Co-Branding in Sponsorships: Why Gen Z Doesn’t Trust Your Logo—They Trust Your Values

By Leopoldo Garcia – Brand Partnership & Business Development Director

I’ve been thinking a lot about why some brand partnerships resonate with younger audiences while others fall flat.

According to Edelman’s 2024 research, 66% of Millennials and Gen Z expect brands to demonstrate DEIB/ESG values through their sponsorships, with activations linked to these values driving 22% higher engagement than traditional sponsorships.

But here’s the strategic miss: most brands approach co-branding sponsorships as “our logo next to their logo” when Gen Z is actually asking “what do you both stand for together?”

The Generational Shift:

• According to the 2025 Sprout Social Index, 92% of Gen Z consumers say the community surrounding a brand impacts how they feel about the company, and 83% say being part of a brand group makes them more loyal. They’re not buying into sponsorships—they’re buying into shared ecosystems.
• Research shows Gen Z is okay with sponsorships of events they love (like a gaming tournament “brought to you by Doritos”) because they understand that’s what makes the event possible, and it aligns with their interests. But the alignment has to be authentic.

What’s Actually Working:

• Red Bull’s extreme sports content has transformed the brand into essentially a media company that Gen Z loves to watch and share—they see Red Bull as cool for supporting athletes and crazy feats rather than “just an energy drink ad.”
• Recent examples include Adidas x Bad Bunny collaboration leveraging music and cultural relevance to engage younger audiences, while Red Bull’s music partnerships now include more festival sponsorships and artist collaborations, reinforcing brand relevance by shifting focus beyond sports.

The Strategic Reality:

• Industry research reveals Gen Z is reshaping sponsorship through distinct consumption habits with a preference for music—brands are learning that sports alone may no longer suffice. Successful campaigns target multiple touchpoints, combining digital platforms and live experiences.

Why This Matters for Co-Branding:

• Traditional co-branding says: “Look, two brands you know!”
• Gen Z co-branding asks: “What do you create together that I can’t get separately?”

When co-brands align on values (sustainability + action sports, music + social justice, gaming + mental health), research shows it drives 22% higher engagement because it demonstrates meaningful commitments authentically.

The Bottom Line:

• Gen Z doesn’t reject sponsorships—they reject performative partnerships. They can instantly tell when two brands team up for visibility versus when they collaborate because they share genuine alignment.

Your co-branding sponsorship shouldn’t answer “Who are you partnering with?”

It should answer “What are you building together that matters to me?”

Because for Gen Z, the logo placement is irrelevant. The shared purpose is everything.