what is it and how does it work?

what is it and how does it work?

the sponsorship contributes to a large extent to the success of the Reb Bull brand. The Heineken group, likewise, is renowned for sponsoring the European Rugby Union Cup. To a lesser extent, the bike shop that sponsors the local cycle race is well known to locals. Visibility is the major objective of sponsorshipand benefits companies in all sectors of activity and regardless of their size.

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The company makes itself known in order to capture customers, it associates its image with a person, an organization or an event to increase its notoriety.

How does sponsorship work?

Sponsorship connects two partners.

  • A person or organization looking for a sponsor: the person is a well-known public figure who enjoys some media coverage. These are often athletes. The organization is understood in the broad sense of the term. It can be a non-profit association, a sports team or club, a sports competition or event, a humanitarian or artistic action or even a scientific research institute.
  • A corporate sponsor.

Each partner pursues a specific objective.

  • The sponsored entity has a specific need for money, equipment, technological tools, know-how or technical skills. Sponsorship, in this context, is the central funding and operating model for local sports associations and clubs. The sponsored entity may also seek a sponsor simply for the purpose of monetizing its notoriety and media coverage. This is the case of world famous football players.
  • The company sponsors for the purpose of visibility. This promotional operation is part of its marketing campaign, or constitutes its strategy in its own right. The sponsor uses this vector of communication to make himself known to a previously targeted clientele, or to improve his brand image by associating himself with a renowned partner on a long-term basis.
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The partners make an agreement.

  • Sponsorship is sometimes formalized by a verbal agreement. When the stakes are high, however, it is necessary to provide for a sponsorship contract.
  • The sponsorship contract mentions the following essential clauses: the identity of the parties, the duration of the sponsorship and the respective commitments of the partners.
  • Generally, the sponsor’s commitment consists of paying a sum of money, lending or donating equipment. The company can, for example, lend security barriers to supervise the event, or give giveaways to reward the winners of a sporting event. The sponsor may also be asked to provide a service, for example in terms of logistics. Incidentally, the sponsorship can take the form of an advantageous reduction on the selling prices practiced by the company.
  • In return, the sponsored entity offers brand visibility on its advertising media. The sponsor’s logo, for example, is printed on event posters, on stage or box banners, on the start or finish arch of a race, or on clothing or athlete jerseys. The corporate brand, in addition, may be associated with the sporting or cultural event or charity in press releases, and appear online on the organization’s website and social media. When it is a person who is sponsored, the company can obtain that it intervenes during a company event such as the inauguration of a new point of sale. On an ancillary basis, the sponsorship contract may provide for the offering of places to the sponsor to attend the sponsored event. Another consideration for the benefit of the sponsor: the company is authorized to communicate on its sponsorship action and to quote the entity it supports via its marketing materials.
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Sponsorship is a matter little regulated by law, the parties conclude their contract relatively freely. It should be noted, however, that the Évin law brings a limit to the practice: since 1991, sponsorship operations which have as their object or effect the advertising of alcoholic beverages are prohibited.

What are the benefits of sponsorship?

The advantages of sponsorship for the benefit of the company are mainly observed at the level of the visibility generated by the operation. At the end of the day, like any marketing action, sponsorship increases sales, and therefore turnover. It should be noted, however, that unlike certain actions such as an e-mailing campaign or an advertisement on social networks, it is difficult for the sponsor to measure the financial impact of its investment, for lack of being able to trace the buying journey.

  • A increased visibility : when the athlete, the demonstration, the action or the sponsored event is publicized, on television, on the radio or in the press, the company reaches a massive audience.
  • A targeted visibility : the company can use sponsorship to reach a specific target. For this, it chooses the entity to sponsor according to the customer segment it is targeting, based on the public that the event attracts. An energy drink company, for example, may choose to be promoted at an extreme sports event to reach a young clientele, where a luxury watch brand prefers to display its visual identity during a horse race. .
  • A delegated visibility : once the sponsorship contract has been concluded, it is generally sufficient for the company to pay the agreed price. The work stops there, it is then the sponsored entity that takes over to promote the brand.

Beyond the issue of visibility, the company can do sponsorship to create an association of brand images in the mind of the consumer. A company that sponsors an event organized for environmental protection purposes, for example, sees its image associated with a commendable and topical commitment: it improves its reputation by promoting its values. When the partners both enjoy the same reputation, each benefits from a positive image transfer.

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Another benefit of sponsorship can be seen internally. The company improves its employer brand, and can increase employee motivation by allowing them to benefit from benefits in kind offered by the sponsored entity. The football-loving employee, for example, appreciates getting free tickets to a crucial match.

Note that contrary to popular belief, sponsorship only entitles you to expense deductions for advertising expenses, not to a tax reduction. Tax reductions are in fact reserved for donations and sponsorship, which do not entail any advertising compensation for the benefit of the company.

How do I apply for sponsorship?

Often, organizations approach companies on their own initiative for sponsorship. But the company itself can offer to sponsor an organization. The marketing department sends an unsolicited application, or consults dedicated networking sites.

What is the difference between sponsoring, patronage and patronage?

  • the sponsorship is sponsorship. In accordance with the decree of January 6, 1989 relating to economic and financial terminology, the term “parrainage” is the French version of the English term “sponsorship” or “sponsorship”.
  • the patronage differs, however, from sponsorship. The patron does not receive any consideration, of any kind whatsoever, for the support he offers. Patronage is disinterested, it operates discreetly for purely philanthropic purposes.

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