Question 1

How do I calculate the 'Total Sponsorship Value'?

Accepted Answer

This is the most critical part. It's the sum of all benefits the sponsor receives. This includes tangible value like the market price of media exposure (e.g., social media post value, logo placement value) and direct leads generated. It also includes the value of any tickets, food, or drinks you provided them.

Question 2

What is 'in-kind' value?

Accepted Answer

In-kind value refers to non-cash contributions. If a sponsor provides you with $2,000 worth of energy drinks for an event, that's $2,000 of in-kind value for you. Conversely, if you provide them with a $500 bar tab as part of the deal, that's $500 of in-kind value for them.

Question 3

How do I measure the value of brand exposure or media mentions?

Accepted Answer

This can be estimated using 'Advertising Value Equivalency' (AVE). For example, you can research what it would cost to buy a social media post with similar reach from an influencer in your space. If a sponsored post from them costs $500, a mention on your channel with similar reach could be valued at a comparable rate.

Question 4

What should be included in the 'Total Sponsorship Cost'?

Accepted Answer

This includes any direct cash payment you make to the sponsor, the cost of goods sold (COGS) for any products you give them (e.g., the cost to you of a $500 bar tab might only be $150), and the cost of staff time dedicated to managing the sponsorship.

Question 5

What is a good sponsorship ROI to aim for?

Accepted Answer

Industry standards often suggest that a successful sponsorship should deliver a value that is 2x to 5x the cost (an ROI of 100% to 400%). However, this can vary greatly. Some sponsorships are accepted at a lower ROI if they bring significant non-financial benefits, like brand prestige or access to a new audience.

Sponsorship ROI Analyzer

Results

Understanding Sponsorship ROI

Frequently Asked Questions

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