February 2007

My first involvement with advertising came at the young age of sixteen. The staff of our high school newspaper was expected to sell ad space in our fine paper, the Salem Cub. All I knew about advertising at that point was that it got me out of sixth period to go sell it. While that particular feature was of great benefit to me, apparently it did not mean enough to the powers at the Salem Bowling Alley to drop $50 for a half page. Admittedly, this was confusing to me. Like many teenagers, I knew pretty much everything back then—most of which I’ve apparently forgotten. One thing that did baffle me was this: I didn’t know why the local lanes wouldn't pony up half a c-note to advertise in our school’s newspaper. In retrospect, that decision was fine with me because, while I secured no cash for the Salem Cub, I still got a free game of bowling for my trouble. Of course, now I might view that chance quite differently. I would see it as a chance to build brand equity.

Sponsorship opportunities come in all varieties. They can come in the form of that scrawny kid asking your company to sponsor his school newspaper or it can come from a multi-million dollar sponsorship of the Olympics. Either way, sponsorships present brand building opportunities and can be quite valuable. Ask Samsung, Visa or Valvoline.

Samsung used its Olympic sponsorship for an identity breakthrough. The field of Korean electronic entries is numerous. Samsung was one fish in a sea that included Sony, Mitsubishi and Toshiba to name a few. It used an Olympic sponsorship in 1996 to break apart from competitors in a way that advertising would simply not have been able to accomplish. Visa’s lead in perceived credit card superiority doubled from 15 percent to 30 percent during its Olympic sponsorship before settling back at 20 percent after the event’s flame was extinguished. And Valvoline has used its NASCAR sponsorship to carve a distinct and energetic identity in an otherwise commodity-based and lifeless industry.  

However, a lot of company’s buy into sponsorships and do not reap the rewards that each of the three above examples enjoyed. This is primarily because each of those companies realized that the goal of building brand equity through a sponsorship could only come to fruition if the sponsorship itself was merely the beginning of the association.

Building brand equity can be accomplished through solidifying relationships with customers and potential prospects. It means connecting with them on a personal level through a common-bond event. Take Valvoline for example. Not only does the company sponsor a racing team, but the company’s website has become an information resource for NASCAR fans, complete with newsletters and fan paraphernalia. In other words, Valvoline has used its NASCAR sponsorship to connect with fans of the circuit on a very personal and fun level. That kind of connection helps build the relationships that serve as a foundation for brand equity.

You can do the same. A sponsorship of your local high school or college sports team is an opportunity to connect with the fans of those teams. A sponsorship of a worthy cause, such as Diabetes, Breast Cancer or the Heart Association provides more than a sponsor’s tag line in an event program, but a chance to extend your company’s relationship with its constituents far beyond the basic transactions of doing business. Create a section on your website dedicated to providing information or selling team/event items. Provide newsletters that keep fans and patrons connected to the program.

Creating these associations will help you build brand identity and equity in a non-sales oriented environment. These sponsorship associations will serve to enhance relationships with your customers in a way that print ads and television commercials cannot. I just wish I would have presented that thought to the Salem Bowling Alley instead of knocking down a few pins during sixth period!

 © BrandVision Marketing. 2007. Scott Trueblood. All rights reserved.

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