Sports sponsors need transparency to make relationships work, says Supermac’s chief
TRANSPARENCY between sports organisations and their sponsors is crucial if the relationship is going to work for both sides, according to Supermac’s founder Pat McDonagh.
While businesses might once have simply handed over their money to see their logo on a team jerseys, the relationship is now much more involved, he says.
Supermac’s has sponsored the Galway senior hurling team since 1991 and later sponsored the county’s footballers.
It has been big and sustained part of the chain’s marketing spend.
However, late last year Mr McDonagh’s business found itself twice issuing public statements demanding to know how their sponsorship money was spent.
The issue is not particular to the GAA, Mr McDonagh says.
“I think right across the board there’s more transparency needed in relation to how money is spent and where it goes,” he said.
Companies providing sponsorship “shouldn’t be getting any more attention (from officials) than the supporters should get, but transparency had become a bit of an issue right across the country in various clubs and charities for that matter”, the former schoolteacher told the Irish Independent.
It is “hugely important because there have been such a number of issues” in the past, he says.
The issues between Supermac’s and Galway GAA were quickly resolved, and “we’re quite happy with the results of the situation.”
Sponsoring Galway GAA is very important to Mr McDonagh, who has just been announced as All-Ireland Marketing Champion for 2020.
“[With] sponsorship it’s important to give back to the local community, where you make your livelihood. It doesn’t matter what part of the country, it’s always good to connect to wherever you’re getting your livelihood from, and whether that’s in sports sponsorship, or in charity sponsorships, or in whatever,” Mr McDonagh says.
Sponsorship within the community is “as important a part of growing your business as advertising, because it’s the connection,” he says.
With around 120 outlets across the country, McDonagh, says staying connected to customers has been key to Supermac’s marketing success.
“We relate very much to our own customers, and I think that’s hugely important, having your ear to the ground as well is a big aspect of it.”
“Whether it is coming up with some quirky advertisement, or whatever, you’re bringing a little bit of differentiation to the marketing area that someone else might not have thought of,” Mr McDonagh says.
As far as marketing goes, how businesses reach their target audience is “continuously changing” he says.
“What worked ten years ago, or five years ago, certainly won’t work today, digital marketing is now the new the new format, you have to adapt,” he adds.
Along with his success as an entrepreneur, Mr McDonagh has long been campaigning for insurance reform.
Insurance costs impact “everyone,” he says.
“Businesses are having to work two or three months of the year for free to pay for insurance, that cannot continue,” he adds.
As the country recovers from the economic impact of Covid-19, entrepreneurs will be key in getting recovery, Mr McDonagh believes.
“There’s always going to be a risk in business, that’s part of it, but the ground rules need to be improved,” he adds.
The Marketing Institute of Ireland AIM Awards 2020 will be livestreamed on Friday, October 16 from 3pm. Go to mii.ie/aimawards2020 to be part of the event.