Re: [uk-netmarketing] Sponsorship

[Ray Taylor]

Tim Rosenberg <

tim [dot] rosenbergsparklearning [dot] com

> asks:


> Further to my last posting regarding sponsorship to which I recieved some

> very good response - thanks. Can anyone help me in terms of how to set a

> valuation (monetary and/or marketing activity) against various levels of

> sponsorship?


I have done this now several times for various media owner clients. When I

approach a project, which normally involves packaging up the media info,

briefing the sales team, etc, too, I take various factors into account.

However, the overriding consideration is to meet the needs and expectations

of the buyer (hence my involvement, since I run a media-buying agency).


It is easy to think of value as something based on objective criteria. It is

not. A "valuation," in the financial sense (as opposed to aesthetic,

psychological, spiritual, etc) is just a fancy way of saying "price." And

the simple rule when pricing intangibles such as "media" "sponsorship"

"marketing" "brand association" is to get what the customer is prepared to

pay. Some pay lots, some pay little. Knowing the right level to pitch the

opening discussion and knowing how price-flexible to be and with whom, is

the key to pricing media opportunities (however you want to describe them).


You still need a starting point, of course, and this should be done using as

many objective criteria as can be mustered. Which goes back to my first

point. The fact that my clients have used a third party to work out their

pricing is also a big aid to negotiations (I am told). When asked the

question "how did you come up with these prices?" clients have said they did

so by "bringing in an expert." This gives a lot of weight to sales story

(apparently).


One problem that clients often forget is the degree to which media buying

channels are well established. If you are not part of the buying chain, you

will find it very difficult to break in. Which is one reason why so much

online advertising business is mopped up by the network sales houses.

However, the flip side is the fact that most sites that ask these kind of

questions have (or should have) existing relationships within their business

that they can work on to produce sponsorship revenues - that is if they have

anything to sponsor and they can be bothered to do the leg work.


Ray Taylor