Sponsor (commercial)

Sponsoring something (or someone) is the act of supporting an event, activity, person, or organization financially or through the provision of products or services. The individual or group that provides the support, similar to a benefactor, is known as the sponsor.

Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property.

While the sponsee (property being sponsored) may be nonprofit, unlike philanthropy, sponsorship is done with the expectation of a commercial return.

While sponsorship can deliver increased awareness, brand building and propensity to purchase, it is different from advertising. Unlike advertising, sponsorship can not communicate specific product attributes. Nor can it stand alone, as sponsorship requires support elements.

Proponents of sponsorship would, however, point to its unique position in the marketing mix. A sponsorship program can include all other marketing elements including advertising, promotions, merchandise, hospitality, PR and social media. This allows sponsorship to be used to address a much wider range of business objectives. For example, a sponsor buying the rights to a sports team or competition could achieve increased brand awareness through high profile signage, but might also use hospitality tickets for staff motivation programs or to host key trade customers. On-pack promotions could be linked to the sports property to create a much more compelling consumer proposition and to associate the brand directly with a sports property which has much greater image attributes than the sponsoring brand.

Various psychological and communication theories have been employed to elucidate the mechanisms by which commercial sponsorship influences consumer audiences. Many theories posit that sponsorship creates a cognitive link between a brand (sponsor) and an event (sponsoree), leading to the formation of event-linked associations in memory. Consequently, thinking of the brand can evoke these associations, influencing consumer perceptions and behaviors. Cornwell, Weeks and Roy (2005) have published an extensive review of the theories so far used to explain commercial sponsorship effects.

One of the most pervasive findings in sponsorship is that the best effects are achieved where there is a logical match between the sponsor and sponsoree, such as a sports brand sponsoring a sports event. Work by Cornwell and colleagues however, has shown that brands that don't have a logical match can still benefit, at least in terms of memory effects, if the sponsor articulates some rationale for the sponsorship to the audience.

All sponsorship should be based on contractual obligations between the sponsor and the sponsored party. Sponsors and sponsored parties should set out clear terms and conditions with all other partners involved, to define their expectations regarding all aspects of the sponsorship deal. Sponsorship should be recognisable as such.