“Why do businesses sponsor events” you might ask. Sponsoring experiential experiences or live events might seem like a bit of an anomaly for a marketer, especially when there are so many traditional or digital opportunities available, in a constantly innovating tech landscape – but if you dismiss live events you’re missing out on a hugely lucrative revenue stream.
Here we’ll try to answer the question, “why do businesses sponsor events?” using our own experiences and knowledge as experts in the sports marketing arena.
The landscape of live events in 2019
Bizzabo has broken down the stats on event marketing, giving us a clear view of its benefits in 2019. Here are some of their most compelling findings:
- 84% of businesses leaders believe that in-person events are critical to their company’s success
- The most successful businesses are spending almost twice the average marketing budget on live events
- 41% of marketers name live events as their most effective marketing channel – this is a huge increase from 2017, showing that events are becoming more, rather than less, important
Clearly, business leaders can see that there is value in live events – so if we’re asking “why do businesses sponsor events?” following their lead is likely to be a good place to start.
Sponsoring live events
Bizzabo has broken down the stats on event sponsorship specifically, and as brands looking to answer why do businesses sponsor events, these numbers are likely to be hugely important. The company reveals that, up from 40% in 2010, 60% of event organizers now have a budget dedicated to measuring the value of sponsorship campaigns. Added to this, 16% consider finding sponsors to be the biggest challenge they face – so if you have a clear vision and can enact it well, this space is likely to be very successful for you. According to Statista, sponsorship spending currently sits at USD $62.8 billion – up from $60.1 billion in 2016.
B2B benefits of live events
The benefits of live events from a B2B perspective can’t be overstated: 62% of marketers use live events for lead generation, over half spend more than 20% of their entire marketing budget on live events, and almost a quarter use live events to aid in building a community (this goes up to 28% for B2C brands.)
Adding value with digital promotion
Of course, having a live event or sponsoring an existing event gives you a chance to get in front of potential customers in real time – and stay there for days, hours or even weeks.
This valuable experience can be amplified afterward with digital promotions, which can have two purposes: firstly, to demonstrate to potential customers who weren’t there how effectively you engaged with those that were, and secondly, to re-engage those that did attend and ensure that their eyes remain on your brand going forward.
Events marketing in sports: MotoGP sponsorship
The sports industry lends itself particularly well to sponsorship of live events, not least because there are just so many events that brands can potentially become part of.
MotoGP is a prime example of a sport that has a huge audience, a global stage, and numerous opportunities for live sponsorship – from leathers and bikes to banners, billboards and technical sponsorships (Michelin is MotoGP’s long-term tyre supplier, for example, which offers a clear value on both sides.)
If you want to find out more about live event sponsorship in sports, or discuss the question “why do businesses sponsor events?” in more detail, feel free to contact RTR Sports Marketing directly – we’ll be waiting for your call.