How do you put a value on something when value is ultimately subjective?
Take a glass of water, for example—its value is low if you're well hydrated with other options, but it's high if you've just completed a 10km run and there is nothing else around. This same principle applies when assessing the value of a sponsorship.
At ONSIDE, we approach sponsorship valuation through three distinct lenses:
Line-by-Line Valuation
Brand Equity Impact
Market Landscape Comparison
By analysing each element in detail, we help clients arrive at a value range and provide a clear price bracket guide
1. Line-by-Line Valuation: Quantifying Tangible Outputs
Sponsorship agreements often come with a rights schedule or list of deliverables. These tangible and intangible assets make up a package that will deliver brand exposure, access rights, activation opportunities and hospitality and ticketing inventory. Each of these elements can be broken down and assigned an individual value - providing a solid foundation for initial estimations.
2. Brand Equity: Measuring the Intangible Outcomes
While line-by-line valuations are important, they don't tell the whole story. Sponsorships also have the potential to:
Increase brand awareness
Strengthen brand affinity
Enhance brand alignment
Influence consumer consideration
By projecting how a sponsorship could improve these brand metrics, we build a second layer of value - one that's crucial but often overlooked. At ONSIDE we carry out bespoke primary research to quantify the current or projected value of the brand equity.
3. Market Landscape: Context is Everything
Another critical factor in valuation is understanding the broader market:
What are other brands paying for similar rights?
What is the cost of keeping a competitor out of the space?
This perspective helps clients stay competitive while making informed, strategic decisions.
The Negotiation: Value ≠ Price
When brands and rights holders come to ONSIDE for valuation services, we always start by clarifying two essential truths:
1. Value is not the same as price
What is valuable to one brand may not be to another. Even the value of a lifelong customer can vary dramatically depending on the industry or sector.
2. Know Your Alternatives
Each party should enter any negotiation with a strong BATNA (Best Alternative to a Negotiated Agreement). Brands have alternative ways to spend marketing budgets, such as advertising or other sponsorship opportunities. Rights holders also have alternatives in how they allocate their assets and resources. By having a strong BATNA, a client’s negotiation position is strengthened.
The ONSIDE Perspective: Intelligence-Driven Confidence
At ONSIDE, we understand the nuances, the variables and the internal dynamics that can come to light when entering or renewing a sponsorship deal. Whether you're a brand aiming to invest wisely or a rights holder looking to price confidently, our data-backed insights provide the clarity needed to make the right call.
