By: Shelley Porter
In today’s dynamic marketing landscape, brands are continually seeking innovative ways to connect with consumers. Traditional advertising methods, like TV, out-of-home and print ads, have been complemented by more direct, experiential forms of marketing. Among these, sponsorships have emerged as a powerful tool for companies aiming to boost brand awareness, foster customer loyalty and increase sales. As businesses seek to engage with their audiences on a deeper, more meaningful level, sponsorships offer a unique opportunity to align with causes, events or personalities that resonate with specific target demographics.
Sponsorships are all about providing top-line awareness for clients. They foster trust and credibility between brands and consumers, but can also be very costly. The big question is … are sponsorships worth it? Through effective research, strategic evaluation, strong negotiation and careful execution, a sponsorship can really pay off for a client. Of course, you may have to sprinkle a little bit of intuition and luck into the equation to hit a home run!
A great example of a successful sponsorship is the field naming rights Trozzolo negotiated for GEHA back in 2019 with the Kansas City Chiefs. These rights had never been sold in the past because, quite frankly, no one wanted to pay for them. Working with a team with a history of losing and no Super Bowl win in almost 50 years was risky. But as we evaluated the opportunity, negotiated added value and conservatively put dollar values to all of the national mentions GEHA would receive (even in a losing season), we soon realized the value was much greater than the cost. And boy, did we win with this sponsorship! Since 2019, the Chiefs have hosted 14 playoff games, attended five Super Bowl games and won three Super Bowls. All of the postseason play is 100% added value for GEHA.
Some examples of great sponsorship deals we admire:
1. Nike and the NBA
One of the most iconic sponsorships in modern marketing is the partnership between Nike and the NBA. Nike’s long-standing deal with the NBA has helped it solidify its place as the premier sports apparel brand, not just in basketball but across all sports. Beyond just providing uniforms, Nike’s sponsorship extends into player endorsements, exclusive sneaker releases and content collaborations. This partnership gives Nike visibility in front of millions of NBA fans worldwide while reinforcing the brand’s association with elite athletes and sports culture.
2. Coca-Cola and the FIFA World Cup
Coca-Cola’s association with major global events like the FIFA World Cup demonstrates the power of sponsorship in reaching a mass, diverse audience. The brand has been a World Cup sponsor for decades, and during each tournament, Coca-Cola taps into the global excitement by integrating into the event through ads, promotions and fan activations. By sponsoring the World Cup, Coca-Cola not only gains massive exposure but also aligns itself with the excitement and unifying spirit of one of the world’s most watched events, enhancing its global brand identity.
Sponsorships are no longer just about putting a logo on a banner or a jersey. It’s about creating a connection between a brand and an audience through shared experiences. Consumers expect brands to show their values and support relevant causes. Companies that tap into sponsorships can benefit from an authentic association that speaks volumes about who they are and what they stand for.
Just as important as the sponsorship itself is the measurement of success. Setting clear, measurable goals from the outset allows brands to track progress and determine the return on investment (ROI). Key performance indicators (KPIs) such as brand awareness, website traffic, lead generation and/or sales uplift can provide valuable insights into a sponsorship’s effectiveness. By consistently monitoring and analyzing these metrics, companies can identify areas for improvement, optimize their sponsorship strategies and ensure they are achieving their desired results.
Sponsorships remain a vital element in the modern marketing mix. They offer brands a way to tap into new audiences, reinforce their values and create lasting connections. By choosing the right sponsorships, businesses can elevate their marketing efforts and solidify their position in a competitive marketplace. It is also important to work with a company that is experienced in evaluating and negotiating sponsorships.
