I recently read a comment on LinkedIn where someone was looking for companies that measure ROI on sponsorship programmes. I thought it was an interesting question and one I’ve had some experience with.
In the past, calculating ROI on sponsorship has lacked much of the real-time data that we have today, but many of the approach methodologies or fundamentals still exist. I hope the following list helps anyone who is navigating the same issue.
1. Define the parameters
First of all we need to understand our current position (current metrics) and the objectives of sponsorship (future metrics).
Different organisations will have different needs. For example, if the sponsorship is expected to deliver a financial return, then what is that return, by what date should it be realised and how are we going to track that the return was as a direct result of the sponsorship efforts?
Doing this often relies on tracking methods such as Google Analytics and dedicated webpages aligned with the sponsorship efforts, coupon codes or even simple questionnaires.
Brand engagement can also be a measurement of sponsorship ROI. I would recommend calculating engagement in a range of areas both individually as well as holistically. The areas of engagement that I would measure are:
What is the audience saying about us and our brand?
Social media has become an excellent place to develop these insights and with sentiment analysis becoming more and more powerful; the accuracy of the analysis is always improving.
Shares, Likes, re-Tweets etc
HootSuite recently published this infographic (figure 1), which gives a great overview of engagement and amplification metrics. The full article can be found here The Beginners Guide to Engagement.