Partnerships, the not-so-secret weapon: a counter-intuitive tool in the age of budget cuts

Some might say you’d be irresponsible to ‘shell out’ tens of thousands, or maybe millions, on a partnership deal in today’s challenging times. Or that renewing a shiny ‘toy’ – as budgets are wantonly slashed across every vertical – is decadent. Superfluous, even, when a fee to partner with a rightsholder in the worlds of sport, culture, or entertainment, could be funnelled elsewhere.

Against this downbeat backdrop, however, I will make the case for partnerships marketing (aka sponsorship). In the five points that follow, I’ll argue that not only is the right strategic partnership a cost-effective and efficient investment in the mission to hit your brand and business objectives, but it is one which can truly set your brand apart in the minds and hearts of consumers.

1. All eyes on you
After a decade in the industry, there is one thing that I don’t think I’ve never seen – a partnership delivering less media value than the rights fee paid by the brand. It’s obvious really, one front-of-shirt sponsorship of a national team, for example, can see your brand in social feeds, newspapers, and living rooms without you lifting a finger beyond ensuring that the pantones are spot on.

Now, I’m certainly not saying that the ROI of a marketing tool should be judged on media metrics alone (… read on) but it isn’t a bad starting point as we search for efficiencies.

Moreover, in 2023/24, as both ATL/BTL campaign windows are inevitably squeezed, a partnership which gives you an always-on (or at least relatively regular) presence in front of the right audiences is going to be pretty handy in maintaining a degree of saliency and relevance.

2. A time to lead
In moments of crisis, we see what leaders are made of. And most brands, in my experience, want to be perceived as a leader to some degree. Some can show leadership by fighting to keep prices down and quality as high as possible in the face of financial pressures. Others by going above and beyond for staff.

Partnerships provide an additional and meaningful route to leadership. As local and central funding for grassroots sports is cut, for instance, EE’s efforts to supercharge a network of ‘Connected Clubs’, accessed via their partnerships with the Home Nations football associations, delivers on a pressing societal need.

From Vitality supporting your nearby Parkrun to Converse saving legendary music venue The 100 Club back in 2011, partnerships are a proven tool for brands to simultaneously support under-supported communities… and powerfully deliver on brand perception objectives.

3. Raise a smile
Consumers are actively searching for moments of levity within an increasingly miserable world. Indeed, according to one report, 78% of people believe that brands can do more to deliver happiness.

… Enter partnerships marketing – the authentic activation access point to people’s passions, whether that is contently contemplating the canvases of Tate Liverpool or crying out chants from the Kop.

When a brand finds ways to enhance the access to or enjoyment of these moments, they stand out in a field of apathy. Think of the likes of O2 powering pre-sales for customers to see their favourite musicians at venues nationwide, as well as offering complimentary pies and pints at rugby’s Twickenham Stadium.

And if a pie seems like a simplistic gesture, I can assure you of (from years of personal experience) the sheer joy that the equation of sport x free food engenders.

4. Ready-made + co-created tools
Beyond the often-impressive reach of the rightsholders’ channels, which partnerships give you the ability to activate through, every package will include a set of tangible assets - be they tickets, experiences, or the ability to use associated talent (e.g., players).

In short, a suite of ready-made tools that, in the spirit of cost efficiencies, you can employ across any department - internal engagement, stakeholder management, CSR etc. - or marketing channel. A great example being Dove Men+Care’s integration of their various rugby partnerships into both brand building and product-specific executions.

Beyond off-the-shelf rights, rightsholders are increasingly working with potential partners to develop bespoke offerings. Indicative of this - and helpful in the context of slimmed down social budgets - is a move from simply offering branded bumpers on sports highlights, for example, to proposing truly co-created content series.

Content is just the tip of this trend. Going forwards we will see more deals with a partner x rightsholder joint venture at their heart. In other words, a co-created asset – from monetised platforms to in-stadia experiences - that will not just build the brand of the partner but deliver a direct revenue return.

5. A maturing industry
In a time when every penny counts, the best agencies in the world of partnerships are responding to the challenge. Rather than acting in blissful isolation, they are getting their work as tight as possible to the upper echelons of brand strategy and closer than ever to the variety of specialist agencies that service a big brand. The ambition, to work a partnership as hard as possible through their client’s marketing funnel / infinity loop.

Simultaneously, efforts to measure the hard-edge business outputs of a partnership – including its pounds & pence impact on sales – are a paramount priority. Through a combination of comprehensive brand tracking and a strategic use of conversion econometrics, the strong results I’ve seen on a number of clients more than justify the comparably small rights fees paid by the brands in question.

And that me brings me full circle. In these tight times we find ourselves in, the seemingly counter-intuitive concept of sinking significant spend into a partnership, whether a renewal or a new deal, can in fact be the shrewdest investment you might make this year.

Meaningful, effective, and very consumer-facing… Partnerships can be your not-so-secret weapon.