Sponsorship marketing is when a business provides financial support and promotional efforts for an event, organization, or effort led by another party in exchange for advertising and brand awareness.
Sponsorship vs Partnership
Simply put, sponsorship is a marketing channel where a sponsor funds a third-party event or organization, and a partnership is a joint effort in which both parties are equal business parties with a common goal. In a sponsorship marketing arrangement, the sponsor provides financial consideration toward the success of an event but does not directly profit or benefit from the event. The focus is on the third-party company, event, or organization, with indirect benefits from brand awareness and advertising. In a partnership, both parties have a vested interest in a promotion or event toward a mutually beneficial goal, and both may profit or receive other benefits from the success of the initiative.
Event Sponsorship Marketing
Sponsorship marketing is typically discussed in reference to events, as it’s often the financial model for sports events, conferences, and festivals. A prime example is a corporate sponsorship of sports events, such as advertisements on a football field, or on a smaller scale with local businesses sponsoring a Little League team.
Sponsorships are also common in non-profit and charity settings with a for-profit business advertising at an event or placing their branding on associated materials to align with social missions. An example is a business paying to advertise at an animal adoption event, or a food drive.
Sponsorship in Influencer Marketing
Sponsorship marketing has surged in popularity with influencer marketing with companies sponsoring blog posts, YouTube videos, Instagram posts, and TikTok posts every day. Businesses of all sizes and in every niche can capitalize on this marketing opportunity. Think kitchen appliance brands sponsoring food bloggers, makeup brands sponsoring beauty gurus, and fintech companies sponsoring finance YouTubers.
Is sponsorship marketing right for your brand?
Sponsorship marketing can be an excellent marketing channel for any business, especially with the rise of sponsors in digital and influencer marketing. Small businesses may want to look for event opportunities in their local community, while digital businesses or content creators may want to be the ones to be sponsored!
Each business is unique! Let us help you find the marketing plan that’s right for you and your business.