Corporate sponsorships aren’t only limited to behemoth corporations and major league sports events by any means. In fact, sponsorship can be a viable way for any company – even at the regional or local level – to market and advertise its products and services.

Is traditional advertising giving you the return on investment you want? No? Well then you might want to think about diverting some of those precious ad dollars to a corporate sponsorship. 
Think sponsorships aren’t for you? Consider this: In 1992, York International Corp. (a maker of air conditioning and refrigeration equipment) generated over $20 million in sales from a $1 million sponsorship of the Winter Olympics. 

We’d call that a pretty good ROI.  And if you think that was a one-time fluke, how about sneaker-maker Vans, which quadrupled its sales in just eight months after it started sponsoring skateboarding, snowboarding and wakeboarding events. 

It’s numbers like these that are making sponsorship the world’s fastest-growing form of marketing. In 1999 alone, corporations worldwide spent an estimated $22 billion sponsoring sports, arts, entertainment, causes and events, according to the IEG Sponsorship Report. And perhaps not so coincidentally, promotional products are generally part of the sponsorship package.

Good Corporate Citizenship

There are many reasons for companies to get involved with a sponsorship. If nothing else, being a sponsor of an event is a public sign of good corporate citizenship. It’s largely thanks to sponsors that youth sport leagues get uniforms, art festivals come to town, charitable events get recognition, walkathons raise money for medical research, and so on.

As the facts noted above indicate, it’s not just community, organizations and events that benefit from sponsorships. Sponsoring companies reap the rewards too. Many times, consumers are more apt to buy the products and services of sponsor companies because they want to align themselves with organizations that demonstrate their concern for worthy causes. And there’s the added advantage that companies can often claim a tax deduction for philanthropic activities. After all, business is business.

Of course, there’s nothing wrong with using a sponsorship solely to increase a firm’s market exposure and sales within a specific area or to a particular consumer group. In this light, sponsorships are really just another form of marketing and advertising. But don’t take our word for it. David Brenner, a counselor specializing in sports and entertainment marketing, notes that “Sponsorship is becoming a much bigger part of the advertising and marketing equation for many companies out there.”

And The Sponsorship Goes To ...

So you want to pursue a sponsorship. What’s the next step? In a word: research. Your initial research might begin on the Internet by going to IEG’s Web site (www.sponsorship.com), where you’ll find pertinent sponsorship information, discussion groups and forums, a glossary of terms, sponsorship links and information on upcoming conferences. You might also try using a search engine to find organizations in search of sponsors. 

Also check with your local chamber of commerce and Rotary clubs to find groups that might be seeking a sponsor. However, if you desire a relationship with a larger organization, such as a college or professional sports team, go directly to the source.

After you gather a list of potential opportunities, decide which one you’d like your firm to be associated with. Be forewarned, though: Selecting the most popular event or cheapest sponsorship available may not be in your company’s best interest. Find a good fit between an event or organization and the products and services your company offers. 

Lots of times, common sense is all that’s required when choosing a sponsorship. For example, a tobacco company or liquor firm probably wouldn’t be a good choice to sponsor a children’s music festival, but these kinds of firms might be an absolutely perfect fit with a jazz, blues or rock festival.

What common sense won’t help you do, however, is narrow down the remaining range of sponsorship opportunities. Categories include sports, arts, festivals, music, cause-related and cultural events. Each appeals to a wide array of people who may or may not frequent other events in other categories. Can you reach them all at once? No way. It’s generally best to stick with one organization or one event.

Many times, the longer you sponsor the same event or charity, the more ingrained your involvement becomes in the public’s mind. As with the Ronald McDonald House, for instance, your company could conceivably become synonymous with a cause, celebration or annual event. 

Considerations And Criteria

Here are some criteria to consider that may help you select a “good-fit” sponsorship for your company:

1. Do the participants represent your target market? If you’re looking to target a specific ethnic group, seek out events that have meaning to its culture. If your products and services are age- or gender-oriented, do likewise. For instance, a new line of haircare products that appeals to younger people might sponsor Students Against Drunk Driving events or outreach programs.

2. Do the participants regularly buy your type of products and services? Athletic apparel manufacturers often sponsor 10K runs and other fitness-related events. Businesses such as dry cleaners and service stations frequently sponsor little league and high-school sports teams and/or adult bowling leagues in an effort to reach out to customers in their local market.

3. Is the event located in an area where you want to increase or maintain sales? If you want to bump up your sales in Detroit, for example, you’re not going to sponsor an event in Lansing. If your reach is in fact more national, then events with high visibility and larger scope would make more sense.

What Will It Cost?

Small organizations like the Roslyn Boys and Girls Club in suburban Philadelphia charge $125 for sponsorships of its soccer and baseball leagues. Sponsors get their names placed on the back of team jerseys and a plaque of appreciation to hang on their wall. 

On a larger scale, a title sponsorship of a national event like a college football bowl game can cost upwards of $1 million. However, the sponsor’s name becomes a key part of the event; consider the FedEx Orange Bowl, Tostitos Fiesta Bowl and Southwestern Bell Cotton Bowl – complete with logos on the 50-yard-line.

Today, sports arenas have sponsors for practically everything. At the First Union Center in Philadelphia, for example, “fanavision” replays are sponsored by local radio stations and cable companies, and PECO Energy sponsors the Philadelphia Flyers’ “power plays.”

There may be other opportunities and costs associated with a sponsorship. For example, if you participate in trade shows, ask about sponsoring the exhibitors’ lounge or an educational event. This can give you a chance to showcase your company literature – and have specially chosen imprinted products for visitors to take with them.

Some Are Fan-tastic

Right now, the biggest area of sponsorships is within sporting events. Sports take in 68% of all sponsorship dollars, and more and more companies are looking to get on board. “Chick-Fil-A spent about a half-million dollars upfront just to say it’s the Chick-Fil-A Peach Bowl,” says Glen Colton, a promotional consultant with experience in sports merchandising. The exposure the company received, he notes, was tremendous. Every mention – from the pre-game hype to the telecast to post-game media coverage – included Chick-Fil-A’s name. 

Not only that, but a special bowl logo, incorporating the Chic-Fil-A name, was created. It appeared not only at mid-field, but also on a commemorative patch on each player’s jersey. Merchandising prior to the game and during the event is also part of the hoopla. 

NASCAR is another example of merchandising gone wild. Look no further than the decals and logos of the various firms that adorn everything from the tracks to the cars to the drivers’ and pit crews’ uniforms. NASCAR fans have deep pockets and are extremely brand loyal, so it’s truly a winning situation for everyone involved. 

“Today, it seems like every single Fortune 500 company that we work with has some involvement in the racing business,” says Stephen Paradiso, a New England counselor. “They’re finding it more effective than other sports because they get to put their name right on the racing product.”

NASCAR has done wonders for other types of activities riding its coattails. “The popularity of NASCAR is allowing other motorsports to come in, and that means more opportunity for sponsorships and partnerships,” says counselor Allison Magoon.

The IEG Sponsorship Report found that spectators at sporting events are predisposed to liking a sponsor. A survey revealed they 44% felt positive toward a sponsor, while only 3% had negative feelings.

Long Way From Little Mentions

In the past, when you sponsored an event you took out a small ad in an event program. That just doesn’t cut it anymore – not with the abundance of ad messages vying for peoples’ attention these days. The feeling is that if you’re spending the money to sponsor an event or organization, you should promote your involvement as well. “Corporate America has finally and truly realized that sponsorship today is no longer about just writing a big check and boom! – you’re a sponsor and you’re done,” Colton says. “You’ve got to go out and support that effort. Use special letterhead and imprinted products to promote your sponsorship to your customers and vendors.”

Brenner agrees: “Just to advertise on a sign or have a program ad isn’t going to [work]. If you’re going to effectively maximize the sponsorship opportunity, it’s going to include some type of promotional usage outside of the venue.”

Get the word out about your sponsorship through signage, in-store displays, P.O.P, pre-event marketing opportunities, hospitality suites, invitations, merchandise tents, etc. Promotional products run the gamut from balloons to bumper stickers to bean-bag animals to sports bottles. Logoed wearables are also a popular choice.

Entire sponsorships can be centered on promotional products. Dunkin’ Donuts, for example, ran a promotion in Detroit offering people the chance to buy coffee in a Detroit Red Wings-logoed mug. “They were able to increase their coffee sales and traffic because of that,” Brenner says. 

Some groups depend on sponsorship money for survival, while others appreciate and use product donations. Many times, you can place your firm’s logo on the products. Recently, an association raised money and donated 500 bean-bag bears to a local charity that assists families in crisis. The bears will be used to comfort traumatized children. Close communication with the organization you’ve chosen to sponsor will help determine the best type of sponsorship support you can offer.

Taking Action

Sound interesting? Here are some things to keep in mind as you proceed:

Joe Haley is managing editor of Imprint.