Sponsorship is the financial or in-kind support of an activity, used primarily to reach specified business goals. According to IEG’s Complete Guide to Sponsorship, “Sponsorship should not be confused with advertising. Advertising is considered a quantitative medium, whereas sponsorship is considered a qualitative medium. It promotes a company in association with the sponsee.”
A large number of events these days use sponsorship support to offer more exciting programs and to help defray rising costs. Sponsorship allows you to reach specifically targeted niche markets without any waste. In addition, it is a powerful complement to other marketing programs, in addition to having a dramatic influence on customer relations.
Sponsorship is a tried-and-tested way for small businesses to raise their profile and attract new business. Sports sponsorship and charity sponsorship are common marketing strategies. Sponsorship is a subtle form of promotion that can provide the feel-good factor as your firm is seen to support a good cause or a community event.
Corporate sponsorship can position you as an expert in your field. If you exhibit at a trade show regularly, for instance, you could sponsor a seminar or an industry award in order to show your strength in that sector.