Attention Valuation
Mapping the value of the attention you generate!
Challenge
A major international football club asked for a reproduceable valuation of their global footprint as they were entering sponsorship negotiation.
This ranged from TV-viewership to social media presence, PR coverage, etc. and required comprehensive data-sets and models for assigning value to each channel.
“Only 37%
of companies have a standardized process for measuring return on sponsorships”
ANA / MASB
Approach
Gathering data from multiple channels wasn’t enough. Synergies and cause/effect between the different channels had to be evaluated in order to create a coherent framework and value that could be transformed into a sponsorship strategy.
By gathering data from multiple channels and pairing them with industry standards we we’re able to create a well-founded valuation. Adding to that we took player and club wishes into account to create strategic suggestion of both great potential partners, narrative and channel strategy. This intended to create value for club, player and sponsor alike.
Results
A comprehensive back-end deck covering the total amount of attention generated over a one year period ranging from PR to Social Media.
A pluck-and-play deck with strategic partnership opportunities
Suggested framework for collaboration between client and sponsor that would drive increased value
Suggested improvements on activities and channel strategies that would leave the club a more attractive partner
Example - “Inter Mine”
We can’t give you a concrete example due to NDAs but let’s try to make a conceptual example.
Let’s imagine we have a club called INTER MINE.
- A well-established and beloved football club in Denmark and among the very best clubs in the world.
Today they have a total sponsorship revenue of 5M euros/year but they have no idea about what their commercial media value is even though they sell various sponsor packages.
They price their sponsorships according to gut-feeling, previous examples, and what they can negotiate.
They are calculating with their emotions rather than a proven model.
Numerous sponsorships today are priced based on emotions rather than sound financial reasoning.
We call this emotional equity:
(We believe + We think + Stakeholders) = $
From a data-driven and business standpoint, the failure to provide financial justification for sponsorship value creates a risk for the company.
But how do get a valid valuation of the commercial media value?
Attention Valuation Inter Mine
What financial advantages can a sponsor expect to receive by sponsoring INTER MINE ?
That’s the question we need to answer.
The commercial value is established by various factors that can enhance the sponsor's recognition, image, popularity, equity, competitiveness, and loyalty in the market. There are numerous aspects that should be considered and included in the analysis.
However, the Attention Valuation Analysis is constrained to focus on a media-based commercial value, hence
5 quantitative media data sets and 4 qualitative data sets. See figure “The Valuation Game In a Nutshell”.
With the Attention Valuations three-step process we established a valuation foundation for Inter Mine for them to give sponsors a valid argumentation for their current sponsorship value and future potential.
Output:
Total media coverage across platforms in 2022 - Est. commercial media value
The sum-up & total score of the qualitative data sets - Qualitative score, the higher the better.
It's crucial to recognize this as an accumulated value, emphasizing a strategic sponsorship approach.
The X6.5M euro is a conservative estimation, which, due to the four qualitative factors could double or even triple down in value.
Investors are willing to pay more for sports teams that have a strong emotional attachment, a history of success, and a significant cultural presence. This is because such teams have a higher perceived value in the market and are more likely to generate a positive return on investment for sponsors and investors.
Inter Mine now faces the challenge of transforming the commercial media value into actual partnerships and brand engagement.
Elite sports teams stand out due to their network structure and associated network economy, serving as dynamic commercial engagement platforms. This is the allure for sponsors.
True value emerges when sponsors commit beyond the basic agreement, seeking an authentic return on investment.
The Valuation Game In a Nutshell
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X0.2 M
-
X68 K
-
X3.1B
-
X.31B
-
+X1M
-
X6.5M euro
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Denmark = X International = X5
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Strong legacy and connection
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Rank X in the world according to responsiball.org
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A cultural icon in The Nordics and a very strong identity marker.
