Sponsorship: building block for effective marketing

Brands live in the minds and hearts of their consumers. It is therefore the most important task of marketers to bring them there, anchor them there, and thus lay the foundation for the exchange relationships through which companies secure the funding for their activities. In a market economy, a wide variety of offerings compete for consumers’ interest, favor, and purchasing power. Sponsorship—defined as a partnership between a brand or company and organizations or individuals in the fields of sports, culture, science, the environment, or social causes—can make a significant contribution here. This applies to brand awareness, brand appeal, as well as the acquisition and retention of customers.

94.3% of Swiss people are interested in at least one cultural genre

Sponsorship is suitable for both B2C and B2B target audiences. One example of this is Formula E, the global electric car racing series: While the Julius Bär brand generates global brand visibility through its involvement, it simultaneously shifts its image toward innovative and more environmentally friendly aspects. In addition, it offers its clients hospitality packages at race events that appeal to both existing and potential clients. Last but not least, the sponsorship provides numerous opportunities to discuss financial products related to innovative mobility or environmentally friendly technologies. The same platform is also used by ABB Asea Brown Boveri, though with the goal of demonstrating its own technical expertise and informing and supporting industrial customers in product areas relevant to ABB—such as charging stations or the application and control of electric drive systems in the production processes of automakers.

«What kind of information are you looking for? Probably information on topics that interest you personally, regardless of the media channel.»

Sponsorship thrives on topic relevance and timeliness. As is generally the case in human or systemic communication, perception is the starting point of the process. Consider your own behavior for a moment: What kind of information do you seek? Most likely, information on topics that interest you personally, regardless of the media channel. Timeliness serves as an additional incentive—one that sports, in particular, makes excellent use of to continually engage interested audiences with its content. We also know from scientific studies that, in addition to relevance and timeliness, a content-based fit is one of the key prerequisites for the effectiveness of sponsorship as a communication tool. This means that there should be a similarity between the partners—the sponsor and the sponsored party: This can be expressed through regional proximity, the use of the product within the context of the event (whether as a charging station at the racetrack or as a snack on the couch), as well as in terms of the partners’ images and brand values. It is important to convey to the target audiences why a brand and a platform are forming a partnership: Here, a functional connection can be cited (e.g., mobility or insurance partners), as well as the values both represent (e.g., sustainability or diversity).

Well-orchestrated and actively implemented sponsorship thus becomes a key component of effective communication—with content that is relevant to society and the economy.

When selecting relevant topics, marketers can rely on the Market Analysis Sponsoring (MA Sponsoring) report—in addition to their own market research studies—as an objective, up-to-date, and compliance-compliant data source. This allows them to analyze which topics are relevant to a specific target audience, whether the brand and the sponsorship platform are a good fit, and which media channels are suitable for activating a partnership. And, of course, the brand can also track the effectiveness of its engagements, e.g., through changes in market share within the communities of the respective platforms—both at the national and regional levels. Such analyses should be supplemented by competitive intelligence, as the perception and optimal use of partnerships depend on whether the topic and platform are used exclusively or shared with many others.

91.3% are interested in at least one sport

In today’s key areas of marketing and communication, there are many fields where sponsorship can play a central role—for example, customer centricity and customer journey, content and influencer marketing, or purpose. When a brand associates itself with a topic or piece of content that is highly relevant to its target audience, this is certainly an expression of customer focus. When such content—whether in the form of text, still images, and/or video—is conveyed through the brand’s own channels as well as other media channels throughout the customer journey, it sets a chain of events in motion that engages the target audience in continuous and interactive communication with the brand. One example is Raiffeisen’s offering on welovesnow.ch. Of course, partnerships such as the one between Raiffeisen and Swiss Ski can also generate influencers who then serve as testimonials or media representatives (or a combination of both).

39% volunteers in sports, culture, the environment, or social causes

When communicating purpose, sponsorship comes into play through its ability to convey a community’s values: By partnering with select platforms that share the brand’s values and through corresponding activations, the brand becomes part of consumers’ everyday lives. Such analogies are direct and tangible, creating an impact—a credible effect—that extends far beyond purely advertising or PR-related measures. And when implemented appropriately, they also make a highly effective contribution to employer branding. A scientific study on Rivella’s sponsorship efforts confirms that significant effects can be observed on employees’ perceived image of the company, their commitment to the company, and their job satisfaction.

* Jean-Baptiste Felten serves on the Sponsoring Committee. One of six expert groups within the SWA.