Apart from advertising on Facebook and other social networks, sports sponsorship is a great idea and has become a very profitable industry in recent years with the increasing popularity of sport. For this reason, we invite you to read this article in which you will learn the advantages and disadvantages of sports sponsorship for brands.
What is sports sponsorship?
Sports sponsorship is a support that a company carries out with the aim of linking its brand and what it represents with the image of a sport and what it transmits. Usually, a sports sponsorship can cover sporting events, although it is also related to athletes and clubs.
The sponsoring brands
Just as many companies decide to create a Google Business account to be visible on the web, sponsoring brands take advantage of the rise of a specific sport in a region of the world in order to increase the visibility of companies thanks to the popularity of the practice of sport. sport.
Therefore, the investment made by the sponsoring brands returns positively in economic terms as long as the increase in visibility is effectively produced, which is one of the objectives set by these companies.
What are the advantages and disadvantages of sports sponsorship for brands?
Before mentioning the advantages and disadvantages of sports sponsorship, it should be noted that such sponsorships often include both the sponsoring brand and the club or athlete on a bilateral basis.
Advantages of sports sponsorship for brands
The most notable advantage concerns increased visibility. This may be higher depending on the modality chosen by the brand. The return on investment is another advantage, since sponsorship is often the best advertising option for brands.
In addition, viewers manage to familiarize the brand with their favorite team or athlete thanks to its permanence over time. There is a strategic relationship because not only does the brand benefit, but also the team or the athlete receives money to be able to finance the seasons.
The image on the t-shirts is important
The image on the shirts is an excellent sponsorship option, since it brings the advantage of increased purchases by the fans of certain teams and athletes.
The tax benefits
Brands can save money by sponsoring because they are linked to special tax conditions. Therefore, it is possible to pay less taxes and take advantage of the benefits provided by this advertising option, just as it happens when applying digital marketing strategies.
Disadvantages of sports sponsorship for brands
Disadvantages of sponsorship for brands are often observed both externally and internally within companies, as we explain below.
Limits
Although the brand can promote marketing thanks to actions linked to athletes, teams and clubs, it is also true that it cannot control the entities they sponsor because they are independent elements.
Therefore, if an athlete has a behavior that does not meet the established standards, it could generate a negative impact on the brand.
Knowing the return on investment
It is well known that high profits are obtained, but it is not possible to determine the exact measure of the return on investment. This factor can be considered a disadvantage if the company wishes to maintain full control of its monetary inflows and outflows.
The competitors
There is a long list of sponsoring brands in the world of sport. This factor increases the business challenges that could prevent the visibility of a specific brand from being highlighted.
brand marketing
Brand marketing can become a disadvantage if the right strategies are not used to increase exposure or if the company misses out on great additional options like advertising on social media.
For this reason, it is essential to carry out an analysis of key aspects that are based on an adequate proposal in order to build a solid sponsorship strategy.
