an excellent example of triple win sponsorship; aligned on brand values, generates brand awareness and contributes positively to the event. Smith and Williamson’s activation improved the event without waiving their logo in people’s faces and as such enhanced their brand perception amongst the target audience. Read more about measuring sponsorship impact on brand and business value.

Of course, creating positive fan engagement with some properties is more straightforward than others. That should not stop marketers from trying. In the case of TV sponsorship, it can be something as simple as an amusing indent. Deep-rooted fan engagement has a far greater impact on our long-term memory. If you need a reminder of why this is so crucial, you may find this article, Have you forgotten about memory, useful.

The critical question sponsors must ask of their partnership is, does our presence improve the fan experience? The answer to that question is either yes or not really. If it's the latter, you are in a one-way relationship and in my experience, they rarely end well.

The post Don’t distract fans, engage them appeared first on The Sponsor.

What’s worse, a chairman who thinks sponsorship is a waste of money or one who wants to sponsor the golf tournament so they can get a good tee off time? I have come across both in my career when seeking to implement strategic sponsorship, and I can tell you that the sceptics are not confined only to the boardroom.

The psychology of persuasion is a subject well researched by academics and professors, so if you fancy some heavy reading on the topic, we recommend the works of Dr Robert Cialdini. For those of you that face the challenge of turning a fierce opponent of your sponsorship from a sceptic into a supporter, we have highlighted eight persuasion techniques to consider before your next meeting.

1 Make it personal

How is this going to benefit me? To gain greater buy-in to a sponsorship strategy from decision-making colleagues, we must address the benefits to the individual we are persuading.

What are their pain points, and how can our proposed sponsorship help alleviate them? If the organisation is struggling with recruitment or stale sales performance, for example, focus your argument on how the sponsorship can be used to attract new talent and motivate the team.

2 Consistency is key

Be clear and consistent in your approach and back it up with evidence. Now is not the time to be flip-flopping between seeking to sponsor football one week and rugby the next.

Repetition builds credibility and confidence in your argument. Persuading stakeholders to change their opinion and provide their seal of approval to a significant investment is rarely something that happens overnight. Sponsorship is a long road, so be prepared to repeatedly state and defend your position.

3 Manage expectations

If you are reading this article, you have likely experienced frustration when persuading internal stakeholders. Taking a shortcut by promising your sponsorship will deliver the world is an easy trap to fall into, especially when you are a passionate advocate for the partnership. However, a failed sponsorship is a sure-fire way to turn a moderate sponsorship sceptic into a die-hard.

Your partnership is not a flash in the pan, so while you may win the battle, you could lose the war. Take the time to discuss and agree on KPIs to be achieved by the end of the campaign. Read our article on what methodology should you use to calculate sponsorship ROI. Once your sponsorship exceeds these, you will have a stronger supporter in the future. If the stakeholders you seek to persuade are finance-minded budget holders, you may find this article on measuring the impact on brand and business value.

4 Listen and learn

Sponsorship stakeholders have skin in the game, and like most of us, they want to know that they have been seen and heard. A good way to pre-empt potential objections is to conduct an internal consultation. By taking a proactive approach, you can identify the sceptics and their concerns earlier and address them rather than having the Chairman raise an objection at the eleventh hour and scupper six months of campaign planning.

Only by genuinely understanding your colleague’s concerns can you effectively alleviate them. Persuasion does not have to be a win-lose scenario; perhaps by listening, you may also learn something that can help alter and improve your existing strategy.

5 Paint a picture

According to Aristotle, persuasion cannot occur in the absence of emotion. Most buying decisions are made because something feels good with the rationale provided later.

When it comes to sponsorship, pictures and computer-generated images of the company logo on the side of a race car look great and help paint a mental picture. To persuade stakeholders, we need them to visualise their involvement in the sponsorship and how it will benefit them.

6 Camaraderie

People buy things from people they like, so building rapport with your stakeholders is crucial. Sponsorship is a journey, and it is one that you will likely be going on with all your stakeholders.

Your positivity and passion for the campaign must always shine through as a leader. Be confident in your approach and allow others to share and contribute. By doing so, you may find a sense of camaraderie develops between you and your stakeholders, and together you can collectively become the sponsorship team.

7 Gather your followers and build momentum

My son is a fantastic negotiator; he is only two years old, but when he wants something, he can rapidly run through a repertoire of behaviours from nagging, screaming, pleading and crying until he finds the one that works.

For the record, I am not suggesting you throw a tantrum in the boardroom until you get the sponsorship you want. However, creating a following of stakeholders who agree with your approach and utilising their different behaviours and relationships to convince the remaining sceptics can be an effective tool if you find your efforts hitting a brick wall.

8 Keep it simple

The final but arguably most important tip is to keep your communication simple. This is who we are sponsoring; this is why we are sponsoring them, and this is what the results will be.

Of course, being the well-researched marketing leader you are, you will have a wealth of data and evidence to support your argument. However, when putting forward an idea to persuade stakeholders, simplicity and clarity of concept are crucial before you can even think about getting into the fun stuff.

The post How to persuade internal stakeholders and turn sceptics into supporters appeared first on The Sponsor.

Sponsorship is exciting, whether it's seeing your brand front and centre of a major sporting event or entertaining guests at a live music festival. One not particularly exciting thing is pouring over clause 13.2, section 3, paragraph 4, of your sponsorship contract.

Getting the most out of a partnership starts by negotiating the best possible agreement for your company. Fortunately, The Sponsor has taken the time to uncover six key points to help you maximise the value of your contract and reduce the risk should things go awry.

1 Agreement Length

For most teams and events, finding new sponsors is hard. You may initially be wary when your partner tries to sign your organisation up for a longer-term deal. However, if you are at the point of negotiating contracts, we can assume the research and due diligence conducted of the team or event you intended to sponsor is thorough. If so, consider the opportunity to reduce your investment cost by making a longer-term commitment. Turning a three-year deal into a four or five-year partnership can reduce the annual cost of sponsorship by as much as 25%, providing a valuable boost to your activation budget.

2 Break Clauses

For even the most well-researched new partnership, there remains an element of risk. This is particularly true when sponsoring sports teams that can suffer a decline in media coverage and attendance due to relegation or failure to qualify. You will no doubt have set minimum KPIs to measure the performance of your partnership over time, so why not consider de-risking your investment by inserting break clauses should the most basic of these KPIs not be met?

3 Staggered Funding

Another essential factor to consider introducing to your sponsorship contract is staggered or performance-related funding. Like a break clause, performance funding allows sponsors to pay a lower initial cost with additional instalments should certain KPIs be met. Typically, these arrangements work well when partnering with teams or athletes competing in a knockout competition. If the partner is eliminated in the first round, the sponsorship cost you pay reflects the awareness you received. Similarly, if the team makes it to the final, be prepared to pay a higher sponsorship fee with add-ons for the brand awareness generated.

4 Exclusivity

Avoid the possibility of your sponsorship being diluted by your partner bringing in competitors. Which brands are and are not competitors of your business is a grey area, and your sponsorship partner will be keen to keep it as murky grey as possible. Define the brands you consider falling into this category by their services or by providing a blocklist of names. To further reduce the risk of competitors piggybacking on your investment, consider extending the exclusivity period after the expiration of your agreement if possible.

5 Intangible Assets

Brand logos and marks have many uses in your sponsorship activation. Be sure to know precisely what is and is not covered under your agreement and, where possible, maximise the scope of marks available to use in your campaign. Similarly, ensuring complete protection of your marks by setting strict brand guidelines covering how and where your logo can be displayed at various touchpoints is essential to maximising your partnership’s visual identity.

6 Termination

The clause you hope you will never need; termination is your emergency exit from a partnership that negatively impacts your brand. From Tiger Woods to the more recent racism scandal involving racism at Yorkshire Cricket Club, partnerships can sometimes backfire, resulting in a PR crisis; see our articles What to do when your sponsorship backfires and The brand ambassador checklist.

Should unforeseen circumstances happen, your sponsorship contract must have the option to sever all ties with your partner immediately. Seek to make your termination conditions as broad as possible, and always keep in mind the Charles Stross quote, “if my business partner was possessed by a brain-eating monster from beyond spacetime tomorrow, what is the worst thing they could do to me?”

The post Sponsorship contracts, beware the fine print appeared first on The Sponsor.