5 Common Pitfalls of Sponsorship Programs
Over 30 years of experience in sponsorship activation has exposed us to a wide range of projects. From massive budgets and high-profile reach in multiple sports to targeted, grassroots growth...we have seen it all. We have also seen plenty of "honeymoon programs" where initial foundations fall short, and we are out to change that by bringing thoughtful changes to the approach.
Let’s take a closer look at why sponsorships end up less successful than planned.
1. Brands expect the property to do all the activation
The teams, series and tracks are looking for sponsors to fund their operating requirements. Their purpose is not to activate for you, but a good partner will want to activate with you. You can’t rely on a race team or track to manage a portfolio of activation that holds you and your brand as a priority.
A team's priority is their ability to perform on the track. We believe that is how it should be. Without them prioritizing competition, the show and the entire platform will suffer. You are responsible for activating the assets you have in place for maximum ROI.
2. Choosing a sponsorship solution before identifying your business objectives
Many brands buy into a sponsorship program without understanding how it would support their business objectives. Think about your brand objectives first, then look for properties that fit as a platform to address these objectives. The stronger you can connect your sponsorship activation to your business results, the more success you will have with a sustainable program.
3. Program complacency
Many sponsorships run for years and tend to become stale. The biggest challenge is to generate exciting ways to activate and build value for your customers. Once you set an activation strategy, return to it each year to ensure you are getting results. If the results start to fall off, it doesn’t mean you have to ditch the whole program. It just means you might want to try a fresh asset mix, an updated activation strategy or a new direction.
4. Going at it alone
Motorsports are glamorous and high profile. Many managers make decisions and align with whatever keeps that connection. You may not know how the different assets could be or should be used to extract maximum value. This artificially limits the potential of your program and makes it difficult for it to grow. Lean on expertise to get you going on the right path.
5. Spending 100% of your budget on property rights alone
You must target your budget for activation programs designed to support the properties you have acquired. We recommend $2 of activation budget for every $1 of property spend. Spending all of your money on access to a team or series will limit what you can do with it and is a sure way to reduce potential ROI. There is flexibility in the ratio here, as properties are available at a wide budget range depending on your business objectives and where you are in the process.