• by Adam Paul , October 17, 2007

According to the latest IEG report on "What Sponsors Want," the percentage of marketing budgets that advertisers dedicate to sponsorships is continuing to rise each year, and total spending is expected to reach $15 billion by the end of 2007.

The reason for this is simple: With advertisers finding it increasingly difficult to cut through the clutter in traditional advertising, they continue to see great results from their sponsorships. According to the IEG report, "Fifty-two percent of sponsors said their ROI is increasing, 21 percent said return was about the same, and only four percent were seeing poorer results from their efforts."

But for sponsorships to reach their full potential, they must be activated through other marketing channels.

The rule of thumb is that advertisers should spend about two dollars to activate their sponsorships for every one dollar they pay for ownership rights. Until recently, advertisers have not allocated enough of those activation dollars to the interactive channel. Typically, the interactive portion of sponsorship activation would include little more than a sweepstakes or contest registration page.

This must change! A well-executed interactive campaign with compelling viral content is an incredibly cost-effective way to increase an advertiser's reach. In addition, content created for or at sponsored events and migrated online gives advertisers the opportunity to increase the longevity of a sponsorship initiative well past the actual event, creating mass appeal beyond event attendees alone.

American Express recently used its US Open sponsorship, and its spokesperson, John McEnroe, as a platform to promote a card benefit, "Dispute Resolution." The campaign micro-site (usta.com/americanexpress/) not only informed visitors about the benefits available to Cardmembers at the Open, it also provided a daily show of the day's highlights and a web-exclusive video segment called, "The Art of Dispute," where McEnroe commented on tennis' great on-court disputes. American Express clearly identified tennis enthusiasts as a prime target, and this initiative allowed it to reach those who were unable to attend the event in New York.

In addition to more cost-effective reach, sponsorship-specific web sites allow for tracking and ROI measurement, which has typically been a challenge in the sponsorship arena. Relationship marketing also becomes much easier with online data capture and segmentation.

Gillette recently partnered with ESPN College Game Day to create the Gillette Fusion Power Game Face College Tour. The interactive campaign (gillettegameface.com/) has a contest element that leverages Facebook, (facebook.com/group.php?gid=4730735953) so visitors can upload their best game faces.

By shifting power to consumers, Gillette gives up some control of its messaging, but ultimately gains a lasting relationship with its target consumers, providing them with the experiences and exclusive access that they love. Whether it is an athlete's perspective on the big game, a musician's inspiration for a song or the tools and resources to support a favorite cause, this web site content allows for continued relationships that delve deeper and last longer.

According to the IEG report, "Overall, the number of sponsors using outside firms to assist them with sponsorship planning and implementation has risen from 52 percent two years ago to 62 percent today."

This should be a wake-up call to both marketers and interactive marketing agencies. As offline events become more and more digital with interactive kiosks, dynamic signage, and mobile social networks like Facebook and Twitter, the opportunity to create relationships at events that move seamlessly to the online world becomes a greater reality. Better customer relationships developed at a lower cost to marketers; what's not to love?