14.03 – Supporting Third-Party Events
Sponsoring a special event is a fantastic way to create face-to-face marketing opportunities without bearing all the liability. It’s like piggybacking on others’ investments and efforts, gaining visibility without the responsibility and costs. Choose events that cater to your customer groups and are well-publicised.
Maximising Sponsorship Opportunities
Sports events get the biggest share of sponsorship spending (about 70 percent), but there are plenty of other options, including entertainment, tours, local attractions, festivals, fairs, and art shows. Ask your customers to help guide your choices. A one-question poll on your website or at your cash register can be effective. If you run a local business, ask customers whether they plan to attend any specific events you’re considering.
Clear Agreements for Sponsorships
Ensure you get a clear, detailed written agreement about where, how, and how often the event will identify your brand. That identification is the return on your sponsorship investment.
Getting Behind Cause-Related Campaigns and Events
Standing for something meaningful is crucial for businesses today. A majority of consumers seek to align with brands that engage in responsible social and environmental causes. Research shows that consumers are much more likely to support companies that promote a purpose greater than profits.
Hosting or sponsoring cause-related events will position your brand as one that stands for more than just profits. For example, American Express’s Charge Against Hunger campaign in the early 1990s raised more than $21 million and benefited over 600 anti-hunger groups throughout the United States. This campaign not only helped launch cause-related marketing but also improved American Express’s relationships with its restaurant customers.
To identify events that align with your brand and values, decide what societal needs matter most to you and your team. Which causes are your customers likely to support? Do you operate in an area with a high population of at-risk youth or homelessness? Do you have a personal connection to a specific cause?
Sponsoring Fundraising Events
Sponsoring existing fundraising events for a charity can attract positive attention from the media and community. You’ll generate valuable goodwill, especially if the cause and event are relevant to your target market, without the burden of planning and execution.
However, ensure that the charity is well-run and transparent. Examine its books and tax-exempt status before sponsoring it or running an event to benefit it. In the United States, for example, the charity should be a 501(c)(3) corporation, and its audited financial statements should show relatively low overhead and moderate executive salaries.
Finding a Good Fit
Finding an event or cause that fits your organisation’s purpose and business offering is essential. The following sources can help you discover suitable events in your market area:
- IEG (International Events Group): IEG publishes a list of special event options, including large-scale events.
- Local Chambers of Commerce: Chambers of commerce offer lists of local events and insights on what to expect.
- Category and Cause-Aligned Organisations: Certain groups may know about or put on special events appropriate for your sponsorship. For example, if you market sports equipment, contact local YMCAs or recreation centres.
- Schools and Colleges: Educational institutions often have strong community support and broader reach through alumni, sports teams, and prominent faculty.
- Online Sources: Websites like Eventcrazy can help locate sponsorship matches.
- Local Television Stations: Contact local television stations to ask about the events they plan to cover in the coming year.
Evaluating Sponsorship Value
An event sponsorship needs to deliver reach at a reasonable cost. Estimate the number of people who will attend the event or be exposed to your brand name. Determine what percentage of this total is likely to be in your target market. This figure represents your reach. Divide your cost by this figure, multiply it by 1,000, and you get the cost of generating 1,000 impressions. Compare this cost with figures for other types of reach, such as print or radio ads.
Going Beyond Direct Relevance
Sometimes, supporting community-based causes, even if they’re not directly relevant to your business, can be beneficial. For example, an area savings and loan institution might sponsor a youth soccer team, contribute to a homeless shelter campaign, and help fund local land conservation efforts purely because these are good local causes.
Doing Good for the Sake of Good
You don’t always need a business reason to sponsor an event. Doing good for the sake of doing good is enough. Investing in charities and causes often brings returns in ways that can’t always be measured on a spreadsheet.
