The Role of Government in Financial Systems
In the previous articles, we have already established that the financial system of any country is the key to its economic prosperity. It is for this reason that these financial systems need to be appropriately maintained. The government is the party that is most suited to this maintenance of financial systems. However, too much government […]
The Financial System and Basel Accords
In the previous articles, we have already read about how banks are the main pillars of the financial system. It is obvious that since banks are so important to the economy as a whole, the government must create a system to protect these banks from collapsing in case a negative economic event occurs. Governments all […]
Parties Involved in Infrastructure Debt Issuance
Bonds are commonly issued during infrastructure projects. The company holding the equity stake is generally the one issuing the bonds. This means that the company owning equity is the one actually borrowing money from the bondholders and, therefore, the one owing the money back. Even though the responsibility of repaying the loan lies with the […]
Techniques Used in Ratio Analysis
Ratio, as the name suggests, is nothing more than one number divided by the other. However, they become useful when they are put in some sort of context. This means that when an analysts looks at the number resulting out of a ratio calculation he/she must have a reasonable basis to compare it with. Only […]
Money Market Reforms
The money market is interlinked with other markets such as the stock market and the bond market. As such, if there is turbulence in the money market, it often quickly spirals to other areas of the economy as well. This has already been in the 2008 global crisis. The liquidity crisis which greatly exacerbated the […]
In the previous article, we have already understood the meaning of title sponsorship. We also know why it is one of the most coveted forms of sponsorships.
We are aware of some of the prominent disadvantages associated with title sponsorship.
However, it needs to be understood that there are more advantages to title sponsorship as compared to the disadvantages. This is the reason that there are many high-profile sports leagues across the world that use title sponsorship to raise money and also there are many high-profile corporations across the globe that sponsor such events.
In this article, we will have a look at the advantages related to title sponsorship.
Also, since the name of the sponsor is associated with the title itself, it is mentioned almost every time someone talks about the league. As a result, the name of the brand gets repeated over and over again within a relatively short span of time. This leads to higher brand recognition. Title sponsorship has been successfully used by companies who have been trying to access a large market.
The end result is that the sponsoring company gets a lot of media attention. This ends up building a positive image since viewers start viewing the company as being cash-rich.
In the process, they also negotiate priority rates with their media partners for their title sponsors. However, this also means that the title sponsor needs to agree to minimum media spending while signing the contract. The media spend amount is generally separate from the paid sponsorship amount and can be quite significant.
For instance, it is common for automobile companies to place their new and upcoming models at such events. As a result, the product also gets covered by electronic as well as print media and is viewed by the public at large.
Many times, the commentators of the event will also be instructed to mention the product in their commentary so that it registers more clearly in the minds of prospective viewers.
In some sporting leagues, all participating leagues are required to carry the logo of the title sponsor on their uniform and kits. The size of this logo is prescribed by the league management. However, it is generally smaller than the logo of the sponsor of that particular team.
Along with uniforms, the title sponsor may also be entitled to project their logo and signage in the stadium as well as on electronic media. For example, they can project the logo at the boundaries of a cricket field or at the signboards behind the goal post in case of a soccer game.
The sporting league may require the celebrity to appear in some advertisements or endorse certain products for the title sponsor. These endorsements allow the brand to leverage the contracts that the league already has in place.
Since these celebrities have a huge fan following, the brand ends up getting both monetary as well as non-monetary benefits.
The title sponsor gets the right to place their signage and brand logo at such events. This can be quite valuable since such events receive a lot of viewership as well as press coverage. As a result, the awareness objective of the title sponsor can be met fairly easily.
The bottom line is that there are several advantages to title sponsorship. Sporting leagues across the world try to give the best deal to their title sponsors. This is because they invest the most amount of money and do so at the earliest stage possible.
The various types of media exposure that title sponsors get can be quite useful if a brand is cash-rich since it reinforces the brand. This is because each exposure that the public receives about the brand reinforces its image in the long run.
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