6 Ways to Modernise Your Sponsorship Activation
Image credit: John Price via Unsplash
Sponsorship marketing is booming. Estimated at more than 97 billion USD in 2023, the industry is projected to grow to over 190 billion by 2030. Despite this, in today’s landscape, a logo on a sideline or a TV ad alone doesn't cut it any more for brands. Marketers need to think beyond awareness and deliver immersive experiences that deeply engage audiences. Read below to discover how brands can thrive in this golden era of sponsorship, maximise the impact of their activations, and avoid consequential pitfalls.
#1 - Be Authentically Relevant
From the get-go, brands should be weighing up whether or not a partnership relevantly and culturally aligns with both parties and, crucially, the audience. Research from Kantar revealed that brands with high cultural relevance grow nearly six times more than those with low relevance, and if done authentically, sponsorship partnerships can join the ride and add to this growth opportunity.
On top of this, the growing rise in marketing savviness illustrated by trends like greenwashing and popular influencer fatigue all point toward the need for brands to double down on authenticity to more genuinely engage their customers across the marketing mix, and sponsorship should be no exception.
#2 - Don’t Be A Culture Vulture
Rather than just riding the wave of their partner's influence, effective sponsorship activations should deepen their connection by genuinely contributing to a culture. Brands can elevate their sponsorship role from participant to co-creator by supporting grassroots social and sustainability initiatives and partnering with artists and creators who authentically embody the brand’s spirit and values. By giving back, brands can connect more meaningfully with their audiences.
As the official automotive sponsor for Tribeca Film Festival 2024, Mazda launched Moving the Spotlight - a program designed to uplight emerging, underrepresented voices in film. The activation offered a once-in-a-lifetime opportunity to share their stories at the Tribeca Film Festival, and have the opportunity for awards and grants for future projects.
#3 - Your Sponsorship Is Only As Good As Your Activation
Putting immersive experiences front and centre of your activation - whether through innovative spatial design, opportunities for user-generated content, or interactive elements - engages your audience in an authentic and memorable way. Prioritising quality creative ideas over quantity is key to driving user-generated content and word-of-mouth, both of which can further amplify a brand’s message, create a ripple effect far beyond the initial engagement, and provide valuable data for measuring success, enabling more precise planning for future activations.
The value of a strong, shared human experience is two-fold: a well-executed activation can be both subjectively memorable and collectively effective. There's a unique camaraderie that comes with shared experiences among dedicated fans. When your sponsorship activation resonates at this level, it strengthens a brand’s place within the community.
With a sponsorship portfolio spanning UEFA, Champions League, and the EUROs. Just Eat created 'The Queens Header', a pop-up London pub experience immersing fans in the 2023 Women's World Cup.
#4 - A Question of Sport?
Sport continues to dominate the sponsorship landscape, outpacing sectors like entertainment, arts, and charity by a significant margin, with the industry valued at $67 billion in 2024. Emerging sports, in particular, are capturing the attention of major brands. The 2024 Olympics propelled emerging sports like skateboarding and breakdancing to the global stage, with brands like Samsung betting big to win over their tight-knit audience communities (and succeeding). Unlike global superstars, athletes in these niche sports are often perceived as more approachable and down-to-earth, making them more trusted and authentic.
As part of Samsung's Paris 2024 sponsorship strategy, the brand activated a series of 'victory selfies' leading to a sales spike for it's new smartphone.
The line between niche and mainstream is increasingly blurred. Take esports, for example: whether it’s luxury labels like Gucci, credit card companies, or energy drink giants, a dedicated fandom of over 575 million in 2024 provides an expansive ecosystem for brands to activate and grow.
The first partnership between a luxury brand and esports, Gucci teamed up with FNATIC to tap into an engaged League of Legends audience of over 6 million people.
#5 - Do Sweat the (Not So) Small Stuff
Sponsorship marketing can be high stakes. In pursuit of delivering something bold, innovative, and unique for their audience and customers, a brand's reputation can walk a tightrope, with unforeseen pitfalls potentially tarnishing years of hard-earned brand equity. Earlier this year, technical and project management missteps saw Co-op face reputational fallout after multiple delays in the opening of their title-sponsored arena in Manchester left a stream of angry and disappointed fans, all pointing the blame at Co-op. This incident reiterated the importance of setting realistic deadlines and expectations, as well as working with trusted, transparent partners throughout the activation process.
But it isn’t just production pitfalls that can stop sponsorship from hitting the mark. Buying the rights to a sponsorship without adequately investing in its activation can undermine the entire partnership, with messaging falling on deaf ears and failing to actively engage an audience. This year, online car retailer Cazoo filed for administration following several years of investing in an ambitious sponsorship portfolio - partly due to failing to activate the sponsorship effectively and not engaging audiences beyond the awareness stage. Too often, brands prioritise what they want to say over what their audience wants to hear. Make sure your activation budget reflects the importance of the campaign, and always put your audience first.
#6 - Adopt a Business-to-Everyone Mindset
Whether you're a consumer or a business professional, we're all human, and powerful storytelling resonates. Now more than ever, B2B brands are recognising the value of activating in traditionally B2C environments. The growing trend of technology brands sponsoring massive sporting events and leagues goes beyond simply placing a logo on the sidelines.
As the official title sponsor of the TCS London Marathon, Tata Consultancy Services brought their 'Digital Twin' technology to life, driving thousands of engagements with the brand.
For example, B2B tech brand Tata Consultancy Services (TCS) sponsors events like the London Marathon by providing services including the developing the official event app and offering athlete performance analysis - actively contributing to the race's community and culture while enhancing the spectator experience. B2B sponsorships also increase visibility for recruitment and can bring a corporation's ESG goals to life. These shifts reflect a broader trend where the objectives of B2B brands are increasingly aligned with those of B2C brands.
To Wrap...
To succeed in today’s sponsorship landscape, brands must embrace authenticity, give back to communities, and deliver immersive experiences. From grassroots initiatives to cutting-edge tech activations, the key is in fostering a value exchange that engages audiences meaningfully while avoiding pitfalls like underfunded activations or misaligned partnerships. By following the six approaches outlined in this guide, brands can modernise their activations, driving engagement, effectiveness, and growth.
