Social media and event marketing are the two most effective ways to engage customers. They create passionate brand advocates. Customers who identify themselves by the owners of a particular brand. They give marketers a chance to listen to customers instead of just pushing information.

A new Forbes Insights study shows that businesses understand the value of engagement:

Overwhelmingly, the priority group to engage is customers  with 91% of businesses wishing to engage customers (with employees ranking second at 61%). Yet few businesses have a specific strategy or create marketing budgets consistent with engagement tactics.

What this suggests is that marketers are confused about what tools create engagement and that they often return to the old “faithful” of advertising.

More and more, I find myself reminding clients that while advertising is easy, it still remains expensive and that the more effective techniques are events and social media, the combination of which can be very powerful. The above charts show that both areas have room for growth. What I find ironic is that so many businesses indicate that economics is the main inhibitor to customer engagement.

There seems to be a disconnect here. Event marketing can be less expensive than traditional advertising (especially in larger markets) and social media tools remain free. I think the real problem is that these two tactics require (wo)man power and companies are reluctant to take chances on labor intensive practices in this economy. And the second most cited inhibitor was competition, which is baffling to me as well. Either your creating relationships with your customers or you aren’t. If you aren’t then your competition likely is creating relationships, which brings us back to engagement techniques.

My definition of engagement means a conversation exists: listening and interacting.  Yet the graph below shows that a full 27% of those polled in this Forbes Insight study believe that Direct Mail is an engaging marketing technique.

No it isn’t. You might get a RESPONSE from direct mail, but it isn’t an engagement technique.

Let’s be clear on that. Print ads are not an engagement technique.

If your marketing priority is engaging customers, no matter whether you are a B2B, B2C, national, regional or local business the only two marketing techniques that actually create interaction are social media and event marketing. Sponsorship is more effective (because of the event marketing benefits) than advertising. You should really be reviewing your budget and where you spend your marketing dollars.

Yes, relationships take work. Yes, relationships take attention. But the only way to create a relationship is to start a conversation. Almost no conversation starts with a static print or radio ad.

Instead of using print and radio as the primary message delivery systems, and social media and events as the support techniques,  businesses (large and small) need to start thinking about social media and events as the conversation starter and advertising as the support tool.

If your really looking to make the most of this time, then social media and events should be your go-to techniques. Period.

(all charts used in this blog are from Forbes Insights research)

Even in a crummy economy, sponsorship remains strong. Why is this?

Well, there are several reasons. For one, sponsorship “bundles” media which means you can have a very rounded out, smart program with a single purchase, which means alot of the heavy marketing lifting (buying media, designing programs, etc.) is done for you. All that’s left for the sponsor to do is come up with a brilliant activation program (easier said than done).

Where I live (Oahu) there was an article in the PacBizNews about the strength of sponsorships in Hawaii. It specifically addressed the upcoming Sony Open and Hawaii University sponsorships. Despite the recent Tiger Woods hoopla, the Sony Open is holding its own with sponsorships. Mainlander’s reading that article will note the aggressive rates for sponsorship here, particularly for the Sony Open where there is national media exposure. If you buy sponsorships in golf, take a look at the Sony Open, talk about value! It is ironic because as several testimonials note, Hawaii businesses “get” the value of relationships that sponsorships offer, yet our sponsorship rates here are quite low.  In general, businesses in Hawaii understand relationships in a way that mainland businesses miss. Sometimes, corporate America – especially in a recession – forgets the value of meet with people face-to-face, in a relaxed and fun environment. Shared experiences create relationships, period. A phone call does not create a relationship. An email does not create a relationship. Going to an event together does. Hawaii businesses don’t need lessons in creating relationships, for the most part, their business IS relationships. Which is one reason why sponsorship remains strong in this market.

Hopefully Hawaii’s smaller businesses (85% of the business community in Hawaii) will take note of some of these opportunities. Whether you choose to be affiliated with a highly visible national event or a highly targeted local event, there are sponsorship opportunities out there. There are some great Honolulu networking events and Hawaii is a destination for several other high profile sporting events that really make for some interesting niche market opportunities.

If you aren’t sure what a good sponsorship opportunity for your company would be, or how to pursue or negotiate a sponsorship,  or if you are a mainlander and would like to sponsor events in Hawaii, call me. I’ve sold and packaged sponsorships so I know what to look for and how to negotiate them.  I can help you find and activate a program that is suited to your budget and your objectives.

Jack Welch supports events and their business uses.

Normally I talk about sponsorships and the power of events, but I have to digress a little bit this week because of the Well’s Fargo Incentive trip debacle that will resonate within ALL aspects of events, INCLUDING marketing events and sponsorships. Now that the spotlight is on, every time there is a sponsorship, a meeting or an event, eyebrows will go up. So, if you think that because you are in the sponsorships arena, not the incentive arena this won’t effect you, guess again.

As a tax payer, I can’t help but be outraged. As a business person, was frustrated to be in the industry being used as a scapegoat for the larger problems for an industry and economic woes. After all, sponsoring and hosting events is an industry too, and it employs a lot of people.

While Well’s Fargo had no choice but to cancel their trip to Las Vegas, I wish they had just been smarter about the entire thing; there are things that they could have done to have a respectable incentive trip without being “over the top.” Besides the fact that “extravaganzas” will be déclassé for sometime to come, it really makes sense to be smarter about this now anyway. But that doesn’t mean that events have to be canceled. They have to be smarter. I know of HUNDREDS of fantastic performers and musicians who put on a fantastic show, that do not charge $500,000 to entertain. I know of THOUSANDS of unique, exciting activities in areas all over the country that charge less than $50 for people to participate in.

This will not kill the event or incentive industry. The power of events, ESPECIALLY B2b events, is undeniable and people are still attracted to them, computers and phones not withstanding, most of us prefer the company of human beings. And yes, once in awhile, we even like to get together with them to “talk shop”. But here’s the deal: there needs to be less James Taylor and more Boogie Knights. There needs to be less Dom and more Vueve. You understand what I am saying here?

Here’s a simple suggestion for all those organizations who would like to host incentive opportunities: have them around an industry tradeshow which you sponsor. Hosting clients and company leaders together has innate benefits, and throw in a little education, some inter-industry networking and you have a recipe for business success. Utilize your sponsorships to get more attendees and less signage. Furthermore, work with the tradeshow (who undoubtably has already negotiated favorable rates at area hotels) to obtain a really nice block of rooms for your VIPS. This is a win-win situation for everyone. The trade-shows will be happy to have movers and shakers at their events, and will happily work with you to bring a block of 100’s people from your company to their event. Sponsor events in conjunction with the tradeshow (can anyone say co-host with other sponsors?!) and then extend your stay a couple of days to do the “blow steam, fun activities” that are inherent in incentive trips. Don’t want to host your incentive trip around a work tradeshow? Ok – here is another idea – review your current sponsorship for hospitality opportunities and wrap some fun, incentive activities around things you are already sponsoring.

Make your marketing dollars communicate with your incentive dollars. Make your employee enhancement communicate with your incentive dollars and marketing dollars.

By all means, save some money, but don’t stop engaging with one another with the most effective tool out there, that’s insane.

While we are all at it, let’s start reaching out to our clients with new ways to do these things. Let’s get smart. Together.

I heard today that the event industry is starting to organize, what is exactly afoot I can’t say now. When it becomes official, I’ll let you know about that too.

The following article was written in partnership by Tara D. Coomans, Akamai Marketing, and edited by Brian Levine, Sponsorship Insights Group and originally appeared on the Sponsorship Insights Group blog

Economies are like gardens, the seeds you plant today will reap rewards in the future. With the right seeds, the right amount of light (your positive attitude) and some TLC (creativity) your garden can do more than survive, it can thrive.

Even in the current economic downturn, the wide variety of sponsorships and the trend toward better activations makes it a good industry in which to be. Although the current economic drought presents a challenging environment, with these six tools under your belt, you’ll be well on your way to creating a thriving sponsorship garden in 2009 and beyond:

The Seeds:

1) New Clients

Although it may not feel like it, now is a great time to attract new clients. Yes, marketers will be doing a lot of reevaluation on how/where they’re investing their budgets over the next 24 months. However, because properties have the potential to provide sponsors with significant value (i.e. the whole is greater than the sum of the individual parts) spending on ROI driven sponsorships could in fact increase. Savvy marketers will be more open to reviewing your proposals than ever before. Now is the best time to start building new relationships with potential clients as they are reevaluating their options and considering alternatives. The seeds you plant now may grow into stronger or more lucrative partnerships down the road.

For sponsors looking for opportunities to do more with less, smaller properties may offer the best potential . Smaller properties often have the flexibility to be more creative with their sponsors and will be very excited to work with you in creating a partnership that works for you. Your business will likely stand out more with a smaller property than with properties overcrowded with other sponsors.

2) Trade

It’s not enough to know you have something to offer, you need to know what and how much. If there was ever a time to know the value of your property, it is now. The next 24 months should see a spike in requests for “trade sponsorships” as firms try to minimize cash outflow. By knowing the value of your property and its segments you can ensure that you receive full value in any sponsorship agreement, which increases the possibility that you can negotiate a trade and cash component. It will also help to be proactive in developing a compensation plan for these types of programs now so that you are prepared for this growing trend. Note that contra benefits are often valued at between 50% and 75% of cash.

If you are a sponsor looking for trade opportunities, on the other hand, you should be prepared to negotiate trade/cash opportunities. But remember that unless you are offering something the property cannot live without (i.e. alleviating a budgeted line item), noncash sponsorships may be overlooked because properties still need cold hard cash to stage and market their event.

The TLC:

3) Your Homework

Before you approach a potential sponsor, make sure you know their business objectives and that your proposal provides solutions to those strategic objectives. You should be reading everything you can find about your client before you ever present them with a proposal, then customize it to fit their specific needs. Sponsors need to know that you ‘get it’, that you are offering them solutions instead of a generic sales pitch.

As sponsors in this business environment, you need to find out what unearthed gems may exist within every property. You don’t get what you don’t ask for, so do your homework first so you don’t miss out on valuable sponsorship opportunities.

4) Be Creative

Properties and sponsors alike, challenge yourselves to create excitement and energy around your product. How can you make the good, great? How can you do more with what you have? One reason event marketing works so well is because of the potential for creating memorable experiences. This recession may just provide a catalyst for great ideas as everyone starts to reevaluate and try different ways to weather the economic downturn. Come up with something ground breaking that will be poised for explosive growth once the economy begins to recover from the market correction.

The Sunshine:

5) Free Community Events

Events, such as nonprofit ‘walks’ or large art fairs, that are free to the public will be hot over the next 24 months. This is great news for sponsors and mobile marketers, as these types of events are often very open to creating additional energy and excitement through activation of a product. Sponsors, seriously consider community events that align with your needs. Although it may not be any less costly than traditional sponsorships, more people will be in attendance that are open to experiencing interesting new products out of curiosity.

Community event properties, you should capitalize on the fact that your attendance is likely to be strong and actively look for creative ways for your sponsors to engage and excite your attendees. If you have never courted mobile marketers before, this recession is the time to see if you’ve been missing an incredible opportunity.

6) Be the Partner

It’s always important to approach your relationships as partnerships, but it is more important than ever in these tough economic conditions. Property and sponsors alike look for people who are willing to brainstorm, willing to work with together, willing to help the relationship grow. If you are a sponsor that has treated your properties with respect and professionalism, they are much more likely to work harder with you to stretch your marketing dollar. As properties that go above and beyond to create solutions for sponsors, you will find more loyal sponsors that will work with you to find innovative ways to create more value together.

Although the market is undeniably difficult right now, with a little creativity and flexibility, you can still grow through the recession in new and exciting ways.