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Secret Strategies for Setting Sponsorship Prices

by David Rachell
  
17 02 2014

In January, SponsorPark hosted a webinar with sponsorship guru Ron Seaver. Ron offered attendees great advice on how to approach potential sponsors. Developing relationships with sponsors isn’t about making them understanding what you do, but rather your understanding of THEIR organizational needs.

Corporate sponsors simply aren’t that interested in your organizational mission or cause, but rather how you can help them use their relationship with you to reach their business objectives. While it sounds harsh, it’s not because they do not “care.” It’s because they have goals and objectives to meet and sponsorship is a tactic employed in meeting those objectives. It’s your job to showcase how your event or organization will be able to help them meet those objectives. This requires research and a strong game plan demonstrating your understanding of their needs.

Ron had intended to site resources and provide additional information during the webinar, but we weren't able to fit all of that great information and answer your questions in just one hour. So, Ron as graciously agreed to come back and present the Secret Strategies for Setting Sponsorship Prices and expounding on the past webinar. The webinar will be held Thursday, February 20, from 2 – 3 p.m. CST.

How the value for a sponsorship opportunity is derived is so important for sponsorship sellers to understand. So, Ron is going to share insight into some of the tactics companies use to garner that value and how you can meet those expectations. Sign up to attend the webinar by going here.

Remember, now through March 4, you can sign up for Ron Seaver’s Sponsorship Boot Camp April 3-4 in San Diego and receive 2 full-registrations for the price of one. AND you will also receive a year’s subscription to SponsorPark.com’s Premium Membership. Information on the Boot Camp and sign up instructions are available by going to here.

Categories:   General | Sponsorship resources | sponsorship sales | Sponsorship Valuation
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A new year brings new opportunities

by David Rachell
  
8 01 2014

Sponsorship marketing is now one of the fastest growing forms of adverting according to the Association of National Advertisers. Sponsorship is becoming more mainstream on main street, as smaller businesses look to use sponsorship as a way to differentiate their products and services and stand out above the advertising noise.

It’s also important for rights holders to stand out above the noise. So, here are five ways to better your sponsorship acquisition efforts for 2014.

1. Be prepared to report on your deliverables
Sponsors are being required to justify their sponsorship spending now more than ever. It’s vital to justify outcomes and the deliverables provided to sponsors as part of the value created through the relationship. As a rights holder, you need to do all you can to help the brand justify their spending. If you aren’t able to justify your fees, it makes it easier for the sponsor to say no to you and yes to those who can.

2. Strengthen your social media
Sponsorships provide one of the best methods for organically building a brand’s social media. Rights holders who provide a rich social media platform to engage consumers have a greater chance to garner sponsors.

3. Build activation for your sponsorship that outlasts your event
Even local or regional companies are less apt to sponsor one-day events or activities. Sponsors want to be able to activate against their sponsorship portfolio with events that last longer than a day or two. While your event may only last a day, try and create ways for sponsors to be part of your organization or fan experience long before and after.

4. Deepen Fan Engagement
As a rights holder, you should be seeking partners that are going to provide a greater experience for your attendees, not just a check writer and sign maker. Greater fan engagement means you provide your consumers a better experience and an opportunity to grow your event while also creating a platform for a more successful sponsor.


5. Well Educated Sales Team
Brand managers have a richer selection of good sponsorship opportunities to choose from today. Your sponsorship program must not only provide great benefits and activation options, but industry knowledge by rights holder representation is critical. More times than not, brand managers know when someone understands the business and benefit values. So, instead of trying to snow them, wow them with your understanding of their needs.
Your sales team should research the industry and the companies they target. Make sure you subscribe to industry magazines and research articles, look for quality online content, go to seminars and training to learn about what sponsors are looking for from rights holders.

Categories:   General | industry happenings | Sponsorship resources
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The Importance of Measuring Sponsorship Outcomes

by David Rachell
  
25 11 2013

The Association of National Advertiser’s recent survey results revealed once again that companies are increasing their use of sponsorship marketing. These results are in line with overall reporting that sponsorship is becoming a bigger factor in the marketing mix. Noted in this particular survey is the continuing difficulty of measuring sponsorship outcomes.

Companies are having difficulty in measuring outcomes because sponsored properties don’t know what to report and brands really don’t know what to measure. According to this survey, media exposure, social media impact and brand recall are most the prominent focus for measuring. Those elements only measure part of the story. Brands should be using their sponsorship portfolio cross-functionally across the entire business platform and their indicators should measure cross-functionally, too.

Nearly two-thirds of the companies claim they’re spending money to measure results, but less than half attempt to isolate the impact that sponsorship actually creates. So, what are they really measuring? Advertisers using sponsorship to measure ONLY exposure and social media impact are missing the potential that sponsorship brings to the table. Sponsorship can be a catalyst in moving the SALES meter, provide a valuable tool in human resource recruiting, employee reward programs, and employee retention, engaging targeted stakeholders in order to alter public opinion. Various key performance indicators can be singled out in order to isolate the impact of a sponsorship and shared with sponsored properties to ensure the message is succinct and relevant.

Property sellers play a critical role in providing information important for measuring, too. Besides measuring the amount of products/services used at an event (pouring rights for example), properties should offer information on all deliverables provided to a brand. Social media exposure, onsite exposure through consumer engagement, signage, hospitality, onsite SURVEY’s, and unique promotions are all quantifiable. But, for success, properties need to understand what sponsors are measuring and gear exposure toward that outcome. At the end of the day, only a company knows if it sold more widgets because of an event. And, if the sponsor doesn’t put something in place to measure selling more widgets – it’s a dead issue no matter what exposure you’re providing.

More media exposure from a left field sign will NOT sell more product. It’s what the sponsor does to activate the relationship with the property that will sell more product. It’s up to the property to maximize the exposure – companies need to learn how to use that exposure to their benefit. Sponsorship sellers need to realize that sponsors are focused on measuring outcomes now more than ever. It’s up to the property to craft ideas based on the sponsors KPI to help the sponsor measure bottom line results.

Conversely, companies need to be more proactive in using tools to help measure outcomes. Brands need to share what they’re wanting to measure Companies can employ smart software like the Pinpoint Sponsor Evaluation System that can equate value from exposure and provide a platform to store information about KPI’s from sponsorships to measure ROI/ROO.

Professor Ed Deming taught management at NYU, was an author, brilliant statistician and all-around genius when it came to establishing processes for business. He famously crafted the quote you cannot manage what you don’t measure. As sponsorship grows, it’ll be necessary for companies to measure outcomes to better manage them. And, until best-practice processes are agreed to industry-wide, it’s incumbent upon all of us to begin shaping ways to measure results.

 

Categories:   Marketing | ROI | Sponsorship resources | sponsorship sales | Sponsorship Valuation | tips
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