sponsorship budgets Archives - Power Sponsorship

Is It Ever Okay to Invest in Sponsorship for Defensive Reasons?

When it comes to sponsorship selection, there are a number of great reasons to commit to a sponsorship. There are also a few bad reasons that are sometimes unavoidable, but often manageable. Good reasons to sponsor To change your target markets’ perceptions and behaviours around your brand To align with your customers, staff, and/or fans through their passions To demonstrate what your brand is about, and what you stand for To imbue your other marketing efforts with genuine meaning To reward your customers and/or staff To secure sales rights (provided the profit on projected sales is more than the sponsorship costs) Some combination of the above Bad, but generally manageable Senior executive choice  – for […] 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. 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 everything that makes sponsorship so powerful: Even if you’re only spending 1:1, you’re spending too much, and you’re probably […] Read More

Sponsorship is Unallocated Funds – End of Story

I had an interesting question a couple of days ago. A charitable organisation was advised by their lawyers that they were obliged to spend sponsorship income only on the event or program that was being sponsored, and it could not be used for general operating expenses. The question was whether this was true or not. Without denigrating the lawyers’ abilities – this is a pretty specialised field – they are way off base. One of the reasons sponsorship is such prized income for non-profits is that it is unallocated funds. That is, it isn’t pinned to any specific program or expenditure. This is unlike a grant, where money is provided for a specific purpose, and […] Read More

Asking the Wrong Questions: Sponsorship by the Numbers

“How many tickets to the event should we get for a silver package?” “What proportion of our sponsorship portfolio should be made up of sports, arts, community events, etc?” “How much should we spend on leverage for an $X sponsorship?” “What should our target ROI be for this sponsorship?” I get questions like this all the time. In fact, I’ve had every one of these exact questions in the past month. On the surface, they seem perfectly reasonable. The problem is that each and every one of these assumes that there is a “right” answer – some formula that will distil the complexities of modern sponsorship into a neat, little number. There is no such […] Read More

How to Exit a Sponsorship

Looking at the title, I think I probably should have been more specific. I mean, there are dozens of ways to exit a sponsorship, including telling your partner to “get stuffed”, berating them for your own shortcomings, or simply not responding to any of their calls at renewal time. While you can take the approach that it’s your money, so you can do what you want, behaving badly is not recommended. So, perhaps a better title for this blog should be: “How to Exit a Sponsorship so that Lightning Does Not Strike You Down for all the Bad Karma You Create” I agree. It’s a little wordy, but it is more accurate. Absolutes There are […] Read More