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Subject: Re: [uk-netmarketing] Sponsorship
From: Ray Taylor
Date: Mon, 29 Jan 2001 08:54:26 -0000

Tim Rosenberg <tim [dot] rosenbergatsparklearning [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

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

  Sponsorship, Tim Rosenberg

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