Before the global credit crunch, you had a lot of companies with multiple sponsorships and big budgets to leverage these sponsorships.
Budgets have since tightened and that means every single sponsorship has been heavily scrutinised.
A lot of sponsors have grouped their sponsorships into two distinct categories:
1) Weather the storm – these sponsorships have long term potential and are important to the overall brand strategy. Leveraging budgets have been scaled back but there is still plenty of activity happening around the sponsorship.
2) Deadwood – these sponsorships are not being leveraged. ‘Leverage’ money is instead going to the category above. The sponsor has decided to cut their losses and wait for the contract to expire.
Have a think about your current sponsors. Are they still leveraging the relationship with you (be it on a smaller scale), or are they surprisingly quiet?
If their too quiet, be worried
Tags: Sponsorship
