Sports Biz with Darren Rovell

Companies Getting ROI Before They Buy


It’s no secret that sports marketing budgets have been cut from the recession and the money that is being spent is being scrutinized more than ever before.

So instead of waiting to evaluate the return on investment on a particular relationship, many companies are now trying to prove their return on investment before they even do a deal with a property.

One of the firms helping companies do this is Sponsorium.

The company was founded 15 years ago to provide those looking to sponsor events with a better way to score the efficiency of the potential alliance.

Here’s how it works.

A client like Home Depot puts a sponsorship questionnaire on its Web site. Those looking for a sponsor answer about 35 questions made up by Sponsorium, customized to Home Depot’s wants and needs. Each question is weighted differently, with the score also being based on how much the property is asking the company to spend for what they are offering.

Because the scoring is objective, it better streamlines the process and allows some properties, which wouldn’t normally have a chance of landing a sponsorship from a big company, to get in the door.

“There’s a lot sleeping out there,” said Sponsorium founder and president Paul Pednault. “This system allows a small guy who isn’t a good writer or doesn’t have fancy graphics the chance to score a big deal.”

Sponsorium’s scorecard divides the chart into: "Winners, Exploitables, Costlys and Losers." The idea behind presenting it this way is that exploitables could become winners by if a company spends more or asks for more and costlys and losers could become winners by spending less.

“Our system will save 80 percent of a company’s time in evaluating a proposal,” Pednault said. “And we can break it down on a cost per point basis so that a company knows how they can make a deal that doesn’t make sense work.”

Sponsorium’s other selling point is that all the information is automatically stored on a database that can be looked at by the company’s executives throughout the world.

Cycling Team Official Sponsor Chart
Source: Sponsorium

The sports marketing backlash has not only contributed to companies cutting off their future deals, but has also hurt their current deals as they are activating less. That’s not the way to do business in any environment.

“Marketers are under more scrutiny than ever before,” said Seth Leeds, Sponsorium’s senior director of business development. “We give someone responsible for marketing the backbone to go to a CFO and say that it is justified because the data matches the objective.”

Subscribing to Sponsorium’s programs cost a company $1,700 a month or $20,000 a year. There is no cost to a property that submits a proposal through a Sponsorium system.

Sponsorium says it has over 200 current clients including Home Depot, ING and T-Mobile.

Questions?  Comments?