Is the sponsorship pie shrinking or growing? All research and numbers seem to indicate that it is growing. The annual IEG research shows that investment in sponsorship in North America (rights fees and activation dollars combined) is growing annually, even during the recession a few years back.
The Canadian Sponsorship Landscape Study has shown the same trend for the past six years. When it is released officially in a couple of weeks at the Canadian Sponsorship Forum at the Montreal Grand Prix, I am sure it will show continued growth between last year and this year.
Imagine Canada indicated that corporate donors are switching to corporate sponsorship at a rate of 50% per annum. Research shows that brands are spending 15% or more on sponsorship, event and experiential marketing today where, five years ago, they were spending less than 5%! Yes, the growth is there. But I keep hearing from properties on my most recent speaking circuit (over 30 workshops, keynotes and sessions in 14 Canadian municipalities over four months) that “corporate is cutting back,” “there is not as much money out there as there used to be,” and “we can’t find sponsors to support our event.”
Wake up and smell the roses! That is what I say to those who can’t find money and who really think sponsors are cutting back.
Sure, there are some sponsors who have cut back, but overall sponsorship is up…and it continues to grow. The reality check here is that the properties making these claims are the ones that (for the most part) are trying to sell packages. They are more focused on getting the money they want and need than they are on the sponsors’ needs and wants. These are the ones that do not understand relationship selling, discovery sessions and custom-developed sponsorship proposals.
These are the properties that are asking volunteers to “pitch” asks to their friends, hoping someone will get arm-twisted into buying a “sponsorship” which often delivers no value for the sponsor from a business perspective. These are the properties that are pitching “gold, silver and bronze” stock packages thinking they are a solution. These are often the properties that are really seeking a “handout” to fulfil their missions, not organizations that care about their sponsors, just themselves.
There is money out there. There is lots of money out there and the pie is growing. To get your piece of the pie (or more) you need to think sponsorship and partnerships, not “woe is me, please help me.” For every time I hear, “Oh, corporate sponsorship is on the decline,” I can rebut with another recent naming or sponsorship that has made headlines. Some of these are huge investments in the millions of dollars, but many are average local sponsorships of $2,500 to $25,000. The sponsorship pie is growing and those who know how to serve it up right will get the biggest piece.
Those who do it wrong…well, the pie will disappear.
These are just one person’s thoughts. What have you seen?
I think the pie is getting bigger absolutely but I do think it is shifting a bit. I find B2B relationships and sponsorships are much more important for smaller events and sport orgs and B2C sponsorship has moved to larger sport properties. Professional golf in Canada is a definite indication of this in my experience. (This is is my experience based mostly in sport while I know you work in many different fields of sponsorship)
There is money out there for all kinds of events and organizations most just don’t know how to ask properly and target the entirely wrong sectors and companies. A lot of my clients are coming to me after they have created a platinum, gold silver and can’t figure out why RBC won’t buy it and then they say can you help us sell this?
I generally use the packages as a starting point and target companies that are a better fit and use the packages as a point to say these are some deliverables available but your sponsorship will be custom and designed out of this to better fit what your goals and objectives are which usually goes well.
I think most organizations use platinum, gold etc is that they truthfully don’t know the principles and basis of sponsorship and want to have something to list on their web site as available to purchase or to send to people so I do understand they are trying to do something and this is their way to try and start.
The other thing I find is organizations and events are unrealistic in their sponsorship desires, ie a tiny international event gets frustrated when they can’t get P&G as a sponsor for $15,000 when in reality it might if you push and throw in the kitchen sink have a true value of $2,500.
Other organizations and events have a feeling of entitlement well they should want to sponsor us and they don’t have the right foundation for a sponsor to want to sponsor them. And because they have this sense of entitlement they often don’t deliver on the deliverables and the sponsor walks after one year. These same organizations are generally last minute in trying to acquire sponsors and think that it is easy to do. Most people don’t realize two things 1. It takes as long and as much work to sign a $5,000 sponsor as it does a $100,000 plus sponsor in most cases and 2. It takes time to sign sponsors you need to be planning and selling 12 to 22 months in advance optimally to maximize value fro your organization/event and for the sponsor.
It is about what your property or organization can do to help grow the sponsors business or increase profile whatever helps them realize their goals and objectives.
These are just my thoughts as a small player in the industry down here in Niagara but I am encouraged as some organizations are willing to listen and be educated in the field.
Shannon – Very good article. Bram – Excellent observations. I’m finding that, especially in this economy, there IS money out there. Like Bram said, we need to provide realistic value if we’re going to capture sponsorship dollars. Don’t make promises you can’t keep, but definitely stretch your imagination, step out of your comfort zone, and put something unique and creative for EVERY sponsor. Silver, Gold & Platinum is okay, but if all you’re really offering is a logo on a t-shirt, those dollars you want are going to find another home.