The Power of Partnership: Using Sponsorships to Break Into New Markets

POSTED BY Greg Keating ON Oct 4, 2023 2:35:26 PM

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How can your company break into new markets effectively? CPG sponsorships can help you expand your consumer reach. 

Sponsorships are mutually beneficial for both parties. By donating items or money or by promoting a business, your company can expand its CPG consumer reach, helping you grow into new markets.

Why Sponsorships?

Sponsorships are an effective CPG marketing strategy. Businesses are always trying to speaking to new audiences, and sponsorships build trust and familiarity with a new audience. When your company has a good match with the event or organization that you sponsor, the consumers who engage with your brand are more likely to be interested in purchasing from you. 

Sponsors are typically attracted to partnerships and events that will generate at least a 2:1 ROI ratio, though higher numbers such as 3:1 or 4:1 are also possible. However, the ROI is not always immediate: sponsorships can also have far-reaching impacts into the future, since they create a lasting positive association with your brand. 

Identifying the Right Sponsorship Opportunities

Finding the right brand sponsorship opportunities is key to maximizing the impact of your sponsorship campaign. How can you find the right events, teams, or causes that align with your brand's values and goals to ensure that your sponsorship will be an effective part of your CPG marketing strategy? 

  • Consider the values and messages of the event, team, or cause. Does their audience have the same values and goals as your audience? 
  • What are the demographics and interests of your current audience? How do they compare to the demographics and interests of the event, team, or cause? 
  • Who are the other sponsors? Is it worthwhile adding your company to the mix? 
  • Are sponsors satisfied with the event? Do they return year after year? 
  • What is the sponsorship package? Do you think that investment will bring value to your company? 
  • Balance the value of the event with the exposure that you will get. 

Securing and Negotiating the Deal

How can you negotiate the terms of a sponsorship deal?

  • Know your goals. Are you aiming to sign up people for a free trial? Familiarize them with your brand name? 
  • Consider what you can offer. Make sure that this aligns with the expectations of the event, team, or cause. 
  • Determine what kind of exposure you will get, particularly in areas that are easier to quantify, such as media and signage. Other types of exposure are more difficult to quantify, such as category exclusivity. 
  • Determine whether the value of the exposure is greater than the value of your investment. 

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Activating Your Sponsorship

How do you activate your sponsorship before, during, and after the event or sponsorship opportunity? 

Sponsorship activation is when your CPG sponsorship comes to life, expanding your consumer reach. What you do to activate your sponsorship really depends on the audience you are trying to reach. Sponsorship activation could include: 

  • Product sales 
  • Free samples 
  • Offering free opportunities to do an activity 
  • Games and experiences 
  • Giveaways 
  • Contests 
  • Branded photo walls or props 

When you consider what your sponsorship activation will look like, consider the event audience and the goals that you have for your event sponsorship. This will help shape your activation strategy.


Becoming a sponsor means that you build your positive reputation within a new market. By association, you become a trusted brand. Sponsorship opportunities might include product sales, but they are also an opportunity to demonstrate your products, connect with future customers, offer consumers a chance to try your product, and generate interest on social media. As you build your CPG branding, consider adding sponsorships to your list of marketing strategies. 

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