Sponsorship Sales Basic Series – Part Two: The Three As to Building a Package
17th August, 2015
We have been running a monthly Sponsorship Sessions event at our Head Office since December and some of the challenges and hurdles that are being faced by quite diverse companies we have been helping seem to be the same. Therefore, I have decided to create a Sponsorship Sales Series for the beginner. If you are an expert, this blog is not for you – you might be more interested in reading this.
Benefits are key to any partnership as they provide the rights and capability for any brand to activate. Essentially they are the rights of usage. It seems simple enough; however, surprisingly many people don’t truly understand what a sponsorship benefit actually is and how it differs from the use of that asset.
Audience: Your audience is what a sponsor is interested in reaching. Your audience is not a sponsorship benefit and shouldn’t be included in a contract. The sponsorship benefit is what enables a sponsor to reach your audience.
Asset: An asset is the benefit you are providing a sponsor and is included in a contract. This forms part of a rights holder’s deliverables during the term of the agreement.
Activation: Activation is the activity a sponsors chooses to utilise with the asset(s) they have purchased. Typically the more creative, engaged and insightful – the more the activation will resonate with the audience, which is key to driving ROI for all parties. Activation developed alongside the rights holder typically engages audiences better due to the fact that the rights holder understands their audience better than the sponsor.
For example, in a sponsorship agreement with the benefit of social media for the sponsor the breakdown is as follows:
- Audience = the rights holder’s Twitter network
- Asset = 5 Tweets
- Activation = running a Twitter competition giving away 5 prizes to the first person who responds to a Tweet
Far too often, rights holder bulk up their sponsorship package by creating a lot of benefits that is really one asset communicated in different ways. Although this may make the rights holder feel like they are offering a great deal more, it doesn’t add any value to the prospective sponsor. Additionally, because rights holders feel like they are giving so much away, then tend to overvalue what is on the table because they themselves are confused about the benefits and the activation of those benefits.
By truly understanding what your assets are, you will start being able to clearly identify what packages and the value of those packages will be – rather than over inflating your proposition.