The benefits sponsorship provides are quite different from those offered by advertising. For example, specific product messages, such as "one‑third the calories," must be communicated through controllable advertising.
What sponsorship generally accomplishes better than advertising is establishing qualitative attributes, such as shaping consumers’ image of a brand, increasing favorability ratings and generating awareness.
This was documented by a major tire marketer in India, which in 1993 completed a four-year study on how sponsorship compares to advertising. During the study, the company quit all advertising and used sponsorship exclusively. During the four years, its two competitors used product advertising and hardly any sponsorship.
In three of the four areas measured‑corporate image, propensity to purchase and brand awareness‑the company using sponsorship fared better.
What Sponsorship Accomplishes Better Than Advertising
Attributes where sponsorship’s efficiency over advertising have been demonstrated include sponsorship’s ability to build:
Credibility. Sponsors typically receive official product designation and rights to use the sponsee’s marks and logo on packaging, etc. Because the official sponsor credential is so strongly linked to the brand’s positioning, the message works in the consumer’s mind as “the sponsor’s sports beverage enhances performance and is the brand to drink. Sponsorship of sports, arts and even causes, e.g., Anacin uses the Arthritis Foundation logo in its ads, generates credibility for the sponsor’s brand over the brand of its competitors, which appear not to have been sanctioned or approved.
Differentiation. Unlike measured-media channels, most sponsorship properties offer companies category exclusivity. This means that not only is there no commercial din from competitors undermining a message, but also the sponsorship tie becomes a unique selling point not available to the sponsor’s competitors.
Imagery. By simply stating that it is an official sponsor, the sponsoring brand can be linked immediately to a known set of image qualities, e.g., public service oriented (sponsor a local parks program); environmentally responsible (World Wildlife Fund); world-class performance (Olympic Games); artistic excellence (Chicago Symphony Orchestra); durability (New York Marathon); category dominance (National Football League); etc. The advertising does not have to work so hard to create image qualities for the brand and the consumer is more likely to be receptive to the transference of qualities.
Community Goodwill. An ad buy can not provide a "license to operate." Sponsoring local festivals and sporting events, schools and children's hospitals, museums and arts organizations, all deliver share of heart.
Lifestyle Relevance: By being where their customers are, companies can speak to their audience rather than at them. "Coca‑Cola is the world's most recognizable trademark, said Drew Sheinman at EG's 1993 Event Marketing Seminar. "However, if you did a survey on the streets of Chicago and asked people what was more important to them, Coca‑Cola or the Chicago Bulls, nine out of 10 would probably say the Bulls. We accept that and try to borrow that equity by becoming their sponsor."
Prestige. Only a handful of companies can afford to advertise on the most prestigious media broadcasts. But with sponsorship, even a mega‑event like the Super Bowl is affordable to smaller and local brands. That's because companies with smaller budgets can sponsor subordinate events within a major one. Small‑budget sponsors can also sponsor a lesser‑known event and work with the producer to make it a major one.
Internal Morale. Unlike an ad buy, employees can be directly involved with a company's sponsorships, e.g., acting as volunteers at the event or receiving special benefits such as ticket discounts.
Consumer Interaction. Advertising is a monologue. Sponsorship is a dialogue, offering companies the opportunity to have a live, two‑way exchange with their audience.
In addition to qualitative attributes, such as those described above, sponsorship offers quantitative benefits not available through advertising. These include:
Live Audience.Sponsorship provides built‑in opportunities for:
Product Showcase. Brand attributes are best showcased through sponsorship because the product or service can be used in the performance or competition. For example, a sponsor's tires can be used by the racing team; sunglasses worn by the pro beach volleyball players; film used by the Olympic photographers; lighting system installed in the new gallery; etc.
Retail Extensions. Sponsors of pro teams and rock groups have access to talent for instore appearances that can be tied to incremental display and case orders. Sponsors of festivals and ticketed events can drive retail sales by promoting a ticket‑discount‑with proof‑of‑purchase offer at the point of sale. Sponsors of venues have access to special tickets and backstage tours so they can leverage with trade customers. Often, sponsors can even share their own sponsor status with their retail partners.
Guaranteed Delivery. With sponsorship, a company's message is incorporated into the action‑as opposed to advertising which is added on and can be screened out. When an ad interrupts a 1~Y program, viewers may switch to another station. For messages at the start of a video rental, there's the fast‑forward button. And, for unsolicited direct mail or telemarketing, there's the garbage bin and the disconnect button. This is not the case with integral sponsorship messages. And, compared to measured media, sponsorship is a pristine, clutter‑free environment.
Client Entertainment. Spending several hours with clients and potential clients away from the distractions of the office is invaluable. Events make great settings for informal networking: They are unique and desirable, two things that are absolutely necessary to entice a business contact to join you during non‑business hours.
Why It’s So Much Easier To Stay With Advertising
Standardization. With advertising media, what's delivered is consistent. e.g., all broadcast media deliver time, all print outlets offer space. Sponsorship benefits, on the other hand, vary radically from one property to another. With sponsorship, two properties in identical markets might deliver the exact same audience and numbers, yet offer entirely different benefits. e.g., pro‑am spots vs. title of a stage, making it virtually impossible to compare like and like.
Evaluation. Flawed as it is, cost‑per‑thousand is a universally accepted measure providing advertisers built‑in evaluations of their media buys.
Turnkey. Ad buys do not require an "additional spend" for effectiveness. It is the opposite with sponsorship, where companies looking for a pay‑off solely through their visibility during the event, will usually be disappointed. On a straight‑ahead, cost‑per‑thousand basis, sponsorship rarely outperforms measured media.
Make-goods. With advertising, if ratings are lower than projected, additional time or space can be provided by the media as compensation. With sponsorship, where the seller often controls just one property and has no access to a year‑round inventory, this is rarely the case.
Businesses of all sizes take advantage of cause marketing, often starting at the local level. These local initiatives often turn into involvement with regional and national affiliates of the local organization.