Despite the gloomy mood in the general economy, there is good news to be found. Chicago-based sponsorship research firm IEG expects sponsorship spending by North American companies to increase by 12.6 percent in 2008, to top $16 billion. According to IEG's most recent industry forecast, this marks the sixth consecutive annual growth in sponsorship spending and the largest increase since 2000.
By far, the lion's share of the dollars will go to major sporting events, but smaller annual events and association meetings will also see their fortunes rise. Associations and membership organizations are expected to witness a sponsorship growth of 4.6 percent to $461 million in 2008, while annual events, festivals, and fairs should see an increase of 7.7 million to $754 million this year.
Planners who want to get their piece of this growing sponsorship pie should carefully consider their options when creating their sponsorship programs. Planners can choose to incorporate three main categories of sponsorship: items, sessions, and experiences.
ALL THE LITTLE THINGS
Of all the options, sponsored items are probably the most familiar. Anyone who's attended an association meeting or trade show has walked away with a lanyard bearing the name of a sponsoring company, if not a travel coffee mug, a tote bag, and probably some breath mints emblazoned with corporate logos as well. Going beyond these tried-and-true sponsorship standards, any item that an attendee might use while attending a meeting can beand probably has beensponsored, from coffee sleeves to lip balm, postcard packs and local maps with jogging routes, to newspaper bags and bathroom mirror clings.
But, while offering items for sponsorship may be an easy and familiar way to approach sponsorship, IEG Vice President Dan Kowitz recommends that planners consider more creative alternatives. "We suggest they no longer go after tote bags and lanyards," Kowitz says. "We believe that just adds a lot of clutter and isn't necessarily worth their time and efforts. [Instead,] we suggest that the creativity comes through sponsoring unique or creative services that they wouldn't normally have at the conference." Kowitz says potential sponsors who can afford only small items would benefit more from advertising and exhibiting at events that provide creative sponsorship opportunities, and that planners would be better served offering more comprehensive sponsorship programs.
SELLING SUBSTANCE
For some meetings, this means selling sponsored sessions as part of the meeting program. Sande Smith, owner of Reston, VA, sponsorship sales firm LSS Associates, says he regularly sells sponsored workshops. "It gives companies the chance to get in front of the audience in their own classroom for a couple of hours," he says. Smith says attendees register for the sponsored sessions in the same way they do for other sessions and, he says, "They always sell out." To make sure the content is appropriate (and more than an extended commercial for the sponsoring company), the topic and synopsis of each session must be approved by the association in advance.
Selling sponsored sessions can be lucrative. "Vendors always want dedicated time in front of some part of the audience, and they're willing to pay for it," Smith says.
IEG's Kowitz agrees that sponsors can often provide content in appropriate ways but cautions that selling of these sessions should be approached carefully and on a case-by-case basis. "This can be tricky, depending on what kind of event it is," he says. Keynotes and larger events, whether they be opening receptions or dedicated gatherings or meals, are almost always appropriate for sponsorship. But, IEG suggests keeping sponsorship opportunities away from any sessions that involve governance issues or other decision-making matters. Additionally, Kowitz says, "we steer clear of allowing that when any continuing education or certification is being involved in the session."
AN EXPERIENCE TO REMEMBER
But, by far, Kowitz says, the most effective sponsorship opportunities are those that provide memorable experiences. These can run the gamut from enjoyable, quick experiences like a sponsored shoe-shine to relaxation areas or free massages. "The idea is to create some sort of concierge space that wouldn't normally be there," Kowitz says.
At the 2007 PCMA annual meeting, the CVB of the host city, Tourism Toronto, sponsored an "Imaginarium," in which attendees were welcomed to relax and "free their minds." Guests of the Imaginarium sampled teas and spirits, received massages, and were invited to use canvases and paints if they wanted to. The following year, in Seattle, PCMA featured a recreated Pike's Place Market of sponsors. "The sponsors were out in public, interacting with the attendees in a row that looked like [Seattle's famous market]," Kowitz recalls. "The sponsors were also handing out useful information about the city, to make it worthwhile for the attendees."
The possibilities for creative, experiential sponsorship opportunities are shaped only by the interests of the attendees themselves. Along these lines, meetings can feature anything from sponsored book readings, concerts, or performers to sponsored espresso bars and the more common cyber cafes. "It really varies across the board," Kowitz says. "You have to know your audience and your meeting, but for meetings and attendees that have the sort of nature for these types of experiences, the more fun they are and the more specific to the group they are, the better. We always say that you know you've come up with something good if it would be missed [were it absent] the following year."
A NOTE ON STRATEGY
Experiential sponsorships for attendees benefit both the sponsors, by making a lasting impression on their preferred audience, and the meeting planners, by providing memorable and fun experiences. And these sponsorships can be even more effective for both parties if they are offered as part of a larger, overall sponsorship program.
"We do not recommend that you simply sell all of these bits and pieces a la carte," Kowitz says. "Generally, when we work with a group that has a meeting or meetings, we take a more holistic approach. For example, if you have an annual meeting, we don't see you selling these experiential meetings or sessions individually." Instead, IEG recommends that planners create sponsorship programs that offer a range of types of sponsorship opportunities for each price. "This can happen for meetings of all sizes, from very small to very large. The idea is that you want to have the company commit to the whole meeting, buying the whole thing, and then getting access to creating an experience or buying sole sponsorship of opening [or other] sessions. Our position is that selling little things a la carte creates clutter and insures that you're always leaving money on the table."
In the end, sponsorship in meetings is about leaving an impression in the minds of the attendees; the most successful sponsorship programs offer corporations and organizations the opportunity to interact with their audience in memorable ways. "Everyone can do signage and sponsor receptions and those sorts of things, but if you want to take it to the next level, those fun and cool experiences really reach people," Kowitz says. "It doesn't even have to have anything to do with the company's specific product or service; if they enjoy it, they'll remember it, and will actually pay more attention to the sponsors who are giving them a good time."
Originally published June 01, 2008
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