and evaluation budgets or even budget for the measurement of this sponsorship activity . Until this is fixed , the dominant coalition will continue to struggle to understand the need for sponsorship while the marketers will continue to fight for sponsorship allocations .
It is evident that improved sponsorship accountability will protect , unlock and grow the value of the long-term investments made through sponsorship . The current financial reporting lines do not cover sponsorships and are more inclined toward reporting on the planet as part of the 3P ’ s therefore brands are not able to demonstrate a financial return even when it exists . This has also led to an increased inclination in sponsorships towards SDGs that can clearly show the contribution towards the protection and conservation of development goals .
Ideally sponsorships should be able to report on :
Brand impact : Which can be seen in the BHT through prominence and popularity which show the gains of the brand ’ s strength , value and impact on KPI ’ s such as awareness , recall and usage .
Activation gains : Most sponsorship activity relies on commercial impact of activations and promotions to justify sponsorship activity but many brands do not measure it . At POS , customers should be able to mention how sponsorship activity may have influenced their purchasing decisions .
Consumer loyalty : Customers can be loyal to a brand because of the benefits they get from association with the brand and the events they sponsor . For example , ABSA premium customers who are golf enthusiasts will unwillingly leave the bank due to the preferential treatment they get during events such as Kenya Open Golf Tournament .
Media equivalence : Sponsorships offer superior value to media buying by taking advantage of love audiences and playing out in-situ driving greater recall than advertising normally would . Few brands actively measure the total media exposure they would get from a sponsorship engagement .
Sponsorship Asset Valuation : Valuation of a sponsorship asset is very fluid and should yield highest returns at its peak . The brand manager can value it as a property at any price and sell it off as an investment . That becomes its financial value at the time before it dips and as some sponsorship events , completely fades away . There are no benchmarking values so the brand must determine when to liquidate the sponsorship event or name as an asset .
The inability to get a real grasp of financials on sponsorship activity has led brands to pass on opportunities that would otherwise create real value for the brand .
10 Tenets of Successful Sponsorship and What Can be Done Better
1 ) Clear objectives : It ' s important to have clear objectives for your sponsorship , such as increasing brand awareness , generating leads , or supporting a social cause . The Marketing profession can build consensus on how to best deign , communicate and measure the sponsorship activities .
2 ) Target audience : Know your target audience and choose a sponsorship opportunity that will reach them effectively .
3 ) Budget : Allocate a budget that reflects the value of the sponsorship and enables you to fully leverage the opportunity .
4 ) Brand alignment : The sponsorship should be aligned with your brand values and messaging , and enhance your brand ' s image .
5 ) Measurable results : Set measurable goals for the sponsorship and track your results to assess its effectiveness .
6 ) Activation plan : Develop a detailed activation plan that outlines how you will leverage the sponsorship to achieve your objectives , such as through advertising , promotions , or experiential marketing .
7 ) Solid relationship with the sponsored party : Build a strong relationship with the sponsored party , whether it ' s an event organizer , sports team , or individual athlete , to ensure a successful partnership .
8 ) Flexibility : Be flexible and adapt to changing circumstances , whether it ' s due to unexpected events or changes in your marketing strategy .
9 ) Evaluation : Evaluate the sponsorship after the event to identify areas for improvement and assess whether it achieved your objectives . An agreement on financially valid methodologies can be useful to align business objectives to strategic sponsorships .
10 ) ROI : Develop KPI ’ s and actively measure the return on investment ( ROI ) of the sponsorship to determine its overall value and inform future sponsorship decisions .
Ad Hoc Sponsorship and Approaching Sponsors
Finally , the place of ad hoc sponsorship is still relevant in an ever-evolving world where new opportunities abound each day . Ad hoc sponsorships are more focused and temporary , typically targeting a specific need or objective . They are influenced by special factors including the nature of the sponsorship opportunity and the sponsor ' s planning and budgeting cycles . Other factors include planning and lead time , sponsorship proposal , relevance and alignment , seasonality and industry events as well as relationship building .
Marketers should note that each sponsor may have unique preferences and timelines , so it ' s essential to do thorough research and tailor your approach accordingly . Keep in mind that sponsors receive numerous sponsorship requests , so standing out with a well-prepared proposal , a strong value proposition , and a clear understanding of their needs can increase your chances of success .
Conclusion
In a world where competition is fierce and consumers are bombarded with messages from every direction , sponsorship has and will continue offering marketing professionals a golden opportunity to break through the noise , make an impact , and elevate their brands to soaring heights .
By carefully selecting partnerships that align with their vision and executing mindblowing activation strategies , companies can create magic . The power of sponsorship is still waiting to be unleashed , offering new frontiers for brand growth , explosive customer engagement , and long-term success particularly in the Kenyan market . It ' s time to make your mark and let your brand shine like never before ! creativity ,
The cover story was assembled and pieced together by seasoned Marketing Africa magazine columnists Richard Wanjohi and Diana Obath . For feedback or any more discourse please drop us a line at : Info @ marketingafrica . co . ke .