In the world of business and marketing, sponsorship advertising has become a popular avenue for getting a message to a targeted audience. From favorite sports teams to musical events and local groups, there are many opportunities for companies to cash in on sponsorship advertising campaigns. Understanding how these campaigns can benefit or harm a company's reputation is essential to making the best use of sponsorship opportunities.
The first matter of importance when considering a sponsorship advertising campaign is determining who the target audience is. Knowing who buys a certain product or service is an important element in planning an appropriate sponsorship program. Specific groups of customers are more likely to be involved in certain activities, and understanding this will help a company to choose a sponsorship funding opportunity that will reach the target consumer.
Companies marketing soft drinks and energy drinks, for example, may choose to sponsor musical events. These events often draw a young audience who may be most likely to purchase the product. Further narrowing the event is also helpful; younger audiences may be more likely to attend pop or alternative music events rather than a symphony or classical music event. Companies targeting these audiences may be best served choosing to sponsor the former rather than the latter.
Picking a popular cause may also be a priority for some companies in choosing an appropriate sponsorship advertising campaign. A company may choose to support a campaign that aligns with their company mission; they may also decide that supporting a cause that aligns with the target consumer is a positive strategy. On the other hand, a sponsorship that supports a cause in opposition with the general ideals or values of the target consumer may be detrimental. Sometimes, even the rumor of such an alignment can hurt a company's sales.
When considering a sponsorship opportunity, a company should consider what the sponsorship will actually entail. Certain sponsorships may result in a higher level of advertising over a longer period of time than others, and some companies may prefer to select such a far-reaching campaign. Community based advertising campaigns, on the other hand, may not be as broad in scope, but show support for the local community. This may offer a higher level of customer loyalty. For the local business owner, a small-scale sponsorship of a local little league ball team may be more effective and yield better results than purchasing a tiny sponsorship advertising space on a NASCAR contender's vehicle.