Should companies sponsor political events like the RNC? How partnerships can impact consumer mindset

Amid the pomp and circumstance of the Republican National Convention, one thing that appears to be less visible this year is the corporations who are sponsoring the event.

In the past, major companies often took part in the conventions either by donating money or providing their services, but according to a report from NBC News , many major corporations were reluctant to spend on the 2024 conventions, particularly because they were hesitant to be associated with backing former President Donald Trump.

But not everyone says that's the case. Reince Priebus, Trump's former chief of staff who's heading the RNC Host Committee, told The Wall Street Journal in April that the convention was already ahead of schedule with its fundraising.

"I think people out there in the business world realize that the likelihood of President Trump being president is pretty high," Priebus told the publication. "It is going to be Trump or Biden... and not being part of a convention if you have corporate interests or you have community interests, it's not really an option."

Some experts say it's a uniquely tense time for companies to get politically involved. Starbucks came under fire on social media this week after users claimed the company, known for supporting progressive issues, was sponsoring the RNC this year, though it's only providing beverages to first responders at RNC venues through its partnership with the nonpartisan Milwaukee 2024 Host Committee.

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Natalie Byrne — the founder of Blank Space, which works with Fortune 500 companies on their brand strategy and partnerships — told Scripps News Wednesday that these types of situations should make brands think twice before partnering with events like the RNC.

"I think companies should not be jumping into partnerships at the RNC or either convention if they haven't done the work," Byrne told Scripps News. "The environment is too fragile, and the risk is too high."

Byrne pointed to consumers potentially believing a company is "jumping on a bandwagon" if they seem to randomly sponsor a political party or event, which can affect how customers see their business.

A recent Axios/Harris poll found just 40% of American businesses are perceived as nonpartisan, and more companies are coming under fire for their public comments on world issues that don't necessarily align with their brand.

And though some companies will sponsor both the RNC and the Democratic National Convention to hedge being seen as partisan, Byrne said she recommends making sure it aligns with your business function, like AT&T sponsoring both with its Wi-Fi connectivity. This lessens the likelihood of a consumer getting mixed messaging from brand alignment, which potentially leaves a negative business impact.

"If you do something where it feels like a misstep from your core audience, they feel like they don't know you, they don't understand you," Byrne told Scripps News. "This really comes down to who your brand is and doing the work to know that — and if you are going away from your mission and you're walking away from your values, it affects the bottom line."

Watch the video above to hear Byrne's advice to companies considering being a part of political conventions, the changing consumer mindset and themes in the current political business space.