Sponsorship Portfolio Healthcheck™

A brand’s sponsorship portfolio can evolve over time into a collection of disjointed properties that may or may not support current business and brand objectives. A portfolio may include properties that fit past objectives, were pet interests of past executives or legacy properties that have continued to be renewed simply because ‘we’ve always sponsored it’.

More and more, marketers are being challenged internally to justify their marcom investments both in terms of the value being acquired and the return on investment those spends are delivering back to the business. 

CMOs, CFOs, procurement specialists – are all looking for validated marketing investments.

Sponsorships usually fall into one of four categories:

  1. Right Spend, Right Assets, Right Place – you’re getting good value for your money, you have the right assets within the sponsorship to help you meet objectives and the sponsorship aligns with your target audiences’ passion points in a way that enables you to demonstrate your brand values authentically
  2. Right Spend, Wrong Assets, Right Place – you’re getting good value for your money, but you have the wrong assets within your deal, and you’re in front of the right audience
  3. Bad Spend, Right or Wrong Assets, Right Place – you’re in the right place, you may or may not have the right asset mix, you’re spending too much
  4. Right Spend, Right or Wrong Assets, Wrong Place – you may be getting great value, you may or may not have the right asset mix but you’re connecting with the wrong audience (properties that fall into this category often get mistaken for great sponsorships because they can have a strong value proposition)

Lumency’s Sponsorship Portfolio HealthCheck™ uses sound business science to validate your sponsorship investments and develop a plan to course-correct where needed.

Performance Validation

First, its important to understand how each of your sponsorships, or at least each of your tier one sponsored properties, is performing against your business and brand objectives and if its being activated effectively across your connections touchpoints.  And if not, why not and what steps can be taken to improve the investment’s performance. 

Lumency’s Performance Validation Scorecard and Sponsorship Impact review shows the extent to which each sponsorship investment is delivering results back to your business.

Asset Valuation

Using True Value™, Lumency’s industry accepted proprietary valuation model, we determine the fair market category rights value for each of the properties in your sponsorship portfolio, the properties that are up for renewal or specific properties you’d like focus on.

True Value™ has a track record spanning nearly two decades and is a global best practice recognized approach to sponsorship valuation, across thousands of properties and more than 20 country markets. True Value™ has been leveraged to evaluate properties from sports, arts, culture, cause, community, ranging from several thousand dollars to tens of millions of dollars.  We customize our model to your industry sector to ensure it’s tailored to fit your business.

The valuation exercise for each property considers competitive pressures in your industry, market conditions, and your business and your brand objectives – all of which impact what you should expect to be investing.

Benchmarking

Lumency’s valuation exercise also tracks your activation investments against each property and relates rights fees to activation investment ratios across your portfolio of properties against industry, global and regional benchmarks. 

We compare all your sponsorship investments against your full portfolio set and against our database of sponsorships across categories.  We identify key value drivers and the most effective sponsorship asset mixes. 

We rate properties around value proposition, alignment with your business and brand objectives, target efficiency and activation effectiveness. 

Insights and Recommendations

The output of Sponsorship Portfolio Health Check™ is a comprehensive, actionable report making recommendations against properties in your sponsorship portfolio which may need rightsizing from an investment or a rights fee to activation spend ratio perspective.

We make recommendations around properties that may need rightsizing from an asset mix perspective – maximizing the value of your investment in property rights.

We also recommend actions around properties that may be ready for exit from your portfolio because they don’t provide access to the right audience, often indicating they don’t support current business and/or brand objectives.

Results

Sponsorship Portfolio HealthCheck™ provides you with valuable business intelligence and an actionable plan to optimize your sponsorship portfolio.  It enables you to approach renewal negotiations from a position of strength and sets you up to right-size current deals- even if they’re in mid-term. 

Comprehensive analysis and shareable reporting provide you with the tools to seek and confirm alignment from your senior team, so you can confidently act.

Sponsorship Portfolio HealthCheck™ creates new best-practice action standards against which to build new sponsorship relationships and to re-align existing ones. 

Need to get your sponsorship portfolio working harder and smarter for you?  We can help.

© 2019 Lumency Inc. and Lumency LLC

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Sponsorship Portfolio Healthcheck™