Nielsen introduces new valuation metrics and insights that brands can use to directly compare the impact of their sponsorship activities on a comparable basis with other marketing, promotional and promotional activities. The global Return on Sponsorship Investment (ROSI) solution leverages Nielsen’s premier sponsor logo tracking, media rating and marketing mix modeling, enabling companies to make smarter decisions about resource allocation and the effectiveness of their portfolios in the face of dynamic market conditions optimize.
ROSI provides brands with a holistic view of the effectiveness of each of their sponsorship investments, based on revenue and brand health over time. For owners of sports rights on the sales side who want to monetize their own assets, the solution provides important information to develop new sales opportunities with important goals and to promote contract extensions with existing partners. The solution comes at a time when key decision makers and their organizations rely more than ever on trusted data and advanced analytics to drive positive business results.
According to the new report, Changing the Value of Sponsorship: 2021 Sports Marketing Trends, by Nielsen Sports, the uncertainty caused by the global COVID-19 pandemic has led to even more conscientious spending and a greater focus on measuring the return on investment in all marketing activities. As a result, the industry is calling for a measurement framework that confirms the sponsors’ contribution to sales in both the short and long term. Based on global benchmarks, Nielsen estimates that almost half of sponsorships account for 3% or more of total brand sales and 16% of sponsorships generate 5% or more. These significant contributions can account for potentially millions or even billions of dollars in sales for the largest global brands.
The ROSI solution is based on four primary measurement and benchmarking data sets from Nielsen:
Exposure of the sponsoring logoTrack impressions, time on screen and earned media value
Effects on salesIdentify the percentage of revenue attribution
Fan impactProviding fan demos such as age, gender, income, location and size of the fan
Effects on brand / sponsoringMeasure brand health including awareness, consideration, and purchase information
Based on these inputs, a brand can gain new insights into the total return and the return on individual sponsorship investments, the relative return compared to traditional media investments by distribution channel, the percentage of sales driven by sponsorship and the impact on short and long-term horizons.
With ROSI, a brand with an active portfolio of sponsorships would have unprecedented insight into whether one sponsorship accounts for a greater percentage of the total ROI compared to the other and reallocate budgets accordingly. Additionally, the brand could compare spend across its entire marketing media mix and optimize the channels used for activation.
“To be successful in today’s rapidly changing marketplace, having a holistic view of marketing activities and the ability to compare activities and channels over time is more important than ever,” he said Marco Nazzari, Managing Director, international at Nielsen Sports. “Nielsen’s ROSI capabilities provide analytics-driven CMOs and CFOs with a bottom line focus of all new metrics and benchmarks to enable the best possible use of their budgets and the most effective sponsorship activations.”
As a leading provider of media measurement, advertising planning and optimization as well as content services, Nielsen is able to bring these new functions for evaluating and measuring the effectiveness of sponsors to the market. The company already provides television audience measurement for more than 30 markets internationally and currency measurement, which is the $ 70 billion US linear advertising market. Therefore, ROSI functions are a natural extension of Nielsen’s expertise.
Nielsen Sports is the leading provider of analysis and insight in the sports industry, providing the most reliable source of independent and holistic market data in the industry and the most comprehensive view of consumer trends and habits worldwide.