How Brands Can Maximise The Value of their Sponsorships with Digital Activations
In the current landscape of brand marketing, digital channels have become increasingly dominant, with over 60% of marketing budgets allocated to digital.
However, there has been a notable lag in the digital value derived from traditional sponsorships. This scenario is changing as rights holders are now recognizing the benefits of engaging in digital campaigns that target fans directly, facilitated by partnerships based on first-party data.
Importantly, these initiatives are being conducted with a keen awareness of privacy considerations. For brands, this shift presents a valuable opportunity - engaging in digital campaigns allows them to leverage the awareness and brand equity built through sponsorships. For most brans we speak to, this is something they have been pushing for for years!
These digital campaigns, which include social media, online advertising, and video content, offer a level of fan engagement that extends beyond the reach of traditional sponsorship methods and the evidence of the effectiveness of these digital strategies is compelling.
Ads that connect with fans' interests have shown significantly higher engagement rates. For instance, a car brand collaborating on a fan-targeted campaign with a rightsholder achieved a 250% increase in engagement compared to their own marketing efforts.
Such outcomes are increasingly common, demonstrating the effectiveness of this approach - the first-party data a rightsholder can provide is more accurate than ad platforms' current targeting and in virtually all cases, also much richer.
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The key to success in this domain lies in the creative adaptation of messaging. Brands that invest in developing content that resonates with specific fan groups, are witnessing the most substantial returns on their investments. This approach goes beyond mere advertising; it involves creating meaningful connections with audiences.
The integration of digital activations in sponsorship is a no-brainer for brands. By strategically and creatively leveraging digital channels, brands can significantly enhance the value and impact of their sponsorships and also bring what they do day-in-day-out in their "normal" marketing into their sponsorship portfolio.
Rights holders that take this facilitated activation seriously and are open to working closely with their sponsors on delivering fan targeted digital campaigns not only benefit from increased fan engagement, but increased sponsorship renewals (we have seen an average of 30% so far!) and ultimately greater sponsorship revenues. A true win-win-win scenario.