Very few people had anticipated the current economic situation, with long term economic and commercial implications remaining uncertain. For sponsorship professionals, this is a time of real challenge and opportunity.
Corporate sponsorships have always been viewed in a certain different light than other marketing investments. Because of the large financial commitments and some ‘squishy’ results reporting, there is potential for them to be lumped into the category of “Corporate Largess & Transparency” along with private jets, large bonuses and executive perks.
It is the role of the managers responsible for these relationships to take charge and be proactive in conducting analysis and report to senior management. Woe to the individual who waits for the cuts to hit them, only to scramble in haste to implement a budget number forced upon them.
In light of the cut backs announced at many leading properties and announcements of corporate partners ending or shrinking their relationships, the value of a deal signed years ago may be markedly less, as leagues end expansion plans; new venues are slowed or halted and properties cut staff.
There are several fundamental, yet critical actions that should be undertaken, if you have not already done so. Sophisticated sponsorship marketers regularly complete these steps, but if you have not, now is an especially important time to be prepared and ready to discuss the rationale, value and contribution of the sponsorship portfolio.
- Understand the 2009 corporate and brand strategies, objectives and tactical plans.
- Have priorities shifted?
- What are the key metrics and targets?
- How is the activation budget impacted?
- What is the likelihood of success?
- Review your sponsorship portfolio relative to the new strategies, economic order, customer mood and investor sentiment
- How does the current sponsorship portfolio and plan match up?
- Are changes needed to realign with the revised priorities?
- Where would you invest or cut spending?
- Review all sponsor agreements for:
- Assets
- Deliverables
- Options to renegotiate or exit
- Schedule a meeting with senior representatives of each property relationship, for a direct, frank and open conversation:
- Corporate or brand plans, target audience change and channel or retailer impacts of economy.
- Ask about the impacts and changes for the property – growth or investment plans, resources and assets
- Develop a sponsorship plan and recommendation for marketing or brand executives
- Updated activation plans, budget, measurement plan and projected results for investment spending
- Property relationships for maintenance spending
- Properties targeted that should be ended
