Synergy Launches Sponsorship Value Tool
Synergy has launched a new tool developed to help brands value sponsorships in the same way that companies and other assets are valued. Entitled ‘Synergy Decisions,’ the idea has been designed to help brands enhance their understanding of how much value sponsorship creates for their business.
Synergy Decisions has spent the past year in beta testing where it has helped four different brands make significant investment and resource allocation decisions.
According to the agency, the key differences and features of the tool include:
- Acknowledging that sponsorship value is completely dependent on who the sponsor is and how they activate
- Capturing the flexibility of sponsorship and the wide variety of ways it can create value
- Using value-based measurements rather than traditional cost-based metrics like Advertising Value Equivalency (how much it would cost to generate the same level of exposure through advertising)
- Expressing outputs in terms of pounds and pence (or dollars and cents), which is the language of the boardroom, to allow the comparison of sponsorship against other investment opportunities
- Understanding where, why and how value is created is more useful than simply estimating a single monetary value
Carsten Thode, chief strategy officer of Synergy said: ‘Sponsorship’s failure to get an adequate handle on valuation has been a source of huge frustration for me and many others in the industry. It is also a little bit surprising given the principles of valuation are so well-understood and frequently-applied in other industries like the financial markets and strategy consulting.’
‘For us, it was simply a case of hiring people from those industries to combine those principles with our understanding of sponsorship. We are really excited about what we have managed to create because we think it is better than anything else out there and we know that it works.’
