Main event marketing: corporations sponsor sports events in an effort to promote health as well as business

American Fitness, July-August, 1993 by Tyrone Polastri

The Volvo Tennis Tour and AT&T Open golf tournament are two examples of over 2,000 events benefiting from corporate sponsorship. In the past decade, sponsorship of sports and special events has been used to promote and raise funds for an increasingly wide variety of products, services and causes. Sports and special event marketing has become a $10-billion industry encompassing professionals from large corporations like Reebok to non-profit organizations such as the City of Hope.

In its most basic form, sponsorship is an arrangement between a corporation and an event, personality or venue through which the corporation will promote a product or itself. A sponsorship arrangement provides support through financial contributions, advertising support, merchandising items or free services or products. In return for their participation, corporations gain rights and privileges to tie-in with a promotional vehicle/event as an advertising or public relations forum.

The continuing increase in corporate sponsorship dollars spent in the last five years demonstrates a shift in marketing strategies by top companies. Faced with the increasing cost and declining effectiveness of advertising, corporations are seeking this nontraditional media vehicle to reach target consumers with a meaningful message. Sponsorship can provide new avenues for the demonstration of products and the distribution of coupons, literature and premium items. Whether it is a sporting event, musical or state fair, sponsoring a special event reaches a clearly defined consumer and creates a positive impression of the corporation as supporting the lifestyle activities and values of the consumer.

Corporations strategize for position, focus their image and compete for market share. Those companies utilizing sponsorship in their marketing to foster consumer lifestyle activities are investing in a relationship that goes beyond traditional reach of display advertising.

Sponsorship evaluation and measurement methods are continually sought by corporations and promoters to help them accurately interpret the impact of sponsorship. As yet, there have been no specifically designed methods for measurement. The measures traditionally used in market research are also used for sponsorship--attendance, number of messages on public address systems and scoreboards, amount of signage, volume of sampling, sales receipts, number of give-aways, surveys, interviews, etc. Sponsors and promoters also rely on techniques used by public relations professionals to calculate the number of people reached by media publicizing the event -- radio, television and print.

The dollar value a corporation can realize from event sponsorship is particularly difficult to evaluate in the intangible area of public relations, goodwill, image and brand awareness. However, one simple rule that is generally used by the trade is the 10 to 1 rule--for every $1,000 spent, a sponsor is looking to generate $10,000 worth of publicity. Sponsors feel this 10:1 media conversion is a cost-effective value, particularly when taking into account what a $100,000 30-second television ad buys them in comparison to a $100,000 event sponsorship.

As media advertising costs continue to rise, more corporations are seeking sponsorship as a cost-effective marketing alternative. For the most part, large consumer-based corporations earmark less than 10% of their advertising budgets for sponsorships. Companies spending 10% or more are generally those companies with advertising restrictions such as the alcohol and tobacco industries.

By providing a clear and meaningful message, sponsorship can be a strategic element in any corporation's marketing plan. Successful event marketing efforts rely on frequency, consistency and effective implementation. Integrated with advertising, direct mail, in-store promotions and sampling, sponsorship can aid the corporation in achieving its marketing goals.