| Part I: Understanding the Basics of Sponsorships | | | | Remember, there are billions spent annually on event |
| Sponsorships, as defined by IEG, the global authority | | | | sponsorships, so there is never a bad time to solicit |
| on sponsorship, are cash or in-kind fees paid to a | | | | sponsors. Your challenge is applying these statistics |
| property, such as a sports, entertainment or | | | | and tactics to create unmatched value for companies. |
| non-profit event, in return for access to the | | | | Part II: Determining and Selling Sponsorship Value |
| exploitable commercial potential associated with that | | | | BUILD THE PROPERTY |
| property. According to IEG, sports events hold the | | | | The value of sponsorships is often compared to the |
| largest market share of sponsorship dollars, with an | | | | value of traditional media buys, such as a print |
| astounding 66%. The runner-up in acquiring | | | | advertisement or commercial. To build the value of |
| sponsorship dollars is entertainment and attractions, | | | | your property (your race) you must first take |
| with only 11% market share. | | | | inventory. Examine the "Four P's", or the different |
| SPONSORSHIP TYPES | | | | categories of assets: |
| Soft Sponsorships: "Relationship-based" | | | | 1. Participants. Can you attract more participants or |
| Media partners: | | | | are you limited by space or other requirements? |
| - Generate free editorial coverage or advertisements | | | | 2. Promotions. How will your event be promoted? |
| in exchange for media materials inserted into event | | | | What type of collateral will you be producing? Will |
| booklets/packets | | | | you have a Website? |
| - Offer free participation in the race for news | | | | 3. Partners. Will you partner with local sports clubs for |
| anchors/journalists in exchange for live news | | | | peer-to-peer marketing? Is your charitable beneficiary |
| segment | | | | highly desirable? |
| - Elevate exposure of the event with credible | | | | 4. Parameters. What limits will you put on the event |
| partners | | | | sponsorships? What's negotiable and what's not? |
| Major retailer/drug store chain | | | | What are the possibilities for sponsors? |
| - Create credibility for your event by involving a | | | | DETERMINE YOUR VALUE |
| major brand | | | | Sell value, not costs. Focusing on costs hinders the |
| - Create more distribution points for materials | | | | actual revenue potential of your event. Think like a |
| - Leverage relationships with retailers to bring in | | | | marketer, know your assets, and be prepared to |
| major brands as vendors | | | | explain how your sponsorship offering will help the |
| Local car dealership | | | | company achieve its goals. |
| - Garner access to courtesy vehicles | | | | Concrete Assets |
| - Offer sponsored prizes/drawings | | | | - Media Value: placements, coverage, on-site |
| - Cost-Reducing Sponsorships | | | | impressions, collateral, Website |
| Barter partner | | | | - On-site Activities: sampling, one-to-one marketing, |
| - Alleviate a traditional expense, such as food, | | | | VIP entertainment, expo booths |
| beverage, or even legal advice in exchange for | | | | - Lead Generation: mail and email lists, promotional |
| sponsorship exposure | | | | opt-ins |
| Municipality or Community Association | | | | Intangible Assets |
| - Access discounted rates traditionally given to | | | | - Desirability & Prestige: event recognition, popularity |
| non-profit or government organisations | | | | in market, exclusivity, market impact, growth |
| Cash Sponsorships | | | | opportunities |
| Traditional sponsorships, such as a title sponsor | | | | - Comparables: other events, media in market, |
| - Cover expenses | | | | standard advertising costs |
| - Increase exposure of both the sponsor and your | | | | - Activation Opportunities: retail tie-ins, sales |
| event | | | | promotions, hospitality discounts |
| - Create event credibility | | | | SPONSORSHIP PROPOSITION |
| - Customise offerings - packages rarely succeed | | | | Guidelines, Not Packages: have a plan for relative |
| - Note: cash sponsorships tend to require a longer | | | | benefits and number of sponsors, but focus on the |
| sales cycle (at least six months) because actual | | | | consultative process (after all, who really wants to be |
| budgets are involved | | | | known as "bronze"?) Asset Allocation: title sponsors, |
| SPONSORSHIP STATISTICS | | | | major sponsors, suppliers, expo exhibitors, etc. |
| According to recent IEG studies, there are a number | | | | SPONSORSHIP TARGETS |
| of reasons why companies sponsor, as well as | | | | Do your homework: local sponsors, competitors of |
| number of benefits they expect as a result of their | | | | local sponsors, national companies with local interests, |
| sponsorship. | | | | local advertisers Network: talk up your event, seek |
| Why do companies sponsor? | | | | referrals, attend other events, join associations and |
| - To increase brand loyalty | | | | trade groups |
| - Create awareness/visibility | | | | SALES APPROACH |
| - Change/reinforce image | | | | Be a problem-solver and know that your property will |
| - Drive retailer/dealer traffic | | | | deliver tangible benefits to your sponsors. Be upbeat, |
| - Stimulate sales/trials/usage | | | | confident and process-driven. Believe in what you're |
| - Community/corporate responsibility | | | | selling. |
| - Platform for experiential branding | | | | Evaluate all of the benefits of your property, put |
| - Sample/display products/services | | | | together a game plan, network and start selling. For |
| What do sponsors want and expect from events? | | | | cash sponsorships, start reaching out to companies at |
| - Category exclusivity | | | | least six months in advance. And remember, don't sell |
| - Onsite signage | | | | sponsorship packages. Rather, understand what |
| - ID in property's media buy | | | | certain companies need and want, then create a |
| - Access to mailing list/database | | | | customised solution that benefits the sponsor, your |
| - Broadcast ad opportunities | | | | event and your participants. Project and anticipate |
| - ID in property collateral | | | | what's in it for the sponsoring company before |
| - Presence on property's Website | | | | making the sale; then follow through to ensure the |
| - Participation in retailer promotion | | | | company sees the benefits. |
| - Ad in program book | | | | |