WSR Blog: Conditional Rebate Promotions Activate Sport Sponsorship Endorsements

Sport sponsorship has played a large part in many companies marketing and branding initiatives. Ever since Kettering Town FC’s decision to allow Kettering Tyres to put their name on the front of their shirt in 1976, it is now almost impossible to find a sports team without some form of sponsorship.

The economic recession has lead to more pressure on marketing budgets to show a positive return on investment. Marketing budgets have been slashed and sponsorship strategies shifted towards sponsorship activation.

The prospects of mass-market exposure alone can no longer warrant such large portions of a companies marketing budget. This shift in focus has lead to sponsorship activation being the focal point for many brands and has seen some innovative attempts to activate sponsorship deals.

Activation attempts to connect on a cognitive level with consumers through experiences and engagement. Examples are seen in experiential marketing conditional rebate sales sales promotions.

In 2011, Santander UK decided to expand their sponsorship portfolio after the success of the sponsorship of the McClaren Mercedes Formula 1 Team. Rising golf star Rory McIlroy was recruited as the Spanis bank targeted golf as the next sport to associate themselves with.
On the back of Rory’s US Open win in 2011 the Norther Irish golfer has been featured in a string of advertisements and Santander has even linked his performance in the major championships to cash-back rewards in their new range of current accounts.

Such promotions are known as conditional rebates. They directly reward customers for the certain events occurring. They can help maximise sponsorship agreements and provide the basis for new promotions.

Conditional rebate promotions can provide a unique talking point and can be as simple as the age old promotion of a refund if there is snow on Christmas day.

2012 Olympic sponsor Cadbury’s has launched a promotion to coincide with the event rewarding customers with cash based on the medal performance of Team GB.

The ‘You Win if GB Wins’ promotional packs contain a unique code which you register to find out who your athlete is. If your athlete wins Gold you receive £20, Silver and its £10 with bronze you receive £5.

Insuring such promotions protects the brands financial liability whilst providing the basis for a topical promotio

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