Question

As the global sponsorship industry continues to grow and diversify at a rapid pace. In your estimation why do you believe companies are spending less and less on traditional advertising and investing in more in sponsorship? Please provide examples to support your argument.

Answer 1

ANS-

ADVERTISEMENT- Advertisement is generally a message which is a part of an advertisement campaign, which itself is a part of a company's integrated brand promotion. Advertisement is a form of mass communication which is non personal medium of promotion for example TV commercials, radio, print ad and billboard ad etc. Companies normally hire ad agency in order to advertise their brands. Ad agencies design an advertisement according to the requirement of the company's ad campaign which eventually is part of company's brand promotion. So in short campaign are just stories about a brand which is been delivered to the audience over a period of time in order to create an image for their brand (brand building and maintenance).

SPONSORSHIP- Sponsorship on the other hand is a relationship between an event or program host, and advertiser that supports the event or program for an agreed upon amount of exposure for their brands through the whole event or Program.

Why companies are preferring sponsorship over traditional advertisement?

This is because of the reason that advertisement just gather the attention for a small amount of time. On the other hand the sponsorship allows the brand exposure through the event or program. Sponsorship takes the company into the environment of the target group. Target group notice the company through the whole event/program. Hence it create a lasting impact than advertisement. Advertisement needs more recurring attempts  than sponsorship.

Example-  DLF sponsor the IPL( cricket tournament). So the benefit DLF get is that people who watch the whole tournament subconsciously notice that the DLF is sponsoring the event. And it adds to their brand image. Sponsorship adds the value of the event into your brand image. This means that your brand will be notice repeatedly by the audience who are part of the event and create a long lasting impact. In our example people still recall that DLF sponsor IPL.