The Value Is In The Detail
A frequent question asked by individuals with a new idea for a project is ‘what could my property be worth?’, which on face value you would assume is a perfectly valid question to ask a sponsorship agency, however, if the question is asked without the exact knowledge of what is being offered to a brand, it is impossible to answer accurately.
For a sponsorship agency to be able to value a platform correctly, the sponsorship assets need to have been considered and packages created detailing the frequency an asset can be used. This is then measured against the reach and using certain methodology the value of each asset can be calculated to provide an overall price.
Those with a new venture tend to have a good grasp on the fundamentals of their projects such as locations and dates but the specifics of what will be offered within their sponsorship package are generally not nailed down – and the specifics are everything when it comes to the value.
For example, claiming that an event will be shown on TV is not enough to be able to value an opportunity and likewise, probably won’t be enough for a brand to sponsor. Brands will need to know not just what channel, but more importantly, how often they can be featured – that is where the value lies. The same goes for any media partner whether it be TV, radio, magazines, blogs etc. it is imperative that such agreements have been finalised before approaching sponsors.
With the knowledge that sponsorship deals can take many months to get across the line sometimes tempts rights holders to go out to market before they have the complete sponsorship toolkit confirmed, which often leads to the rights holder coming unstuck in the boardroom as the brand cannot justify the value of the deal, thus further delaying or even ending the hope of any potential agreement.
Therefore, to understand the sponsorship revenue potential rights holders need to turn their ideas into serious realities by confirming the specifics of their offerings, and they may well be pleasantly surprised with the value at their fingertips.