Why Learn How to Manage Sponsorship?
Sponsorship can be a powerful form of marketing. Learning how to manage sponsorship effectively brings this power to life.
As sponsorship experts, we’ve witnessed firsthand how well-executed sponsorships can catapult brands to new heights, create meaningful connections with target audiences, and drive substantial business value. This comprehensive guide will delve into the intricacies of sponsorship management, providing insights and strategies for professionals across the spectrum, from CMOs to sponsorship marketing assistants.
What is Sponsorship Management?
At its core, sponsorship management is a powerful tool that serves brands and properties. For brands, it’s an opportunity to enhance visibility, forge connections with target audiences, and align their image with specific values or causes. For properties, sponsorship may be a means to generate revenue, gain knowledge, and expand their reach to elevate their programs and achieve greater success.
Managing sponsorships is similar to conducting a symphony. The sheet music represents the sponsorship strategy, while the symphony’s management ensures each section features the best musicians. Sponsorship managers must ensure that their “instruments”—such as social media, public relations, or event marketing—are top-notch. Just as a symphony conductor skillfully blends music and musicians into a cohesive performance, a sponsorship manager artfully coordinates an integrated marketing plan to create a successful campaign.
Key Skills of Sponsorship Management
Based on extensive experience in the field, we’ve identified five essential skills that form the backbone of successful sponsorship management:
- Negotiation: The sponsorship manager regularly negotiates with their counterparts to resolve conflicts and create understanding. A great negotiator seeks a win-win solution that lays the groundwork for a successful partnership.
- Implementation: A sponsorship manager brings the sponsorship to life through implementation. Often, the sponsorship professional embodies the best qualities of a project manager.
- Relationship Building: A sponsorship represents a business association between a sponsor and a property. Therefore, sponsorship managers need to be excellent relationship builders.
- Measuring and Reporting: Sponsorship managers must master the art of measuring the impact of sponsorship. Additionally, an excellent sponsorship report brings these measurements to life.
Best Practices on How to Manage Sponsorships
To excel in sponsorship management, implement these best practices:
Define Clear Objectives
Clearly outline sponsorship goals and objectives from the start. Whether a sponsor aims for brand exposure, lead generation, or community engagement, having well-defined objectives will guide a strategy and help measure success.
Targeted Audience Analysis
Understand the target audience thoroughly. Ensure that the property’s message aligns with the sponsor’s audience’s interests and demographics. A sponsorship manager often conducts in-depth sponsorship audience research to maximize the impact of a sponsorship.
Confirm Proper Partner Selection
At the outset, a sponsor should ensure that its partners align with the sponsor’s values, products, or services. This “sponsorship fit” creates a more authentic and effective partnership. During implementation, the sponsorship manager should confirm this fit by gauging the audience’s reaction to the relationship. If the audience reacts as intended (i.e., feels more favorably toward the sponsor), the sponsorship “fits.”
Effective Communication
Great sponsorship managers maintain open and transparent communication with the property. They participate in regular updates on sponsorship progress and opportunities for feedback. This two-way communication fosters a strengthened partnership.
Comprehensive Activation Plan
A comprehensive activation plan brings the sponsorship to life. The sponsorship manager develops a detailed plan that outlines how to leverage the sponsorship to achieve everyone’s objectives. This may include marketing campaigns, events, or other promotional activities.
Measurement and ROI Tracking
The sponsorship manager implements and analyzes key performance indicators (KPIs) to measure a sponsorship’s impact. Tracked metrics may include brand exposure, website traffic, lead generation, and PR hits. This data-driven approach allows managers to assess the partnership’s effectiveness and make informed decisions.
Budget Management
A sponsorship manager closely monitors the budget allocated to sponsorship and various activations. Good financial discipline is key to sponsorship success.
Fulfillment of Commitments
A great sponsorship agreement clearly outlines the commitments that must be fulfilled. The sponsorship manager ensures the completion or delivery of all commitments outlined in the agreement, including the promised creative, activation plans, and other agreed-upon elements.
Crisis Management
The sponsorship manager is prepared for every contingency. To be ready, the manager prepares a plan to handle potential issues or crises related to sponsorships.
Evaluation
Some sponsorships succeed, while others fail. A sponsorship manager is clear-eyed about evaluating a sponsorship. Nothing is worse than continuing a failed partnership.
The Future of Sponsorship Management
As we look ahead, sponsorship management will evolve rapidly. Digital technologies open new avenues for activation and measurement. For instance, data will help sponsorship managers pinpoint success and failure in sponsorship, including whether the sponsorship causes an increase in sales for the sponsor.
Additionally, many brands increasingly seek purpose-driven sponsorships that align with their values and contribute to social or environmental causes. This trend will likely continue, with sponsorships becoming a key tool for brands to demonstrate their commitment to corporate social responsibility.
Final Thoughts
Sponsorship management is a complex yet rewarding field that offers immense potential for organizations to grow, increase visibility, and achieve success. By mastering key skills and implementing best practices, you can create sponsorships that deliver value to all stakeholders.
Remember, effective sponsorship management involves an ongoing process of learning, adapting, and optimizing. Stay curious, keep up with industry trends, and seek expert advice when necessary. With the right approach, sponsorship can become a powerful tool in your marketing arsenal, driving brand awareness, engagement, and business success.
