Marketers/PR Pros Should Study Which Consumers Are Most Influenced by Sponsorships
Corporate sponsorship, which includes the red-hot trend of cause-related marketing, is expected to be 15 percent higher in 1998 over last year, according to a just-released survey.
The practice of aligning marketing endeavors with events (everything from mom-and-pop chains making sure a local theater production gets off the ground to corporations linking their brands to the Olympics) will reach $6.8 billion in the U.S. this year. That's several notches above the $5.9 billion that was allocated in 1997, according to IEG, Inc., a sponsorship industry research and consulting firm based in Chicago.
Since 1982, IEG has poked and prodded at the practice of corporate sponsorships, which include analyzing sports, arts, entertainment and cause-related marketing and detecting trends.
But unlike philanthropy and pro-bono works, whose PR benefits are obvious, corporate sponsorship is more sales-driven, according to Lesa Ukman, president of IEG. "Consumer are looking to spend their money with companies that stand for something," adds Ukman.
Nonetheless, as PR and marketing become more closely related, it's wise to not only be familiar with your employer's sponsorship habits, but also with which ones it's considering supporting.
Keep in mind that historically, consumers have long been loyal to corporate sponsorships in just certain venues, especially NASCAR, PGA and the arts, according to Bill Doyle, VP of Performance Research.
Performance Research, Newport, R.I., has conducted more than 500,000 interviews and more than 300 focus groups regarding sponsorship, sports, leisure activities and special events since its inception in 1985.
And its data has shown a link between consumer loyalty and sponsorships.
Results of questions that Performance Research has asked fans about whether they "almost always" or "frequently" purchase a sponsor's product over a non-sponsor's product reveal:
- 72 percent of Nascar fans said they would purchase a sponsor's product over a non-sponsor's product;
- 38 percent of NBA fans said they said they would purchase a sponsor's product over a non-sponsor's product; and
- 22 percent of rock concert fans said they would purchase a sponsor's product over a non-sponsor's product. (IEG, 312/944-1727; PR, 401/848-0111)