Awards and Citations

Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property. For example, a corporate entity may provide equipment for a famous athlete or sports team in exchange for brand recognition. The sponsor earns popularity this way while the sponsored can earn a lot of money. A particular form of specialized brand sponsorship where a brand sponsors an unusual event or pastime that then becomes synonymous with that brand (to the point where future brands may be excluded from participation) is known as 'aboutsponsorship'. This provides a strong walled-garden sponsorship relationship between particular events and the brand.

Cause-related marketing generally includes an offer by the sponsor to make a donation to the cause with purchase of its product or service. Unlike philanthropy, money spent on cause marketing is a business expense, not a donation, and is expected to show a return on investment.

When commercial radio stations began broadcasting in the early 1920s, the programs were aired without advertising. Many radio stations were established by radio equipment manufacturers and retailers and programming was provided to sell radio transmitters and receivers. This led to a system where radio and television programs were financed by selling sponsorship rights to businesses. Eventually, the broadcasters began selling smaller blocks of advertising time to several businesses. Sponsorship is also becoming increasingly important in education.

Many companies want their logo on sponsored equipment in return. Formula One teams for many years relied heavily on the income from tobacco advertising, reflected in the sponsorship liveries of the teams. Other types of sponsorships revolve around companies paying for parts of television broadcasts and sporting events which bear their name. For example college bowl games now contain the name of their sponsor.