Navigating the Evolving Landscape of Sponsorship: Insights from Kim Skildum-Reid
In a recent episode of our podcast, we had the pleasure of hosting Kim Skildum-Reid, a renowned expert in the field of sponsorship. The conversation delved into various aspects of sponsorship strategies, particularly in the wake of the pandemic, and how these strategies have evolved to meet the changing expectations of consumers. Here, we break down the key insights and actionable advice shared by Kim, providing a comprehensive guide for those looking to navigate the complex world of sponsorship.
The Impact of the Pandemic on Sponsorship
Shifting Focus to Remote Fans
The pandemic necessitated a significant shift in how brands engage with their audiences. With live events cancelled or held without audiences, sponsors had to rethink their strategies to maintain relationships with fans who were not physically present. Kim highlighted several key points:
Innovation in Content Creation: Brands began to innovate by creating timely and lower-production-value content that resonated with remote audiences. This approach allowed them to stay connected with fans during a challenging time, demonstrating the power of adaptability and creativity. Continued Engagement: As live events have resumed, some sponsors have continued to prioritise remote fans, recognising their value. For instance, teams like Manchester United have a vast global fanbase, many of whom will never attend a game in person. Smart sponsors are leveraging this opportunity to connect with these fans through creative and impactful strategies, ensuring they remain engaged and valued.
Challenges in the Sponsorship Landscape
Despite the progress, there are still challenges:
Mixed Responses: While some sponsors have embraced the new mindset of engaging remote fans, others have reverted to traditional methods, focusing solely on in-person audiences. Kim emphasised the importance of maintaining a robust relationship with remote fans, as they represent a substantial and often untapped market. Ignoring this segment could mean missing out on significant opportunities for growth and engagement.
The Influence of Middle Eastern Investment
Financial Backing vs. Strategic Execution
The influx of money from the Middle East, particularly from Saudi Arabia, into sports sponsorship has been significant. However, Kim expressed concerns about the effectiveness of these investments:
Strategic Execution: While there is substantial financial backing, the strategic execution often falls short. Kim believes that there is immense potential for impactful sponsorships that are not being fully realised. The challenge lies in aligning financial resources with strategic goals to create meaningful and lasting partnerships.
Publicity Stunts vs. Long-Term Strategy
Balancing Short-Term Excitement with Long-Term Engagement
The host brought up a recent high-profile marketing stunt by Aer Lingus, which involved a flashy announcement of new flights to Las Vegas. Kim questioned its long-term effectiveness:
Sustainability: While such publicity stunts can create initial buzz, they often lack sustainability in terms of marketing impact. Brands need to balance short-term excitement with long-term engagement strategies to ensure lasting success. This requires a thoughtful approach that considers the broader brand narrative and consumer expectations.
Evolving Consumer Expectation Alignment with Values
Kim highlighted a significant shift in consumer expectations:
Value Alignment: Recent research indicates that over 60% of American consumers prefer to engage with brands that align with their values. This trend is particularly pronounced among younger consumers, who seek authenticity and transparency from the brands they support. Brands that fail to demonstrate their values risk losing relevance in a competitive market, underscoring the importance of genuine engagement and ethical practices.
The Role of Advocacy in Sponsorship
Building Brand Advocacy
Kim emphasised the importance of building brand advocacy through sponsorship:
Moving the Dial: She likened the process to moving a dial, where focusing on alignment and advocacy can yield greater results than merely pushing for awareness and sales. By fostering genuine connections with consumers, brands can create a loyal customer base that advocates for their products and values, ultimately driving long-term success.
Practical Tips for Sponsorship Success
Inclusivity in Strategy Development
Kim shared her approach to assisting organisations in leading their sponsorship initiatives:
Stakeholder Engagement: Conduct extensive interviews with a wide range of stakeholders within the organisation to ensure everyone feels heard and valued. This inclusive approach fosters a sense of ownership and collaboration, leading to more effective and innovative sponsorship strategies. Educational Component: Incorporate tailored training for frontline staff and crash courses for broader stakeholders to demystify sponsorship and encourage buy-in. Education empowers teams to understand the nuances of sponsorship and contribute meaningfully to its success.
Leveraging Technology
The discussion also touched on the impact of technology, particularly artificial intelligence (AI), on sponsorship:
Enhancing Human Experiences**: While AI and other technologies have the potential to enhance sponsorship experiences, Kim cautioned against using technology for its own sake. Technology should be viewed as a tool to enhance human experiences rather than replace them, ensuring that the human element remains at the forefront of sponsorship efforts.
Generational Dynamics
Kim advocated for the inclusion of diverse voices in sponsorship discussions:
Diverse Perspectives: Encourage the inclusion of individuals from various backgrounds, regardless of their age or formal qualifications, to enrich the brainstorming process and drive innovation. Diverse perspectives can lead to more creative solutions and a deeper understanding of consumer needs.
Career Advice for Aspiring Professionals
Kim offered valuable advice for those entering the sponsorship field:
Seek Additional Resources**: Supplement traditional academic education with additional resources such as white papers, podcasts, and training programmes to stay current with best practices and understand the nuances of sponsorship. Continuous learning is key to staying ahead in this dynamic field.
Conclusion
This episode with Kim Skildum-Reid provided valuable insights into the evolving landscape of sponsorship. The pandemic has reshaped how brands engage with fans, highlighting the importance of remote audiences and the need for strategic thinking in sponsorship investments. As consumer expectations continue to evolve, brands must prioritise authenticity and alignment with values to build lasting relationships with their audiences. By embracing inclusivity, leveraging technology wisely, and fostering genuine connections, brands can navigate the complex world of sponsorship and achieve long-term success.
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