{"id":72010,"date":"2023-07-21T20:20:39","date_gmt":"2023-07-21T20:20:39","guid":{"rendered":"https:\/\/mailrelay.com\/glossary\/sponsorship\/"},"modified":"2026-10-07T15:30:01","modified_gmt":"2026-10-07T15:30:01","slug":"sponsorship","status":"publish","type":"glossary","link":"https:\/\/mailrelay.com\/en\/glossary\/sponsorship\/","title":{"rendered":"Sponsorship"},"content":{"rendered":"\n

Sponsorship<\/strong> is an agreement in which a company, the sponsor, provides money, products or services to a person, an event or an organization, the sponsored party, in exchange for visibility for its brand.<\/p>\n\n

It is one of the most widely used ways to build awareness and associate a brand with positive values.<\/p>\n\n

In this glossary entry, we’ll explain what sponsorship<\/strong> is, its types, objectives and examples so you can apply it to your own projects.<\/p>\n\n

Let’s go step by step.<\/p>\n\n

What is sponsorship?<\/h2>\n\n
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Sponsorship<\/em><\/strong> is an agreement between a company and a person, or another company or organization, setting out a commercial arrangement so that both parties enter into a collaboration that benefits everyone involved. It is part of any company’s communication mix<\/a>.<\/p>\n<\/blockquote>\n\n

Put another way, the sponsor<\/strong> wants to promote products or services, and it is the sponsored party who carries out the actions agreed in the sponsorship deal.<\/p>\n\n

It is one of the most common marketing actions for many brands that want to build awareness and strengthen their place in consumers’ minds.<\/p>\n\n

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Promote your sponsorships by email<\/strong><\/p>\n\n\n\n

Tell your subscribers about your sponsorships and partnerships with professional email marketing campaigns.<\/p>\n\n\n\n

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Discover Mailrelay<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n

Sponsor, sponsored party and to sponsor: what each one means<\/h2>\n\n

Several terms around sponsorship are often confused. This table sums them up:<\/p>\n\n

Term<\/th>What it means<\/th>Example<\/th><\/tr><\/thead>
Sponsorship<\/td>The agreement between the two parties<\/td>Rolex’s agreement with Wimbledon<\/td><\/tr>
Sponsor<\/td>The company that provides the money or resources<\/td>Rolex<\/td><\/tr>
Sponsored party<\/td>Whoever receives the support and gives the brand visibility<\/td>The Wimbledon tournament<\/td><\/tr>
To sponsor<\/td>The act of providing support in exchange for visibility<\/td>\u201cRolex sponsors Wimbledon\u201d<\/td><\/tr>
Sponsor<\/td>The English word for \u201cpatrocinador\u201d<\/td>\u201cThe event’s main sponsor\u201d<\/td><\/tr><\/tbody><\/table><\/figure>\n\n

When you see \u201csponsored by\u201d on an event, a video or a post, it means a brand has paid for it or contributed something to make it happen.<\/p>\n\n

On social media, the law also requires this to be stated clearly so nobody mistakes it for a spontaneous opinion.<\/p>\n\n

\"Diagram<\/figure>\n\n

What is sponsorship for? Objectives<\/h2>\n\n

Sponsorship<\/strong> helps achieve several strategic objectives. The main ones are:<\/p>\n\n

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  1. Increase visibility<\/strong>: It lets brands gain exposure and public recognition by associating themselves with popular events, people or causes.<\/li>\n\n\n\n
  2. Improve brand image<\/strong>: Being linked to sports, cultural or social causes reinforces positive values and makes the public view the brand more favorably.<\/li>\n\n\n\n
  3. Expand reach<\/strong>: Through sponsorship, brands reach new audiences and markets they would not easily reach with other marketing channels.<\/li>\n\n\n\n
  4. Customer loyalty<\/strong>: Associating with events or activities that interest the target audience can create an emotional connection, building loyalty and preference for the brand.<\/li>\n\n\n\n
  5. Stand out from the competition<\/strong>: A well-executed sponsorship can make a brand stand out from its competitors by showing its commitment to specific areas.<\/li>\n\n\n\n
  6. Build strategic partnerships<\/strong>: It makes it easier to build relationships with other companies, media outlets or institutions, which can lead to long-term collaborations.<\/li>\n\n\n\n
  7. Increase sales<\/strong>: Associating the brand with positive experiences can influence consumers’ purchasing decisions and drive direct sales.<\/li>\n\n\n\n
  8. Positioning<\/strong>: It helps establish a brand in a specific market or segment, reinforcing its authority and prestige in that field.<\/li>\n<\/ol>\n\n

    Difference between sponsorship and a collaboration agreement<\/h2>\n\n

    Sponsorship<\/strong> focuses on promoting the brand and giving it visibility<\/strong> in exchange for financial or in-kind support.<\/p>\n\n

    A collaboration agreement<\/strong> seeks an exchange of resources and efforts<\/strong> to achieve a common goal<\/strong>, with no direct advertising purpose.<\/p>\n\n

    Sponsorship, patronage and advertising: how they differ<\/h2>\n\n

    All three help make a brand known, but they don’t work the same way. The key is what whoever puts up the money gets in return.<\/p>\n\n

    <\/th>Sponsorship<\/th>Patronage<\/th>Advertising<\/th><\/tr><\/thead>
    What the brand is looking for<\/td>Visibility associated with an event or person<\/td>Supporting a cause without asking for advertising<\/td>Selling or promoting a product<\/td><\/tr>
    What it gets in return<\/td>Logo, mentions and presence at the event<\/td>Recognition and tax benefits<\/td>Space in a media outlet<\/td><\/tr>
    Who controls the message<\/td>Agreed between the two parties<\/td>The supported organization<\/td>The brand<\/td><\/tr>
    Example<\/td>Heineken and the Champions League<\/td>A donation to a museum<\/td>A TV commercial<\/td><\/tr><\/tbody><\/table><\/figure>\n\n

    In Spain, the General Advertising Law (Ley General de Publicidad) defines the sponsorship contract in its Article 22.<\/p>\n\n

    Under the law, the sponsored party receives financial support for its sports, charitable, cultural, scientific or other activity and, in return, undertakes to collaborate in the sponsor’s advertising.<\/p>\n\n

    Patronage, on the other hand, is regulated by Law 49\/2002.<\/p>\n\n

    A company that signs a collaboration agreement with a foundation only gets the publicizing of its participation in return, and may receive tax benefits.<\/p>\n\n

    Since sponsorship is an advertising service, it is subject to VAT.<\/p>\n\n

    How sponsorship works step by step<\/h2>\n\n

    A well-planned sponsorship almost always follows the same steps, whether you are the brand or you are looking for a sponsor.<\/p>\n\n

    1. Define what you want to achieve<\/h3>\n\n

    Awareness, brand image, new contacts or sales. Your objective determines which type of sponsorship suits you and how to measure it.<\/p>\n\n

    2. Choose who to sponsor<\/h3>\n\n

    Look for an event, a person or an organization whose audience matches yours and whose values fit your brand. A poor fit can damage your image.<\/p>\n\n

    3. Agree on what each side gives<\/h3>\n\n

    Decide what each party contributes: money, products or services on one side; logo, mentions, tickets or space at the event on the other.<\/p>\n\n

    4. Sign the contract<\/h3>\n\n

    Put in writing the duration, exclusivity, use of the brand, deadlines and what happens if one of the parties does not comply.<\/p>\n\n

    5. Activate the sponsorship and measure the results<\/h3>\n\n

    Sponsorship doesn’t end once your logo is up.<\/p>\n\n

    Promote it on your social media, your website and your email campaigns, and measure the reach, visits, contacts and sales it generates.<\/p>\n\n

    \"Infographic<\/figure>\n\n

    Advantages and disadvantages of sponsorship<\/h2>\n\n

    Sponsorships have advantages and disadvantages, which are listed below.<\/p>\n\n

    Advantages<\/h3>\n\n