Sponsorships For Virtual Events
Summary lead. || Photo Credit.
We’ve had some amazing feedback on the other free resources we’ve been sharing during the pandemic, especially our Virtual Matrix, Virtual Budget Guide, and our Coming Clean with Cindy series. By popular demand, we’re sharing another free resource with you to help you answer the most-asked follow-up question: how much should we spend on sponsorship for virtual events and experiences?
So first, let me explain what happened - there were many of us that had already committed, even paid for sponsorships for in-person events in 2020. Rather than refunding, many of the generous sponsors allowed their meeting host to keep the funds to help transition to virtual. I want to applaud ALL of the organizations that took the leap of faith and pivoted immediately to virtual. It was not an easy decision, and yet you all were the innovators and brave ones! And yes, with that risk, there were some BIG learning curves on both sides.
WHAT WENT WRONG IN VIRTUAL SPONSORSHIP IN 2020
Unfortunately, many sponsors felt that they were not able to get the ROI they expected with virtual/digital events in 2020, because they had not mentally shifted on how to work a virtual room. And hosts were also learning and didn’t realize that you can’t translate an in person event to online without adjustments on both sides. Many sponsors felt that hosts didn’t adapt to give them an opportunity to work a virtual room at all, reducing them to a logo on a web page, and maybe a video to watch on-demand. We all now know there is more to sponsoring than just a logo placement.
HOW TO DO VIRTUAL SPONSORSHIP RIGHT IN 2021 AND BEYOND
So now we are almost a year to the date of working from home and adjusting to the new normal, and the million-dollar question is what would YOU pay for a virtual event sponsorship, and how do you maximize your return on investment (ROI)?
This blog is our attempt to share how we break down the costs vs the ROI and help our clients decide what is good for their goals.
Let’s first define some terms:
CPA = cost per acquisition
Target Audience = who actually buys your services
CRM = customer relationship management software
MQL = marketing qualified lead
CTA = call to action
WHY THE SPONSORSHIP MODEL WORKS AND WILL LIVE ON
Two brains are better than one which means you get twice the audience size and share in the cost of producing an event
Video fatigue is real and people are choosing where and how they want to spend their time
The well produced virtual events we’ve been a part of are costing just as much as a traditional in-person event; the amounts spent in the respective areas are different pre-pandemic. As an example, hosts that value creative and personalized engagement are spending $$$$ on shipping and custom gifts (more info can be found in our Virtual Budget Guide).
FIRST, HOW DO YOU DETERMINE YOUR SPEND?
As a sponsor, you need to define what you’re willing to spend on new customer/partner acquisition. When you have identified an event that shares the same target audience as your brand, then ask them how many registrants they are expecting to register (take that down to 35% actually attending, if the event is 100% virtual). Divide the sponsorship cost by that number. Is it more or less than what you defined as a reasonable CPA?
SECOND, HOW DO YOU MAXIMIZE YOUR RETURN?
If you are not dedicating people to mine the virtual attendee list, you are essentially throwing away your money so make sure to have an assigned team member(s) comb through the ENTIRE attendee list and mark those that are MQL in your CRM. And last but not least, have a creative CTA within a week after the virtual event is done. These attendees are being invited to multiple virtual events a month. Stand out and actually creatively introduce them to your brand so the next time they hear from you, they’ll give you a chance vs trying to add them to your email distribution list.
BONUS IDEAS
Some additional ideas on how to go further with your sponsorship benefits.
If the event is free, negotiate with the host to making you a co-host of the event and actually telling everyone that this event is FREE thanks to XYZ sponsor.
If your budget allows, everyone likes a creative box of goodies/food delivered to their home.
If food delivery has already been done, don’t forget the pets, kids and local community (as we have heard first hand from Alison Roscoe with Austin FC, many sponsors are interested in being a part of the local community).
We’d love to hear from you – what free resources have been the most helpful for you? What are you looking for but don’t see being openly shared?
Need some strategic insight for your next brand activation? We’d love to hear from you.
