Advertising is a call-to-action from the advertiser to the publisher’s audience, usually to stimulate traffic to the advertiser’s business. Advertising rates are based on quantifiable metrics: CPM (cost per thousand impressions), page views, audience demographics, etc. Although there are similarities to advertising, sponsorships seek to establish a deeper, more holistic relationship between an advertiser and a publisher. Sponsorships tend to fall under the branding umbrella, which provides more options for placement than advertising, i.e. a sponsor could get ad space on your site, have their logo on your program and/or pay for the lunch at your event.
Compared with advertising, sponsorships are relatively easy to deploy as a revenue strategy. There are fewer infrastructure (website and back office) needs, however, both advertising and sponsorships require a solid execution plan regarding product or service offering, pricing, placements, etc.