The Benefits of Using Sponsorship as a Marketing Strategy

That sports team you follow? They probably would not exist without sponsors.

Daniel Hopper
Strategy, Marketing and Branding
10 min readJan 27, 2021


what is sponsorship? Toyota centre
Photo by Alexander Londoño on Unsplash

Do you have a favourite sports team? The chances are that sponsors help them operate by providing funding or support in other ways.

The biggest sports teams in the world have sponsorship splashed across their uniforms. Some events you attend probably also receive sponsorship to ensure they go ahead.

Sponsors add value to our lives.

This blog explores what sponsorship is, how it works, and sponsorship benefits brands and businesses.

“The provision of assistance either financial or in-kind to an activity by a commercial organisation, for the purpose of achieving commercial objectives.” (Meenaghan, 1983)

What is Sponsorship?

Sponsorship involves a business relationship between two parties. One party (sponsor) supports the other (beneficiary) through funding, resources, or services. The beneficiary provides rights and associations to the other party for use and commercial advantage.

The sponsored party could be an event, organisation, or an individual; this second party's involvement distinguishes sponsorship from advertising.

You can find the first sponsorship examples over 100 years ago, but they are rare and minor. Its use has exploded since the 1970s.

According to Meenaghan (2001), in the UK, spending on sponsorship increased from £4 million to $1075 million between 1970 and 1997. In the US, spending increased from $850 million in 1985 to $8.7 billion in 2000.

“Sponsorship involves two main activities: (1) an exchange between a sponsor and a sponsee, whereby the latter receives a fee and



Daniel Hopper
Strategy, Marketing and Branding

I share my passion for Marketing, Health & Fitness. Social: *Appreciate a coffee if you enjoy my writing!