Evaluation of effectiveness is the basis of the activity we are interested in, since it is the basis for building a strategy and evaluating results. This is especially important, since we are talking about an expensive activity, the effect of which can only be seen after a significant period of time. However, it should be taken into account that measuring the profitability of sponsorship is not so simple.
Any entrepreneur strives to increase sales and profits thanks to such a format of investment. The problem is that sponsorship, along with advertising, PR, helps to sell, but is not connected with sales indicators. The latter depend on merchandising, distribution, quality and availability of products in stores, etc. Sponsorship affects brand recognition, audience loyalty, that is, it gives a communicative effect - it is by the change in these indicators that one can judge the profitability of investments.
The result of any management benefits of using our homeowner database activity, including assistance in implementing projects, is an increase in sales and profits. The problem is that sponsorship only indirectly affects the growth of indicators.
To establish the level of investment efficiency, they resort to marketing research, namely, they survey the target audience before and after the event. People's reactions can be used to judge their attitude to the brand, the degree of its recognition and the consumers' readiness to buy. Compare the indicators before and after the campaign to assess the profitability.
Assessing the profitability of sponsorship
Media plan for sponsor
In addition to the sponsorship package, the entrepreneur receives a media plan that records the methods of popularizing the company. This allows one to understand in advance how the indicators of communication efficiency will change, that is, how much the recognition of the company and the level of consumer loyalty will increase. One must be attentive and check the data of the media plan, if possible.
Before investing in a project, it is recommended to check this document and consider the following indicators:
the size of the event's target audience - it is important to understand whether your potential clients are among them and how many of them there are;
the impression that the event will make on the business target audience;
the level of trust in the event organizers – it is necessary to initially imagine how potential organizational problems will affect the reputation of the sponsor brand;
a list of media outlets that will cover the event – make sure their target audience matches yours;
the number of project sponsors, how many of them are your competitors, whether you will be able to stand out from the crowd;
Compliance of the costs of informing a thousand people of the company's target audience with the expected effect - compare the figures with the results of traditional advertising campaigns that do not involve sponsorship.
To reliably assess the return on investment, you need to have a broad outlook and the appropriate professional skills. It is not so easy to correctly interpret accounting and observation data and establish dependencies between them. In any case, at the initial stage, it is necessary to assess how effective sponsorship can be. This is most important if you plan to bring such activity into a separate strategic direction in order to take advantage of all its benefits.
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