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How to Assess the Financial Performance of a Sponsorship

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This article outlines an effective approach to the problem of assessing the financial impact of sponsorship investment, which has a track record of successful implementation in the sponsorship industry.

Assessing the Financial Impact of Sponsorship Investment

The approach is outlined as a five-step process:

  1. Involving comprehensive segmentation
  2. Benchmarking to derive a brand discount rate
  3. Modeling of financial performance
  4. Determining the role of the brand in ultimately driving usage choice
  5. Providing the techniques to calculate Brand Contribution in financial terms

Conclusion: the complex tasks involved in assessing the financial impact of sponsorship investment and the impact on shareholder value can be rigorously addressed and sponsorship managers can make improved decisions which are underpinned by market and financial analysis.

Read the full article Kourovskaia, A. A., & Meenaghan, T. (2013). Assessing the financial impact of sponsorship investment. Psychology & Marketing30(5), 417-430.

Measuring Sponsorship Performance: Challenge and Direction

Global sponsorship expenditure forecast to reach US $53.3 billion in 2013. The scale of this investment has added significant momentum to the demand for improved methodologies for evaluating performance. A range of recent sponsorship studies clearly indicate the demand for new and improved methodologies for measuring sponsorship performance. This article brings together a selected series of papers from leading edge  academics which critically review certain current approaches to evaluation, explores important research methodology issues, and outlines recently developed performance evaluation models. Read the full article Meenaghan, T. (2013). Measuring Sponsorship Performance: Challenge and Direction. Psychology & Marketing30(5), 385-393.

New Challenges in Sponsorship Evaluation

This paper outlines two new challenges in sponsorship which have implications for performance measurement. Challenge #1: the extent to which major sponsors now view sponsorship more holistically and strategically as a platform to address the entire range of stakeholder groups enabled by sponsorship. Challenge #2: the increased usage of social media in sponsorship and its capacity to engage and connect with sponsorship audiences.

Sponsorship tools

Assessing the value vs. spend associated with your sponsorship investment and calculating the overall return shouldn’t be cumbersome. Our proprietary software CakeMix is the only self-serve solution tool in the world that effortlessly and instantaneously values media, in-venue, sponsorship assets, activation, and owned assets. Gain a better understanding of the strategic sponsorship fit and value generators of incoming sponsorship requests by contacting us for a personalized tutorial today.

Contact us to learn more.

Source

Read full article  Meenaghan, T., McLoughlin, D., & McCormack, A. (2013). New Challenges in Sponsorship Evaluation Actors, New Media, and the Context of Praxis.Psychology & Marketing30(5), 444-460.

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