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Sponsorship brings benefits

Sponsorship brings benefits

From national events to community support, sponsorship at all levels can provide many benefits to business, becoming a vital part of the marketing mix.

Apart from building the brand, other positive outcomes - according to business sponsors themselves in an Australian government report¹ - are that it is good publicity for the company, provides tax benefits, helps build relationships with specific customers and is good for employee morale.

These positive outcomes are reflected in the fact that Australian corporate sponsorship has been growing steadily over the last five years, according to an Australian industry study², with sponsors spending more than expected: around 20 per cent of their marketing budget in total and $811 million in 2005.

Sport a winner

Interlease has a strong track record of sponsorship at large and small levels, particularly in the sports sector, which dominates Australian sponsorship investment. Sport sponsorship is followed by sponsorship of health, community service and welfare and arts and cultural associations.

The company is sponsoring Australian dinghy sailor Sarah Blanck in her quest for Olympic gold. Interlease's Nick Graham is sponsoring Team Bellarine, an entrant in the Tour de Kangaroo annual car rally, run by AFL football club North Melbourne . The Tour de Kangaroo is taking place in the second half of 2007 to raise money for the Royal Children's Hospital Leukaemia Research Fund. The aptly named Bellarine Beast will be taking to the road on this “wilderness adventure tour”.

In addition, Interlease's Sue Hadden has also been sponsoring her nephew's under-16 cricket team in the local area of Park Orchards in Melbourne over the summer. “The top level of sport in Australia has no trouble getting sponsorship, but support needs to start from the very beginning,” says Hadden. A cash donation receives logos on the children's cricket uniforms and signage in the clubhouse.

“The kids love it – it makes them feel special, just like their Australian heroes, and it gives the team a little bit of an extra resource,” she says of one of the benefits of giving. “Little things can make a big impact.”

Opportunities for the future

Sponsors see the strongest growth opportunities for the future as firstly soccer, closely followed by cause-related programs such as breast cancer awareness, with AFL coming in third. In a recent study by marketing consultants Cavill + Co, 77 per cent of Australians surveyed said they would prefer to buy a product associated with a cause, and over half said they would switch from their usual brand.

In terms of sponsorship delivery, events are expected to remain the leading area, but on-line marketing will increase dramatically. Online sponsorship opportunities are a good alternative for businesses, as it can provide companies with exposure in niche markets and is relatively inexpensive.

Before engaging in sponsorship, companies should be confident that it will be successful and has a proven track record. Most importantly, the sponsorship needs to be in line with the sponsor's brand and business objectives .

¹ Giving Australia : Research on Philanthropy in Australia . Department of Family and Community Services. Survey of Business, November 2005.

² Sponsorship Outlook 2006 based on research undertaken by Australasian Sponsorship Marketing Association (ASMA) and S-COMM Australia (2 nd -19 th May, 2006) with a sample group of 167 respondents representing sponsors, rightsholders and agencies. Website: http://www.asma.com.au/content/News.asp.