As competition in the entertainment market continues to increase and operating costs rise daily, many amusement facilities are turning to sponsorship or affinity marketing programs to give them an economic edge. Sponsorship or affinity marketing is defined as a business relationship utilized by a company in its marketing mix to promote products, services, or corporate identity through an affiliation with an independent venue or activity that is not linked to the company’s normal business function.

Sponsors support the marketing efforts of their partner facility or activity in a variety of ways including cash fees, advertising, media support, capital offset, and merchandising aids. In return for such support, the sponsor receives marketing rights with the facility or activity for advertising, public relations, or promotional purposes.

Simply put, sponsorship is a partnership—an extension of marketing efforts by both the sponsoring company and the venue whereby each party brings its strengths to the table to develop a beneficial, integrated program designed to achieve specific objectives. This relationship incorporates advertising, promotions, hospitality packages, trade and employee incentives, public relations, and community goodwill.

In light of this synergy and financial pressures on the amusement industry, it is easy to see why sponsorship is a natural fit for many facilities, especially those of smaller size. Venues with attendance of fewer than 500,000 do not have million-dollar media budgets, large marketing staffs, or expensive advertising and public relations agencies to develop their marketing plans. To overcome such hurdles and gain a competitive edge, these facilities must use every available resource to increase awareness, attendance, and per capita spending, while still maintaining a reasonable budget. A sponsorship program is one of the most effective ways to achieve both goals because it reduces costs and enhances marketing efforts.

The list of the benefits that sponsorships offer amusement facilities includes:

• Incremental revenue
• “Promotional partner” opportunities
• Increased advertising awareness
• Augmented reputation via association with prestigious sponsor
• Reduced operating and capital off-set expenses due to in-kind sponsors
• Community relations impact
• Special event activities provided
  by sponsors
• The “domino effect”—one sponsorship most likely leads to others.
  

This relationship is attractive to the sponsoring firm for a variety of reasons as well. Most important, sponsorship or affinity marketing provides companies with a means of cutting through media clutter, reaching a “target specific” audience, and replacing ineffective commercial messages with meaningful alliances. This approach to marketing affects consumers at their lifestyle level—possibly the most effective means of marketing a product or service. Subsequently, sponsorship funding has grown at a record pace in the past two decades.

Amusement facilities play a significant role in the growing entertainment industry and make attractive candidates for companies seeking sponsorship opportunities, and more of these partnerships are likely to materialize if proactively pursued. Before jumping on the sponsorship bandwagon, however, there are four crucial points to remember:

• You must be willing to make a long-term commitment to program development, and incorporate sponsorship initiatives into your marketing objectives, budgets, and overall facility operation.
• A sponsorship program is not a quick fix or easy money—it can take two to three years of active, persistent sponsor solicitation to achieve desired results.
• You must give to get—sponsorships are based on equitable partnerships.
• There must be a staff member involved with the program on a day-by-day basis who has the authority to make major decisions and support sponsorship commitments.
  

If you’re comfortable with these four requirements, then you’ll want to learn more about the world of sponsorship or affinity marketing through a variety of sources, including IAAPA’s Marketing Fun resource manual, which includes a chapter on this subject containing detailed information on developing strategies, creating a program, researching potential sponsors, selling the package, negotiating a partnership, andfulfilling the program. Sponsorship opportunities in the amusement industry are ripe for the pickin’, so reach out and seize them!

Adapted from the work of Ed Stone, president of Stone & Associates, a marketing and communications firm located in Hendersonville, Tenn.