Watch any sport, live, streaming, broadcast, or clips on social, and you’ll quickly realize just how many companies are sponsoring any given event. But not all sponsorships deliver the same value.
As a result, brands and marketing executives are looking for ways to measure the monetary value of their brand exposure across all primary channels - broadcast, streaming, and social - using a consistent, reliable methodology. This is where Sponsor Media Value (SMV) comes into play. Several factors go into calculating the complete Sponsor Media Value of each sports sponsorship. Let’s take an in-depth look at SMV, its components and importance, and how it is calculated.
SMV is the monetary value of brand exposure in sponsorship of social or broadcast content. For example, it measures how valuable on-court signage is during an NBA game or a branded social post put out by an MLB team. SMV helps brands and marketing executives evaluate their investments in sponsorships, advertising, and brand partnerships. The SMV is calculated based on the reach, frequency, and quality of exposure to the brand. A brand needs to measure its SMV to understand its brand value and the ROI generated from different marketing channels.
There are three components of SMV:
The SMV is calculated by multiplying the FMV, MVP, and duration factor for videos.
For example, let's say a brand participated in a sports event, and its logo was visible for 30 seconds on a video screen during the entire event. The FMV for the same advertising space placement is $10,000. The MVP for the brand's sponsorship is 50%. The Duration Factor for 30 seconds is 1.5. The SMV for this exposure would be $7,500 (10,000 x 50% x 1.5).
Measuring SMV has numerous benefits for brands and marketing executives. It provides an understanding of the value of brand exposure in sponsorships, advertising, and brand partnerships. Brands can use SMV to justify their sponsorships, advertising, and brand partnerships to stakeholders and enable them to make informed decisions about their investments in sponsorships, advertising, and brand partnerships.
Sponsor Media Value is a powerful tool that helps brands and marketing executives evaluate their investments in sponsorships, advertising, and brand partnerships and measure their brand value. To calculate SMV, it is important to consider the FMV, MVP, and duration factor for videos. Measuring SMV has numerous benefits that help brands make informed decisions about their investments in sponsorships, advertising, and brand partnerships. The importance of SMV in the modern era cannot be overstated, and its significance will only continue to grow.