I receive numerous sponsorship requests. Which one we are going to invest in, depends on their sponsorship value. I looked into the marketing theory and found quite a few different methods for measuring the sponsorship value. However, none of them are particularly useful, as I often don’t have resources to measure media exposure or changes in consumers’ attitudes, for example.
So I dug further, and came across Kim Skildum-Reid’s What Every CMO Needs to Know About Sponsorship white paper. Kim says that measuring the sponsorship value is ‘easy, as long as marketers accept that getting an accurate dollar-value ROI for sponsorship is not attainable’. Now that is a bit more encouraging!
REPLACING ROI with ROO
I mentioned in my previous post that every sponsorship campaign should start with a clear set of objectives. First, we need to specify what we are trying to achieve with an individual sponsorship. Second, we need to define how we are going to measure whether or not we have achieved the set objectives. This will help us gain useful and comparable information about each sponsorship campaign. We might not get an accurate dollar-value ROI for our sponsorships, but we will know exactly if this particular sponsorship has delivered what we expected. I find this method (measuring return on objectives/ROO) much more practical, especially for sponsorship of a smaller value.
PRACTICE, PRACTICE, PRACTICE
It takes a bit of time and experience to become good at specifying objectives of sponsorship. At the beginning we might expect too little from an individual sponsorship, or aim too high. We might also start with obvious objectives only, and with time we will see other benefits of different sponsorships that can easily be translated in objectives.
The more we will pay attention to the gains from each sponsorship campaign, the more we will understand what we need to focus on, what pays off and what doesn’t. And eventually we will learn which sponsorship is valuable to our organisation and which is not.