With the cost of marketing on digital platforms going up and conversion rates heading in the other direction, brands in many industries are looking for different ways to reach and attract customers.
Event sponsorship positions your brand and message in the spotlight of the people that matter. With events teams expecting a 10% increase in attendees this year and 86.4% of organizers planning to maintain or increase their events in 2024, in-person events are thriving. With that in mind, how can you choose the right event to sponsor to generate the best possible return on investment?
Why sponsor an event?
Before we discuss the different tactics you can use to sponsor the right event, let’s look at the ways that brand event sponsorship creates a Return on Investment. According to a leading event sponsorship company, Sponsor United, the ROI in sponsorships isn’t measured the same as other marketing activities:
“ROI in sponsorships isn’t just about financial return. Sponsorship ROI encompasses a broad spectrum of benefits from enhanced brand exposure, brand awareness, and audience engagement to stronger business relationships and improved brand loyalty.”
Event sponsorship can be an excellent way to connect with prospective partners and customers and generate new business. Unlike more immediate marketing, such as digital advertising, event sponsorship does not necessarily guarantee instant leads, but there are other reasons why brands are increasingly choosing this method.
- Brand exposure – Sponsoring in-person events, such as trade fairs, conferences, award ceremonies, and seminars, can increase brand awareness and create a positive impression of a brand and its products or services among its target market.
- Access to the people that matter – Established events attract key decision-makers in their respective industries, such as CEOs, directors, and heads of departments and procurement.
- Audience insights – Sponsoring and attending events can give you new insights into prospective customer groups and generate valuable quantitative and qualitative information. You can access attendee data and demographic information to target future marketing campaigns and talk to attendees to discover their pain points and challenges.
- Showcase your products and services – As an event sponsor, you’ll usually have the opportunity to host your own interactive stand. There you can showcase your products and services and pitch to potential customers, suppliers, and partners.
How to choose the right event to sponsor
As with any marketing effort, sponsoring an event does not guarantee success. Several factors, such as the type of event, the audience, and the specific sponsorship deal, will influence the outcome. Here are a few tips to help you get it right.
Determine your goals
The first step is to be clear about what you hope to achieve. When done well, sponsoring an event can increase brand visibility, establish your business as a thought leader, and generate leads.
Using the SMART framework – Specific, Measurable, Achievable, Relevant, and Time-bound – can help you set realistic goals. Once you have determined your goals, set key performance indicators (KPIs) that align with your objectives. For example, calculating your lead conversion rates or social media engagement will give you an objective way to measure your success.
Here are a few of the KPIs that are used to measure the ROI of an event sponsorship:
- Media exposure value
- Social media interactions
- Lead generation numbers
- Customer conversion rates
- Audience growth metrics
Know your audience
Once you’ve set your goals, think about who you must reach to achieve them. For example, are you looking to target a new market with a product or service or get noticed by key buyers in an existing segment?
You’ll already have some insight into your target audience from your current marketing activities. Using your marketing data and insights from your customer service and sales teams, you can identify your various customer groups and their pain points are.
Knowing your customer demographics, such as age, sex, and location, along with educational level and professional status is a good place to start. Additionally, you can investigate their psychographics, which refer to personality traits, values, interests, and attitudes. By understanding the demographics and interests of your target audience, you can narrow down the events that are most likely to resonate with them. This approach ensures that your sponsorship efforts are effectively reaching the right people.
Identify relevant events
Now that you know your goals and who you’re trying to target, it’s time to seek out the events that will deliver a healthy return on your investment.
Step 1: Find relevant events. Start by identifying relevant events in your industry or community, and don’t overlook local community events or charity functions that align with your target audience’s interests. To find these events, you can use a platform such as eventbrite that offers a consolidated overview of all sorts of events that are filterable by location and theme.
Step 2: Look at attendee data. Once you’ve located a few events that seem right, look at the event’s website and social media to see who the organizers are marketing the event towards and ask to see demographic data and a breakdown of attendees from previous years.
Step 3: Align your goals. You must also ensure the goals of the event and your business align. For example, if you want to establish your brand as a thought leader, consider events with panel discussions or speaking opportunities that allow you to demonstrate your expertise. On the other hand, if your primary objective is lead generation, events that attract key decision-makers and have a reputation for deal-making are likely to be your best option.
Seek value-driven sponsorship packages
Even when you think you’ve found the right event, it can easily become the wrong event if the sponsorship packages don’t provide value or fit your goals. There will usually be multiple sponsorship tiers offering various. You’ll need to compare these packages to determine the right choice for your budget and objectives.
While glossy advertising packages can be attractive, your priority should be the type of exposure and level of access you’ll have to your target audience. If you can’t find a sponsorship package that ticks both boxes, it’s probably not the right event or package for you.
Assess the other sponsors
The other sponsors can give you an insight into the audience the event attracts and whether sponsorship is likely to drive customer acquisition. First, look for other sponsors in the same or overlapping industry sectors. If brands in your ‘space’ have also chosen to sponsor the event, that’s usually a good sign – definitely don’t discount an event just because a competitor is a sponsor.
Better still, look for events with returning sponsors. Sponsors will only come back year after year if they generate a return on their investment, although be aware that their goals and objectives may differ.
Negotiate the right deal
Events need sponsors, which puts you in a powerful position. The event organizer will have sponsorship packages for different levels of investment, but there is usually room to create customized deals that better suit your goals. For example, there may be elements of a package you don’t need that you can remove to reduce the cost, or added extras, such as an interactive installation or speaking spot, that help you reach the right people.
Whatever approach you take, be sure to make the opportunity your own. Adapting the sponsorship to your brand, goals, and target audience will increase the likelihood of a positive experience.
Unlock the full potential of your investment
Sponsoring trade shows, conferences, and events is expensive. In many ways, it’s the Rolls Royce of in-person marketing. Given the substantial initial investment, you must choose your event carefully. Ask yourself:
- Is the audience the right one for my company?
- Does the cost of the initial investment justify the return?
- Do you have the resources to make your sponsorship a success?
If the answer to those questions is ‘yes’, event sponsorship can help you amplify your brand’s presence, forge meaningful connections, and elevate your brand.
