Risking corporate sponsorship

By Briony Hale
BBC News Online business reporter

QinetiQ 1's voyage to the edge of space has ended in failure. But for QinetiQ, the science firm that spent £2m sponsoring the venture, it may well have been the taking part that counted.

"It got bags of publicity, put their name on the map and captured the public imagination," says Karen Earl, managing director of consultancy Karen Earl Sponsorship.

The bigger the balloon, the bigger the logo

"It wasn't particularly damaging for them," agrees Matthew Patten, head of SP Active. "Nobody had ever heard of them, and it did get their name out and about, both on television and in the press."

Despite the enthusiasm of corporate sponsorship strategists, many firms would still consider it highly dangerous to link a business to something with a high possibility of failure.

But then corporate sponsorship is a risky business.

Vodafone has been lumbered with the unenviable reputation of English cricket.

Pepsi's association with Michael Jackson turned sour after allegations about his private life.

And 7Up presumably regretted putting their money behind the World Cup performance of tantrum-throwing footballer Roy Keane.

Heroism

Nevertheless, the popularity of corporate sponsorship continues to defy the wider downturn in advertising and the market is now thought to be worth up to £500m in the UK alone.

"Corporate sponsorship has come of age, becoming a very mainstream part of the marketing mix," says Mr Patten.

What happens if it [the mission to Mars] fails? It's unlikely an airline would want to get involved... Matthew Patten SP Active

And being associated with something cutting edge, heroic and adventurous could be just as strong a message to send out to the public as sponsoring a surefire success story.

"The challenge is to find the balance between having a strong product connection [and one] that isn't too close in case things go wrong," says Interbrand chairwoman Rita Clifton.

"It is slightly unfortunate that QinetiQ depends on technical expertise," she adds, wondering whether the firm will be blamed for the failed technology.

"You need to go into sponsorship with eyes wide open and carefully assess the 'what ifs' - what if he did this? what if that went wrong?" says Ms Earl.

"If you're unhappy with the potential consequences then you shouldn't be doing it."

Mission to Mars

Beagle 2, the UK's space mission to Mars, is one of the more innovative projects seeking sponsorship at the moment.

A liberal smattering of logos....

"What happens if it crashes when it lands?" muses Mr Patten, who is heading up the mission's quest for sponsorship - it's probably unlikely that an airline would want to get involved."

But he remains convinced about the power of science sponsorship for firms wanting to prove they are pushing back the barriers and are at the forefront of the latest developments.

Mr Patten believes that the biggest risk for many firms is the "wallpaper effect" where the logo is there but - so what? - it doesn't jump out in any way.

The advertising industry is agreed that mere airtime or logo presence is becoming an increasingly inefficient way to buy audience attention.

And risk-free sponsorship moves - such as arts exhibitions - sometimes have to work harder to make the money work.

There's almost no risk that a poorly reviewed show at the Tate's National Portrait awards, for example, would rub off on BP's petrol sales.

But observers are not convinced that it communicates much of a message either.

And there may be more value in doing something surprising and unconventional.

"At least the balloon hit the headlines," says Ms Earl.