Sponsorship broker
Encyclopedia
A sponsorship broker is an individual, or agency, that procures sponsorship funding for properties (defined as an outlet with a captive audience that provides for a positive experience ). Sponsorship brokers tend to specialize to particular niches within the sponsorship-marketing field.
A typical sponsorship could be, for example, an arrangement to exchange advertising for the responsibility of providing funding for a popular event or entity. For example, a corporate
entity may provide equipment for a famous band in exchange for brand recognition. The sponsor earns popularity this way while the sponsored can earn a lot of money and/or receive free music equipment. This type of sponsorship is prominent in the sports, arts, media and charity sectors.
Many music festivals, performers, and artist cater to a demographic that is highly coveted by corporate marketers. This can potentially be very lucrative for musical performers and festivals. Historically, the main obstacle for these organization has been a lack of understanding on how the sponsorship functions as a form of marketing and how to package themselves in a way that will demonstrate a ROI (Return on Investment) for sponsors.
Occasionally a company's motives for sponsorship are altruistic in order to create goodwill in the community which increases their good reputation. However, sponsorship is more commonly used to derive benefit from the associations created for a company's brand
(s) or image
as a result of the sponsorship.
Sponsorship belongs to the promotional tool of Marketing
.
A typical sponsorship could be, for example, an arrangement to exchange advertising for the responsibility of providing funding for a popular event or entity. For example, a corporate
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
entity may provide equipment for a famous band in exchange for brand recognition. The sponsor earns popularity this way while the sponsored can earn a lot of money and/or receive free music equipment. This type of sponsorship is prominent in the sports, arts, media and charity sectors.
Many music festivals, performers, and artist cater to a demographic that is highly coveted by corporate marketers. This can potentially be very lucrative for musical performers and festivals. Historically, the main obstacle for these organization has been a lack of understanding on how the sponsorship functions as a form of marketing and how to package themselves in a way that will demonstrate a ROI (Return on Investment) for sponsors.
Occasionally a company's motives for sponsorship are altruistic in order to create goodwill in the community which increases their good reputation. However, sponsorship is more commonly used to derive benefit from the associations created for a company's brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
(s) or image
Corporate identity
In Corporate Communications, a corporate identity is the "persona" of a corporation which is designed to accord with and facilitate the attainment of business objectives...
as a result of the sponsorship.
Sponsorship belongs to the promotional tool of Marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
.
See also
- DonationDonationA donation is a gift given by physical or legal persons, typically for charitable purposes and/or to benefit a cause. A donation may take various forms, including cash, services, new or used goods including clothing, toys, food, and vehicles...
- Cause marketingCause marketingCause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit. The term is sometimes used more broadly and generally to refer to any type of marketing effort for social and...
- Ambush marketingAmbush marketingAmbush marketing can be defined as a marketing strategy wherein the advertisers associate themselves with, and therefore capitalize on, a particular event without paying any sponsorship fee. The Macmillan English Dictionary defines ambush marketing as a marketing strategy in which a competing...
- Sports marketingSports marketingSport marketing is divided into three sectors. The first is the advertising of sport and sports associations such as the Olympics, Spanish Football league and the NFL. The second concerns the use of sporting events, sporting teams and individual athletes to promote various products. The third is...
- Sustaining programSustaining programSustaining program is a term used in the United States broadcasting industry for a program which does not have commercial sponsorship or advertising...
- European Sponsorship AssociationEuropean Sponsorship AssociationThe European Sponsorship Association represents those involved in sponsorship across Europe.-History:The European Sponsorship Association was formed in October 2003 by the merger of two bodies, the European Sponsorship Consultants Association and the Institute for Sports Sponsorship.The European...