Failure by Mainstream Media to Understand Sponsorship Marketing

In late July, Licia Corbella of The Calgary Herald wrote an article about oil and gas company sponsorships of the Energy and Mines conferences in Kananaskis. She noted that neither the Government of Alberta (host of the conference this year) nor the energy companies “understand optics.” She went on to say, “The fox isn’t just in the henhouse, they paid for the damn henhouse,” implying that sponsorships footed the entire cost of the conference, and they “owned and operated” the event. As usual, there was a failure by the mainstream media to understand sponsorship marketing.

The fact that it is called the ScotiaBank Saddledome does not give ScotiaBank the right to tell Ken King and his team what player to sign and who to start in the net. The CIBC Run for the Cure does not allow CIBC to tell the Canadian Breast Cancer Foundation how to operate the annual October event or where the research money should be directed. These are sponsorships. They are marketing investments. The investments of the oil and gas companies granted them benefits and exposure—nothing more!

Licia went on to talk about how the “poor” Sierra Club felt that this was wrong. Oil and gas companies should not be allowed to sponsor such events. Why not? The Sierra Club (last time I looked at their annual report they were not poor) could have invested as a sponsor as well and had its say. But instead of being proactive, it would rather complain.

Sponsorship is a $1.5 billion industry in Canada. It includes pro sports and arts, charities, and conferences. It is a form of marketing and leverage. It is about positioning brand, and in some cases, selling a product, service, idea, or concept. I commend the Alberta Government for helping to defray the costs of the event (perhaps, Licia, that is one of the reasons why Alberta is the richest province in the country), rather than have the government and taxpayers foot the entire bill. Instead of burdening the taxpayers with the costs, it shared the cost with others.

I don’t see The Herald editorial writers and columnists complaining about the same hand that feeds them. Oil and gas companies and the Government of Alberta spend a lot of money with the newspaper in Calgary and I don’t see Licia saying they should not spend money there to brand and market themselves (it might affect her salary and reduce revenue). But she does have the right to publish her opinion and think, without being concerned, if she should have written such an article. EnCana’s building The Bow rises behind her each time her picture is displayed in a full page ad promoting herself and her opinions in The Calgary Herald. Likewise, the Government of Alberta brings in money (just like The Herald) and provides exposure in exchange for cash. The Herald is not encumbered with this advertising revenue concern. Its staff members write and report based on the facts and editorial comment. The Government should be able to do the same—and I am sure it does.

What do you think?

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