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Blogvent Day 21 - The 21st Century Sponsorship Model

Business | Sponsorship

ROI is a priority of the past when it comes to sponsorship in sports and other areas.

Sure, brands still need to justify the budgetary expenditure but in the 21st Century the measure of a sponsorship’s success comes equally from return on objectives as much as the outright investment returns.

It is one of a number of evolutionary developments in sponsorship over the last few years but it is the one that has become critical in bringing together brands and properties. Not only is this new mindset essential when setting expectations and objectives with all stakeholders up front during initial discussions but it’s just as important when planning for activation in all forms.

The economic downturn forced companies to curb their marketing spend at the end of the last decade but just because the financial pressures are easing does not mean boards are willing to dip freely into the money pots. Both the initial business case and the ongoing justification of sponsorship need to consider and address a range of corporate objectives that drive sales, marketing and broader business goals. We summarise these under three key banners of revenues, relationships and reputation which together encapsulate the key motives for businesses to embrace sponsorship.

Sponsorship has taken quite a beating as a result of the downturn but there are many powerful opportunities out there to be taken, assuming the foundations are in place. From an appreciation of corporate objectives through attribute matching to multi-facetted activation deliverables, sponsorship has had to find a relevancy that perhaps wasn’t a key factor previously. If it doesn’t help drive revenues and relationships and brand reputation in whichever appropriate combination, it is going to get short shrift from the powers that be on the Board.

The 21st Century Sponsorship Model is still evolving as sponsorship continues to enhance its relevance and position within the marketing mix. There will be further developments as this decade unfolds, but one thing is for sure – sponsorship is still alive and kicking and has, if anything, become an even more powerful option within the toolbox of astute, sector leading marketing teams.

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