Why Brands Invest in Sponsorship
Sponsorship offers something advertising can't: authentic emotional connection. When your brand associates with something fans love—their team, their favorite event, their sports hero—you borrow that passion and loyalty.
Sponsorship vs. Advertising
Traditional Advertising
- • Interruptive by nature
- • One-way communication
- • Easily skipped/blocked
- • Declining trust levels
Sponsorship
- • Integrated into the experience
- • Creates shared moments
- • Builds emotional connection
- • Transfers passion and trust
Setting Sponsorship Objectives
Different objectives require different properties, assets, and measurement approaches.
Brand Awareness
Increase visibility and recognition among target audiences through association with popular properties.
Key Metrics
Best Properties
High-reach properties with broad audience appeal
Brand Positioning
Shift brand perception or reinforce specific attributes through strategic property association.
Key Metrics
Best Properties
Properties with strong, aligned brand values
Customer Acquisition
Drive new customer signups, leads, or first purchases through sponsorship activation.
Key Metrics
Best Properties
Properties with engaged, action-oriented audiences
Customer Retention
Strengthen relationships with existing customers through exclusive experiences and access.
Key Metrics
Best Properties
Properties offering premium hospitality and access
B2B Relationships
Build and strengthen business relationships through hospitality and networking opportunities.
Key Metrics
Best Properties
Properties with executive hospitality assets
Selecting the Right Properties
Use this weighted scorecard to evaluate potential sponsorship opportunities.
Audience Fit
30%Brand Alignment
25%Asset Quality
20%Value & ROI
15%Operational Fit
10%Portfolio Approach to Sponsorship
Don't put all your eggs in one basket. Build a diversified sponsorship portfolio.
Anchor Properties
Major partnerships with high visibility and comprehensive asset packages.
Examples: League partnerships, major team deals, flagship events
Strategic Tier
Targeted partnerships that reach specific segments or geographies.
Examples: Regional teams, category events, niche sports
Opportunistic
Flexible budget for emerging opportunities and quick activations.
Examples: Emerging properties, cultural moments, athlete deals
Negotiating from Strength
Ensure your contracts protect your interests and set the partnership up for success.
Rights & Exclusivity
Assets & Deliverables
Terms & Conditions
Protection Clauses
Activation Strategies
Rights without activation are wasted potential. Here's how to bring your sponsorship to life.
Experiential Activation
Budget: 50-100% of rights feeCreate immersive brand experiences at events that engage fans directly.
Content Integration
Budget: 30-50% of rights feeDevelop co-branded content that tells authentic stories.
Hospitality Programs
Budget: 25-50% of rights feeCreate exclusive experiences for key customers and prospects.
Retail Activation
Budget: 20-40% of rights feeDrive in-store traffic and sales with property integration.
Digital Amplification
Budget: 25-50% of rights feeExtend reach through digital and social media activation.
The 1:1 Rule
For every dollar spent on sponsorship rights, plan to spend at least one dollar on activation. The most successful sponsors often spend 2:1 or more on activation relative to rights fees.
Common Sponsorship Mistakes to Avoid
Learn from others' expensive lessons.
Underfunding Activation
Problem: Spending 100% on rights and $0 on activation means your sponsorship stays invisible.
Solution: Budget at least 1:1 for activation (for every $1 in rights, spend $1 on activation).
Chasing Logos, Not Audiences
Problem: Choosing prestigious properties that don't reach your actual target customers.
Solution: Start with audience data, not property prestige. Match demographics first.
Short-Term Thinking
Problem: Expecting immediate ROI from a brand-building investment.
Solution: Commit to 2-3 year minimum. Sponsorship builds over time through repetition.
Passive Partnership
Problem: Signing the deal and waiting for value to appear magically.
Solution: Actively manage the partnership. Regular check-ins, proactive activation, constant optimization.
No Measurement Framework
Problem: Unable to prove value or optimize because you're not measuring anything.
Solution: Define KPIs and measurement approach before signing. Track from day one.
Ignoring Internal Alignment
Problem: Marketing signs deals that sales, HR, and other teams don't leverage.
Solution: Involve stakeholders early. Create internal activation plans for all departments.
Frequently Asked Questions
How much should brands spend on sponsorship?
Most mature brands allocate 10-20% of marketing budget to sponsorship. The key is ensuring adequate activation budget—plan for 1:1 ratio between rights fees and activation spending for maximum impact.
How long should sponsorship contracts be?
Minimum 2-3 years for brand-building objectives. Longer terms (5+ years) offer better rates and stronger association. Include renewal options and performance clauses for flexibility.
Should we sponsor one big property or multiple smaller ones?
It depends on objectives. For broad awareness, one major property with deep activation often beats fragmented spending. For targeted reach across segments, a portfolio approach may be better.
How do we know if a sponsorship is working?
Establish baseline metrics before launch (awareness, favorability, purchase intent). Track changes through regular research. Combine brand metrics with business outcomes (leads, sales, retention) for full picture.
What if a sponsored property has a scandal?
Ensure contracts include morality clauses with clear termination rights. Evaluate situations individually—sometimes supporting a property through challenges builds authentic partnership. Have a crisis response plan ready.
Manage Your Sponsorship Portfolio Smarter
SponsorFlo helps brands track deliverables, measure ROI, and manage sponsorship portfolios across properties—all in one platform.