Part Two: How can I Maximize the Value of my Sponsorship Opportunities?
Posted: 1/22/2010 2:41:44 PM by
Carrie Urban Kapraun | with 0 comments
Per my blog last week, I stated that one of the most common questions that I hear is: “How can I maximize the value of my corporate sponsorship opportunities?”
As I said, this can be a daunting question for a property because there are numerous potential answers and generally there isn’t one “right” answer. There are both short-term solutions, such as adding overlooked tangible benefits to a sponsorship package, or enhancing existing benefits and long-term solutions, such as increasing awareness of an organization. As always, the answer is unique to each property. Last week’s blog discussed some higher-level thinking around adding value. For this blog, the focus is on tangible benefits.
Know what benefits are helping to drive value
It is helpful to have an understanding of the relative value of tangible benefits. I’ve previously mentioned that, as a general rule, certain categories of tangible benefits have a higher value per impression, per piece or per interaction. This per impression/per interaction value can be a major factor when determining the overall value of a benefit. On a per impression/interaction basis, sampling, display, use of mailing lists, and unique hospitality benefits are on the higher end of the value range. Broadcast exposure and inclusion in a property media buy can also add considerable value. Signage, publications, collateral and some website exposure is commonly at the lower end of the value range. Other factors to consider are the quality of the sponsor recognition and the audience. As I’ve said many times, this varies by property and by sponsor.
For example, a property that I worked with recently has a massive mailing list to a seemingly valuable audience. Access to the mailing list contributes a significant amount of value to the overall sponsorship package. However, the property had a sponsor that wasn’t using the mailing list. There could be a number of reasons for this, but it would seem that the opportunity to use the mailing list just wasn’t that important to the sponsor. So here it doesn’t really matter that the per impression value is high if the corporate sponsor doesn’t place value on that particular benefit.
Know when to stop
I am an advocate of maximizing the value of a sponsorship package. However, maximizing the value doesn’t mean adding benefits for the sake of raising the price of a package. Sometimes it is necessary to do a reality check.
Let me give you an example. This issue comes up a lot with sponsorship packages that include numerous sampling opportunities or a number of mailing list uses. Imagine that a property’s package includes the opportunity for the sponsor to provide face-to-face samples 50 times per year and use of the mailing list 52 times per year (I know this is extreme, but I am trying to make a point). I would venture to say that most corporate sponsors wouldn’t want the level of benefits included in the package. There will always be exceptions, but it could be very cost prohibitive for the sponsor to provide the number of samples or materials needed. The price of the package would be artificially inflated which means it will be harder to sell, and even if a sponsor agrees to the inflated price, the sponsor would be paying for benefits it will never use, which is the quickest route to failure of a sponsorship.
One last note: Let me be clear, I am not saying that a property should allow a sponsor to pick apart a sponsorship based on its “needs,” or cherry pick the best benefits, but what I am saying is, that within reason, a property should provide benefits that best meet the objectives of the sponsor. So if that involves swapping access to a mailing list for more hospitality benefits, for the same rights fee, great. It is a win-win for everyone.
Read more blog posts
Filed under: activation