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Corporate Sponsorship - Why Sponsorships are Beneficial for Businesses

Sponsorship is one of the fastest growing marketing trends for businesses around the world as it provides many benefits to both the company and recipient

It is an excellent way to support a worthwhile individual or cause, either through financial or practical help, while boosting your business’ profile at the same time.

There are many different ways a business can set up a sponsorship. It could be through paying for a local sports team’s kit, helping to organise a charity event or a more innovative idea. Either way, if your company is looking for a new marketing strategy then sponsorship holds many benefits.  

Increases Brand Awareness

Sponsoring an event is a great way to instantly improve your brand awareness, especially for newly created companies. For charity events these will undoubtedly gain at least some local media attention which will result in free publicity for your company as its name is attached to it. For this reason it is essential you research the event being held and ensure it will be successful, as you don’t want to be associated with a failed initiative.

This will provide brand awareness for a short period of time. Sponsoring a local football team, race car or an individual should ensure it lasts for longer, as the brand will be associated with it on more than one day of the year.

Promotes a Positive Image

Sponsoring a charity event or project is a great way to build credibility and promote a positive image of your business. It will show the business in a caring light, whether potential clients have heard of the company or not. It is a worthwhile step up from just attending such an event.

When consumers and potential clients see your brand behind a charity run, fair or other project it will create a heightened sense of trust and increase its credibility. It appeals to people’s human nature and shows that your business is interested in the local community, in some cases distinguishing it against competitors.

Captures a Wider Demographic

It is a good idea to choose to sponsor something that fits in with your target market, but they also provide a great opportunity to capture a wider demographic. All sorts of people will want to get involved with charity events where the money raised is going to a good cause, including those who may otherwise not show any interest in your business.

It helps put your brand name in front of people who wouldn’t give your business a second thought, which can help win over some new clients. However, with many potential recipients for your company’s sponsorship, it also makes it difficult to pick an event and/or charity with a niche market that matches your own intended audience.

Allows Direct Customer and Market Interaction

Sponsoring and attending any kind of event allows you to interact directly with those that make up your target market. It provides a great chance to receive feedback from real consumers and potential clients, not just on the event but about your business as well.

By also capturing a wider demographic there can be lots of opportunities to network with those that you would otherwise not have the chance to. From local business owners to other people of influence in the local area, it can be vital to help your company if its audience is primarily in the region or to just improve local relations.

Receive a Good Return on Investment

Sponsorship does not lead to direct financial reward; that is not the point of it. Hopefully it will lead to a hike in sales through the promotional exposure it generates, that in many ways works out as a decent return on the initial sponsorship investment. This can work out cheaper than more traditional marketing and advertisement strategies.

For a cost-effective way to boost your business’ image and performance it is worth investigating sponsorship opportunities in the local area. Rather than ploughing a lot of profit into the same old marketing strategies, this can deliver enhanced results over time.