sponsorship leverage Archives - Power Sponsorship

Sponsors: What If You Could Start Over?

It’s still early in the year – the time when people wipe the slate, make resolutions, and dedicate themselves to doing better. It’s when people give themselves permission to start over. What if we applied that thinking to corporate sponsorship? What if sponsors took some time out from dealing with the administration of sponsorship and the improvement of sponsorship, and instead, dedicated themselves to the potential of sponsorship. What if they asked themselves this one question: If you had the same sponsorship budget, but no commitments, what would the perfect sponsorship portfolio for your brand(s) and target markets look like? I do this for my corporate clients all the time. In its formal iteration, it […] Read More

How Much Should You Budget for Sponsorship Leverage?

There has been a fair bit of chatter online about what the standard sponsorship leverage ratio should be. That is, how much incremental money should you budget for your leverage program, as a ratio to the sponsorship fee paid. People have offered up 1:1 (spend one dollar leveraging for every dollar spent on a sponsorship fee), 2:1, and 3:1 in the discussions. If you pay attention to IEG, you’ll know they recently reported an average leverage spend of 1.4:1 in 2009. And there are plenty of that media hail big leverage spenders as being at the vanguard of sponsorship. I disagree with all of that. Vehemently. Spending that much, incrementally, flies in the face of […] Read More

Why Be a Sponsor?

That’s a good question, and one I get more than you would think. Over the past few years, sponsors all over the world have looked at the limited returns they were getting from old-school sponsorship and realising that things had to change. Many saw the light and have made big changes to best practice sponsorship, and are now reaping the benefits. Some have realised that change is inevitable, but have put it in the too-hard basket, relegating their results to ho-hum (at best) until they pull their fingers out and do something about it. And some don’t see the benefits of best practice at all. Instead, they have consigned all sponsorship to the category of […] Read More

Sponsorship Case Studies – October 2013 Edition

This is the second guest post by Michelle Norris, Power Sponsorship’s first ever intern. Michelle will be researching best practice sponsorship case studies and sharing them with you on this blog for the next several months. You’ll find more on Michelle and how to contact her below. This week Australia has football final fever, with Hawthorn smashing Fremantle in the AFL (Australian Football League) Grand Final last weekend. As a result my blog post has been ‘Footified’! Read on for an explanation… NAB + AFL In Australia football is like a religion, and this finals season the National Australia Bank (NAB) devised a way to share our passion with the world! Footify is a national campaign […] Read More

Negotiating and Managing Multi-Brand Sponsorship

I tell sponsorship seekers all the time, “Don’t approach the company, approach the brand”. The underlying principle is that companies will generally have one brand that is clearly the best fit for a sponsorship opportunity. This is true for sponsors, as well, and most sponsors have embraced brand sponsorship as the default position for investment. There are, of course, a couple of exceptions. The first is when a sponsorship creates a platform that is large, relevant, and flexible enough that it can be leveraged across an entire portfolio of brands. An example would be if Kellogg’s sponsored the World Cup. They could make that work across their brand portfolio and most, if not all, regions. […] Read More

How to Create Sponsorship Vision When Your Company has a Pole Up Its Bum

Best practice sponsorship is strategic. It’s creative. It’s amazingly multifaceted, measurable, and just bloody amazing. But it’s also different, and a lot of companies just aren’t good at change. Change requires vision, so if that’s what’s needed, establishing that becomes your job. Before we get into how to fix it, let’s talk about a few of the major categories of vision-challenged sponsors. If it ain’t broke, don’t fix it This is a big one for market leaders. So many market leaders are terrible sponsors. They haven’t changed the way sponsorship has been done for at least ten years – aside from some uninspired social media activity – and seem to lack any sort of vision […] Read More

Tick Tock: The Most Precious Resource in Sponsorship is Time

If you asked one hundred sponsorship professionals what the most precious resource in our industry is, ninety-nine of them will say “money” – money for fees, for leverage, for cash flow, whatever – and ninety-nine of them would be wrong. Money is important, no question about it, but it pales in comparison to time. The tyranny of time for sponsors The moment a sponsor receives a proposal, the clock starts ticking. Every day a great proposal sits unread in an inbox is a day of leverage planning and implementation you’ll never get back. Every day you put off that leverage planning or you let bureaucracy slow you down, your list of leverage options gets shorter. […] Read More

Why “Proud Sponsor Of” is the Most Worthless Phrase in Sponsorship

Oh, how I hate those words. In fact, I’m going to go out on a limb and say that those three words can be among the most telling in sponsorship. You don’t see the great sponsors saying “Proud sponsors of”. Ever. If you see that line used in conjunction with a sponsorship, you can be almost assured that the leverage plan is weak to non-existent, along with their results. It may as well read: “Understaffed sponsor of…” “Boring sponsor of…” “Unsophisticated sponsor of…” “Lazy sponsor of…” I understand that sometimes it’s all you can do. Maybe a sponsorship has been thrust upon you at the last minute. Maybe your CEO’s pet project is so off-strategy […] Read More

How to Manage (or Get Rid of) a Senior Executive’s Pet Sponsorship

In many ways, the Global Financial Crisis was one of the best things that ever happened to the sponsorship industry. As the level of sponsor accountability rose at an astronomic rate, the level of sophistication required rose right along with it. For many companies, it also saw the end of a practice that has been the bane of marketing departments for decades: The senior executive’s pet sponsorship. Note, I said “many”, because as antiquated as this practice is, it persists in some companies. The accountability issue is addressed by a directive (implied or explicit) to find some way – any way – to justify this wasteful expense. If you’re in one of those marketing departments, […] Read More

How to Right-Size Your Sponsorship Leverage Activities

Any regular reader of this blog knows that I talk a lot about sponsorship being win-win-win. That third win is for the target markets, with the goal being small, meaningful benefits for all or most of the market, not a chance to go into a draw for one person to win one big prize. The question is, then, what do you do with benefits or leverage activities that are, by their very nature, limited in size? How do you make that a win for everyone… and should you even try? As usual, I’ve got a few tricks up my sleeve! Know how the third win works Providing that third win is about adding real value to a […] Read More