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Why sponsorship versus traditional marketing/advertising?

Over the past few years traditional media effectiveness has diminished while price has increased.

Traditional Media is less effective and efficient due to:

            •    Audience Fragmentation - there are many more channels to reach consumers as
                 content becomes much more targeted for specific demographic niches
            •    Costs – ratings and readership has declined while cost per viewer and reader for
                 advertising has increased
            •    Attention loss – consumers are tuning out, zoning out or become more savvy
                 about where the attention goes

Sponsorship is:

            •    Interactive – while advertising is a monologue, sponsorship is dialogue
            •    Emotional – it taps into events, places and causes that consumers are passionate
                 about
            •    Relevant – it reaches consumers in places they choose to be in
            •    Immersive – through multiple touch points and components
            •    Efficient – cost per impression are lower, and cost per interaction is more valuable

Sponsorship benefits can include:

    •   Lead generation – gain qualified leads to the targeted audience at property through
        incentive programs
    •   New business development – onsite conversion through hospitality, consumer audience,
        other rights-holders or property itself
    •   Increase customer/brand loyalty – increased equity via association with high prestige
        property
    •   Create awareness & visibility – using a multiplier through media coverage of
        event/property
    •   Change/reinforce image – through alignment with like-minded property

    •   Drive retail traffic and showcase brand attributes – through sampling and couponing

    •   Showcase community responsibility- through sponsorship of local events/causes with
        particular meaning to the

    •   Hospitality and Entertainment – use tickets and hospitality at and for sponsored
        properties to foster deeper relationships, reward customers and recruit and retain
        employees

    •   Sub-segment targeted demographics – through particular locations for consumer
        intercept, types of offers and communications
•   Differentiate from competitors – by locking them out of the sponsorship through
    negotiated exclusivity

•   Achievement of multiple objectives – you can all of the above plus media, through
    sponsorship

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Why Sponsorship Is More Effective Than Traditional Marketing

  • 1. Why sponsorship versus traditional marketing/advertising? Over the past few years traditional media effectiveness has diminished while price has increased. Traditional Media is less effective and efficient due to: • Audience Fragmentation - there are many more channels to reach consumers as content becomes much more targeted for specific demographic niches • Costs – ratings and readership has declined while cost per viewer and reader for advertising has increased • Attention loss – consumers are tuning out, zoning out or become more savvy about where the attention goes Sponsorship is: • Interactive – while advertising is a monologue, sponsorship is dialogue • Emotional – it taps into events, places and causes that consumers are passionate about • Relevant – it reaches consumers in places they choose to be in • Immersive – through multiple touch points and components • Efficient – cost per impression are lower, and cost per interaction is more valuable Sponsorship benefits can include: • Lead generation – gain qualified leads to the targeted audience at property through incentive programs • New business development – onsite conversion through hospitality, consumer audience, other rights-holders or property itself • Increase customer/brand loyalty – increased equity via association with high prestige property • Create awareness & visibility – using a multiplier through media coverage of event/property • Change/reinforce image – through alignment with like-minded property • Drive retail traffic and showcase brand attributes – through sampling and couponing • Showcase community responsibility- through sponsorship of local events/causes with particular meaning to the • Hospitality and Entertainment – use tickets and hospitality at and for sponsored properties to foster deeper relationships, reward customers and recruit and retain employees • Sub-segment targeted demographics – through particular locations for consumer intercept, types of offers and communications
  • 2. Differentiate from competitors – by locking them out of the sponsorship through negotiated exclusivity • Achievement of multiple objectives – you can all of the above plus media, through sponsorship