Newsletter

• Volume 2, Issue 2
  • How do we build a long-term relationship with our partners?
  • You've got 20 seconds...
  • Web Links
  • Selling - a strategy that takes planning
  • Protecting your rights and your sponsor's rights
  • 5 Surefire Way to kill your Sponsorship program
  • Forming bonds with partners
  • Non-Public Property unravelling the mystery-part 1 of 3
  • So what is the sponsorship industry really like?
  • Enquiries
  • Contact
• Volume 2, Issue 1
• Volume 1, Issue 1

How much is my sponsorship offer worth?

By Jacques Adam

In our last Bulletin we discussed some criteria that motivate sponsors. We will try to define what it is important to consider in the art of determining the value of your event. For starters, one must avoid thinking of the event as a finite entity. It is essential to find out what the sponsor finds attractive in what an activity entails. That is what the specialists call “seeing the big picture”. Everything surrounding an event can have more value for a sponsor than the event itself.

The formula used by IEG Sponsorship to establish value is very methodical. It only takes into account that which can be systematically measured and leaves very little room for intangibles. When one measures the level of exposure to advertisements, banners, conventional advertising and other measurable media, one quickly comes to the realization that, even though exposure doubles or triples, it has very little effect on the amount requested for the sponsorship. Intangibles must absolutely be taken into account and even developed if we want to significantly increase our income from sponsorships. The intangible benefits can be as follows:

1. Have your events received rewards or praise from the media, spectators or other sponsors?
2. Can you guarantee category exclusivity? The phraseology you agree to use means a lot.
3. How many spectators attend the event? What is the demographic profile of your spectators?
4. Is the event important to the spectators?
5. How many years have you been proposing these events? Show the progression.
6. What exclusive products are you offering sponsors? If the only way of associating with or purchasing this product is to be a sponsor, this product has a lot of value.
7. How many sponsors will you be supporting (6 to 8 is an optimal number)? Avoid clutter, a wellknown advertising maxim that also applies to sponsorships.
8. Can the sponsors use your events to complete their own marketing? Companies are increasingly associating themselves with events that have meaning to their employees.
9. What are you doing to prevent ambush marketing? Do you have any experience with attacks of this type?
10. Do you offer tailored sponsorship packages or simply predetermined levels of sponsorship?

Using this list of advantages that you will rate from 1 to 10, you will be able to evaluate the quality of the intangible benefits you are able to offer. The number of exposures is not enough on its own to justify the value of your sponsorship. The value of your event resides in the eyes of the purchaser.

Abstract of a presentation Determining the value of your assets, Mark Monahan, November 2005