Activation (Sponsorship): Activation refers to the marketing activity created by the sponsor to leverage (receive the most out of) the sponsorship relationship. Sponsors see this as a great way of receiving brand exposure and communicating their values to the target audience. In sponsorship marketing, any physical activation would have its own budget.
Agency (Sponsorship): Sponsorship agencies play the role of putting sponsors together with properties, in other words, brokering the sponsorship. They bring sponsors to properties and charge a fee for putting the deal together. Most of the time, the fee is a % commission. It’s good to keep in mind that sponsorship agencies can also be involved in coming up with creative activations.
Ambush Marketing: Ambush marketing is a marketing strategy that takes place around a property. In ambush marketing, a non-sponsor company intrudes on the property to transfer the attention from the sponsor to itself.
Category Exclusivity: Category exclusivity is typical for big events. It’s the right given to the sponsor to be the only organization within its product or service category. Some big companies like Tim Hortons only deal this way, so that they can be the sole provider of their category.
Consultancy (Sponsorship): Sponsorship consultancies are strategic organizations that put creative ideas together for sponsors and clients. Unlike the agencies, consultancies do not broker sponsorships, but rather work directly with sponsor. Their main role is to ensure the sponsor got the right activations. Consultancies usually work on a fee basis.
Inventory: A property’s assets that can be beneficial to the sponsor. Inventory can include physical and non-physical assets.
Leverage: Amount paid by sponsors to activate the sponsorship. This amount is a separate budget to spent to activate the sponsorship and leverage it to go further, and it is more than the initial sponsorship fee.
Licensed Merchandise: The rights given to the sponsor to use the property’s logo to produce merchandise. For example, Adidas had the rights to licensed merchandise in the 2018 FIFA World Cup.
Media Sponsor: A company/sponsor that has the broadcasting and advertising rights.
Official Suppliers: An official supplier is a designation given to the sponsor. Most of the time you see sponsors using that in their advertising.
Pass-through Rights: Pass-through right is the benefit that sponsors are allowed to pass-through another organization. This may be necessary if a sponsor wants to involve another company in the sponsorship, for example, to supply something.
Presenting Sponsor: A company/sponsor that has the right to integrate its name after “presents” or “presented by.”
Property (Sponsee): An entity to be sponsored.
Sponsorship Fee: The payment made by the sponsor to the property. This fee can be cash or in-kind. An example of in-kind is when a sponsor provides its products to the VIP areas in the event.
Title Sponsor: A company/sponsor that has the right to name the property to increase its exposure. For example, CIBC Run for the Cure.