Both comments above hold much merit and indeed are true and I would just like to add a few pointers to bear in mind:
a) In a country that has been ruled by the sports arena for many decades - the shift from sponsoring sports to for example, live entertainment, is in fact an educational process - required to both the property owners side, as well as the brand managers side. No-one can just expect decades of proven success stories to be pushed to the curb and now invested in other arena's. Naturally our agency firmly believes that many brands will get a higher return on their investment sponsoring other arena's, as we only focus on these area's outside sport. However, in order for us to be successful, we need to take a step back and firstly educate the property owners what would be required from a sponsoring brand and secondly, we need to then educate the desired brands on the benefits of shifting their strategy and why. If a brand has never sponsored a particular arena before, you need to sell the concept prior to asking for a cheque.
b) The evident visability of brands backing sports is naturally due to the budgets backing the leveraging campaigns and this is always in ratio to the initial investment of the sponsorship. Since sports has always required a much larger investment than other arena's, more has been invested in leveraging. When other aren's such as arts & culture realise the vast amounts that are invested in sports, they will get more back bone to ask for the desired sponsorship instead of just being grateful for the trimmings at the bottom of the kitty. We can already see this shift with some of the live entertainment events we represent. With our backing of suggested leveraging campaigns & increased sponsorship investment into these arena's, the leveraging will eventually become more visable.
Having worked with property owners in both the sports environment and the arts / culture environment, it is safe to say that arts, culture and enviromental sponsorships are not managed as effectively as the sport sponsorship properties. This stems from a lack of exeperience and knowledge amongst this fraternity and attitudes need to change towards those sponsorsing the arts and culture to ensure their sustained involvement. Ego's also seem to play a significant role in the effectiveness and success of a arts and culture sponsorship.
Darren - 100% correct! That's exactly what I was referring to when I said it's an educational process - on both sides. Sports sponsorship has been revised & redefined so many times due to its experience and run in the game that the strategy from conception through to leverage is now a ticking clock with a cogs in place. But in the beginning, their was trial & error and I think the arts & culture arena has just passed that early stage of trial & error and now knows what it needs in order to supply a brand with the elements of a successful sponsorship. With agencies investing time in the property owners plus looking after the investment of their client, the sponsoring brand, until the very end, there is no reason for the investment to become risky along the way.
Agreed. I also believe there needs to be increased understanding of the business of being an artist. In Arts & Culture, there tends to be focus on the art forms and not on what sponsors look for.
Sell the sponsorship you sell the investor by Alison
All be it preaching to the converted, sponsorship is a fantastic marketing tool, in whatever arena, but it is a business tool - not a charity decision. There are unbelievable properties out there. But not all are packaged correctly, and are not always clear in showing the investor what potential returns are available to them.
Whilst a lot of funds may be poured into sport – the packages are more than likely compact and deliver on all fronts of the marketing spend. Yes a lot of people in South Africa follow sport – hence thee return is more than likely present – that’s why sponsoring companies pour money in year after year. But not all sport sponsorship is expensive – it depends how it is packaged, and how well it is leveraged.
Sectors of the entertainment industry also receive vast amounts of sponsorship funding too. All are no doubt worthy deals – but if the properties don’t sell themselves, if they don’t push and market their own brand, and don’t present a sponsorship package with a competitive return, they simply wont catch the investor.
Paradigm shift - I agree that education is required on both fronts – the sponsor and the property owners themselves. But sponsorship doest operate in a vacuum.
Sponsorship will compete with marketing budgets on all fronts across the marketing realm as most marketing tools are used to leverage the association. The creative use of all possible elements in the marketing spectrum from PR, Promotions, Hospitality, Branding, On site sampling/research – bottom line – sponsors need to find the appropriate tools to push the sponsoring brand to top of mind, and by harnessing all elements to effect his, they can streamline the actual spend and make it work for them.
Property owners need to put together a package that contains REAL value, one that will outshine other budget feeders. A package that will show a fantastic return to the investor – that other marketing budget lines may not. Sponsorship usually competes for a large slice of marketing funds, as many elements within marketing budgets are affected.
Sponsors also need to leverage effectively. Sponsors should research the property on all fronts, including the measurement of the potential return against other marketing mediums available to them. It takes time to build a brand, let alone the brand association, and therefore sponsors should not make the sponsorship a one- time event decision either.
I wish more people would make use of this fantastic tool of sponsorhsip.
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Have you forgotten how much they plough into the arts each year....?