Sponsorship Valuation & Evaluation

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What Is Sponsorship Valuation & Evaluation?

In the assessment of sponsorship opportunities, sponsorship valuation and sponsorship evaluation are both important. A sponsorship valuation looks at a sponsorship strictly quantitatively to ensure appropriate dollar for dollar value, while an evaluation assesses a sponsorship opportunity primarily qualitatively. Here are the definitions of both:
Sponsorship Valuation
Provides an accurate assessment of the market value of a sponsorship to a sponsor. Our valuation methodology uses a proprietary regression analysis, industry standard metrics and our clients’ objectives to provide a customized approach to asset and sponsorship valuation.
Sponsorship Evaluation
A point of view (POV) of a specific sponsorship opportunity looked at primarily from a qualitative perspective. Evaluations are typically performed when a property reaches out to a potential sponsor and the sponsor weighs the benefits and considerations across investment, reach, efficiency, available assets against objectives, business opportunities, property prestige and other benefits/considerations.
Sponsorship Valuation of New Proposals
Once a sponsorship is evaluated and it’s determined to be a potential aligned opportunity, a sponsorship valuation should be considered to make sure proper quantitative value is being offered within a proposal.
How do you determine what the line-by-line value of a sponsorship proposal (or current deal) is worth? Through our sponsorship valuation methodology, we help brand marketers break down sponsorship proposals on a line-by-line item basis, valuing each sponsorship asset within the proposal according to the following categories:
Intellectual Assets
Property marks/logos, imagery and intangible rights are an important component of sponsorship to help brands authentically connect with fan bases. Advantage uses a proprietary, brand-value based methodology to calculate the value of intellectual property for a wide range of property types (leagues, teams, tours, events, etc.). Important criteria gets factored into our proprietary model including the size of the property’s fan base, fan consumption metrics, size and scope of the agreement, and other strategic considerations.
Impressions-Based Assets
Advantage uses an impressions-based advertising equivalent to assess assets such as TV visible signage, out of home billboards, and game day print ads. This methodology provides a value for each type of branded asset that is comparable to a sponsor’s spending in general advertising. The value of each asset is adjusted based on the quality of the exposure, as well as the percent of the relevant population that will likely be impressed by the exposure. Traditional media assets (TV spots, radio spots, digital ads, etc.) continue to be valued by our clients’ media agencies, whereupon we fold those values into the overall valuation.
Market Value Assets
Certain assets included in sponsorship deals can be secured within the general market place. Thus, these assets, including hospitality and tickets, are assigned a fair market value as part of the overall sponsorship valuation.
Client Considerations
Every client is different. Every sponsorship deal is different too. Any inclusion of “business back”, B2B opportunities or other strategic considerations will be factored into sponsorship valuations as well.
Sponsorship valuation is important to establish before signing a sponsorship deal, so that your brand is assured in receiving a proper value as part of a sponsorship proposal. This objective, data-driven approach to sponsorship valuation provides a consistent approach, so results of the proposal can be compared to our database of norms. Beyond the dollar for dollar value, it’s also important to make sure that the assets included are “valuable” to the particular brand to help achieve sponsorship objectives. Check out the work we did for Benjamin Moore and the valuation of their MLB sponsorship portfolio.
Interested in getting help with a sponsorship valuation? Fill out the form below and we will see how we can support you!

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