7 Smart Reasons Marketers Should Sponsor an Event
Sponsorships are tricky and there is a two thought mentality in the market regarding it. Some experts believe it is more trouble than its worth and some believe its essential part of expanding a business module.
According to the data, the vast majority of businesses are investing in sponsorships of some kind, spending an average of roughly 9% of their marketing budgets on promotional opportunities.
Today sponsorship has become an integral part of marketing strategy. Yet many established business and newcomers do not understand the need for such expenditure in their marketing budgets. But if you have a systematic approach to identify sponsorships that could create value then your returns will surely reflect your marketing budget.
There are a million basic reasons why a new or even an established business should sponsor an event some of them include —
- Gaining more exposure in your core customer pool
- Creating a positive image for your brand and product
- Procuring new leads or customers for your brand.
But here, we are going to dig a bit deeper and figure out some prominent and focal reasons why a business should sponsor an event which can result in —
Elevating a Start-up
Rebranding an existing business module
According to studies, 72% of consumers positively view brands that provide quality event experiences and 74% of respondents admit that engaging with brands that create memorable moments makes them much more likely to buy their product.
1.The Underdog Effect-
Everyone loves an underdog, there is just something about the story of a business which was intended for mediocrity and unexpectedly turned it all around and won the race. That whole story has a heart to it.
This is the effect you require if you are looking for brand repositioning for your company. There are different in-office ways to reposition your brand.
You can change your tag-line, reimagine your logo, change your content strategy and many other things; but the most effective one can be on-site event sponsorship.
Events can help you positively alter your brand image. It can get affirmative visibility for your brand. You can also build credibility and good PR with your possible customers with direct face to face interactions. In-person conversations always close more sells than impersonal ones.
2. Pure Business Purpose
The reality of sponsorship in its essence is they should serve a business purpose. They should improve your engagement with the target audience, get you some leads and hopefully turn those leads to paying customers.
Events help businesses and companies get more limelight and media coverage. It can help you showcase your expertise in your field and also get that leads-engagement-sells wheel moving.
Such events surely make an impression on a customer even if the customer is not necessarily your niche consumer.
3. Analyzing ideal customer profile (ICP)
An ideal customer profile is a hypothetical description of the type of company that would realize the most value from your product or solution. These companies tend to have the quickest, most successful sales cycle, the greatest customer retention rates and the highest number of evangelists for your brand.
Event sponsorship is a great way to learn about your ideal customer profiles. At an on-site event, there are a thousand opportunities to collect data on your target audience. You can conduct surveys, collect testimonials, get genuine feedback on your brand and products.
All this on-site data combined with a bit virtual planning and statistics can help you build an ideal customer profile for your brand.
4. Social Image
Sponsorships are different than advertisements, sponsorships do not try to lure consumers to buy a particular product or a brand. They subtly help in promoting the company or the brand. In sponsorship, your company pays to support a specific event that your core customer pool cares about. And then your business is linked with that event by consumers and media.
Building a good business name and image is more relevant than ever today. Customers not only look at what you sell but also how you sell it. Customers and consumers care about what the brand stands for. They want to hire someone who cares.
They love a brand who believes in spreading a positive message and helping a few people while making money for themselves. They want to see the company they are associating with attaching their brand name with positive emotion.
Event sponsorship proves to be one of the major plus points in capturing a good social image.
5. Return on investment (ROI)
It will be a common and obvious deduction that a successful and well-planned event will generate a solid return on investment (ROI). And most event managers know for a fact that your sponsorship budget needs to demonstrate return for every dollar spent.
Whether you plan to sell a product at the event itself is secondary knowledge. Such events are about starting quality customer relationships. The goal is to leave with a list of leads to follow up on afterwards.
Also, you can set a statistic goal for the event and work towards that goal. Numbers and data never lie and having a goal beforehand can help you analyse the event at hand.
The most important and neglected part of event sponsorship is you should not be looking forward to on-date profits, instead, put more focus on how to utilize this exposure to leverage possible customer pool.
6. Targeted Marketing
Most brands choose events by revisiting their demographics or firmographics if they rely on B2B to keep their target customers interests in focus.
Conducting such events may help you generate quality leads in your target customer pool. It can also help you build a strong viable email list.
If you think your product or brand is “for everyone”; think again. There is a reason why target marketing works wonders in the age of social media and digital marketing. It gets financial results.
And at an event where you already have your target user right in front of you, it becomes almost mechanical to turn those leads into an engagement. These are the ones who will generate sells through the event. You can get direct exposure to the target audience and not only this but you also get to give the possible consumer a test drive to your products.
7.Content Creation opportunity for your social media platforms
Nowadays people are aware of every technique of traditional push-advertisement and they have trained their brains to tune out any such scams. Marketing and advertising have become a subtle art and digital media proves to be the greatest stage for the same.
If you know anyone who is in charge of running a social media page for a brand or a start-up, you would know how exhausting that job proves to be. In the world where “content is the king” mentality is literally running a business, sponsoring events becomes more vital. It helps your social media content strategy with following —
- Fresh material for your social media accounts
- Live on-site testimonials from your customers
- Direct traffic diversion to your website from multiple posts
- User-generated content for potential new consumers
The benefits of event sponsorship are endless if you put in the effort to forge connections. Most of them strive to gain a desirable rate of exposure. It raises brand awareness and creates preference. It can help you reach a specific business goal.
From all these reasons, it is evident that tactful sponsorship includes more than putting logos on party hats. A sponsorship relation involves identifying a common set of objectives(such as gaining community goodwill and viral exposure) by providing a range of value-adding services to the target user.