Wednesday, July 7, 2010

PR and Sponsorship – finding the right fit

The practice of corporate sponsorship is becoming more like a Cinderella story than ever before.

Companies are today’s Prince Charming; increasingly struggling to find the Cinderella who perfectly fits their glass slipper.

In the past, companies would simply invest in a club, team, charity, cause or event and in return receive awareness, corporate social responsibility kudos, target audience engagement and newsworthiness.

Everything was very simple and easily defined.

Since the days of ‘old school’ communications, sponsorship is a field that has developed dramatically. Now, the consumer and technological world is more complicated and returns on investment invariably impact sponsorship decisions.

Not only is it more difficult for a brand to find its perfect fit, but also a major issue is ensuring the sponsorship is not overshadowed or surpassed by other brands and initiatives.

Looking at the FIFA World Cup, adidas reigned as partner and key sponsor of the international soccer competition investing tens of millions of dollars in sponsorship for over 30 years. However this year its competitor, Nike, incorporated successful guerrilla marketing techniques and social media initiatives gaining the attention and market share of sports fans and consumers for a fraction of the sponsorship spend by adidas.

Similarly, major competition has already arisen around sponsorship for the London 2012 Olympics.

Companies must also ensure a sponsorship is strategically focused at every level. That means it must be integrated into advertising and marketing, staff engagement and sales promotion strategies, to have any chance of gaining the return that used to be so easily given.

Leverage has also become a main factor in modern sponsorships. Some would argue leverage is even more important than the sponsorship itself, some companies spending up to 3 times the investment on letting their target publics know about the sponsorship.

Companies must also work hard to bring their sponsorships to life rather than merely funding and reaping the benefits.

More often than not, this entails telling a story that links the values and cultures of the company to the sponsored organisation. If there is no ‘story’ that lets audiences understand the link and association, often a sponsorship will not return the value invested.

Sponsorship should be a part of every communication toolkit but for it to work effectively companies need to think more carefully about how, why and who they are aligning themselves and their money with.

As they say, if the slipper fits then wear it!