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Sponsorship Strategies that Brands can Leverage

The vast choice of sponsorships can by tempting for any company, especially if you assess each one in a vacuum. It’s easy for a sponsor to feel like a kid in a candy shop when so many options abound, but the wrong choice can lead to a scattered portfolio. Such an approach can sometimes yield positive results for a sponsor, but a well-structured selection can enhance your performance tenfold. Here we’ve broken down the strategies successfully leveraged by major brands, and drawn a few important conclusions. Here are six sponsorship strategies worth taking note of:

1. Vertical integration

Common in the sporting world, a vertical strategy is used to associate a brand with a specific market. For example, if a company sponsors a professional team within a given sport, it will also partner with a variety of amateur and recreational teams and leagues, or it will sponsor various elements associated with the professional team, such as the league, the stadium, the team and the athletes.

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Leveraging Sponsorship: The Activation Ratio

Abstract

The accelerated growth of sponsorship has brought increased attention and scrutiny to this relatively new area of marketing and communications strategy. In turn, researchers have focused on defining, understanding and measuring the various aspects of sponsorship. However, detailed research related to the ‘how’ of sponsorship implementation remains limited. A key aspect of implementation is known as activation, which refers to the investment by the sponsor above and beyond the fee required to acquire the official rights to that sponsorship. Activation is normally referred to as a ratio of the additional investment to the cost of the rights fees. Previous studies have offered recommended activation ratios ranging from 1:1 to as high as 8:1 in order to fully reap the rewards of sponsorship. This research seeks to enhance our understanding of sponsorship activation via an in-depth case study, a typical method for exploratory research of this nature. Specifically, we ask (i) what drives activation, (ii) what are the best methods of activation, and (iii) how much...

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