You’ve spent the past few months coordinating with convention managers for a big sponsorship. Your team has designed the creative and selected the perfect package to reflect your brand values. You’ve taken the week off to attend the convention and follow through with the sponsorship. Fast forward a few days, the convention is over and you’re on the plane home wondering if the expenses and efforts were worth it.
In theory, sponsoring an event can do great things for your brand such as increasing thought leadership and reaching new audiences, but how can you be sure? It is a big commitment and you don’t want to walk away with any doubts. Only 62% of marketers report being somewhat satisfied with their ability to measure the return on investment (ROI) of a sponsorship, according to an article by Marketing Profs. Yet, only half are making an effort to determine the impact of a sponsorship compared to their other marketing initiatives.
There are a few easy steps that can be taken to determine the ROI of your upcoming sponsorship:
Determine the Goals
You need to compile a list of your objectives for the sponsorship. They can range from increased name recognition or brand leadership to new audiences. Whatever your goals are, identify them from the beginning and select the sponsorship and convention that aligns with them.
Add up the Show Costs
The costs aren’t only the sponsorship fee but any additional money spent on marketing materials or staff time. The total expense of the show should include the sponsorship fee, advertising costs, travel, and any other minor costs.
Calculate Cost Compared to your Goal
You must measure based on the goals you initially set up. If it was to reach new audiences then you can determine value by dividing the total cost by the number of attendees reached. For example, if costs equal $20,000 and 1,000 attendees were exposed to your brand, then the cost per attendee reached is $20.
Compare to Other Marketing Initiatives
Look at the cost per attendee reached and compare that to the cost per person of other marketing activities. If you spent the same amount of money on a seminar, TV spot, or print ad would you see better results? By answering that question you are clearly indicating the value of your sponsorship.
Each sponsorship is going to come with different objectives which call for different metrics, but before you commit to a sponsorship make sure your return on investment is comparable to other programs. This way the sponsorship is an efficient use of marketing spend.