Overview: Sponsorship What & Why
Remember: Sponsorship Success Requires TEAMWORK
Updated Friday 3 April 2021 by Jack Griffin
Lessons in This Module and How They Will Help You
Sponsorship Overview & Introduction
More than any other marketing tool, sponsorship builds on emotions. From the IOC's multi-billion dollar TOP sponsorship to sponsoring a youth sports team activate on emotions.
Learn the lingo. Learn about deal structures, participation sports, ambushes, how to measure results, and much more.
Sponsorship in the Marketing Mix
Traditional definitions: "Above the line" marketing (ATL) - advertising. "Below the line" - everything else (BTL). Sponsorship can be one of the most cost-effective programs in a company's marketing mix.
You'll learn how to leverage all ATL and BTL components of the marketing budget with smart sponsorship activation.
Rights holders - pay attention here! Understanding this will help you sell your sponsorship and then make it successful!
Activation Activation Activation
Sponsors should budget at least 1x the amount of the sponsorship fee for activation. 2-3x is not uncommon. Learn to leverage all marketing spending with smart activation.
Rights holders: you want to help with activation so 1) your sponsors are successful and 2) because their activation helps your brand.
Five Sponsorship Return Generators
Many discussions of sponsorship return focus on reach and eyeballs. That's OK for big budget TV sports and their sponsors. Go far beyond "media value" generated (which is very debatable anyway).
Hospitality and licensing are important return generators. And the biggest wins may lie in audience (or, better yet, tribal) engagement and in the broad, broad opportunities in association rights.
Sports Entertainment Revenue Models
"Show me the money!" Sure thing. But where does it come from? The Olympics generate 75% of revenue from TV rights. Pro cycling teams get almost no TV money (the event owner keeps the lion's share) and rely on sponsorship for 95% of their revenue. F1 can demand big venue fees. Stadium sports have ticket sales. Not many people buy a ticket to watch the Tour de France or sailing's America's Cup.
You'll learn to think about where the money comes from in your sport and creative ways to generate more. Merchandise, food and beverage sales, licensing fees... What can work for you?
21st Century Sponsorship
Direct to consumer video like Netflix and OTT (over the top) TV like DAZN (struggling during the Covid19 pandemic)are changing viewing habits and eroding linear broadcast TV. Everyone talks about social media, but most are digital sharecroppers building audience for Twitter, Instagram and Facebook.
Learn how to convert followers, likes and shares into your own identified tribe and generate sponsorship value and incremental revenue.
When Things Go Wrong
It could be losing the championship match or having a long losing streak. It could be a cheating or drug scandal. It could be worse - serious injury or even death. Things can go wrong. Learn how to be ready. Learn what to do and what absolutely not to do.
Comments? Questions? Suggestions?
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Just carry on with the course!