The deals don’t have to be as impressive as Dexus’s support for the Sydney Swans, or insurer AIG’s hook-up with the All Blacks. In fact, taking small steps is probably the best way to learn the commercial benefits of sponsorship.
Brand equity, the financial value attributable to widespread recognition of a company’s name or logo, is an important asset for any commercial operation. Positive brand awareness can lead to more business and a healthier bottom line, especially if it’s well leveraged.
Traditionally, advertising was the way companies reinforced and created brand equity. But sponsorship is another way. And given how effective it can be at extending brand reach and growing awareness, sponsorship deserves more emphasis than it usually receives in marketing strategies.
There are many sponsorship partners to choose from, especially in sport, arts and events. Bigger companies are regularly approached with suggestions for sponsorship partnerships, but a company can always take the initiative itself. If you find an organisation with appealing parallels to your own brand, it’s acceptable to make the first approach.
The decision to link your brand to that of another organisation should not be taken lightly, though. The partner must be selected only after thorough consideration to ensure there’s a good fit, and specifically, that the cultures of the two organisations are compatible.
Pairing with another esteemed brand with similar values will foster credibility for both and resonate with customers, which will, in turn, impact the bottom line.