media update’s Aisling McCarthy chatted to Neil Jankelowitz, joint managing director of MSCSPORTS, about how exactly sponsorships work and why brands should invest in them.

What are the advantages of putting a brand’s name behind a big event or team?

Sponsorships form a very important part of the marketing mix for a brand. The right sponsorships, leveraged effectively, provide brands with the opportunity to connect with consumers and relevant markets in a way that ordinary advertising is unable to do.

When a brand or business becomes a sponsor of a credible event or team, they automatically draw credibility through that association. In addition to that, the brand will be engaging with consumers and potential consumers in their “sweet spot”. If a brand adds value to the consumers’ experience, in their “sweet spot”, consumers will immediately engage, and value you as a brand.

What do sponsorships offer brands that other forms of advertising do not?

As mentioned above, sponsorships provide brands with an opportunity to engage a community within a context that interests them. There is also great ROI related to above the line opportunities linked to sponsorships.

What sort of sports/events tend to offer the best ROI for sponsors? Why?

Those that are aligned with the brand itself. For example, RAM’s sponsorship and involvement with the cricket was perfectly aligned. For RAM and in cricket, delivery and speed are two key factors for success.

When it comes to ROI with sponsorships, it’s important to note that it is not so much about the property itself but rather how a brand aligns that sponsorship with their objectives. To obtain the best ROI, it’s important for brands to start with clear, measurable objectives and then drive towards them. Any sponsorship platform can be incredibly effective, provided the objectives are clear from the get go.

Tell us a bit about the various sponsorship options that are available for brands?

There are many types of sponsorships available to brands, including:
  • Broadcast sponsorships – such as RAM Hand to Hand Courier’s broadcast sponsorship of the test cricket on SuperSport;
  • Team sponsorships – such as Toyota sponsoring the Cheetahs or Vodacom sponsoring the Blue Bulls;
  • Event sponsorships – such as the Discovery Jacaranda Walk or the Absa Premiership; and
  • Individual sponsorships/ambassadors – a good example of this is Discovery’s sponsorship of Chad Le Clos and Wayde van Niekerk as ambassadors.
Does sponsorship always work for any brand? Why?

Yes, provided a brand is focused on and committed to achieving their identified or desired objectives.

Where sponsorships won’t work, or the risk is there, is where brands don’t allow for a sufficient leveraging budget. What do I mean by this? It’s important to understand that for every Rand spent on the rights secured, the brand needs to have a minimum of one Rand in order to effectively leverage or activate the sponsorship.

To provide a bit of a better picture explaining the above – you need to ensure that you have petrol money before you purchase a vehicle. So, you may have secured excellent rights to a sponsorship, but if you don’t have an activation budget to support that sponsorship, you will not be able to reach the desired results.

In four sentences, explain why a brand owner should become a sponsor?
  • You will have direct access to a community and an opportunity to engage with them within a context they choose to be involved with;
  • Through sponsorships, you have the ability to measure the success of any campaign; 
  • If well-executed and aligned to a proper strategy, your brand will have the ability to achieve significant return on investment; and
  • Finally, sponsorships can be a lot of fun, for both the brand, the brand’s team, and the agency!
How can you ensure that the brand’s sponsorship does not come across as insincere? How do you ensure your brand’s values are aligned with those of the event?

The consumer needs to know that the partnership is a long term investment, not just a once off branding exercise. Consumers will easily identify if a brand’s partnership is long term or once off. If they recognise it is a long term investment, the opportunities for a brand and the consumers are endless.

A brand really needs to commit to a partnership 100%, and must commit to the relationship that comes with it. It’s also important for brands to not just focus on above the line return. A brands’ involvement must improve the supporters’ experience in a meaningful way.

Finally, as a brand, you need to know your values. It is then essential to investigate the values of the property you are looking to sponsor or partner with, and ensure that the values between the two are aligned. You need to ask any difficult questions upfront and should review the historic behaviour of the rights holder to assess how they’ve engaged with previous sponsors.

For more information, visit www.mscsports.co.za

Want to stay up to date with the latest marketing news? Subscribe to our newsletter.

sponsorshop offers a platform for potential sponsors to meet with people looking for sponsorship. Read more in our article, sponsorshop: A game-changer for the sponsorship space?