The ongoing EOK (Estonian Olympic Committee) presidential elections seem to be once again centred around money — or rather, the lack thereof. However, if we look at larger sponsorship collaborations in sports, the picture seems different: Estonian companies have plenty of money. Unfortunately, while funds are allocated, collaboration opportunities are not maximised.
Imagine investing 15% of your marketing budget in a campaign but not measuring or adjusting the results along the way. It sounds unreasonable, right? Unfortunately, this is still quite common in sponsorship collaborations. The sad reality is that many are just “present.” The full potential of sponsorship is achieved when the brand not only displays its logo but engages the audience, creates value, and measures how the investment actually yields results.
The sad reality is that many are just “present.”
Collaboration with various events or individuals generally consists of three stages:
- Selection of collaboration projects and preliminary research.
- Development and implementation of a sponsorship activation strategy.
- Measuring effectiveness.
Who to collaborate with?
It is crucial to choose collaboration partners who share the company’s values and goals. Poor planning and expectation management often lead to unsuccessful collaborations. Here, the event or individual seeking sponsorship plays a significant role, as they must provide a clear value proposition and an overview of the target audience. Sometimes, even event organisers are unaware of their participants’ profiles and whom they are actually addressing.
Additionally, focus is essential. Just as we don’t trust influencers who collaborate with everyone, there’s little sympathy for companies that seem to support everything but offer nothing substantial. Focus is vital in sponsorships as well.
Just as we don’t trust influencers who collaborate with everyone, there’s little sympathy for companies that seem to support everything but offer nothing substantial.
The initiative must come from both sides
I have long been responsible for marketing various sporting events and communities (e.g., IRONMAN Tallinn and the Biathlon World Cup in Otepää), including managing sponsorship collaborations. Often, I found myself wanting to work with companies that might even give less money but were passionate about the cause. Unfortunately, 70% of the collaborations were more in the format of “you get cucumbers, I get money.” The primary output was limited to a few banners, logos in the competition guide, and a promotional video on social media.
The proposed list often had more topics, but unfortunately, these opportunities were frequently left untapped. This was because the company would have had to put in additional effort. The reasons varied but mainly revolved around a lack of commitment or time. It could also happen that the decision to support came from higher up, leaving the marketing manager to simply accept that their company was now a sponsor of a particular event or individual.
What value can sponsorship collaboration bring?
The brand collaboration aimed at customers:
- increasing brand awareness;
- positioning the brand among competitors and maintaining the brand image;
- developing the brand’s community;
- increase purchase intent and directly advertise products/services to the target audience.
A good example is the collaboration with Farmi during the Biathlon World Cup, where they aimed to reach a younger target group. They supported the construction of children’s tent at the supporter area, had different activities and provided it with all their new products therefore reaching to their needed audience.
Employer branding and internal communication:
- showing employees that the company values an active lifestyle;
- building the company’s image in the job market;
- involving employees in sponsorship collaborations;
- offering added value to both existing and potential employees.
Swedbank has shown significant benefits in sports projects, elevating its image as an attractive employer through its collaboration with the Tallinn Marathon, both internally and externally.
Developing partnerships:
- demonstrating commitment and enhancing the image among partners;
- different events’ VIP areas are excellent opportunities to host partner and client events.
It is proven that sponsors who invest in effective activation strategies for their sponsorships can achieve greater visibility, thereby increasing awareness of their sponsorships (Quester & Thompson 2001; Wakefield et al. 2007).
Community and dedicated fans
Fans care about brands that are deeply connected to local communities, not just during major moments. There is enormous potential at the local level that is currently untapped. For example, sports events often offer the opportunity to create branded emotional points through sponsorship. It’s as simple as setting up a few flags or banners, playing music, and gathering a crowd — no more is needed. The emotions participants get are invaluable. That feeling that someone is cheering them on and supporting them during the toughest moments of a marathon stays with them. If this is tied to a brand, there is a tendency to choose that brand’s products or services in the future.
At the IRONMAN event, these places were even offered for free because the organisers also wanted many people along the course and for participants to have valuable experiences. The company, in turn, can nicely display its brand.
In other words, sponsors need to make an effort to increase their visibility and make an impact. Just a banner is no longer enough; the company must genuinely show interest.
Sponsorship collaborations can be measured, too
Although very few do this. A survey by the market research agency MKTG revealed that just under 20% of surveyed companies’ sponsorship managers had developed a method to measure the return on investment (ROI) of their sponsorships. 73% of them stated that the main goal is “brand awareness,” and ROI was not the main focus of sponsorship. This trend indicates that while investments are increasing, many companies may not fully utilise their sponsorship opportunities.
Once again, collaboration with the event organiser is crucial for measuring effectiveness. Often, proactive communication with the organiser opens up various ways to further measure effectiveness. Naturally, it is impossible to quantify the entire collaboration, but saying it’s all just for brand spreading is simply lazy. Collaboration no longer involves placing logos on banners. As mentioned in the article, there are many ways to maximize collaboration. Even for direct advertising, solutions exist, starting with newsletters, which are among the most widely read emails (about 80-85% of participants usually read the content).In Estonia, sponsorship relationships are still in their infancy, whether it’s about supporting various events or athletes. They often depend on whether the marketing manager is passionate about leading projects. Good collaborations come from mutual initiative. Sponsorship is not charity but a bilateral strategic partnership!
