Every coin has two sides. Along with the benefits attention has to be set on the Drawbacks associated with an event.
Dictating Terms:
Sponsors when they put money into an event they obviously, expect something in return. Most event organizers face the problem of the sponsor dictating terms.
Diversion from the Event:
Event organizers are required to display the logos and banners of sponsors. In addition to this, they may have to announce the name of the sponsors on a regular basis (as per the terms of the contract). This may result in a diversion from the actual event. Not many spectators or audiences will like this.
Dilution of Control:
There is a dilution of Control from the Event Organizers point of view. Sponsors gain more importance than the Event Organizers.
Success related to event:
Success of a sponsorship is directly related to the success of the event being sponsored. If the event being sponsored has failed to draw crowd or attention or has been a failure then the sponsors’ brand will suffer.
Audience's reaction:
The distraction that is being caused due to the sponsor or his brand may result in an unfavorable reaction from the audience. This may be in contradiction with what the sponsor wanted to achieve with the sponsorship.
Price of Sponsorship:
The price of Sponsorship has spiraled over the years. It takes millions of Dollars to attain a Sponsorship at a prestigious event like the World Cup Soccer or the Olympics. It cost Kodak $40 million back in 1996 Atlanta Olympics to become a sponsor in its category.
Poor Sponsorship Packages:
The sponsorship deal in any event is limited to a few assets and rights that can be given to the Sponsor. A sponsor does not have the legal backing nor the protection beyond them.
The biggest threat to Corporate Sponsorship - to both the sponsor and the event organizer is PARASITIC MARKETING.
Dictating Terms:
Sponsors when they put money into an event they obviously, expect something in return. Most event organizers face the problem of the sponsor dictating terms.
Diversion from the Event:
Event organizers are required to display the logos and banners of sponsors. In addition to this, they may have to announce the name of the sponsors on a regular basis (as per the terms of the contract). This may result in a diversion from the actual event. Not many spectators or audiences will like this.
Dilution of Control:
There is a dilution of Control from the Event Organizers point of view. Sponsors gain more importance than the Event Organizers.
Success related to event:
Success of a sponsorship is directly related to the success of the event being sponsored. If the event being sponsored has failed to draw crowd or attention or has been a failure then the sponsors’ brand will suffer.
Audience's reaction:
The distraction that is being caused due to the sponsor or his brand may result in an unfavorable reaction from the audience. This may be in contradiction with what the sponsor wanted to achieve with the sponsorship.
Price of Sponsorship:
The price of Sponsorship has spiraled over the years. It takes millions of Dollars to attain a Sponsorship at a prestigious event like the World Cup Soccer or the Olympics. It cost Kodak $40 million back in 1996 Atlanta Olympics to become a sponsor in its category.
Poor Sponsorship Packages:
The sponsorship deal in any event is limited to a few assets and rights that can be given to the Sponsor. A sponsor does not have the legal backing nor the protection beyond them.
The biggest threat to Corporate Sponsorship - to both the sponsor and the event organizer is PARASITIC MARKETING.