Myths about sponsorship that must be dispelled
In this article, we’re not going to discover America, talk about the advantages and disadvantages of sponsorship, compare it to direct advertising or PR, or tell you its history, especially since you can easily find all that in any standard sponsorship study. Today we are going to tell you some of the most common misconceptions that we have seen in our many years in the sponsorship business.
Despite the fact that sponsorship in the modern sense of the word has existed for over half a century, still many companies, like the ancient alchemists, spend huge sums on various researches, trying to find a universal means of absolute success. So, for example, there is a popular belief that in order to activate a sponsorship project, investors must necessarily spend an amount three times the size of the sponsorship fee.
Do not be influenced by such pseudoscientific predictions. There is no one magic formula for all projects. The cost of activation can never be the same. Their size depends primarily on such dominant factors as the type of project and the goal of the sponsor. The Olympics, for example, will require a much larger investment than a 3-to-1, while a festival sponsorship, on the other hand, is usually much less expensive.
Absolutely not true. Art may be less noisy and less expensive, but that doesn’t make it any less effective.
It would seem that we don’t need to convince anyone that sponsorship is a perpetual field of experimentation, that no two sponsorships are the same, and yet there are many who still believe that caution and stability are the key to success in any event.
Some of the things that at first glance look and sound good are often incredibly boring and unappealing in practice.
Too many companies nowadays treat corporate actions as an empty formality, acting on the principle of “We’ve fulfilled our obligations.” Commitment doesn’t interest anyone. Sponsors need to change this attitude and move from the past to projects that excite curiosity, the kind that no one has done before. They need to perform creative pirouettes that everyone will notice.
A sponsor’s most valuable assets are those that allow their trademark, product or name to be associated directly with the level of quality and authenticity of the sponsored project. People necessarily want something that speaks to them in their language, rather than being the product of a focus group study. In short, if you want to make an impact on your consumer, set aside the stamped standards, be willing to experiment boldly and interestingly, and your efforts are sure to get noticed.
The problem of the effectiveness of sponsorships is one of the most controversial and pressing issues in the sponsorship industry. To our great surprise, there are many who categorically state: “It’s impossible to measure the effectiveness of sponsorships.
In fact, you can. You can measure changes in consumer attitudes and perceptions. You can measure retailer interest levels. It’s also very realistic to gauge the usage or purchase of a sponsored product or service by the intended audience of a sponsored project in comparison to the general population. You are also able to determine the number of transactions with your new partners that were made possible by your sponsorship activities.
There is the other extreme: Some companies believe that it is already sufficient for the success of a sponsorship action if it requires less material cost than buying a similar amount of direct advertising in the media. Evaluating sponsorships by this criterion alone is completely wrong. First of all, you are not taking into account all the possibilities that do not relate to the media. Second, why measure sponsorship in advertising units (cost per thousand impressions) when that kind of evaluation cannot provide the insight you really need to know.
Does sponsorship make a meaningful difference? Does it have an impact on people’s willingness to buy? Do sponsorships attract retailers and distributors? Ultimately, sponsorships should be measured in units of return on investment, not in units of the cost of placing an ad for thousands of people.
A major reason many sponsorships fail is that investors, for a variety of reasons, mistakenly believe that sponsorships are a separate business. No, no, and no.
Sponsorships are not just about putting a logo on a poster, a car or a tennis shirt. Sponsorship is a deliberate strategy. Therefore, it should be treated as the ultimate in local marketing, consumer programs and sales operations. They say that in order for the wheel to go the right way, it must be properly driven from its center.
So, treat sponsorships and their programs as the center pivot of your wheel.