Nielsen’s return on sponsorship investment (ROSI) solution offers what the company says will be a measure of sponsorship investments based on sales revenues and brand health over a set period. Those selling sports sponsorships can determine potential revenue data for existing and new partners.
The measure revolves around four key areas: Sponsorship logo exposure; sales impact attribution; fan demographics; and brand sponsorship impact, which includes awareness, consideration and purchase data.
Nielsen estimates that nearly half of sponsorships drive 3% or more of total sales for brands, with 16% of sponsorships performing at a higher level -- 5% or more. That can result in millions or billions of dollars for large global brands making such deals.
Nielsen says the impetus for this measurement comes amid the COVID-19 pandemic -- now a year old. During this period, there was mass disruption of major sports leagues and events that were cancelled or postponed around the world.
As a result, the company says the “uncertainty caused by the global COVID-19 pandemic has resulted in even more scrupulous spending and sharper focus on return on investment measurement across all marketing activities and vehicles. Consequently, the industry is calling for a measurement framework that validates sponsorships’ contribution to sales revenue both in the short and long term.”
Nielsen Sports already measures sponsor logo tracking and media valuation, as well as providing marketing-mix modeling.