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Sponsorship and advertising

How is a sponsorship different from advertising in generating revenue? Don’t sponsors sponsor for the advertising they get in return?

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Ian
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am 12. Aug. 2021
Ex-BCG | NYU Stern | MBB, Tech, & Strategy Coach | 5,000+ Sessions | 500+ Offers | 1,000+ Candidates | 100+ Countries

Hi there,

Sponsorship is not different to adversting.

Sponsorship is a form of advertising.

For example, Asahi sponsored the Japan Olympics. What does this mean? It essentially paid them money to build stadiums, setup operations etc.

In return, it got rights to sell beer in the stadiums, put banners on the walls, have commercials, etc.

Your statement is absolutely correct: “Don’t sponsors sponsor for the advertising they get in return?”

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Agrim
Coach
am 12. Aug. 2021
ELITE Prep | BCG Dubai Project Leader | Top Coach | 3hrs Case Mastery | 10y+ Consulting | Free Counselling

Whats the story behind this question? Can you elaborate more?

You could say that sponsorship is a form of advertisement

You could also say that sponsorship is more like an investment and endorsement. It symbolises a connection between the entities - often symbiotic. Each party benefits from the other's name besides theirs.

Advertising is more transactional. You pay someone to show your ad - done deal.