Q:

Why do companies sponsor events?

A:

Quick Answer

Companies may sponsor events as one element of a broad marketing plan intended to build brand recognition and favorability. Event sponsorship offers the ability to reach a large, targeted marketplace, build personal connections and extend the company's message after the event.

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Why do companies sponsor events?
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Full Answer

Companies sponsor events more often for the purpose of enhancing brand awareness than for generating immediate sales. By participating in or advertising at major local, regional, national or international events, a company gets its brand in front of event attendees as well as television audiences, in some cases. Television audiences increase visibility for the brand in ways that cannot be achieved by reaching event-attendees alone.

When a company sponsors an event closely related to its brand, it has the potential to make an even greater impact on targeted customers, thus building personal connections. If the event attendees are the right audience for the brand they may be interested in learning about the company and patronizing it by purchasing its goods in the future. Personal connections such as these help strengthen a brand's favorability.

When a business engages an audience during an event, it can extend visibility through giveaways and follow-up communication. Companies often give out T-shirts, keychains, posters, pens and other promotional items at events. When attendees find these items valuable, they use them and see the brand logo and message after the event has concluded. Offering valuable items to attendees builds brand recognition after the event has concluded.

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