August 14, 2012 by Nuclei Brand
UNDERSTANDING TRUE ROI ON YOUR SPONSORSHIP RIGHTS
Understanding Sponsorship in the current economy requires a new look at how you position the rights. If you are planning to create a property for sponsorship it is essential that you understand first that you will not succeed if you intend on utilising awareness and eyeballs as the measure of your success.
This method of measuring sponsorship effectiveness has not moved with the changing sophisticated market. Traditional methods of measuring signage and sponsor recall has been the prevailing approach for the past 20 years and is no longer an accurate gage for your ROI.
In the new emerging brand conscious market filled with consumer opinions via social media and new media channels, your sponsorship and sponsorship as a whole will be obliterated if it does not consider consumer emotion. Developing a commercial strategy needs to ensure that it takes a 360 approach to the plan and considers the emotions the rights will evoke in the consumer. Are you engaging your consumer and can you measure the true effect of this sponsorship through direct sales?
ROI is about REVENUE on investment as opposed to RETURN on investment per say. It is essential that when developing a commercial strategy you keep this in mind. Each sponsor will have specific Marketing ROI requirements as well as Income generating requirements. Does the sponsorship package you have created taken the Sponsors goals and objectives in mind? Have you as a Sponsor discussed these requirements with the Rights Holders? Is your strategy focusing on creating B2B, B2C and B2E engagement?
When you consider each of these elements can you honestly say that your Sponsorship Rights are truly delivering ROI? If not Why? Nuclei can assist you in assessing this and help you understand and develop a commercial strategy that works for both Sponsor and the Rights Holder alike.