What Makes a Good Sponsorship Proposal

A sponsorship proposal is the starting point for any sponsorship partnership. Whilst the ultimate test of what makes a good sponsorship proposal is the securing of a sponsorship deal, the first impression created by a proposal can set the tone for that sponsorship and impact on the nature and longevity of the partnership created.

A good sponsorship proposal will, therefore, adhere to a number of basic principles that reflect the needs of the target corporation and the proactivity of the rights holder in delivering on those needs.

Know your sponsor & know your sponsorship

In order to identify the sponsors that have a good "fit" with a particular sponsorship, the rights holder must first understand the segments of the market that relate best to their sponsorship. This should at least involve:

• Identifying the demographic(s) that are most passionate about the rights holder's team/sport/art/cause/event (eg: Males 18-39); and
• Identifying the typical psychographic profile of the people that are most passionate about the rights holder's team/sport/art/cause/event (eg: individualistic, gregarious, outgoing).

The identification of these two factors should immediately align the sponsorship with a number of corporations that share similar demographics and psychographics in relation to their own target market. The rights holder should then rank these corporations according to the following criteria:

• The level of fit between the demographics/psychographics of the rights holder and target corporation; and
• The level of fit between the image/brand/ideals of the rights holder and those of the target corporation.

Speak to target corporations

It is important that the rights holder know what its target corporations seek to achieve with their sponsorships. Where possible, the rights holder should speak to the corporations that they intend to target to find out:

• What the target corporation's specific objectives for sponsorship are;
• What compatible objectives both the rights holder and target corporation share; and
• What other marketing activity the target corporation engages in, and how that could be incorporated into the relevant sponsorship.

Separate proposal into generic & customised components

There will be elements of any proposal that will remain the same regardless of the target corporation. The basic description of the sponsorship, background information and certain sponsorship benefits (eg: signage, hospitality) will be the same for every target corporation, forming the "generic" component of the proposal.

The "customised" component of the proposal will reflect how well the rights holder understands the target corporation's needs, and the level of proactivity of the rights holder in ensuring that those needs are met. The customised component should set out:

• How the sponsorship will reach the target corporation's target market;
• How the sponsorship can be incorporated into the target corporation's overall marketing plan;
• Proposed joint marketing initiatives to ensure that the objectives of the target corporation and rights holder are met.

Link investment to return, not market rates

There is a tendency for rights holders to value their sponsorship in line with what the rest of the market receives for a similar property. Whilst the market rate for sponsorship is what the market is prepared to pay, the increasing sophistication of sponsorship analysis should enable rights holders to set sponsorship value based on the return it generates for the sponsor.

Rights holders should also be prepared to:

• Add a premium for a sponsorship based on its ability to meet the needs of particular sponsors - ie: the better the "fit" between sponsor and sponsorship the greater the level of investment in that sponsorship should be.
• Set quantifiable targets in the proposal and factor bonuses into the sponsorship investment based on reaching those targets. By way of example, the rights holder might set targets based on the target corporation's objectives ranging from minimum crowd levels to raising awareness of the sponsorship to a certain level, and specify that the additional investment for each target met is $10,000. This not only has the potential to increase the revenue from the sponsorship, but also shows the target corporation that the rights holder is conscious of the need to meet the sponsor's objectives and is prepared to be accountable for ensuring that those objectives are met.

Measurement

There must be transparency throughout the entire sponsorship partnership, starting with the sponsorship proposal. That transparency requires that the rights holder be assessed against the benefits offered in the proposal.

The proposal should, therefore, set out clearly:

• The level at which each benefit will be deemed successful by both parties; and
• A credible methodology to measure the success of each benefit.

Measurement by an independent third party will provide the ultimate transparency in the sponsorship partnership. The benefits of measurement are not only limited to transparency but include:

• Identifying areas for improvement in the sponsorship;
• Identifying means for improving the sponsorship; and
• Ultimately, increasing the value of the sponsorship and the revenue that it generates.

- Stuart Austin - SCOMM

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