In previous posts, we discussed the difference between experiential and one-to-one marketing and how brands can use both to appeal to their target audience. However, many types of marketing and channels have evolved over the years to engage new generations. Can you guess the biggest change? The answer is the Internet. Since its creation, digital marketing has been a game changer for brands.
There are two marketing strategies that work for both digital and traditional marketing, which brands can utilize by collaborating with other brands or individuals to maximize their reach. Today, we will discuss sponsorships and partnerships to understand the difference between the two and how marketers can employ them for successful results.
What are Partnerships?
Adobe’s blog defines partnerships as “a strategic collaboration between two parties — typically two businesses or a business and a public figure” to reach a common goal, such as gaining
followers, increasing sales, growing brand awareness, and more.
Partnerships are important because they not only provide visibility and recognition to the parties involved but also create long-lasting relationships internally and with the target audience of both partners.
However, marketers need to ensure that the other party involved shares the same values as their brand to ensure the right audience is targeted and that the brand's essence is not compromised. A partnership with the wrong celebrity has caused brands to lose millions due to media scandals that the audience automatically associated with the brand.
What are Sponsorships?
On the other hand, according to Indeed, sponsorships refer to “a strategy where one business promotes an event or organization led by another.” They often involve a financial contribution from the sponsor brand and can establish a relationship between the two parties.
This strategy is commonly seen with brands and nonprofit organizations, as well as sports teams. Sponsorships are important because they create visibility and demonstrate brand support for a specific cause, organization, or event, helping to reach a target audience and establish brand values.
What Would Disney Do?
Now that we understand the concepts, let’s examine their differences more in-depth using our favorite entertainment brand, Disney, as an example. When discussing Disney partnerships, many come to mind, but a strong one that stands out is the one between Chase Bank, Visa, and Disney. This partnership was extended in 2022 to last over two decades, as mentioned in this press release by Chase Bank.
In this partnership, Visa produces credit and debit cards featuring different Disney characters, which clients can obtain through Chase Bank after completing the application process. These cards give cardholders special benefits such as rewards, discounts, and early access to experiences and launches at Disney Parks. This partnership attracts Disney fans to become Chase and Visa clients while creating a loyalty program around Disney Parks through the various benefits offered.
Meanwhile, Disney sponsors different brands and is also the sponsor of multiple nonprofit organizations and events. You may think Disney does not need any sponsorships, and while they do not, they actually have several sponsored attractions around the parks. For example, Tron in Magic Kingdom is sponsored by Enterprise, and the Kidcot Fun Stops in Epcot are sponsored by Ziploc. Why would these brands sponsor a multimillion-dollar company? Because of the visibility it gives their brands. They are not only sponsoring Disney projects but also attractions that introduce people to their products.
As you can see, both partnerships and sponsorships are vital in marketing since they are safer than other campaigns and generate significant visibility and awareness for all the parties involved. To easily differentiate between the two, remember that in partnerships, all parties contribute equally in terms of time and money to the product, service, or event, while in sponsorships, one party provides the money, and the other invests the time in developing the project.
I hope you have enjoyed learning about these marketing strategies. Do not forget to subscribe to continue discovering more about the wonderful world of marketing and how to craft successful campaigns using all available resources. Have a magical day, and see you in the next post.
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