Return On Sponsorship
Why is ROS more and more taken into consideration by companies sponsoring events as a key criterion to identify the most attractive/potential events?
Sponsors want more than just logo placement at market value. They now want to connect to the event’s audience in meaningful ways and they want a measurable return on investment. Not just “brand awareness” but if they’ve come to an event as a sponsor in order to find new customers, get email signups or host a private event with their most valuable prospects, they need proof that their sponsorship investment was responsible for that outcome. In other words, sponsors are measuring return on investment in increasing more complex ways.
The ROS score enables data-driven simple internal reporting and decision making, as to whether a sponsorship is performing well, needs to be optimized or is better divested. However, the Covid-19 crisis has accelerated the importance for brands sponsoring events of delivering maximum efficiency with reduced investment which explain why it is important for brands to accurately measure the short- and long-term effectiveness of their sponsorship investments.
ROS allows brands to compare short term and long-term sales impact and ROI to better allocate marketing spend, enabling growth and reducing waste in sponsorship investment. Brand executives, CEOs and CFOs are nowadays requiring proof of the correlation between sponsorship and sales so the ROS can help in providing clear data to drive an effective marketing mix.
key benefits of ROS for brands are:
- A clear and an effective way to communicate performance internally
- To allow a direct and fair comparison when an organization has a large and diverse sponsorship portfolio
- To be able to measure a sponsorship’s performance against a defined set of objectives by:
- Brand equity analysis (is brand awareness increasing due to the sponsorship? Are brands attributes being influenced by the sponsorship?)
- Stakeholder behavior analysis (how does awareness of the sponsorship and changes in brand image effect familiarity, consideration and /or preference?)
- Financial analysis and business valuation analysis
Event Sponsorship Checklist
Here’s a checklist to help you organize your sponsorship campaign and maximize its ROS:
If you are looking for an expert in sponsorship valuation and sponsorship strategy, connect with EUMENA Events’ team Now! We have an extensive experience working with brands and sponsorship properties to define their sponsorship goals, determine market value of their sponsorship assets and create strategies that work.
