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Sponsorship Terminology (Courtesy of Sponsorship.com / IEG) Activation: The marketing activities a company conducts to promote its sponsorship. Money spent on activation is over and above the rights fee paid to the sponsored property. Also known as leverage.
Ambush Marketing: A promotional strategy where a non-sponsor attempts to capitalize on the popularity/prestige of a property by giving the false impression that it is a sponsor. Often employed by the competitors of a property’s official sponsors.
Arts Marketing: Promotional strategy linking a company to the visual or performing arts (sponsorship of a symphony concert series, museum exhibit, etc.). See: Sponsorship
Audio Mention: The mention of a sponsor during a TV or radio broadcast.
Business-to-Business Sponsorship: Programs intended to influence corporate purchase/awareness, as opposed to individual consumers.
Category Exclusivity: The right of a sponsor to be the only company within its product or service category associated with the sponsored property.
Contract: A legal document binding two parties together by law. Cause Marketing: Promotional strategy that links a company’s sales campaign directly to a nonprofit organization. Generally includes an offer by the sponsor to make a donation to the cause with purchase of its product or service. Unlike philanthropy, money spent on cause marketing is a business expense, not a donation, and is expected to show a return on investment. See: Sponsorship
Core Sponsor: Concept developed by IEG to describe companies whose sponsorships are aligned with internal practices. Rather than using sponsorship as a marketing ploy, Core Sponsors gain loyal customers by living their values. What they sponsor reflects the DNA of their brand. Core Sponsors include Ben & Jerry’s, Harley-Davidson, Patagonia, Timberland, Vans, Virgin and Yoplait.
Core Sports: Term developed by Vans to refer to youth sports that feature individual, rather than team, competition, including: skateboarding, snowboarding, surfing, wakeboarding, BMX, supercross, and freestyle motocross.
Cosponsors: Sponsors of the same property.
Cost/Benefit Ratio: This is the ratio that IEG has developed based on market pricing to determine the amount of value a sponsor expects for each dollar invested in rights fees.
CPM (Cost Per Thousand) : The cost to deliver an ad message to a thousand people.
Cross-Promotions: A joint marketing effort conducted by two or more cosponsors using the sponsored property as the central theme.
Customer Loyalty: The new imperative of marketing. As the marketplace approaches a supersaturation of products - as the power in the marketing equation shifts from product to consumer - brand loyalty disappears. To survive, companies will have to create loyalty relationships with their customers, one customer at a time.
Editorial Coverage: Exposure that is generated by media coverage of the sponsored property that includes mention of the sponsor.
Emblem: A graphic symbol unique to a property. See: Mark
Escalator: An annual percentage increase built into the sponsorship fee for multi year contracts. Escalators are typically tied to inflation.
Event Marketing: Promotional strategy linking a company to an event (sponsorship of a sports competition, festival, etc.). Often used as a synonym for “sponsorship.” The latter term is preferable however, because not all sponsorships involve an event, per se. See: Sponsorship
Fulfillment: The delivery of benefits promised to the sponsor in the contract.
Generation Y: The 71 million people born between 1977 and 1994.
Hospitality: Hosting key customers, clients, government officials, employees and other VIPs at an event. Usually involves tickets, parking, dining and other amenities, often in a specially designated area, and may include pro-am spots, backstage tours, etc. Synonym: Client Entertainment
In-Focus Coverage: Amount of time sponsor identification is visible to TV viewing audience during event broadcast.
In-Kind Sponsorship: Payment (full or partial) of sponsorship fee in goods or services rather than cash.
Licensed Merchandise: Goods produced by a manufacturer (the licensee) who has obtained a license to produce and distribute the official Marks on products such as clothing and souvenirs.
Licensee: Manufacturer which has obtained a license to produce and distribute Licensed Merchandise.
Licensing: Right to use a property’s logos and terminology on products for retail sale. Note: While a sponsor will typically receive the right to include a property’s marks on its packaging and advertising, sponsors are not automatically licensees.
Make-Goods: Benefits provided to advertisers to make up for a program’s low ratings.
Mark: Any official visual representation of a property, including emblems and mascots.
Marketing Surplus: A theory developed by McKinsey's David Court, which holds that success is determined not by market share, but by which one of the entities in any transaction - from raw-goods supplier through manufacturer, retailer, and consumer - holds the greatest amount of the surplus or profit made at each step of the process. As the market reaches saturation, marketing surplus moves to the consumer.
Mascot: A graphic illustration of a character, usually a cartoon figure, used to promote the identity of a property. See: Mark
Media Equivalencies: Measuring the exposure value of a sponsorship by adding up all the coverage it generated and calculating what it would have cost to buy a like amount of ad time or space in those outlets based on media rate cards.
Media Sponsor: TV and radio stations, print media and outdoor advertising companies that provide either cash, or more frequently advertising time or space, to a property in exchange for official designation.
Municipal Marketing: Promotional strategy linking a company to community services and activities (sponsorship of parks and recreation programs, libraries, etc.).
Option to Renew: Contractual right to renew a sponsorship on specified terms. See: Right of First Refusal
Philanthropy: Support for a nonprofit property where no financial advantage is expected.
Perimeter Advertising: Stationary advertising around the perimeter of an arena or event site, often reserved for sponsors.
Premiums: Souvenir merchandise, produced to promote a sponsor’s involvement with a property (customized with the names/logos of the sponsor and the property).
Presenting Sponsor: The sponsor that has its name presented just below that of the sponsored property, i.e., “The Kroger Senior Classic presented by Fifth Third Bank,” or “The Music of Andrew Lloyd Webber presented by MCI” or “AT&T presents Cirque du Soleil.” In presenting arrangements, the Event name and the Sponsor name are not fully integrated since the word(s) “presents” or “presented by” always come between them.
Price Adjusters: Market factors identified by IEG that increase or decrease the value of a sponsorship. These can include the value of a sponsor’s promotional commitment, the number of saleable categories purchased and the length of the contract.
Primary Sponsor: The sponsor paying the largest fee and receiving most prominent identification. (Would be title sponsor if sponsored property sold title.)
Property: A unique, commercially exploitable entity, (typically in sports, arts, events, entertainment or causes). Synonyms: sponsee, rights-holder, seller
Right of First Refusal: Contractual right granting a sponsor the right to match any offer the property receives during a specific period of time in the sponsor’s product category.
Sales Rights: The ability of a sponsor to earn back some or all of its sponsorship fee selling its product or service to the property or its attendees or members.
Signage: Banners, billboards, electronic messages, decals, etc., displayed on-site and containing Sponsor ID.
Sole Sponsor: A company that has paid to be the only sponsor of a property.
Sponsee: A property available for sponsorship.
Sponsor: An entity that pays a property for the right to promote itself and its products or services in association with the property.
Sponsor ID: Visual and audio recognitions of sponsor, e.g., sponsor name/logo on participant clothing, equipment, etc.; in property’s publications and advertising; public-address and on-air broadcast mentions.
Sponsorship: The relationship between a sponsor and a property, in which the sponsor pays a cash or in-kind fee in return for access to the exploit-able commercial potential associated with the property.
Sponsorship Agency: A firm which specializes in advising on, managing, brokering or organizing sponsored properties. The agency may be employed by either the sponsor or property.
Sponsorship Fee: Payment made by a sponsor to a property.
Sports Marketing: Promotional strategy linking a company to sports (sponsorship of competitions, teams, leagues, etc.). See: Sponsorship
Supplier: Official provider of goods or services in exchange for designated recognition. This level is below official sponsor, and the benefits provided are limited accordingly.
Title Sponsor: The sponsor that has its name incorporated into the name of the sponsored property, e.g., the Nokia Sugar Bowl Classic.
Tribal marketing: Term coined by First Matter to refer to the creation of affinity groups for commercial ends. Perhaps the most notable and successful contemporary example is Harley Davidson, which has coupled the sale of motorcycles and peripherals to the creation of weekend motorcycle clubs and an entire way of life built around Harley-Davidson products. Tribal marketing works best when it is constantly reinforced with icons.
Venue Marketing: Promotional strategy linking a sponsor to a physical site (sponsorship of stadiums, arenas, auditoriums, amphitheaters, racetracks, fairgrounds, etc.).
Virtual Signage: The insertion of signage electronically during a TV broadcast that is not actually present at the event.
Web Sponsorship: The purchase (in cash or trade) of the right to exploit the commercial potential associated with a site on the World Wide Web, including integrated relationship building and branding.
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