The Difference Between Sponsorships And Partnerships
In the sports business, you will often hear the terms partnership and sponsorships being used frequently to describe a mutually beneficial relationship. In fact, the two are bedrocks to a successful marketing campaign in any industry. However, it can often get confusing as the terms are also frequently used interchangeably, which might blur the lines between them.
But is it okay to use them interchangeably? Are sponsorships and partnerships the same thing?
The answer is no. There is a difference between the two. This guide will take a deeper look into the two terminologies to decipher what these differences are. So, if you have been wondering whether a MotoGP sponsorship and partnership is the same thing and, if not, what the difference is, keep reading.
What is a Sponsorship?
A sponsorship is essentially a business deal where a ‘sponsor’ provides funding or material benefits to an organization or event in exchange for rights to advertise their business during the event. Hence, when a company or a brand licensing agency sponsors an event, it means that they have provided the necessary funds for it.
As a result, sponsorship is truly for marketing purposes. However, it is much more than just advertising. It provides you with a wider reach of audiences, business access, multiple connections, and enhanced customer loyalty.
What Does a Sponsorship Include?
Within the sports industry, a sports sponsorship can include a sponsor providing funds to a sporting event, sports team, or athlete in exchange for having their logos plastered on their shirts, at the event, or on race cars or other important marketing rights..
A well-thought-out and planned sponsorship can also lead to meaningful and exciting activation, which could include more interaction with fans and customers, direct contact with existing customers, and many other forms of profitable engagement.
What is a Partnership?
On the other hand, a partnership is an association between two or more parties that enjoy mutual benefits. Let’s call it the modern, more refined version of a sponsorship. These partners work together on an event or organization where they share responsibilities, roles, and the resulting rewards and profits. More often than not, partnerships are business deals where companies agree to work together to accomplish goals. Sure, there is money involved to be a part of the process, but R&D, B2B and growth are at the hearts of this.
What Does a Partnership Include?
Partnerships normally include those between sports organizations and brands that share similar commitments and beliefs within the sports industry. Athletes may work with brands to advertise their merchandise or products, just as companies may work with sport properties to develop their products and increase their know-how. Partnerships are collaborative approaches towards a common goal, normally increased reach, brand, sports organization, and rewards.
Difference between Sponsorship and Partnership
Now that you know what sponsorship and partnerships essentially are, you might still be confused as to how the two are unique from one another. Sponsorships and partnerships are business deals between two or more parties who work together to take on the workload and responsibilities to achieve a common goal. This is why the line between the two terminologies is often blurred.
The key differentiating factor between the two is the fact that sponsorships are essentially for purely marketing purposes, but that is not always the case for partnerships. The main goal for sponsorship is to market the brand through an organization, event, or individual. When this is the main objective of the deal, then it is considered a sponsorship.
On the other hand, when two or more parties initiate a deal beyond marketing and communications purposes, it is likely to be a partnership. This is a purely business deal that may also involve product sales, employee engagement, and more. The main aim is to amplify each party’s reach.
In a lot of ways, a partnership is a form of sponsorship. A sponsorship is a wide term that encompasses multiple facets, one of which is a partnership. Even if companies, brands, sports organizations, or athletes enter into a partnership, they would likely enter into a sponsorship version. Similarly, it is also believed that a partnership is simply a sponsorship taken one step further.
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These days, a sponsorship often has a negative connotation, which is why most people now prefer to use partnerships instead. However, while the two are designed to provide mutual benefits, they are entirely different from each other.
The Bottom Line
At RTR Sports Marketing, we have had multiple years of experience within the sports sponsorship industry. As one of the UK’s largest and most successful sports marketing agency, we promise excellent results. For more assistance or information on sports marketing campaigns and more, don’t hesitate to reach out to us via our website here!
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