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November 6th, 1:30pm 0 comments

Outsourcing Sponsorship Deals

The Age, Australian edition, reports that Qantas Airlines has axed its internal sponsorship division in favor of outsourcing sponsorship deals.

The article paints a negative picture from the standpoint of Qantas sponsorship recipients as "throwing into doubt the future of tens of millions of dollars of sponsorships."

I see it as quite the opposite. Qantas will now be able to divert its resources to other areas and instead concentrate on the main focus of the airline's core business. Besides, all sponsorship deals will (and should) still be reviewed internally.

The sponsorship agencies, especially the interactive ones specializing in engagement, are better equipped to lower cash outlays via embedded advertising/marketing creativity and campaigns, while maximizing ROI for their clients.

Obviously, simply turning the business over to any ad agency, no matter how a big a name it has made for itself, may not be the right answer. Digital strategy decisions should not be at the hands of traditional marketing outfits.

Now, the challenge is for the sponsorship agencies to hold up their end of the bargain, and deliver promising results, if they would like this trend to continue. I believe it can be done. It's a win-win for all parties. And I welcome it!

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