To Sponsor means to support something, an event, activity, or person, usually with money. The person, organization, or entity that provides the funding is called ‘the sponsor’. The entity may also help fund the activities and purchases of an athlete, musician, dancer, theater company, or even a boxer.
The term may also refer to the advertiser that pays either in part or in full for the cost of broadcasting a TV or radio program by running adverts just before and during its broadcast.
For example, during the introduction of each episode of a TV soap opera, a fictitious company may make the following announcement: “This series is sponsored by John Doe shampoo.”
Important events usually have a couple of partners and several sponsors. For example, during the 2014 FIFA World Cup tournament in Brazil, the official partners were VISA, Hyundai-Kia, Sony, Emirates, Coca-Cola and Adidas. The official sponsors were Johnson and Johnson, Marfrig, Yingli Solar, Castrol, Anheuser-Busch InBev, Continental, and some others.
They contributed money towards the creation and running of the event, and in return had billions of people across the world see their logos.
Since 2014, Nissan, Japan’s second-largest car-maker, has been an official sponsor of the Champions League, Europe’s most important club football (soccer) tournament.
Charity: if you plan to raise money for charity by running a marathon, you will talk to your friends and family. You will also talk to work colleagues and neighbors. You will invite them to contribute money for every mile you run. These people are your sponsors.
Legislation: a lawmaker who initiates a bill in Parliament is its leading sponsor.
Sponsorships are usually dealt with by a company’s marketing department.
Sponsor vs. philanthropist
When you sponsor something you fund it but expect a commercial return – this is not the case with philanthropy. A philanthropist donates money and expects nothing in return.
When a company sponsors a sporting event, it expects to have access to the exploitable commercial potential associated with that tournament, contest, race, etc.
Even though sponsorship may deliver awareness, brand building and even encourage consumers to purchase, it is not the same as advertising. With sponsorship, specific product attributes are not mentioned, unlike advertising. Sponsorship cannot stand alone – it requires support elements.
Sponsor types
– Title Sponsor: this is the top status of sponsorship. In most cases, the organizers place the company’s logo next to the name of the competition. Sometimes their logo or name may appear on the competitors’ kit.
– General Sponsors: they usually contribute at least 50% of the sponsorship funds if there is no Title Sponsor.
– Official Sponsors: these organizations contribute between 20% and 25% each of all funds. Sometimes they are named partners if they are the only ones from that sector. For example, they may be the ‘official automotive partner’ or ‘official banking partner.’
– Technical Sponsors: they partially or fully pay for goods and services, such as transportation, lodgings, fitness, medical equipment, etc.
– Participating Sponsors: contribute up to 10% each of all the sponsorship money.
– Informal Sponsors: these organizations provide information support by conduction PR-actions, media coverage, and other supporting activities.
Gordon Getty, an American entrepreneur, investor, classical music composer and philanthropist, the 4th child of oil tycoon J. Paul Getty, once said: “If you have more money than you need, you have to give it away. It’s a duty. I get to choose whom to sponsor, and I like to give to the areas that I know something about.” (Image: forbes.com)
Sponsor for foreigners
In some countries, foreigners cannot work or even visit without a local sponsor. In Saudi Arabia, for example, all foreigners must have a local sponsor in order to live or work there. Even if you want to go on vacation as a tourist to Saudi Arabia, you will still need a sponsor.
In the Middle East, a sponsor acts as a type of guardian as well as guarantor. They must undertake all the paperwork on behalf of the foreigner, including applying for visas. They must also arrange the opening bank accounts, signing a rental contracts, etc.
In Saudi Arabia, a sponsor may be an individual, an institution or a company. If you want to do business there, you should look carefully for a reputable individual or company. Sponsors will charge for their services.
In the USA, to get an H-1B Visa, you must have a sponsor, i.e., an employer. The US Government issues this type of temporary work permit to highly-qualified foreigners.
The term emerged in the English language in Britain during the 1650s. It came from Late Latin Sponsor ‘sponsor in baptism’, and the same word in Latin meaning ‘a surety, bondsman, guarantee.’
The concept of sponsorship extends beyond modern commercial contexts and has historical roots in patronage, where benefactors supported artists and thinkers, much like sponsors support events and individuals today.
Derivatives of root word “sponsor”
From the English root word “sponsor” there are many derivatives, i.e., other words. Let’s have a look at some of them:
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Sponsor (noun)
A person or organization that supports an event, activity, person, or organization financially or through the provision of products or services.
Example: “The local bank acted as the sponsor for the annual marathon.”
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Sponsorship (noun)
The position or fact of being a sponsor.
Example: “She gained a sponsorship from a major sports brand.”
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Sponsoring (adj.)
Relating to or indicative of one who sponsors.
Example: “The sponsoring company provided free merchandise for the event.”
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Sponsored (adj.)
Supported by a sponsor, especially financially.
Example: “The sponsored athlete thanked her supporters in her speech.”
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Sponsor (verb)
To support a person, organization, or activity by giving money, encouragement, or other help.
Example: “The company agreed to sponsor the educational program.”
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Co-sponsor (verb)
To jointly sponsor something with another person or organization.
Example: “Several local businesses co-sponsor the annual arts festival.”
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Co-sponsorship (noun)
The action of sponsoring something jointly with another person or organization.
Example: “The event was a success thanks to the co-sponsorship of community groups.”
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Unsponsored (adj.)
Not having the support, financial or otherwise, of a sponsor.
Example: “The unsponsored team struggled to afford new equipment.”
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Sponsorless (adj.)
Similar to unsponsored; without a sponsor.
Example: “Despite being sponsorless, the artist continued to create remarkable works.”
Video – What is a sponsor?
In this visual guide presented by our affiliate channel, Marketing Business Network on YouTube, we explain what a “Sponsor” is using straightforward language and easy-to-understand examples.