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Sponsorship ROI calculation

June 22nd, 2010

There are so many conferences out there and we simply can’t sponsor every event. Yes, when you sponsor, you take a risk no matter whether it is an event you always sponsor or it is a completely new expo or conference for you.
For the event you sponsored before, you probably already have some calculations in place, and you know the ROI. How you calculate the ROI? Paul shared with me how he measures ROI from sponsoring. He is using 3 parameters:
1. Impressions = amount of investment: number of visitors, for example
10.000 Euros investment: 5.000 visitors = 2 Euros per visitor
2. CPL (Cost Per Lead) = amount of investment: leads, for example
10.000 Euros investment: 70 leads = 143 Euros CPL
3. CPA (Cost Per Acquisition) = amount of investment: number of clients acquired as a result of the show, for example:
10.000 Euros investment: 4 acquired customers = 2.500 Euros CPA
Of course, there is no general rule that this year you will have a good ROI from the event. There are more factors involved:

    - Your level of exposure
    - Launch of a new product
    - The quality of your presentation if a speaking slot is a part of the sponsorship
    - Skills of the sales staff on the floor
    - The quality of your marketing materials
    - The number and intensity of your competitor’s efforts at the show etc. etc

And if you have to choose to sponsor the event you have been sponsoring for years or a new event, there is more risk in the new event, however, this is how your competitors think as well, but when you are taking a bigger risk, the reward can be big as well, therefore be choosy, consider all the factors involved and only pick events that will help you reach your top organizational goals.
There are many reasons to consider, good reasons to sponsor will be when you are:

    - Looking for strategic partnerships
    - Introducing a new product or service
    - Marketing new research findings
    - Looking to strengthen your company’s brand
    - Searching for new hires

All of these goals are important; all you need to do is to prioritize them so that you know where to focus.

Author: irinakremin

2 Responses to “Sponsorship ROI calculation”

  1. Thank you so much for your opinion on Sponsorship ROI calculation : Best Conference Tips , I totally agree with you. It is fantastic to see a fresh outlook on this and I look forward to more.

  2. BG says:

    Hi,

    I disagree with your ROI measurment, particuarlly looking at Impressions. 10 C-level execs will return a much higher ROI for most professional services firms than 100,000 students. As such we must pay huge attention to the quality of attendees over the quantity. Measuring the value of impressions is more complicated than investment/No. of attendees.

    cheers,
    Ben

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