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Effective B2B Sponsorship
Business-to-business sponsorship, or B2B sponsorship, seems to have multiple definitions within our industry. However, we should think of B2B sponsorship as a sub-category of sponsorship with one of two objectives, either to generate primary or secondary revenue. Primary revenue B2B sponsorship provides some sort of guaranteed business from the property and possibly from the property's vendors or other sponsors. In other words, revenue guarantees are built into the sponsorship agreement. Secondary revenue B2B sponsorship provides no such guarantees. Such sponsorship is meant to target the sponsor's customers, particularly business decision makers, not consumers.
The challenges associated with primary revenue B2B sponsorships are many. These sponsorships are essentially business deals in which brand fit and customer experiences sometimes take a back seat. While these sponsorships may bring guaranteed revenue from new customers (the property, its vendors and/or other sponsors), they may harm, rather than benefit your brand. For example, associating with a team that is a perennial loser, has a roster filled with bad citizens or even criminals, and plays in a substandard venue, may not be worth the business the sponsor receives in return. Not only does the sponsor find its brand damaged in this situation, but it also sees its margins decreased due to the sponsorship fee it must pay in order to sell its products or services to the property.
The litmus test for primary revenue B2B sponsorship should be the same as for any sponsorship. If the property's image is poor, its fan profile is not desirable, and brand fit does not exist, pass on the opportunity. If you have confidence in your field sales people, allow them to close an attractive sales deal with the property, without having to purchase a sponsorship. Of course, there are B2B sponsorships that are effective, but those tend to focus on the brand and the customer first, and the revenue opportunity with the property second.
Secondary revenue B2B sponsorships are referred to as B2B sponsorships because the sponsor's customers are largely business entities. There are no direct revenue sources built into these sponsorships. Secondary revenue B2B sponsorships should specifically target your existing customer base and prospects, and should include the following:
Sponsorship assets personal to your customer and highly participative in nature. These opportunities can be designed in virtually every sport, including baseball fantasy camps, motorsports driving experiences, backcountry ski experiences with Olympic skiers, and pro-am golf outings. The possibilities are limitless, however you may be required to purchase assets separate from the sponsorship.
Unique, unrivaled hospitality experiences. Relationship building is critical to maintaining existing customers and generating new business. Unfortunately, C-level customers are constantly invited to sports, arts and entertainment events. Aside from special transportation, accommodations and premium seating, hospitality experiences should include access to restricted areas and interaction with athletes or celebrities. You may be required to purchase assets separate from the sponsorship, such as appearance fees for retired athletes.
A compelling, legitimate story involving your products or services. Exciting participative experiences and memorable hospitality make an impact, but you need to tie your brand to the property and the customer experience. This means seamlessly integrating your product or service into the property, in other words, using the property as a live case study. Showing how your company positively impacts the operations or success of a property can genuinely influence the purchase behavior of a customer or prospect.
Integration of the sponsorship into other marcom activities. Just as B2C sponsorship is supported by public relations, promotions, and advertising, B2B sponsorship should also receive the same support, perhaps weighted differently. Promotions may not be as critical to the mix, but direct marketing may be more important. Because B2B sponsorships tend to target business decision makers, it is imperative to tell your story through influential channels. That may mean giving tours of your live case study to the business press or entertaining industry analysts at events.
