Festival Sponsorship, Part I: Can Sponsors expect a return on investment?
Sponsorships have been called “faith-based media.” The Sponsor has faith that its underwriting of an event will eventually pay off in the short- or long-term. But does it?
Let’s first think about the definition of Sponsorship. According to Richard L. Clark, in his article on sponsorship in BNET, “Corporate sponsorship is a payment or offer of in-kind service made by a business to an organization in return for the right of association with that organization’s name and exposure to that organization’s audience or customers.”
Festivals and sporting events require capitalization in the form of sponsorships for the event to occur since revenue from entry fees, parking, the sale of booths and festival goods is simply insufficient to underwrite the many costs of mounting an event.
Sponsorship seems like a good deal. The festival gets a financial boost and the Sponsor gets its name on promotional collateral and banners or signs at the event. But is that enough?
Although many studies that have been done on sponsorships focused on large scale sporting events, International Events Group, Inc. (IEG), a leading authority on the sponsorship industry, has taken steps to measure return on investment and indicates that festivals actually have a higher audience loyalty than NASCAR or cause marketing. The study also indicated that 78% of sponsors agreed that their participation had a measurable effect on consumer sales.
If a company uses festival sponsorship as part of its media mix and selects sponsorship opportunities to align with its target audience, the sponsor can reap rewards in the following ways:
- Dissemination of materials at the event raises awareness of goods or services and can be used to drive traffic to the sponsor’s business.
- The sponsoring company’s logo on promotional materials, in news releases and on signage builds their brand since consumers associate the company’s name/logo with the positive festival experience.
- Participation in the festival raises awareness among prospects and may convert prospects to buyers.
- A presence at the festival allows company representatives to engage with current and prospect clients. This interaction can provide a valuable feedback opportunity to hear complaints, accolades and potential business opportunities.
- Support of the festival’s “community” (whether a geographic or demographic group) can gain and increase customer loyalty.
What effects have you or your event’s sponsors experienced as a result of festival sponsorship?
Coming up: How can festival sponsors increase their return on investment?
Tags: alternative media, Festival and event sponsorship ROI, festival marketing, festival sponsorship, Festivals, media mix, return on investment, Sponsorship
You can comment below, or link to this permanent URL from your own site.
