When you run a business, it's only a matter of time before someone approaches you to sponsor a conference, convention, festival, or another event. On paper, event sponsorships sound like an incredible opportunity. Hundreds or even thousands of people could see your logo and learn about your brand! But does this investment actually pay off?In reality, the return on investment (ROI) for event sponsorships is a bit murky. For some brands, a sponsorship can bring in new customers or high-quality leads. But for others, it ends up wasting your marketing budget. How can you decide which category you'll fall into? In this article, we're breaking down the basics on event sponsorship. We'll dive deep on the variables that affect sponsorship ROI, so you can make an informed decision for your business.Let's go!
Event sponsorship is when you provide financial support for an event in exchange for exclusive promotional opportunities. The promotional advantages of sponsoring an event may include:
In other words, sponsorship marketing provides visibility and access to specific groups of people. But sponsorship is a broad spectrum – not all opportunities are equal. Getting your brand's name printed in a program next to a dozen other companies won't earn you as much attention as a free product sample in a VIP swag bag or your logo on a step-and-repeat for a celebrity red carpet. While some events frame sponsorships as charitable donations, keep in mind that promotional sponsorships often don’t qualify as tax-deductible gifts. Talk to your accountant, but treat it as a marketing expense first and foremost. Will you get new customers, email signups, or other conversions? If not, your marketing budget is better spent elsewhere.
The key to getting serious ROI for an event sponsorship is alignment. Will you interface with a high volume of potential customers at the event? Do you have a clear plan to activate conversions? How will the organization itself partner with you? Consider these three factors before investing in a sponsorship:
If the event brings in a highly targeted, engaged group of people who match your ideal customer profile, that’s a green light. But you need more than just attendance. Mindset matters. Are people attending the event to learn, to network, or to spend? Are they relaxed and open to conversations? Or are they rushing from session to session and dodging booths?Let's say you're an SaaS company that makes tools for ecommerce. Sponsoring a summit for Amazon or Shopify sellers where you're the only ecommerce software? That will probably be a great investment. But a generic business expo in a convention center with 200 other booths? Probably not.
Simply having a brand presence may not be enough. You need a plan to pull people in and leave a memorable impression with event attendees. What type of opportunities are the event organizers offering you? Live product demos, workshops, or giveaways are more likely to drive higher ROI. If the event organizers aren't willing to work with you to develop an activation plan, you should probably pass.Similarly, if you don't have the people or bandwidth to show up and represent your brand in person, you're likely better off spending your marketing budget elsewhere. The advantages of sponsoring an event need to outweigh the cost.
As we mentioned, your relationship with the event organizers is critical to a successful sponsorship. The best event organizers treat sponsors like true partners. That means they'll partner with you to provide solid pre-event promotion, visibility across multiple touchpoints (not just a slide at the end of a keynote), and ways to stay connected with attendees post-event.Ask the event organizers:
A good event organizer will make sure you’re not just a name on a banner. They will do their part to ensure that attendees see and interact with your brand at the event.
The factors listed above help contribute to a successful event sponsorship with a potentially high ROI. But what else should you look out for? Here are some warning signs and red flags that an event sponsorship might just waste your money:
Let's return to our SaaS company example. If you're targeting high-growth startups, but the event draws mostly job-seekers (or people there for the free snacks), it’s not a fit. If the audience is too broad, no amount of swag or face-time with attendees will generate the leads you need to make the event worth it.
“Exposure” is the most overused word in sponsorship decks. A logo on a t-shirt or banner might boost your ego, but unless people are taking action, it’s a vanity metric. Even if two thousand people learn your company's name, it's a poor investment unless they actually purchase your product or sign up.
When it comes to event sponsorships, don't send a check unless you can also send a person. You need someone representing your brand on the ground floor; even if you don't have a booth or a live activation, your team should be present to ensure the event is going smoothly and delivering what the organizers promise. If the event organizers don't offer admission to your team, that's a red flag.
Before you say "yes" or "no" to sponsoring an event, run through this checklist of questions regarding the advantages of sponsoring an event.
If you receive answers that satisfy the needs of your marketing campaign, it may be worth the investment to sponsor the event. If not, move on.At Bloom Ads, we help our clients develop a comprehensive marketing strategy that aligns with your goals – and your budget. If you're not sure whether sponsoring an event makes sense for your brand, we can assess your marketing and help you make a more informed decision. Contact us today for a consultation.