Why You Should Sponsor Local Events (and How to Do It Right)
Businesses that sponsor events usually have more in mind than marketing. Sponsoring local athletic events, conferences, and other activities is a way for companies to support the causes that matter and add real value to the community that may not always show up on a balance sheet. Of course, there are real benefits of event sponsorship that small businesses can’t overlook.
Why Do Some Businesses Sponsor Local Events?
Aside from simply wanting to support causes that matter, businesses know events do deliver value. Even if establishing a clear return on investment for event sponsorship isn’t the top priority, there are certainly benefits to getting involved.
1. Raise brand awareness.
Sponsoring events is an effective way to introduce your brand’s goods or services to a large audience. This is especially important for younger companies that need to establish themselves in the community.
2. Leverage brand alignment.
Choosing the right events to sponsor allows a brand to tap into a qualified, informed audience already receptive to its products or services. Sometimes, these associations are obvious; it’s why bike shops sponsor bike races or running companies sponsor the local 5K. In other scenarios, the alignment is based on demographics and interest; banks may sponsor college fairs to showcase student loan services or why restaurants sponsor events that draw a lot of participants from out of town.
3. Gain a competitive edge.
Potential customers know which local businesses sponsor their favorite events, but they also notice who don’t. In some cases, customers will support brands that sponsor events over those that don’t, even if it means driving a little further or paying a little more.
Companies that sponsor nonprofit or charity events aren’t just supporting a cause; they’re showing that they care. And that other company? They must not care as much.
Sponsorship and Events: How to Choose
Small businesses typically set aside a dedicated slice of their marketing budget to sponsor events each year. Having a set event sponsorship budget makes it easier to calculate return on investment. It keeps your marketing team or vendor (hey, what’s up) focusing on maximizing your impact on a few important efforts. It may also make it easier to say no to the many, many, many event sponsorship requests local businesses get all year long.
Support Event Promotions
It’s better to support something you care about at a higher sponsorship level than sprinkle small donations across the calendar. Work with event organizers to negotiate a sponsorship fee that makes sense for you, but contribute to the cause by marketing the event across your marketing channels. This mutual promotion will get more people to attend the event and associate your brand with the event more closely.
2. Show Up
Simply writing a check won’t do very much for your business. Local events do their best to represent sponsors in the lead-up to the big day, but a few social media posts won’t move the needle. You’ll get more for your money and positively impact the community by being there. If you can, bring a few of your staff to shake hands, volunteer, and play a role in the event’s success.
3. Measure the Results
Even if your sponsorship is purely focused on supporting a deserving cause, you owe it to your business and employees to evaluate the cost and return of event sponsorship. There are a few ways to do this that are relatively light lifts, including:
Check social media engagement - Did you get more likes, new followers, or shares?
Brand mentions - Look in Google Search Console to see if branded queries increased before and after the event.
Site traffic - See if site sessions increase before and after the event, especially if you provide attendees with free swag or a coupon with a QR code.
If you don’t have time to do the post-event sleuthing, tag us in to take a look!
The Impact of Events on Local Economies
Many communities rely on events to strengthen local economies and stimulate tourism. Calculating events' economic impact is trickier as it involves a mix of direct and indirect impacts.
Direct economic impact—This describes the expenditures of participants, their families, and attendees in the immediate vicinity of the event. Think hotel accommodations, dinner after the race or concert, and other spending directly related to the event.
Indirect economic impact—The net increase in expenditures from nearby businesses and workers as a result of the event. Think of the barista taking a participant’s tip and going out to dinner or buying a new shirt. This also includes additional working hours or spending to accommodate event traffic.
It’s important to note that most local events in Northern Michigan aren’t exactly local. Events like the Bell’s Iceman Cometh Challenge are over 95% non-locals, generated $4.7 million in direct spending, and contributed roughly $35,233 in additional tax revenue.
Measure the Impact of Your Event in the Community
Local events bring people together, strengthen the economy, and serve as treasured institutions for generations of families. We help small businesses and nonprofits make a big difference. Get help with event marketing, analytics and reporting, and event marketing consultation from Sovis Media. Let’s get started; get in touch today. (Tomorrow is totally fine, too.)