Trends in Sponsorship

In the past few years, there has been a trend by larger companies to shift their sponsorship money away from grass roots organisations (such as local football clubs), towards larger elite clubs (i.e. AFL) or to other forms of marketing (i.e. Digital Advertising).

This shift to larger clubs is justified below; –

  1. Professionalism- Larger clubs often have full time staff (as opposed to volunteers) who can manage sponsorships more professionally then grass roots clubs can.
  2. Centralisation- Big companies often centralise their sponsorship investments under a state or national marketing department, which restricts (which could be the entire point!) the flexibility and ability of local branches to participate in local initiatives;
  3. Return on Investment- with elite clubs able to expose sponsor branding on TV, in newspapers and online, sponsors can apply a monetary value to these opportunities and present a tangible Return on Investment (ROI) to decision makers (such as managers and board members). Opposingly grassroots clubs struggle to demonstrate a ROI on sponsorships.
  4. Corporate Hospitality- this certainly helps twist the arms of key decision makers who get to enjoy the perks elite clubs offer in the form of a corporate suite on match day – “sponsor us an we’ll take you to the grand final”;
  5. A Database – elite clubs are able to provide sponsors with access to a larger and professionally captured database of potential customers. This can then be converted to sales – again demonstrating a ROI.

With the economy across Australia stagnant, and with small businesses closing their doors at a rate of knots, it is probable that extracting sponsorships for grass roots organisations could become harder if groups don’t lift their game with regards to what we can actually offer sponsors to help them grow their business.

Why? Because unless grass roots sponsorships can begin to demonstrate a ROI, as things get tighter, we will be seen as an unjustifiable expense for small businesses.

COZ APP gives groups (such as local sporting clubs and primary schools) the ability to promote sponsors and better connect them (through a smartphone) to your community network, to promote business activity. If your entire community can be harnessed through COZ APP, not only will resigning sponsors become easy, but you’ll have new sponsors asking you to get involved in your group due to your ability to help them grow their business.

To register your Club or School for COZ APP, click here

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