Is Social Media threatening sponsorship?

  Dear Readers,
    
                    I have read an interesting article about brands, sponsorship and social media. Is social media threatening sponsorship? Is sponsorship worth it anymore? Brands would use sponsorship as a way for people to recognize brands and associate it with whatever they're sponsoring. The Olympics has always been one of the biggest in this regard. It has tons of viewers and is an overall exciting event. This association is called the halo effect, every brand wants to bask in the glow of association, to get known better, and increase their brand equity (how valuable a brand is in relation to it's popularity).

                    Is it all worth it? Nike can become more powerful than Reebok, the official sponsor even though Nike was not the official sponsor in this most recent Olympics. How is it all done? Nike's ad campaigns and use of social media increased both their brand equity and the association with the Olympics, even though it wasn't actually involved in it's campaigns by using Olympic athletes and themes without actually referencing the Olympics. Sponsorship is a less valuable risk, now that use of social media and smart ads can make your brand much more powerful. There shouldn't be any laws restricting this, however companies shouldn't allow companies to come so close to representing them, but not, so that companies applying for sponsorship are more likely to take the risk.

-JC