Sign in

Career development Business Sponsorships: 14 Benefits of Sponsoring an Event

Business Sponsorships: 14 Benefits

of Sponsoring an Event
By Indeed Editorial Team
Updated August 4, 2022
Published March 15, 2021
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject
matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your
career journey.

Events can provide companies with incredible opportunities to market their brand,
reach new customers, improve their public perception and increase their sales.
Through business sponsorship, you can provide attendees with a unique
experience that fosters trust and credibility.

In this article, we explain what exactly a business sponsorship is, describe how it
works and provide a list of some of the most compelling advantages of
sponsorship advertising.

Get the latest trending stories, job search tips, career advice and more!
 Subscribe

What is business sponsorship?

A business sponsorship is an organization's support of an event or activity, like a
nonprofit, organization, group, trade show or local sports team, which usually
comes in the form of a financial contribution. Organizations use sponsorships as a
marketing tool so that they can gain a competitive advantage and reach business
goals.

Unlike advertising, which shares specific messages about a company or product in

the hopes that it will increase sales, sponsorships improve a brand's recognition
and reputation because they support specific events that your target audience
cares about. As a result, prospective customers associate your company with the
event or activity.

Sponsorship gives companies invaluable exposure by allowing them to reach and

connect with quality audiences, which often results in business growth.

Related: 17 Marketing Strategies (With Examples)

How do business sponsorships work?

Community events often rely on the support of sponsors so they can minimize
costs and provide exciting programs. For the sponsors of large business functions,
charity events and trade shows, these promotional opportunities typically sponsor
things like:

Branded merchandise, such as tote bags

Shuttle buses

Display computers
 Audiovisual equipment

Badge holders

Banners

Educational programs

Award ceremonies

VIP rooms

Guest speakers

International lounges

Press rooms

When businesses sponsor smaller, local causes, like a charity drive or sports team,
there are usually fewer opportunities for product or brand placement. Though you
may reach fewer people, these sponsorships can be extremely beneficial for
companies that have a specific local target audience.

Related: What Is a Place Strategy and How Do You Make One?

See how your salary compares

Get personalized salary insights with the Indeed Salary Calculator

Benefits of sponsoring events

Becoming a sponsor has a number of advantages. For example, your company can:

1. Increase return on investment

Though they usually require some financial commitment, sponsorships provide
businesses with excellent exposure, which typically results in a great return on
investment (ROI). Sponsorship roles are usually negotiable, meaning you can work
out an agreement that gives your company the level of exposure you're hoping for.
out an agreement that gives your company the level of exposure you're hoping for.

Before the event, you should determine what goals you're hoping to achieve. You
can then choose an e!ective metric to measure your success and decide if that
specific sponsorship is worth doing again.

Read more: ROI: Definition and Calculation

2. Build business relationships

Sponsoring an event or trade show can help your company make connections with
non-competing businesses, giving you opportunities for collaboration in the future.
Aside from having a strategy for engaging new customers, you should also prepare
a plan to introduce yourself and your company to other sponsors and professionals
in attendance.

3. Gain valuable insights

You can learn a lot from sponsoring an event, including the:

Newest industry trends or business ideas

Unique selling proposition (USP) of other companies

Strategies other businesses use to attract new customers

Related: Market Research vs. Consumer Insights (With Definitions)

4. Expand its content strategy

Sponsorships can provide a great source of new material for a company's content
strategy. By promoting your involvement in an event or activity, you can drive
tra"c from the event and increase your engagement. A great way to do this is by
creating content themes and hashtags. Additionally, you can connect with the host
on social media and find new target audiences.

Read more: 5 Steps of Content Strategy

5. Foster a positive reputation
Perhaps one of the biggest benefits of event sponsorship is that it can strengthen
your company's image. People typically enjoy supporting brands that invest in their
community and spread positive messages.

By sponsoring an important cause, you can attract media attention, set your
company apart from larger brands and inspire brand loyalty. Determine what your
target audience cares about, and choose causes that align with these values in
some way.

6. Generate leads
Brand loyalty is largely dependent on emotional connections. By sponsoring
events, you can gain exposure to prospective customers and highlight the human
side of your company. Additionally, when a representative of your company attends
the events you sponsor, you can learn valuable information about your customers,
develop a mailing list and promote your services or products.

Event hosts can usually provide you with information about the attendees
beforehand, such as the attendance rates. If you conduct research in advance, you
can develop a strategy for creating as many leads as possible.

Related: What Is Lead Generation and How To Generate Leads in 3 Steps

7. Reach sales goals

Aside from gathering leads, you can also generate immediate sales at a consumer
event. Look for events that have high attendance rates and a limited amount of
direct competitors. In some cases, you can ensure that you're the only vendor in
your particular market category by paying an additional fee.

Related: 10 Goals To Develop Yourself and Your Team as a Sales Manager

8. Benefit from association

8. Benefit from association
You can often grow your company's positive reputation through branded event
marketing. When a company sponsors events or organizations, people often
assume that it is reputable and reliable. As a result, consumers have a higher
likelihood of purchasing services or products associated with the brands
sponsoring high-profile events.

9. Boost brand visibility

Sponsorships can increase brand recognition before, during and after the actual
event by giving your company exposure to new audiences. This often happens
through mentions in the press or social media and event advertising, like radio
spots, signs and featured ads. You can take advantage of this exposure by o!ering
attendees free branded materials through promotional giveaways.

Related: Brand Awareness: Definition and 6 Ways To Improve

10. Engage niche markets

By choosing events that attract your target audience, you can ensure that you're
connecting with high-quality leads that are interested in your solutions or products.

Read more: What Is a Business Niche? (With Di!erent Types of Niches)

11. Showcase a service or product

Events provide a great setting for launching feature updates or new products. You
can increase your tra"c by promoting launches and other incentives, like
giveaways, on social media before the event.

12. Gain a competitive advantage

When you sponsor an event, you automatically gain an advantage over your absent
direct competitors.

Read more: What Is Competitive Advantage, and Why Is It Important?

13. Interact with prospects
In-person interactions can help you develop a connection between your company
and its target audience. Engage with prospective customers by providing demos or
branded merchandise.

Related: How To Increase Customers in 5 Steps

14. Establish its authority

As a sponsor, you can position your brand as a credible authority in its niche
industry.

Is this article helpful?

Yes No

Explore your next job opportunity on Indeed

Find jobs

Indeed Career Services

 Interview help
Get interview-ready with our best tips

Prepare for your interview

Indeed Resume
Get noticed by employers

Upload a resume file

Career Guide
Salary Calculator
See your personalized pay range
 Get your estimate

Company Reviews
Access millions of company reviews

Find companies

Resume samples
Kick start your search with templates

Browse resume samples

 Instant resume report
Scan your resume to see quick tips

Start your resume review

Explore more articles

11 Landscape Design Software Tools You Can Use (With Tips)

8 Resource Management Best Practices (With FAQs)

How To Increase Employee Loyalty and Engage Your Team

10 Strategies for Managing Your Department’s IT Budget

Signs You Have Too Many Projects (With Tips to Manage Them)

Pillar Pages: Definition, Benefits and How They Work

Guide to Cloud Computing Certifications (Plus Benefits)

Guide to Cloud Computing Certifications (Plus Benefits)

Gross Profit vs. Operating Profit: What’s the Di!erence?

What Is Responsive Design and How Does It Work? A Guide

Marketing vs. PR: Di!erences and 10 Types of Careers

How To Convert PowerPoint to Google Slides in 2 Ways (With Tips)

FAQ: What Is the MCITP Certification?

© 2023 Indeed
6433 Champion Grandview Way Building 1, Austin, TX 78750

Cookies
Privacy
Security
Terms

Accessibility at Indeed
Privacy Center
Contact us
Your Privacy Choices