In digital marketing, a sponsorship is an agreement between two or more companies, where one sponsors the other's channels. In other words, the sponsor sells space to an advertiser (sponsor) for a period of time at a certain price. This is a way to promote our company through other channels and thus gain more viewers and customers.

Sponsorship is characterized by having several models of agreements between companies:

• Fixed presenceThis type of sponsorship involves paying the sponsored individual a fixed amount of money for a specific period of time on the sponsor's site. This model is recommended when the company has sustained traffic growth, thanks to the launch of a specific product or service, during the duration of the sponsorship.
• CPM (Cost per Thousand)This type of sponsorship involves paying the sponsor a fixed amount for every 1,000 impressions our ad receives on their website. The number of impressions is measured by the number of views the ad receives, not the number of users who visit it, since the same user can be impacted 10 times by the same advertisement.
• CPC (Cost per Click)In this type of sponsorship, the sponsor doesn't receive any incentive, only when the user clicks on the sponsor's ad. Therefore, if the campaign period ends and no clicks have been received, the sponsor wouldn't pay the sponsor anything. This model is recommended when the campaign has a clear call to action, i.e., an attractive message that encourages clicking and/or an incentive such as sweepstakes, benefits, prizes, etc.
• CPL (Cost per Lead): This type of sponsorship is characterized by paying the sponsor a fixed price for each acquisition or conversion, i.e., a complete registration, subscription, download, sale, etc. In this sense, you will only be paid if users complete any of the actions described above, even if the ad receives clicks. This model is recommended for ads on e-commerce sites, for example, that offer discounts, last-minute offers, opportunities, etc.

To determine which type of sponsorship best suits our needs, it's essential to establish key objectives. To do so, it's essential to seek expert advice who can guarantee successful results.

Posted by: Silvia Gemar