Sponsorship Valuation: What is Your Property Worth?

‘Calculating the value of sponsorable assets is a daunting task for many sponsorship seekers.’

Sponsorship valuation is one of the most misunderstood aspects of sponsorship marketing and corporate partnerships. There are way too many properties who are seeking sponsorship who are out there in the market with no idea of what their assets are actually worth.

When I bring up valuation in discovery calls with clients who are potentially interested in hiring iSPARK to assist with their sponsorship strategy, there is often a ‘deer in the headlights’ reaction. Sponsorship valu-what!?

What is Valuation?

Sponsorship valuation is an assessment of a property’s assets to determine a numerical dollar value for every element that could be offered to a sponsor partner. The objective of this exercise is to determine the worth, but also establish a fair market value of a sponsorship program.

In my experience, most properties assess a random value to their sponsorsable assets that usually coincides with a budget deficit. However, the price point of a sponsorship program should reflect the value of the property and not the financial need of the organization seeking sponsorship dollars.

The valuation of assets depends on multiple factors that include:

  • The property’s reputation and credibility (the prestige associated with the property, the experience in the sponsorship industry, etc.)
  • The reach (impressions)
  • The audience
  • The value of the brand

The Assets

Calculating the value of sponsorable assets is a daunting task for many sponsorship seekers. Although there are several sponsorship valuation tools out there to assist in the math, it still requires a deep dive on the part of the property to thoroughly (and honestly) review and assess what they have to offer a sponsor (i.e. the assets).

Building out the list of assets is the first step in tackling sponsorship valuation. Those assets may include everything from social media mentions to a logo in an email campaign to signage to naming rights to speaking opportunities. Start by making an exhaustive list!

The Audience

Before getting into the number crunching, it is critical to know the audience. The more you know about the people who are attracted to the sponsorable property the simpler it will be to determine the value of the assets. It will also make the job of finding sponsors a lot easier.

Remember → Sponsors care most about the people (the audience) that you can deliver to them.

The Numbers

A comprehensive and trustworthy valuation results in a dollar value associated with your property that has been calculated using both science and art. There are online tools or calculators to help with the math, but these all still require the user to provide an honest assessment of the intangible factors that have an impact on the final numbers.

Additional Sponsorship Resources

I’m just skimming the surface here when it comes to sponsorship valuation. To learn more about sponsorship basics, check out ‘Four Tips for Attracting Sponsors to a New Event’ and ‘5 Common Sponsorship Mistakes’ and ‘Activation Ideas that Sponsors Will Actually Want to Sponsor’.

Need Help with Sponsorship?

You can also connect with me for a complimentary 15-minute consultation or engage our sponsorship strategy services to help spark high-value sponsorship relationships.