SSAC25 : Behind the Deal : The Analytics of Sports Sponsorship Valuation

00:52:42
https://www.youtube.com/watch?v=QoVkKKHPQi0

概要

TLDRThe workshop at the 2025 MIT Sloan Sports Analytics Conference, led by Keegan Furel from Wasserman, delves into the analytics of sports sponsorship valuation. It explores how sponsorships are priced from both brand and property perspectives, using the Cincinnati Bengals' Paycor Stadium naming rights deal as a case study. Key concepts include media equivalency valuation, the relationship between asset value and pricing, and the challenges rights holders face in justifying prices based on media equivalency and performance metrics. The session emphasizes the need for innovative pricing models and the importance of understanding the impact of sponsorships on business objectives.

収穫

  • 🏟️ Workshop on sports sponsorship valuation
  • 📊 Presented by Wasserman's Keegan Furel
  • 💡 Focus on analytics behind pricing
  • 📈 Media equivalency valuation explained
  • 🤝 Relationship between asset value and pricing
  • 📉 Challenges in justifying sponsorship prices
  • 🔍 Importance of brand objectives in valuation
  • 🚀 Trends towards innovative pricing models
  • 📉 Media equivalency does not equal performance
  • 📊 Advice for future industry professionals

タイムライン

  • 00:00:00 - 00:05:00

    The workshop begins with an introduction by Colton Michelle, a first-year MBA student at MIT Sloan, who welcomes attendees to the 2025 MIT Sloan Sports Analytics Conference. He introduces Keegan Furel from Wasserman, who will lead the discussion on sports sponsorship valuation.

  • 00:05:00 - 00:10:00

    Keegan Furel explains his role at Wasserman and outlines the workshop's focus on the analytics behind sports sponsorship pricing and valuation, specifically looking at the Cincinnati Bengals' naming rights deal as a case study.

  • 00:10:00 - 00:15:00

    Participants are asked to estimate the value of the Bengals' naming rights deal and how much they think it was sold for, emphasizing the disconnect between perceived value and actual pricing due to various intangible factors.

  • 00:15:00 - 00:20:00

    Keegan discusses the process of building a partnership package, highlighting common assets and how rights holders typically bundle these assets into standardized packages, which can be negotiated based on specific objectives.

  • 00:20:00 - 00:25:00

    The presentation introduces three pillars that determine the pricing of sponsorship packages: asset cost value, market comparisons, and supply and demand dynamics, explaining how these factors interrelate to establish value.

  • 00:25:00 - 00:30:00

    Participants are asked to select an asset from the Bengals' offerings and consider its potential pricing, leading into a discussion on media equivalency valuation as a key metric in sponsorship pricing.

  • 00:30:00 - 00:35:00

    Media equivalency valuation is defined as a method to assign value to sponsorship assets by comparing them to traditional media costs, with examples illustrating how this valuation is calculated using impressions and CPM (cost per thousand impressions).

  • 00:35:00 - 00:40:00

    The workshop examines the upper deck signage asset for the Bengals, detailing how to calculate its media equivalency value based on exposure during broadcasts and the associated costs of traditional media placements.

  • 00:40:00 - 00:45:00

    Keegan explains the valuation of other assets like activation spaces, hospitality suites, and pouring rights, noting the challenges in quantifying their value and the reliance on media equivalency for pricing justification.

  • 00:45:00 - 00:52:42

    The session concludes with a discussion on the limitations of media equivalency as a pricing tool, emphasizing the need for rights holders to adapt their valuation methods to better reflect actual business impacts and performance metrics.

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ビデオQ&A

  • What is the focus of the workshop?

    The workshop focuses on the analytics behind sports sponsorship valuation.

  • Who is presenting the workshop?

    Keegan Furel, associate vice president at Wasserman, is leading the workshop.

  • What is media equivalency valuation?

    Media equivalency valuation is a methodology that assigns value to an asset by comparing it to traditional media assets.

  • How are sponsorship packages typically priced?

    Sponsorship packages are priced based on asset cost value, similar deal comparisons, and supply and demand factors.

  • What challenges do rights holders face in pricing?

    Rights holders struggle to justify pricing without brand-side data and often rely on media equivalency value.

  • What is the relationship between media equivalency and performance?

    Media equivalency does not equal performance; high media equivalency does not necessarily lead to increased purchase intent or revenue.

  • What trends are impacting sports sponsorship valuation?

    Trends include ROI attribution, bespoke brand models, and a shift towards valuing engagement over reach.

  • What advice is given for future industry professionals?

    Understand the utility of media equivalency, focus on business impact, be a good steward of data, and push for innovative pricing models.

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オートスクロール:
  • 00:00:00
    hi
  • 00:00:01
    everyone if you golf please find your
  • 00:00:04
    seats uh actually yeah looks like
  • 00:00:06
    there's not a ton which is awesome so
  • 00:00:08
    standing room only for this one uh we'll
  • 00:00:10
    get started with this workshop um thank
  • 00:00:13
    you everyone for joining us at this at
  • 00:00:15
    this workshop for the 2025 MIT Sloan
  • 00:00:18
    Sports Analytics Conference my name is
  • 00:00:20
    Colton Michelle i'm a first year MBA
  • 00:00:21
    student at MIT Sloan um and I it is my
  • 00:00:25
    pleasure to introduce behind the deal
  • 00:00:27
    the analytics of sports sponsorship
  • 00:00:29
    valuation presented by Wasserman here to
  • 00:00:32
    help lead us through this workshop is
  • 00:00:34
    Keegan Furel uh associate vice president
  • 00:00:37
    of performance and insights uh so let's
  • 00:00:39
    see all please give Keegan a big round
  • 00:00:40
    of
  • 00:00:44
    applause all right how we doing good
  • 00:00:48
    good okay perfect um I'm Keegan i'm an
  • 00:00:51
    associate vice president here at WSMAN
  • 00:00:53
    on our performance and insights team we
  • 00:00:55
    see deals from both the brands and the
  • 00:00:58
    properties side so quite a unique
  • 00:00:59
    situation in regards to some other
  • 00:01:02
    panels you've probably heard at the
  • 00:01:03
    conference so what we're going to go
  • 00:01:05
    through today is actually the analytics
  • 00:01:06
    behind how sports sponsorships are
  • 00:01:09
    priced and valued and we're actually
  • 00:01:11
    going to look at it from both the
  • 00:01:12
    properties and the brand side and try
  • 00:01:14
    and figure out how they look at them
  • 00:01:16
    differently um you're going to see a ton
  • 00:01:19
    of Bengals content in here i'm not
  • 00:01:21
    affiliated with the team in any way
  • 00:01:23
    besides being a very avid fan so there's
  • 00:01:26
    no real numbers in here don't come at me
  • 00:01:28
    if anybody works for the Bengals in here
  • 00:01:29
    I'm sorry but I am willing to talk about
  • 00:01:31
    the Trey Hendrickson uh deal so if
  • 00:01:34
    anybody wants to talk about that after
  • 00:01:36
    the conference please come and talk to
  • 00:01:37
    me all right perfect so we're going to
  • 00:01:40
    start with a a quick exercise and we're
  • 00:01:42
    going to look at the Payor Stadium
  • 00:01:44
    naming rights deal that the Cincinnati
  • 00:01:46
    Bengals did two years ago and we're
  • 00:01:48
    actually going to use this as an example
  • 00:01:50
    throughout the entire presentation so um
  • 00:01:53
    for those that are unaware this is
  • 00:01:54
    called a uh a naming rights or a venue
  • 00:01:56
    entitlement deal and especially for NFL
  • 00:01:58
    teams it's actually one of the most
  • 00:01:59
    expens expensive sponsorship packages in
  • 00:02:02
    sports you can equate this to things
  • 00:02:03
    like your front of kit uniform deals
  • 00:02:06
    your jersey patch sponsorships etc etc
  • 00:02:08
    but you obviously only have one venue
  • 00:02:11
    that you can name some have a practice
  • 00:02:12
    facility etc but it is a really really
  • 00:02:15
    valuable asset for um teams especially
  • 00:02:18
    those in the NFL so I want you guys to
  • 00:02:20
    take I don't know 20 seconds or so and
  • 00:02:22
    write down on your laptops or books or
  • 00:02:25
    etc what you think this asset and its
  • 00:02:27
    associated sponsorship package would be
  • 00:02:29
    worth so not what you think it would be
  • 00:02:31
    priced at but how valuable you think
  • 00:02:34
    this package would be so just take 20
  • 00:02:36
    seconds
  • 00:02:46
    all right cool so we've got that number
  • 00:02:49
    secondly how much do you think this
  • 00:02:50
    partnership package is actually sold for
  • 00:02:53
    as a percentage of that so write that
  • 00:02:55
    number down second I actually don't have
  • 00:02:58
    an answer for this in this presentation
  • 00:03:00
    to be honest with you so there is no
  • 00:03:02
    wrong numbers there's no right numbers
  • 00:03:03
    anybody can try and quote me on this i'd
  • 00:03:05
    probably put it around $4 million would
  • 00:03:07
    probably be what what what I would but
  • 00:03:09
    take a look and write that down and
  • 00:03:10
    we're going to come back to that kind of
  • 00:03:11
    at the end and you guys can use the
  • 00:03:13
    information that we go through in this
  • 00:03:15
    presentation to see if you want to
  • 00:03:17
    change that number or if anything has
  • 00:03:18
    changed to help you to help you figure
  • 00:03:20
    that
  • 00:03:21
    out um as you can imagine there is a
  • 00:03:24
    relationship between the two of these
  • 00:03:26
    things so what this asset is actually
  • 00:03:28
    worth and how it is priced but funnily
  • 00:03:31
    enough it's actually not as strong as
  • 00:03:34
    you might think um does anybody have a
  • 00:03:36
    guess on maybe why that might
  • 00:03:38
    be anybody want to take a
  • 00:03:41
    guess okay well we'll go into it so hey
  • 00:03:44
    you want to take a guess
  • 00:03:51
    yeah that's that's actually a really
  • 00:03:52
    that's a really good factor we don't
  • 00:03:54
    actually get into a ton of intangibles
  • 00:03:55
    in here but it's a it's a really really
  • 00:03:57
    good factor there is a ton of stuff at
  • 00:03:59
    play that that creates that disconnect
  • 00:04:01
    and the intangibles like emotional
  • 00:04:04
    decisions handshakes relationships
  • 00:04:06
    between executives etc is all stuff that
  • 00:04:08
    plays into this pricing so um we're
  • 00:04:11
    going to take the next 20 minutes and
  • 00:04:12
    imagine that you guys are a part of the
  • 00:04:14
    Cincinnati Bengals front office when
  • 00:04:16
    this was called Paul Brown Stadium okay
  • 00:04:18
    so this was before the payor deal was
  • 00:04:20
    done right there was no naming rights in
  • 00:04:22
    place so think about that for the next
  • 00:04:24
    20 to 30 minutes as we go through this
  • 00:04:26
    process and we're actually not going to
  • 00:04:28
    go into a ton of detail with this
  • 00:04:29
    because this is not what this is about
  • 00:04:31
    um in terms of this session but I did
  • 00:04:33
    want to give some kind of context on how
  • 00:04:35
    you actually build a partnership package
  • 00:04:37
    for those in the room that don't
  • 00:04:38
    understand so very very simply rights
  • 00:04:41
    holders have a series of assets that
  • 00:04:43
    they have access to as part of their
  • 00:04:44
    stadium their digital ecosystem etc you
  • 00:04:47
    can see these six on the right here are
  • 00:04:49
    very common ones you know your your
  • 00:04:51
    television assets hospitality you've got
  • 00:04:53
    your signage in venue your brand
  • 00:04:55
    ambassadors etc etc but what they
  • 00:04:57
    typically do is they will grab those
  • 00:04:58
    assets and they'll lump them all into
  • 00:05:00
    what we call a package normally these
  • 00:05:03
    are fairly standardized across the
  • 00:05:05
    industry a lot of partnership packages
  • 00:05:06
    actually look really similar but more
  • 00:05:09
    savvy um rights holders or more savvy
  • 00:05:11
    brands will typically be able to either
  • 00:05:12
    negotiate or tweak those packages to
  • 00:05:14
    better meet objectives so very kind of
  • 00:05:16
    standard process as there is a ton of
  • 00:05:18
    stuff that goes actually into building
  • 00:05:20
    partnership packages and a lot of
  • 00:05:21
    analytics and data behind how they're
  • 00:05:22
    priced we're not going to go into that
  • 00:05:24
    too much here but did just want to set
  • 00:05:26
    that stage so that you guys have an
  • 00:05:27
    understanding of how that process
  • 00:05:29
    goes what we're going to start looking
  • 00:05:31
    at however is how this package is
  • 00:05:33
    assigned a value/p price specifically
  • 00:05:35
    and there's three kind of pillars here
  • 00:05:37
    that that we're going to look at these
  • 00:05:39
    three typically intermingle with each
  • 00:05:40
    other okay they're not necessarily
  • 00:05:41
    exclusive so let's start with this first
  • 00:05:43
    one here this isn't actually a term that
  • 00:05:45
    we're going to look at again because
  • 00:05:46
    it's not commonly used within the
  • 00:05:48
    industry but we're going to call it
  • 00:05:49
    asset cost value and that is the the
  • 00:05:51
    assets that we just looked at as a part
  • 00:05:53
    of that partnership package each asset
  • 00:05:55
    in the deal is um given a value based on
  • 00:05:58
    how much it would cost to buy on the
  • 00:06:00
    open market so if you have an LED
  • 00:06:02
    fieldboard it's priced based on how much
  • 00:06:05
    we think that LED field board would sell
  • 00:06:07
    for super simple secondly we have a lot
  • 00:06:10
    of packages or a lot of assets in
  • 00:06:11
    general that are actually um assigned
  • 00:06:13
    price based on how similar deals are
  • 00:06:15
    selling and taking into consideration
  • 00:06:18
    such as market and strength of IP so if
  • 00:06:20
    you have that Dallas Cowboys have just
  • 00:06:22
    sold their naming rights deal to AT&T
  • 00:06:24
    and that's sold for I don't know $15
  • 00:06:26
    million you could take that as an
  • 00:06:28
    example and be like "Okay I'm the
  • 00:06:30
    Bengals i'm not quite the Cowboys right
  • 00:06:32
    so how do I take in my market strength
  • 00:06:33
    and my strength of IP and adjust my
  • 00:06:35
    price knowing that a similar asset was
  • 00:06:37
    done for $15 million?" So that's kind of
  • 00:06:39
    second way and then thirdly we're
  • 00:06:41
    actually going to go through this in a
  • 00:06:42
    little bit of detail later but supply
  • 00:06:44
    and demand can actually have huge
  • 00:06:45
    fluctuations on price um as with any
  • 00:06:48
    kind of good any kind of service um
  • 00:06:50
    certain factors that impact supply so
  • 00:06:52
    things like number of categories that
  • 00:06:54
    are available the scarcity of an asset
  • 00:06:56
    in a package or demand so the
  • 00:06:57
    competitiveness of a brand category can
  • 00:07:00
    all impact that price at the end of the
  • 00:07:02
    day so as I said these three really
  • 00:07:03
    intermingle with each other and work
  • 00:07:05
    together to ultimately create that price
  • 00:07:07
    value um they're not necessarily
  • 00:07:09
    exclusive from each
  • 00:07:10
    other cool so what I want you guys to do
  • 00:07:14
    is we have four very kind of basic
  • 00:07:16
    assets here for the Cincinnati Bengals i
  • 00:07:19
    want you guys to like take one of these
  • 00:07:21
    and write it down and that's going to be
  • 00:07:23
    your your asset okay so you can either
  • 00:07:26
    take this upper deck signage which is a
  • 00:07:27
    very simple kind of signage asset at the
  • 00:07:29
    top of the concourse here we have an
  • 00:07:30
    activation footprint the second one
  • 00:07:32
    pouring rights which is a huge a huge
  • 00:07:34
    right um for for the stadium and then
  • 00:07:37
    our hospitality suite so just want you
  • 00:07:39
    guys to pick one of those and write down
  • 00:07:41
    what you think a property would price
  • 00:07:42
    this at and then just think about why
  • 00:07:44
    you would price it that way so take a
  • 00:07:46
    second to really just think about that
  • 00:07:48
    and then we'll we'll move on in 10
  • 00:07:50
    seconds for
  • 00:07:56
    now cool so before we get further in
  • 00:07:59
    this process we're going to introduce a
  • 00:08:01
    concept which we're going to hear a lot
  • 00:08:02
    about over the next 10 slides or so
  • 00:08:04
    called media equivalency valuation okay
  • 00:08:07
    this starts from a pricing perspective
  • 00:08:09
    um when we're trying to price assets
  • 00:08:12
    that have a level of exposure to them or
  • 00:08:15
    they deliver impressions etc so you can
  • 00:08:17
    think about a lot of your signage assets
  • 00:08:18
    your content assets etc a rights holder
  • 00:08:21
    typically looks at to understand the
  • 00:08:23
    media equivalent value of that asset and
  • 00:08:25
    uses that as a guide to pricing or
  • 00:08:27
    depending on the asset itself sometimes
  • 00:08:29
    that media equivalency becomes the price
  • 00:08:31
    itself um most of that value uh that a
  • 00:08:34
    rights holder generates in a partnership
  • 00:08:36
    package is actually through assets that
  • 00:08:38
    deliver this media equivalency value
  • 00:08:40
    we'll get to what it is in a second but
  • 00:08:41
    just keep that in mind so this kind of
  • 00:08:43
    actually does act as a little bit of a
  • 00:08:45
    de facto currency in the sponsorship
  • 00:08:47
    world so anybody here who has worked in
  • 00:08:49
    the industry for a long time definitely
  • 00:08:50
    knows this term or some variation of
  • 00:08:53
    this term and then finally an important
  • 00:08:55
    thing to keep in mind as we work through
  • 00:08:57
    this and we're going to get to this a
  • 00:08:58
    little later in the in the presentation
  • 00:08:59
    but media equivalency actually creates I
  • 00:09:02
    would say an inequal okay so rights
  • 00:09:05
    holders that can actually generate media
  • 00:09:06
    equivalency better than others normally
  • 00:09:09
    have an easier time justifying their
  • 00:09:11
    pricing to a partner than those that
  • 00:09:13
    don't so what is media equivalency this
  • 00:09:16
    is a a very kind of simple example but
  • 00:09:18
    it is a databacked methodology that
  • 00:09:20
    attempts to assign value to an asset by
  • 00:09:22
    comparing it to traditional media assets
  • 00:09:24
    okay so let's take this Coca-Cola
  • 00:09:26
    example on the right okay they've
  • 00:09:28
    they've placed this this TV commercial
  • 00:09:30
    okay in in in a random broadcast let's
  • 00:09:32
    say that TV commercial costs them $5,000
  • 00:09:35
    to buy that media space okay they they
  • 00:09:38
    go to a media agency they pay their
  • 00:09:39
    money and they place it within this
  • 00:09:41
    broadcast so on the bottom here you have
  • 00:09:44
    I'm assuming this is from the ICC
  • 00:09:45
    Champions Cup that was a couple of weeks
  • 00:09:47
    ago you actually have Coca-Cola
  • 00:09:48
    appearing in that stadium okay as a part
  • 00:09:52
    of their sponsorship deal this obviously
  • 00:09:54
    isn't bought in the same way right we
  • 00:09:56
    have gone out and we've purchased this
  • 00:09:57
    as part of those packages that we talked
  • 00:09:59
    about earlier there is actually no
  • 00:10:00
    specific price value for this at least
  • 00:10:02
    from the Coca-Cola side so the question
  • 00:10:04
    that we have is how much value is the
  • 00:10:07
    brand actually receiving through their
  • 00:10:09
    sponsorship by the logo showing up
  • 00:10:11
    during a live broadcast okay and that's
  • 00:10:13
    what we're dealing with here from a
  • 00:10:14
    media equivalency perspective this is
  • 00:10:16
    actually really advantageous for um
  • 00:10:18
    rights holders in a way because it
  • 00:10:20
    actually allows sponsorships to be
  • 00:10:21
    compared to um media companies in a very
  • 00:10:25
    similar way okay so it does even the
  • 00:10:26
    playing field from that perspective when
  • 00:10:28
    we're looking at it from a holistic
  • 00:10:29
    marketing perspective the two are
  • 00:10:31
    comparable in those regards
  • 00:10:34
    okay so we're going to look back at that
  • 00:10:36
    upper deck signage that we were talking
  • 00:10:38
    about before that first asset on the
  • 00:10:39
    page of our package so that upper deck
  • 00:10:42
    signage even though it is in the stadium
  • 00:10:44
    it can appear in a ton of different ways
  • 00:10:46
    okay so we're seeing right here
  • 00:10:48
    highlights of the game on ESPN that
  • 00:10:50
    upper deck signage can appear social
  • 00:10:51
    media clips that the Bengals post it can
  • 00:10:54
    appear there in online news articles for
  • 00:10:56
    people actually in the stadium attending
  • 00:10:57
    it they can see that signage and then
  • 00:10:59
    finally obviously in during a live
  • 00:11:00
    broadcasted game so I think it was a
  • 00:11:02
    little hard to see we'll try and see it
  • 00:11:04
    again if we can click through
  • 00:11:06
    here there is actually a pay core
  • 00:11:09
    exposure at the very end of this clip of
  • 00:11:12
    this field goal so you can see this here
  • 00:11:14
    right at the top pay um in their upper
  • 00:11:17
    deck
  • 00:11:18
    signage so what we're going to do is
  • 00:11:20
    actually go through the process now of
  • 00:11:21
    trying to figure out that pay core
  • 00:11:24
    exposure similar to thinking about how
  • 00:11:26
    we were thinking about it with Coca-Cola
  • 00:11:28
    how we're actually going to calculate
  • 00:11:30
    this media equivalency value okay so
  • 00:11:32
    every single time an asset um in our
  • 00:11:34
    example this upper deck LED shows a
  • 00:11:36
    sponsor brand and it is picked up on one
  • 00:11:38
    of these mediums it is generates what's
  • 00:11:39
    called an impression an impression is a
  • 00:11:41
    media term for just something showing up
  • 00:11:43
    to somewhere okay very simple in the
  • 00:11:45
    advertising world for those that don't
  • 00:11:47
    know most media is actually bought based
  • 00:11:49
    on the amount of impressions that it
  • 00:11:50
    will deliver so if an asset is going to
  • 00:11:52
    deliver a million dollars it is
  • 00:11:54
    typically priced in a way called cost
  • 00:11:55
    per thousand impressions and you will
  • 00:11:57
    pay $30 for those million impressions or
  • 00:12:00
    $300 for those me a million impressions
  • 00:12:02
    etc emmy value tries to combine these
  • 00:12:04
    two ideas okay it is a it is a monetary
  • 00:12:06
    value that represents how much each
  • 00:12:09
    impression delivered through the asset
  • 00:12:11
    in which it showcases the brand so in
  • 00:12:13
    this in this regard pay how much it
  • 00:12:15
    would cost to buy in a compare
  • 00:12:17
    comparable traditional media asset okay
  • 00:12:20
    so this is the question that we're
  • 00:12:21
    trying to answer here this payor
  • 00:12:22
    exposure appeared during a broadcast
  • 00:12:24
    where there were 10 million viewers it
  • 00:12:25
    therefore delivered 10 million
  • 00:12:26
    impressions right there are 10 million
  • 00:12:28
    people watching pay come up on the
  • 00:12:30
    screen here how much would those
  • 00:12:31
    impressions cost does anybody have an
  • 00:12:35
    idea
  • 00:12:37
    anybody $35 okay good guess anybody else
  • 00:12:42
    yeah $3,000 okay cool
  • 00:12:46
    $40,000 okay we got a good range 35
  • 00:12:48
    bucks 3,000 bucks 40,000 bucks okay so
  • 00:12:52
    this happened during a live broadcast so
  • 00:12:54
    we're going to go back to our idea of
  • 00:12:56
    how we actually calculate this
  • 00:12:57
    equivalency we need to figure out what
  • 00:13:00
    its equivalent media asset is okay so
  • 00:13:02
    this exposure of pay happened in a live
  • 00:13:04
    broadcast and as that exposure happened
  • 00:13:06
    in a live broadcast its equivalent media
  • 00:13:09
    asset is a 30-cond TV commercial super
  • 00:13:12
    simple okay this is actually the the
  • 00:13:16
    methodology we use to calculate media
  • 00:13:18
    equivalency value this is like feel free
  • 00:13:21
    to take photos it's not super
  • 00:13:23
    proprietary everybody does this the same
  • 00:13:24
    way in the industry despite what people
  • 00:13:26
    say it's a very very simple kind of
  • 00:13:28
    five-part formula there is some
  • 00:13:29
    variations to how this data is gathered
  • 00:13:31
    some other ways that people use this
  • 00:13:33
    methodology etc but it is very standard
  • 00:13:35
    throughout the industry because as we
  • 00:13:37
    are saying it is a standardized number
  • 00:13:39
    that we use so let's go through this
  • 00:13:41
    methodology here so we have starting
  • 00:13:43
    with one is the number of exposures
  • 00:13:45
    we're actually calculating for okay so
  • 00:13:47
    payor has um appeared on the screen one
  • 00:13:50
    time if we were to do a valuation over
  • 00:13:53
    the course of an entire game this could
  • 00:13:55
    be 300 400 whatever it is right but
  • 00:13:57
    we're just calculating one exposure here
  • 00:13:59
    the second is that impression number
  • 00:14:01
    that we were talking about before okay
  • 00:14:03
    so that's 10 million we've already said
  • 00:14:04
    that was the viewers of the game and how
  • 00:14:06
    many people were tuned into the live
  • 00:14:07
    broadcast the third number so we're
  • 00:14:09
    going to take that 10 million we're
  • 00:14:11
    going to divide it by the media
  • 00:14:12
    equivalent CPM so how expensive it would
  • 00:14:15
    be to buy a,000 impressions in a 30-cond
  • 00:14:18
    broadcast commercial during that game
  • 00:14:20
    okay this number there's tons of
  • 00:14:22
    publicly available benchmarks for it
  • 00:14:24
    it's it's not particularly um crazy
  • 00:14:27
    information is is relatively easy to get
  • 00:14:29
    but we're going to take that $30 CPM and
  • 00:14:31
    then we're going to apply a couple of
  • 00:14:33
    discounts to that because we don't agree
  • 00:14:34
    that that payor exposure is worth the
  • 00:14:37
    same as a 30-cond commercial right you
  • 00:14:39
    can't control the message that is in
  • 00:14:41
    that asset it is small it's kind of
  • 00:14:43
    blurry most people probably aren't even
  • 00:14:44
    going to notice it right so what we do
  • 00:14:46
    is we actually create some discounts on
  • 00:14:48
    top of that so we have a discount here
  • 00:14:50
    for length um we look at this we're
  • 00:14:52
    comparing it to a 30-cond commercial and
  • 00:14:54
    this was a two- second exposure so we're
  • 00:14:56
    applying a 02 discount in regards to
  • 00:14:58
    that and then finally we apply what's
  • 00:15:00
    called a quality discount and for
  • 00:15:02
    anybody that works in the industry QI
  • 00:15:03
    score media equivalency score etc etc
  • 00:15:06
    there's a ton of terms for it but
  • 00:15:07
    visibility discount is what we can kind
  • 00:15:08
    of tag it as here so 25% so we're
  • 00:15:11
    heavily discounting that so we're going
  • 00:15:13
    to take that methodology and $3,000 was
  • 00:15:16
    actually really close this was worth
  • 00:15:18
    $5,000 of media equivalent value this 2C
  • 00:15:22
    exposure for Payor okay
  • 00:15:25
    or alternatively this exposure would
  • 00:15:28
    cost the brand this is very much a
  • 00:15:29
    mouthful but really important to
  • 00:15:30
    understand this exposure of Payor would
  • 00:15:33
    cost the brand $5,000 to buy if they
  • 00:15:36
    were going to advertise their brand in a
  • 00:15:38
    30-cond TV commercial during this game
  • 00:15:41
    instead that is really important to
  • 00:15:43
    remember okay we're not saying that this
  • 00:15:45
    this thing is worth $5,000 you are not
  • 00:15:48
    getting $5,000 back from this exposure
  • 00:15:51
    appearing okay this is just how much you
  • 00:15:53
    would have to pay hey it's not even
  • 00:15:54
    necessarily saying whether it's good for
  • 00:15:55
    the brand right it is just saying that
  • 00:15:57
    this is how much it would cost to pay
  • 00:15:59
    for on the open
  • 00:16:00
    market question if you were a marketing
  • 00:16:03
    manager I'm going to go back to you
  • 00:16:05
    because you were really really close on
  • 00:16:06
    this if you were a marketing manager for
  • 00:16:08
    Pay would you pay $5,000 for this
  • 00:16:10
    exposure no
  • 00:16:13
    okay I think that's a good answer but
  • 00:16:15
    the correct answer here is really maybe
  • 00:16:17
    and it's kind of a a bit of a copout
  • 00:16:19
    answer but it all comes down to what we
  • 00:16:21
    expect of an asset like this okay if you
  • 00:16:24
    are spending $5,000 on this to generate
  • 00:16:27
    awareness of your brand amongst Bengals
  • 00:16:29
    fans I think you could argue that it
  • 00:16:31
    might be worthwhile okay it's a very
  • 00:16:33
    very specific objective but in this case
  • 00:16:36
    you would be executing on that very very
  • 00:16:38
    well if you were expecting it to land
  • 00:16:40
    you a massive contract with a key
  • 00:16:41
    regional midsize business because you're
  • 00:16:43
    pay and that's what generates business
  • 00:16:45
    for your business it's probably a waste
  • 00:16:48
    just being honest it's like that is that
  • 00:16:50
    is not where you would put $5,000 to do
  • 00:16:52
    that you would probably put that in
  • 00:16:53
    hospitality or some kind of lead
  • 00:16:55
    generation effort etc etc not on a piece
  • 00:16:58
    of signage that just puts your name up
  • 00:17:00
    on the upper level deck for two seconds
  • 00:17:04
    um how we're going to round out this
  • 00:17:06
    kind of valuation section we're not
  • 00:17:07
    going to go through these crazy
  • 00:17:08
    methodologies for the rest of them
  • 00:17:10
    because to be honest with you the other
  • 00:17:11
    three assets that we looked at are much
  • 00:17:14
    simpler okay so let's take the
  • 00:17:15
    activation space for something like an
  • 00:17:17
    activation space normally the way that
  • 00:17:19
    this is calculated is just on the
  • 00:17:21
    equivalent cost of the actual space okay
  • 00:17:24
    so if you are giving your brand a 10x10
  • 00:17:28
    space what would it cost to buy a 10x10
  • 00:17:31
    space in the stadium on the open market
  • 00:17:33
    normally that's just kind of like $1,000
  • 00:17:35
    per square foot i'm sure there are
  • 00:17:36
    people out there who have better data
  • 00:17:38
    than I do on that but it's pretty simple
  • 00:17:40
    right it is just how much if the
  • 00:17:42
    property or the rights holder is
  • 00:17:43
    actually putting on the activation and
  • 00:17:46
    the experience normally what there will
  • 00:17:48
    be is a cost for fabrication a cost for
  • 00:17:50
    the labor that goes into that etc etc
  • 00:17:52
    some rights holders as well and I think
  • 00:17:54
    that they should be doing this um 100%
  • 00:17:56
    is also they'll add um media equivalency
  • 00:17:59
    value or some kind of engagement value
  • 00:18:01
    on the top of that for all of those
  • 00:18:03
    within the stadium that are actually
  • 00:18:05
    seeing or engaging with that experience
  • 00:18:07
    okay so that is not going to drive a ton
  • 00:18:09
    of media equivalency value by any means
  • 00:18:11
    because you're just limited on how many
  • 00:18:13
    people are in the stadium but there
  • 00:18:15
    should be credit given for those people
  • 00:18:17
    that see it that way the other two
  • 00:18:19
    assets we looked at so the suite very
  • 00:18:21
    simple um we just use a face value of
  • 00:18:24
    the asset for this right how much it
  • 00:18:25
    would cost you to buy an actual ticket
  • 00:18:27
    for the suite and then finally something
  • 00:18:29
    like pouring rights um we actually look
  • 00:18:32
    at the uh revenue that it will normally
  • 00:18:35
    deliver back to the sponsor itself that
  • 00:18:38
    is typically very easy to model right a
  • 00:18:40
    drink sells for $5 and we sell a million
  • 00:18:42
    drinks per year very very easy to model
  • 00:18:45
    but it's also quite a specific um a
  • 00:18:47
    specific situation because you just
  • 00:18:48
    don't have a lot of those
  • 00:18:50
    rights so you can probably already start
  • 00:18:52
    to sense the the problem at play here
  • 00:18:55
    with using media equivalency right we
  • 00:18:58
    are getting to a point where rights
  • 00:18:59
    holders are beholden on using these
  • 00:19:01
    assets that are focused on awareness to
  • 00:19:03
    actually justify their pricing so let's
  • 00:19:04
    look on the these four ones that we just
  • 00:19:06
    talked about here that um upper level
  • 00:19:09
    deck signage or whatever we want to call
  • 00:19:10
    it this could feasibly value be valued
  • 00:19:13
    at probably $200,000 across the course
  • 00:19:15
    of the season i would actually argue
  • 00:19:16
    maybe even more and the fact that that
  • 00:19:18
    was a $5,000 thing and it was a
  • 00:19:19
    two-second exposure you're probably
  • 00:19:21
    getting multiple of those a game it's
  • 00:19:22
    appearing in social media you've got the
  • 00:19:24
    in venue exposure etc so you're looking
  • 00:19:26
    at 200,000 to maybe 400,000 for that
  • 00:19:28
    singular asset then we move over to the
  • 00:19:31
    activation space as we were talking
  • 00:19:33
    about it's just difficult to really push
  • 00:19:35
    the value on these because you're
  • 00:19:36
    limited on the amount of concourse space
  • 00:19:38
    you have a 10 x10 space is $10,000 or
  • 00:19:42
    whatever it is you're going to struggle
  • 00:19:43
    to get past $20,000 for an activation
  • 00:19:46
    space just because of of that limitation
  • 00:19:49
    pouring rights on the other hand as we
  • 00:19:51
    were talking about can actually be
  • 00:19:52
    really valuable if every soda you sell
  • 00:19:54
    is worth $5 and they pour 20,000 a game
  • 00:19:57
    that is a ton of business back and a ton
  • 00:19:59
    of value you're creating for a a brand
  • 00:20:02
    sponsor but you typically only have two
  • 00:20:04
    of these to sell normally a a soft drink
  • 00:20:06
    pouring rate and some kind of liquor or
  • 00:20:08
    alcohol pouring rate so you're just
  • 00:20:10
    limited on your ability to bring in
  • 00:20:11
    revenue using this in general and then
  • 00:20:14
    finally if we look at all of your kind
  • 00:20:15
    of hospitality assets and and things
  • 00:20:17
    like that a a suite although valuable
  • 00:20:20
    you can only really include one suite in
  • 00:20:22
    a package and its face value of 1 to 3k
  • 00:20:24
    per game it just doesn't have the
  • 00:20:26
    ability to create that value in the same
  • 00:20:28
    way
  • 00:20:29
    so what we end up having is a is kind of
  • 00:20:32
    a situation like this which is the
  • 00:20:34
    valuation system that really exists
  • 00:20:36
    within the industry right now this is
  • 00:20:38
    what most sponsorship packages look like
  • 00:20:40
    you have 85% of the value is media
  • 00:20:43
    equivalency value 15% is value of hard
  • 00:20:46
    cost so that activation footprint those
  • 00:20:48
    tickets etc etc and then we don't have
  • 00:20:51
    any business back value because you just
  • 00:20:52
    don't have a lot of rights to use so
  • 00:20:54
    this is this is pretty much what you're
  • 00:20:55
    looking at for most packages that exist
  • 00:20:58
    within sponsorships right now and as we
  • 00:21:01
    said this actually does have some
  • 00:21:03
    benefits but it really has some
  • 00:21:04
    drawbacks as well so on the benefit side
  • 00:21:06
    rights holders who actually have the
  • 00:21:08
    ability to deliver high value exposures
  • 00:21:10
    have a really easy job justifying price
  • 00:21:12
    sometimes so we're actually going to
  • 00:21:14
    talk about an example with the NBA in a
  • 00:21:15
    little bit the NBA is a perfect example
  • 00:21:17
    they have a ton of games across the
  • 00:21:18
    season good viewership great social
  • 00:21:20
    engagement their ability to actually
  • 00:21:22
    create media equivalency value is very
  • 00:21:24
    high um it also as we were kind of
  • 00:21:26
    talking about allows sponsorship
  • 00:21:28
    marketing to compete with traditional
  • 00:21:30
    media buys which evens the the playing
  • 00:21:32
    field in marketing which is super nice
  • 00:21:34
    but on the other side rights holders
  • 00:21:36
    that don't have this ability um struggle
  • 00:21:39
    to justify price very significantly
  • 00:21:41
    women's sports is the perfect example of
  • 00:21:42
    this until their media rights changed
  • 00:21:44
    about 1 to two years ago wnba teams and
  • 00:21:46
    NWSL teams had a really hard time
  • 00:21:48
    justifying their price despite really
  • 00:21:50
    high engagement and their ability to
  • 00:21:52
    move the needle on performance metrics
  • 00:21:54
    and this is the most important kind of
  • 00:21:56
    trend that we're going to see across the
  • 00:21:57
    rest of this is media equivalency value
  • 00:22:00
    does not equal performance okay just
  • 00:22:02
    because you are delivering $10 million
  • 00:22:04
    of media equivalency doesn't actually do
  • 00:22:06
    necessarily anything for purchase intent
  • 00:22:08
    or consideration or the ability to move
  • 00:22:10
    revenue but the problem is is because
  • 00:22:13
    pricing is based on media equivalency to
  • 00:22:16
    an extent the two are intrinsically
  • 00:22:18
    linked right it is a leading indicator
  • 00:22:20
    and it is really a it suggests that the
  • 00:22:22
    two are heavily correlated so let's look
  • 00:22:24
    at an example here i'm going to use the
  • 00:22:26
    Bengals and the Cowboys again um
  • 00:22:28
    sponsorship A here we have a a
  • 00:22:31
    sponsorship that costs somebody $500,000
  • 00:22:34
    it reaches 10 million people um but it
  • 00:22:37
    has a really strong impact on brand
  • 00:22:39
    consideration so you've seen that
  • 00:22:40
    increase for the sponsor by 10% after
  • 00:22:43
    year one this is a this is a great a
  • 00:22:44
    great sponsorship really really good
  • 00:22:46
    performance on the right hand side you
  • 00:22:48
    have a sponsorship that's really
  • 00:22:49
    efficient in its reach so it only costs
  • 00:22:51
    a million but it reaches 30 million so
  • 00:22:53
    it's it's more efficient than the one on
  • 00:22:55
    the left but after 2 years this hasn't
  • 00:22:57
    actually done anything for the sponsor
  • 00:22:58
    the needle hasn't moved at all
  • 00:23:00
    consideration is exactly the same so
  • 00:23:02
    what you're seeing here is this really
  • 00:23:03
    well performing sponsorship sponsorship
  • 00:23:05
    A very effective at moving the needle
  • 00:23:07
    sponsorship B is really efficient but it
  • 00:23:09
    doesn't move the
  • 00:23:10
    needle this actually results normally in
  • 00:23:14
    a situation where sponsorship B is going
  • 00:23:16
    to be priced higher than sponsorship A
  • 00:23:19
    okay because going back to that media
  • 00:23:20
    equivalency let's take the Bengals and
  • 00:23:22
    the Cowboys the Bengals have less fans
  • 00:23:24
    they have less nationally televised
  • 00:23:25
    games their ability to generate media
  • 00:23:27
    equivalency value is significantly less
  • 00:23:30
    than the Cowboys on the right who have a
  • 00:23:32
    ton of fans great reach more nationally
  • 00:23:35
    televised games and more media
  • 00:23:36
    equivalency value these these stats are
  • 00:23:38
    not real i don't know if the Cincinnati
  • 00:23:40
    Bengals move the needle better than the
  • 00:23:42
    Dallas Cowboys i would suggest probably
  • 00:23:43
    not but it's just a good thing to
  • 00:23:45
    understand is that the the industry is
  • 00:23:48
    so heavily based on these efficiency
  • 00:23:50
    metrics that there is there's not really
  • 00:23:52
    a comparison and then the Bengals in
  • 00:23:53
    this case will always be priced lower
  • 00:23:55
    than the Cowboys because of that ability
  • 00:23:57
    to reach
  • 00:23:58
    people let's look at some kind of other
  • 00:24:00
    impacts on pricing to close this out so
  • 00:24:02
    it's not just media equivalency value
  • 00:24:05
    it's not just the market price of assets
  • 00:24:06
    there's also supply and demand or
  • 00:24:08
    scarcity or ample supply that can really
  • 00:24:11
    drive a package's price up or down so
  • 00:24:13
    let's take our Bengals example there is
  • 00:24:15
    only one Joe Burrow okay so that is
  • 00:24:17
    probably going to drive the pricing up
  • 00:24:19
    in a sense demand is is is a very
  • 00:24:22
    similar kind of factor on this as well
  • 00:24:24
    cincinnati is a market with tons of
  • 00:24:26
    Fortune 500 companies they are trying to
  • 00:24:28
    secure certain deals so hospitality
  • 00:24:31
    assets in that market are probably more
  • 00:24:34
    expensive than in other markets because
  • 00:24:35
    they have significant use for it so that
  • 00:24:37
    drives outsized demand um there's some
  • 00:24:40
    other things like external factors like
  • 00:24:42
    new categories so beauty is really
  • 00:24:44
    getting into sports right now so that's
  • 00:24:45
    a driving factor could be on beauty
  • 00:24:47
    sponsorships specifically in price hot
  • 00:24:49
    categories crypto in 2021 if anybody
  • 00:24:52
    wants to talk about working on FTX in
  • 00:24:54
    2021 find me after the conference it was
  • 00:24:56
    pretty crazy um and then economic
  • 00:24:59
    factors so things like co can obviously
  • 00:25:01
    really impact pricing as well right so
  • 00:25:04
    it is not just that media equivalency
  • 00:25:06
    it's not just that market pricing but
  • 00:25:08
    you have to bring in these factors of
  • 00:25:09
    supply and demand like Joe Burrow and
  • 00:25:12
    the market of Cincinnati as well
  • 00:25:16
    um just to round out this section on
  • 00:25:17
    kind of price and value from the rights
  • 00:25:19
    holder side supply and demand also acts
  • 00:25:22
    as a price regulator which is quite
  • 00:25:24
    interesting so the we got some good
  • 00:25:26
    examples on the left here of um CarMax
  • 00:25:28
    and Door Dash who are the front of shirt
  • 00:25:30
    sponsors for Angel City and Gotham FC
  • 00:25:33
    women's sports teams actually deliver
  • 00:25:35
    generally less contractual value because
  • 00:25:36
    their ability to reach fans is just
  • 00:25:39
    lower than men's sports teams mainly due
  • 00:25:40
    to the outdated media rights deals that
  • 00:25:42
    they were on but multiple teams have
  • 00:25:44
    actually managed to sell packages way
  • 00:25:46
    beyond that media equivalency value due
  • 00:25:49
    to the significant demand within the
  • 00:25:51
    marketplace for women's sports
  • 00:25:52
    sponsorships i would also argue their
  • 00:25:54
    ability to move the needle as well right
  • 00:25:56
    that is another underlying factor but
  • 00:25:58
    demand has had a huge um a huge impact
  • 00:26:00
    on the pricing of these specifically we
  • 00:26:03
    talked about this very briefly from the
  • 00:26:04
    NBA side but because the NBA has a long
  • 00:26:06
    season with high viewership and social
  • 00:26:08
    exposure potential the league has an
  • 00:26:10
    outsized ability to drive contractual
  • 00:26:12
    value through me however there is really
  • 00:26:15
    limited supply in terms of brands who
  • 00:26:17
    can just afford $20 million sponsorship
  • 00:26:20
    packages so this puts a ceiling right on
  • 00:26:22
    the price of NBA uh sponsorships there
  • 00:26:25
    are just not 100 brands out there that
  • 00:26:27
    compete for for those deals so really um
  • 00:26:30
    what what you see with the NBA is a a
  • 00:26:32
    much higher value uh media equivalency
  • 00:26:35
    to price ratio than others because of
  • 00:26:37
    that that ceiling that's been put on
  • 00:26:39
    it all right so that's how rights
  • 00:26:42
    holders think about pricing in very
  • 00:26:45
    simple terms very very simple um they
  • 00:26:47
    use these contractual values that are
  • 00:26:49
    largely driven by me as a base/ a guide
  • 00:26:51
    and then they work to market conditions
  • 00:26:53
    to adjust okay so now we're going to
  • 00:26:55
    look at this from the brand side and how
  • 00:26:57
    they actually assess price and think
  • 00:26:59
    about the value of partnerships from
  • 00:27:00
    their perspective
  • 00:27:02
    so when brands look at a at a
  • 00:27:05
    partnership deal they are primarily
  • 00:27:07
    objective driven in their assessment of
  • 00:27:09
    a sponsorship package okay so this is
  • 00:27:11
    this is we're going to take this as a
  • 00:27:12
    payor example again payor is sitting
  • 00:27:14
    down assessing this deal deal thinking
  • 00:27:16
    can a partnership with the Bengals help
  • 00:27:18
    me achieve driving preference with NFL
  • 00:27:20
    fans um making those within Cincinnati
  • 00:27:22
    more familiar with my brand improving my
  • 00:27:24
    perception securing a key contract etc
  • 00:27:27
    etc etc
  • 00:27:28
    and normally what they do is they use a
  • 00:27:30
    combination of a bunch of different data
  • 00:27:32
    points on that assessment so looking at
  • 00:27:34
    all of these data points around this the
  • 00:27:36
    the um kind of the little chart here um
  • 00:27:39
    do these help me achieve the goals that
  • 00:27:41
    I set out so they'll take those expected
  • 00:27:43
    impressions and that media equivalency
  • 00:27:44
    value then they'll look at audience
  • 00:27:46
    overlap and fit um expected impact on
  • 00:27:48
    business asset allocation strength of IP
  • 00:27:50
    etc you can already see there's
  • 00:27:52
    significantly more metrics that are
  • 00:27:53
    going into this decision right than just
  • 00:27:56
    that media equivalency piece that drove
  • 00:27:58
    the pricing on the rights holder side
  • 00:28:01
    and no new information here but rights
  • 00:28:03
    holders really um consider this as a
  • 00:28:05
    part of their sales process but they
  • 00:28:07
    don't really consider this as an impact
  • 00:28:10
    on price there is no objective setting
  • 00:28:13
    price objectives are not necessarily
  • 00:28:15
    even considered in the price
  • 00:28:16
    specifically um so let's go back to this
  • 00:28:19
    kind of example from our $5,000 paycore
  • 00:28:22
    if you were a marketing manager would
  • 00:28:23
    you pay $5,000 for this exposure and
  • 00:28:26
    this is kind of the way that we would
  • 00:28:27
    think about it from a brand perspective
  • 00:28:28
    so if these are my um specific
  • 00:28:32
    objectives that I am trying to achieve
  • 00:28:33
    as a brand and I'm looking at that
  • 00:28:35
    $5,000 I want to deliver impressions
  • 00:28:37
    that are uniquely incremental i want to
  • 00:28:39
    drive preference and I want to make
  • 00:28:40
    those within Cincinnati more familiar
  • 00:28:42
    with my brand i would probably pay the
  • 00:28:44
    Bengals 5K for that specific signage
  • 00:28:47
    asset if these were my objectives as we
  • 00:28:49
    were kind of talking about earlier the
  • 00:28:51
    answer is probably no i would not pay
  • 00:28:53
    the Bengals $5,000 for that signage
  • 00:28:55
    asset if I want to secure a key contract
  • 00:28:57
    with somebody at Proctor or Gamble or if
  • 00:28:59
    I want to drive incremental volume on a
  • 00:29:01
    national level i could probably spend
  • 00:29:02
    that money either in other marketing
  • 00:29:04
    assets or within other assets within the
  • 00:29:06
    Cincinnati deal
  • 00:29:08
    specifically so we're just going to take
  • 00:29:10
    a pause for a question can anybody think
  • 00:29:12
    of a reason that this objective based
  • 00:29:15
    approach isn't used for the purposes of
  • 00:29:17
    pricing when it is clearly what brands
  • 00:29:19
    actually think about in terms of
  • 00:29:20
    assessing a deal
  • 00:29:24
    yeah go for it
  • 00:29:32
    yeah 100% and to be clear that's
  • 00:29:34
    normally how you would do that for sure
  • 00:29:36
    the very rudimentary example of looking
  • 00:29:38
    at the one $5,000 exposure we'd be
  • 00:29:40
    looking at it on the would I pay for
  • 00:29:42
    $300,000 worth of that signage right for
  • 00:29:44
    example but yes you would you would
  • 00:29:46
    definitely do that
  • 00:29:53
    yeah 100% it's hard to be honest
  • 00:29:57
    with you so how do you actually quantify
  • 00:29:59
    the price of the impact of the
  • 00:30:01
    sponsorship on an objective right how
  • 00:30:04
    many dollars does it take to actually
  • 00:30:05
    move the needle one percentage point on
  • 00:30:07
    consideration how much is that worth to
  • 00:30:09
    a brand it is it is really really hard
  • 00:30:11
    there's a couple of kind of other other
  • 00:30:13
    um examples here it's case specific
  • 00:30:16
    right every single brand is going to
  • 00:30:17
    have different objectives so designing a
  • 00:30:20
    pricing system as a as a rights holder
  • 00:30:22
    just adds to that level of difficulty a
  • 00:30:25
    lot um thirdly it's it's novel um
  • 00:30:27
    contractual value is is the pricing tool
  • 00:30:30
    that's commonly accepted it's easy to
  • 00:30:31
    compare across the industry when you
  • 00:30:33
    introduce a pricing system like this
  • 00:30:35
    it's just going to be met with
  • 00:30:36
    skepticism and increased scrutiny which
  • 00:30:38
    makes it harder to validate the pricing
  • 00:30:40
    with so respect to any rights holder
  • 00:30:42
    that figures this out for the first time
  • 00:30:44
    because that is going to be an uphill
  • 00:30:46
    journey but I I I fight for you guys
  • 00:30:48
    seriously because it would be it would
  • 00:30:50
    be a great change um and then finally
  • 00:30:52
    what we were kind of talking about
  • 00:30:53
    before is this idea of media equivalent
  • 00:30:55
    value is industry accepted across the
  • 00:30:57
    entire marketing industry it's not
  • 00:30:59
    necessarily just sports sponsorships
  • 00:31:01
    right but it gives you a very easy way
  • 00:31:03
    to compare your sponsorship package to a
  • 00:31:06
    TV commercial to a social media asset
  • 00:31:08
    and at the end of the day sports
  • 00:31:09
    sponsorships are competing with
  • 00:31:10
    marketing budgets okay that's always
  • 00:31:12
    what we got to think about is if you're
  • 00:31:13
    a brand you have a million dollars to
  • 00:31:15
    assign how much are you going to put
  • 00:31:16
    towards sports sponsorships versus
  • 00:31:18
    Facebook posts to creators to
  • 00:31:20
    entertainment partnerships etc etc etc
  • 00:31:24
    um on the measurement side of this as
  • 00:31:27
    well we're going to go on a little bit
  • 00:31:28
    of a journey on measurement return on
  • 00:31:30
    objectives also isn't perfect and this
  • 00:31:32
    adds additional difficulty to this
  • 00:31:34
    situation so brands and rights holders
  • 00:31:36
    alike typically use what are called
  • 00:31:37
    brand lift studies to kind of tease out
  • 00:31:39
    these these business um impact metrics
  • 00:31:42
    um but the process is actually fraught
  • 00:31:44
    with a ton of issues that we see
  • 00:31:46
    day-to-day on um on a typical basis so
  • 00:31:49
    data quality and inconsistency is is
  • 00:31:51
    really the first one and this happens
  • 00:31:53
    across all streams of data i'm sure play
  • 00:31:56
    player analytics deals with this as well
  • 00:31:58
    right but um data quality and
  • 00:32:00
    inconsistency is always just a just an
  • 00:32:02
    issue that we have to deal with um
  • 00:32:04
    online survey panels are generally used
  • 00:32:06
    for these brand list studies and they're
  • 00:32:08
    really useful but there are tons of
  • 00:32:10
    industry accepted pitfalls with using
  • 00:32:12
    them i'm not going to go into them here
  • 00:32:13
    you guys can can read about it there's
  • 00:32:15
    there's tons of them um but metric
  • 00:32:17
    inflation is really the one that we
  • 00:32:19
    struggle with the most um and what it
  • 00:32:21
    does is it creates additional complexity
  • 00:32:23
    when you're comparing data sets that
  • 00:32:24
    were sourced differently so this chart
  • 00:32:27
    on the right here is actually from some
  • 00:32:29
    work that we did but you can see that
  • 00:32:30
    this top line of I think it's Atletico
  • 00:32:32
    Madrid fans was from an online panel and
  • 00:32:35
    the two lines on the bottom were from
  • 00:32:38
    Tottenham fans and Red Bull Leipig fans
  • 00:32:40
    those were from a database okay these
  • 00:32:42
    partnerships all started at basically
  • 00:32:44
    the same time they have very very
  • 00:32:46
    similar assets there is no reason for us
  • 00:32:48
    to believe that Atletico Madrid is
  • 00:32:50
    outperforming the other two so
  • 00:32:52
    significantly just because it is a
  • 00:32:54
    Spanish football team for example right
  • 00:32:55
    we would probably assume that the other
  • 00:32:57
    two trend in a very similar direction
  • 00:32:59
    and then if you look at the usage data
  • 00:33:01
    points specifically that's where you
  • 00:33:02
    start to go okay is this is this really
  • 00:33:04
    serious they're outperforming by 17
  • 00:33:05
    percentage points or whatever it is that
  • 00:33:07
    is just crazy so we run into that issue
  • 00:33:10
    big time when it comes to data quality
  • 00:33:12
    on measuring return on objectives and
  • 00:33:15
    then similarly we have this uh
  • 00:33:17
    phenomenon at Wasman that we call the
  • 00:33:19
    feel-good fan effect and we see this
  • 00:33:21
    again mainly in online panels but fans
  • 00:33:23
    of sports teams are just they're happy
  • 00:33:25
    golucky people especially when they're
  • 00:33:27
    answering surveys about their favorite
  • 00:33:28
    team and what we see is that sports um
  • 00:33:31
    fans of those teams are generally
  • 00:33:32
    favorable more favorable to all brands
  • 00:33:35
    not just sponsors when you compare them
  • 00:33:36
    to non-fans and that makes comparisons
  • 00:33:38
    really hard so let's look at this chart
  • 00:33:40
    right here this data looks absolutely
  • 00:33:42
    amazing like there is a 30 percentage
  • 00:33:45
    point lift on sentiment brand
  • 00:33:47
    consideration intent to buy and intent
  • 00:33:49
    to sell for this specific sponsor that
  • 00:33:51
    would be like the dream chart to put in
  • 00:33:52
    a recap for as a rights holder for your
  • 00:33:55
    brands but when we contextualize the
  • 00:33:58
    data there is no lift in this
  • 00:34:01
    partnership right because when we look
  • 00:34:03
    at this competitor line they're just
  • 00:34:05
    these fans are just more favorable to
  • 00:34:07
    the competitor as well like they are to
  • 00:34:09
    the sponsor so once that's normalized
  • 00:34:11
    that is completely removed it's very sad
  • 00:34:14
    for the sponsoring
  • 00:34:15
    brand um the good thing is good analysis
  • 00:34:18
    can get around these issues um there's
  • 00:34:20
    plenty of other things that we can do as
  • 00:34:22
    well but to be honest most of the people
  • 00:34:24
    who are actually involved in the buying
  • 00:34:26
    and selling of partnerships don't
  • 00:34:27
    understand these nuances okay
  • 00:34:29
    partnerships are not the the handshaking
  • 00:34:31
    and the the negotiation is not done by
  • 00:34:34
    insights and analytics people is done
  • 00:34:35
    typically by partnership managers um
  • 00:34:38
    salespeople new business etc etc so they
  • 00:34:40
    don't understand these they take this
  • 00:34:42
    chart from two months ago and they put
  • 00:34:44
    it in a deck and it looks absolutely
  • 00:34:46
    awesome they ignore this chart right
  • 00:34:49
    because you don't want to put this into
  • 00:34:50
    a sales deck it's just not it's not
  • 00:34:53
    good um and that really takes us to I
  • 00:34:56
    would say kind of the crux of the
  • 00:34:57
    problem why would you want to right if
  • 00:35:00
    you're a rights holder and you're trying
  • 00:35:02
    to secure a sponsor renewal which chart
  • 00:35:04
    would you show in a recap deck i would
  • 00:35:06
    show the one on the left the data is
  • 00:35:08
    actually correct it's just completely
  • 00:35:09
    disingenuous right because it's not been
  • 00:35:11
    normalized against competitors but the
  • 00:35:14
    data is is is there you can use that
  • 00:35:16
    data it hasn't been gathered in a wrong
  • 00:35:17
    way it's just been contextualized very
  • 00:35:19
    very poorly and then even on the brand
  • 00:35:21
    side if you're a partnerships budget
  • 00:35:23
    owner at a brand and you're trying to
  • 00:35:25
    justify your budget for the year to keep
  • 00:35:27
    your job which chart would you circulate
  • 00:35:29
    internally again I would circulate the
  • 00:35:32
    one on the left i'm not going to
  • 00:35:32
    circulate the one on the right i mean I
  • 00:35:34
    wouldn't personally because I work in
  • 00:35:35
    insights and analytics but I can
  • 00:35:37
    understand a partnership marketing
  • 00:35:39
    person who would choose the one on the
  • 00:35:40
    left versus the one on the right and
  • 00:35:43
    what this basically leaves us with is a
  • 00:35:45
    super fragmented landscape on the value
  • 00:35:49
    of sports sponsorships and how it can
  • 00:35:51
    inform price so where do we actually go
  • 00:35:53
    from here there's three trends that I
  • 00:35:55
    think we're looking at that I would say
  • 00:35:58
    impact this relatively significantly and
  • 00:36:01
    hopefully represent the future of the
  • 00:36:02
    way that this price value kind of um
  • 00:36:05
    dynamic works the first is on ROI
  • 00:36:07
    attribution so if we take away
  • 00:36:09
    contractual value and we take away
  • 00:36:10
    return on objectives return on
  • 00:36:12
    investment so the ability to generate $2
  • 00:36:14
    on every dollar that you invest in the
  • 00:36:17
    in the deal that is an even playing
  • 00:36:19
    field if the methodology is consistent
  • 00:36:21
    okay um any partnership packages that
  • 00:36:23
    have been previously seen as underpriced
  • 00:36:24
    or undervalued would actually
  • 00:36:26
    theoretically deliver the highest ROI
  • 00:36:28
    and that just creates a more efficient
  • 00:36:30
    marketplace okay so that's one trend
  • 00:36:32
    we're seeing i think Jess actually for
  • 00:36:34
    anybody who went to um her panel
  • 00:36:35
    yesterday said she saw this as a trend
  • 00:36:37
    as well and we think it's becoming much
  • 00:36:39
    more common to this second point on the
  • 00:36:41
    brand side with these bespoke brand
  • 00:36:43
    models and marketing tools are evolving
  • 00:36:46
    marketers are getting more sophisticated
  • 00:36:48
    i think we're going to see more bespoke
  • 00:36:49
    evaluation and measurement tools on the
  • 00:36:51
    brand side specifically because they
  • 00:36:54
    have the money and the resources to
  • 00:36:55
    build them out that empower them to
  • 00:36:57
    evaluate deals based on their objectives
  • 00:37:00
    and their revenue systems etc um and
  • 00:37:03
    look at them from a brand business
  • 00:37:04
    impact perspective versus a value
  • 00:37:06
    perspective like we've been seeing now
  • 00:37:08
    and then finally an interesting thing
  • 00:37:10
    that we I think we saw in the social
  • 00:37:11
    ecosystem over the last 5 years is
  • 00:37:13
    social media has actually moved away
  • 00:37:15
    from the idea of efficiency um when you
  • 00:37:18
    go out and you strike a deal with a
  • 00:37:19
    creator typically that prices at like a
  • 00:37:22
    $100 CPM and a standard Facebook ad is
  • 00:37:25
    $4 the thing is is you're delivering
  • 00:37:27
    such outsized engagement that that
  • 00:37:30
    efficiency actually doesn't even matter
  • 00:37:31
    anymore i'm looking to effectively reach
  • 00:37:33
    a smaller audience that's more engaged
  • 00:37:35
    so not sure if this is going to lead to
  • 00:37:37
    actually a new pricing model in general
  • 00:37:40
    but um rights holders with highly
  • 00:37:42
    engaged followings are probably going to
  • 00:37:44
    find it an easy idea to just sell on
  • 00:37:47
    this effectiveness idea than on reach
  • 00:37:50
    specifically just because of that shift
  • 00:37:51
    in the social ecosystem so for those who
  • 00:37:55
    are you know early in the industry or
  • 00:37:57
    students here what can you guys actually
  • 00:37:59
    do to help and develop this system in
  • 00:38:01
    the future so I think there's there's
  • 00:38:03
    four kind of pieces of advice that I
  • 00:38:04
    would give you guys is understanding the
  • 00:38:06
    utility and the drawbacks of media
  • 00:38:08
    equivalency as a driver of contractual
  • 00:38:10
    value as we said it has its uses right
  • 00:38:13
    but using it as a primary driver for
  • 00:38:15
    pricing or assessing the price of a
  • 00:38:17
    package if you're on the brand side is
  • 00:38:19
    is kind of a trap and it's not
  • 00:38:20
    necessarily correlated to performance
  • 00:38:23
    the second is is focus on how a package
  • 00:38:25
    might impact a sponsor's business or
  • 00:38:27
    your own business if you're on the brand
  • 00:38:29
    side so impact and fandom data um is is
  • 00:38:31
    used a ton in sales pitches as we talked
  • 00:38:33
    about but it isn't really often used in
  • 00:38:35
    renewal conversations or added to
  • 00:38:37
    proposals i personally love
  • 00:38:39
    performance-based incentives in
  • 00:38:41
    contracts i think they're cool like for
  • 00:38:42
    every percentage point that you increase
  • 00:38:44
    consideration year-over-year that's an
  • 00:38:46
    extra $100,000 that the brand has to pay
  • 00:38:48
    you you could even if you're confident
  • 00:38:49
    as a rights holder you could start your
  • 00:38:50
    contract at zero and for every single
  • 00:38:52
    percentage point that you lift as long
  • 00:38:54
    as the data is has integrity um you
  • 00:38:57
    could you could move to a system like
  • 00:38:59
    that i think thirdly is just be a good
  • 00:39:01
    steward of data um storytelling around
  • 00:39:03
    impact of a sponsorship is only good if
  • 00:39:05
    you're a critic of the data um
  • 00:39:07
    performance that looks too good is often
  • 00:39:09
    met with skepticism i see this on on the
  • 00:39:11
    brand side all the time when you're a
  • 00:39:13
    rights holder and you're delivering 40
  • 00:39:15
    percentage point increases in brand
  • 00:39:16
    metrics they just don't believe it like
  • 00:39:19
    to be completely honest so you need some
  • 00:39:21
    really really good analysts talking to
  • 00:39:22
    that data point if you actually have
  • 00:39:23
    that data point because it is always met
  • 00:39:25
    with skepticism and then the final is is
  • 00:39:27
    push the envelope the industry is is
  • 00:39:29
    honestly stuck in this pricing and value
  • 00:39:31
    cycle right now as I said it's going to
  • 00:39:33
    take a very brave rights holder to go
  • 00:39:35
    out and actually try a new system to
  • 00:39:37
    move away from this so we need people to
  • 00:39:39
    be brave and move away from this on both
  • 00:39:42
    the brands and the rights holder
  • 00:39:45
    side
  • 00:39:47
    thanks any questions
  • 00:40:01
    hey on the um you said things are moving
  • 00:40:05
    towards ROI attribution can you talk
  • 00:40:06
    more tactically about how that works for
  • 00:40:08
    different type of assets so like how do
  • 00:40:10
    you are you actually measuring it for
  • 00:40:11
    something that really can only that
  • 00:40:14
    where media equivalency is like just
  • 00:40:15
    such a high it's just so easy to compare
  • 00:40:17
    it to something we don't look at it on
  • 00:40:18
    the asset level we look at it on the
  • 00:40:20
    contract/ partnership package level so
  • 00:40:23
    is your partnership with the Cincinnati
  • 00:40:25
    Bengals moving the needle on volume and
  • 00:40:27
    generating revenue off of the back of
  • 00:40:29
    that it's a sum of its parts approach
  • 00:40:31
    right signage is going to help with that
  • 00:40:33
    hospitality should help with that all of
  • 00:40:35
    the pieces should work together to
  • 00:40:37
    ultimately drive revenue back and it
  • 00:40:39
    goes back to constructing a package as
  • 00:40:41
    well right if you understand the brand's
  • 00:40:43
    objectives you should be able to put
  • 00:40:45
    together a package that is better at
  • 00:40:46
    generating revenue back so taking Payor
  • 00:40:49
    as an example if I was putting together
  • 00:40:50
    that deal I would have done a ton of
  • 00:40:52
    hospitality stuff i would have done
  • 00:40:54
    anything that could help me secure key
  • 00:40:55
    contracts with Fortune 500 companies in
  • 00:40:57
    the Cincinnati market that would drive
  • 00:40:59
    revenue right because that's the way
  • 00:41:01
    that it's going to meet those objectives
  • 00:41:03
    for the client
  • 00:41:07
    hi um great presentation i'm super
  • 00:41:10
    curious about the the valuation when it
  • 00:41:12
    comes to social media so um obviously in
  • 00:41:15
    today's day and age the virality of
  • 00:41:18
    things can are pretty unpredictable um
  • 00:41:21
    and I was curious if if that's a
  • 00:41:23
    consideration when one valuing but then
  • 00:41:27
    looking back and trying to train a model
  • 00:41:29
    on that and kind of the outliers behind
  • 00:41:32
    that i was curious about your thoughts
  • 00:41:33
    on that yeah it's a good question i
  • 00:41:35
    could talk about this for like hours
  • 00:41:37
    because social valuation methodology to
  • 00:41:39
    me is really is really interesting um
  • 00:41:41
    it's very hard to do it from a
  • 00:41:43
    predictive basis so what you're going to
  • 00:41:45
    see in most pre-artnership valuations is
  • 00:41:49
    that it is some kind of a ratio or model
  • 00:41:52
    that is based on expected engagement or
  • 00:41:54
    expected impressions over the course of
  • 00:41:56
    a season when we look back on it I can't
  • 00:41:58
    necessarily talk to how others do this
  • 00:42:00
    in the industry but when we look back on
  • 00:42:02
    it we actually take the engagements of
  • 00:42:04
    every single post and we measure on an
  • 00:42:06
    engagement basis instead of an
  • 00:42:08
    impression basis or what we try and do
  • 00:42:10
    is model the impressions based on the
  • 00:42:12
    engagements so what that would mean is
  • 00:42:14
    if you have a post that goes viral and
  • 00:42:16
    it has 10,000 engagements it's going to
  • 00:42:17
    be worth significantly more than a
  • 00:42:19
    run-of-the-mill post that has a thousand
  • 00:42:21
    but from a predictive pre-sale
  • 00:42:23
    environment perspective it's really hard
  • 00:42:25
    because you just don't know what's going
  • 00:42:27
    to go viral and what's not going to
  • 00:42:40
    thank you really appreciate your
  • 00:42:41
    presentation um kind of a similar
  • 00:42:43
    question on the social engagement piece
  • 00:42:46
    um especially as a lot of the platforms
  • 00:42:48
    change how they're tracking impressions
  • 00:42:51
    how from like a rightsholder perspective
  • 00:42:53
    would you be able to show conversion on
  • 00:42:55
    posts to brands or derive value on
  • 00:42:58
    actual like beyond the engagement level
  • 00:43:00
    but on actual like conversion for a
  • 00:43:03
    brand's uh deal on digital platforms
  • 00:43:06
    yeah it's it's hard um I would say the
  • 00:43:09
    step that I think that people should be
  • 00:43:11
    looking to take in the future is from a
  • 00:43:14
    rights holder perspective understanding
  • 00:43:16
    what the brand's objective is with the
  • 00:43:17
    social and then using that metric as the
  • 00:43:20
    way to value the post so right now
  • 00:43:22
    everything is valued on a CPM basis for
  • 00:43:24
    the most part if you are working with a
  • 00:43:26
    client who is a cost per lead or cost
  • 00:43:29
    per click person you really should be
  • 00:43:31
    looking at using that as the baseline
  • 00:43:33
    metric and then on the back end as a
  • 00:43:36
    rights holder you get all the access to
  • 00:43:38
    your social post that you post on your
  • 00:43:40
    page if you set it up as a clickbased
  • 00:43:42
    post you should be reporting back on a
  • 00:43:45
    cost per click value basis not on a cost
  • 00:43:47
    per impression basis that doesn't
  • 00:43:49
    necessarily happen right now because
  • 00:43:51
    again I just things have been done a
  • 00:43:53
    certain way for a long time and I think
  • 00:43:55
    people are a little scared to get out of
  • 00:43:57
    that because it works and it's the way
  • 00:43:58
    the rest of the industry does but the
  • 00:44:01
    tools exist right now to do that it is
  • 00:44:03
    just getting better about looking into
  • 00:44:05
    specific objectives and using the right
  • 00:44:07
    value point from that perspective
  • 00:44:17
    hey there question for you um when
  • 00:44:20
    you're talking about potentially
  • 00:44:21
    breaking into new markets or with new
  • 00:44:23
    strategies and things where maybe there
  • 00:44:25
    isn't a lot of data that you can
  • 00:44:26
    historically compare to then how do you
  • 00:44:29
    kind of pivot and figure out what the
  • 00:44:31
    valuation is when there isn't
  • 00:44:33
    necessarily the the data that you would
  • 00:44:35
    expect for more established uh POVs yeah
  • 00:44:39
    um it's very very difficult um if you
  • 00:44:43
    don't have any kind of benchmarks or
  • 00:44:45
    comps to work with we work with on on
  • 00:44:47
    venues like alternative venues a lot
  • 00:44:49
    that go with this you kind of just have
  • 00:44:51
    to go back to the media equivalency
  • 00:44:53
    process and think about it in the same
  • 00:44:55
    way right let's say that you are valuing
  • 00:44:57
    a theater okay cuz somebody wants to
  • 00:45:00
    sponsor the Rockets is a great example
  • 00:45:02
    there are still 50,000 people going
  • 00:45:05
    through that every couple of nights etc
  • 00:45:07
    you can still use a CPM basis
  • 00:45:09
    impressionbased basis to actually value
  • 00:45:12
    that workout i think the hard thing is
  • 00:45:14
    that it's a great question because what
  • 00:45:16
    the future of those valuations look like
  • 00:45:18
    is we probably we we want to get to a
  • 00:45:21
    point where we can model out the impact
  • 00:45:23
    on the business and right now that
  • 00:45:24
    doesn't exist at all in any capacity for
  • 00:45:27
    most partnerships so it's kind of a a
  • 00:45:30
    bad answer but you typically just have
  • 00:45:32
    to defer to what the industry standard
  • 00:45:34
    is right now because at the end of the
  • 00:45:36
    day the impression basis approach or the
  • 00:45:38
    media equivalency approach still works
  • 00:45:41
    from that perspective
  • 00:45:48
    appreciate you being here this was a
  • 00:45:49
    great presentation you mentioned pushing
  • 00:45:53
    the envelope on pricing models for
  • 00:45:56
    rights holders and sponsors what does
  • 00:45:59
    this potentially look like for you i was
  • 00:46:01
    trying to to think back here what that
  • 00:46:02
    look like is it a revenue sharing model
  • 00:46:05
    where we do well you do well with
  • 00:46:08
    nothing really guaranteed what does that
  • 00:46:11
    look like pushing the envelope i think
  • 00:46:14
    that is a is a great idea and super
  • 00:46:16
    novel and I really like it i am
  • 00:46:18
    personally I really like the
  • 00:46:19
    performance-based incentive side so
  • 00:46:22
    basically starting contracts and this
  • 00:46:24
    would be very very scary as a rights
  • 00:46:26
    holder but basically starting contracts
  • 00:46:28
    at zero and for every percentage point
  • 00:46:31
    that you move the needle on their
  • 00:46:32
    objectives adding multipliers to that
  • 00:46:35
    contractual value right and that could
  • 00:46:37
    be even back um back to your comment on
  • 00:46:39
    revenue specifically that could be based
  • 00:46:41
    off if this brand knows that one point
  • 00:46:43
    of consideration generates I don't know
  • 00:46:47
    $2 million of revenue for their business
  • 00:46:48
    in the US you could actually use that as
  • 00:46:51
    the underlying way to calculate that
  • 00:46:53
    value right we're not going to charge $2
  • 00:46:55
    million but there is something there on
  • 00:46:58
    the objective side the revenue
  • 00:46:59
    generation side etc etc that hasn't
  • 00:47:01
    really been factored in right now I
  • 00:47:03
    actually personally think that sports
  • 00:47:04
    sponsorships are super undervalued just
  • 00:47:06
    to be very very clear in this room
  • 00:47:09
    because they've been playing into this
  • 00:47:10
    idea of the paid media metrics instead
  • 00:47:13
    of the effectiveness metrics so I think
  • 00:47:15
    that if the the industry moved to yeah
  • 00:47:18
    revenue sharing model a
  • 00:47:20
    performance-based model something like
  • 00:47:21
    that I actually think that we would see
  • 00:47:23
    sponsorships massively inflate in price
  • 00:47:26
    from that perspective because I think
  • 00:47:27
    that their effectiveness is being
  • 00:47:28
    undersold right now by looking at it
  • 00:47:30
    from the contractual value
  • 00:47:34
    perspective from the perspective of a
  • 00:47:36
    rights holder how do you combat that ROI
  • 00:47:40
    kind of the positioning where you're
  • 00:47:41
    going to show one side of the data
  • 00:47:43
    that's not necessarily contextual when
  • 00:47:46
    you don't have that contextual data from
  • 00:47:48
    the brand saying hey this is how much
  • 00:47:50
    revenue we are generating from this
  • 00:47:51
    because from the property end you don't
  • 00:47:53
    always get that you don't that's that's
  • 00:47:55
    the problem honestly is like that that
  • 00:47:57
    is what is at the crux of this issue is
  • 00:47:59
    there is no it is very very difficult I
  • 00:48:03
    would actually say impossible to model
  • 00:48:05
    this data effectively without brand side
  • 00:48:07
    data and we get caught in traps all the
  • 00:48:10
    time trying to have to justify the price
  • 00:48:11
    because the media equivalency of value
  • 00:48:13
    is not there but we think we're having
  • 00:48:15
    an impact on the business we probably
  • 00:48:16
    know but data missing is at is a huge
  • 00:48:20
    piece that's at the crux of this problem
  • 00:48:22
    because we just don't have the ability
  • 00:48:23
    to validate it right now that's why I
  • 00:48:24
    would say is like rights holders need
  • 00:48:26
    their measurement tech stack i actually
  • 00:48:28
    think that they should be investing
  • 00:48:29
    heavier in their measure measurement
  • 00:48:30
    tech stack than they are right now
  • 00:48:32
    anything on ROI attribution etc is is a
  • 00:48:35
    huge one to close that but it is much
  • 00:48:37
    easier to justify a price in a
  • 00:48:39
    negotiation if you have a lower media
  • 00:48:41
    equivalency value delivered if you can
  • 00:48:43
    say that you increase purchase intent by
  • 00:48:45
    four percentage points so that is that
  • 00:48:47
    is not the solution but it is part of
  • 00:48:49
    the way there and it's the the numbers
  • 00:48:51
    together that help tell that story but
  • 00:48:53
    good
  • 00:48:56
    question yeah so you mentioned that a
  • 00:48:59
    brand should consider the value of the
  • 00:49:01
    partnership based off what their
  • 00:49:03
    objective is are there certain
  • 00:49:06
    objectives that you would say are easier
  • 00:49:08
    to measure the effectiveness of versus
  • 00:49:10
    certain ones where maybe you should just
  • 00:49:11
    just rule it out because you won't be
  • 00:49:12
    able to understand the possible impact
  • 00:49:15
    anything brand health is normally really
  • 00:49:18
    easy to be honest the the problem is not
  • 00:49:20
    necessarily to do with um uh the actual
  • 00:49:24
    gathering of the data or the things that
  • 00:49:25
    we went through before it's on the
  • 00:49:27
    analysis and the um scrutiny of the data
  • 00:49:31
    but AB testing or brand health uplift is
  • 00:49:34
    an industrywide accepted practice across
  • 00:49:37
    the entire marketing and media industry
  • 00:49:39
    and it's it's really funny if you go
  • 00:49:40
    into any kind of papers about marketing
  • 00:49:43
    effectiveness and marketing efficiency
  • 00:49:44
    all this kind of stuff every 3 years
  • 00:49:46
    they just come back to brand health
  • 00:49:48
    uplift being the gold standard of
  • 00:49:50
    measurement even though they kind of
  • 00:49:52
    tried to change it again and again so
  • 00:49:54
    that's the easiest being able to talk
  • 00:49:55
    about consideration intent uplift etc
  • 00:49:58
    etc is is normally a widely accepted
  • 00:50:01
    practice that you can always lean on in
  • 00:50:03
    that regard where you start to run into
  • 00:50:04
    issues is going back to the last
  • 00:50:06
    question is on when you start to look at
  • 00:50:08
    specific business metrics that's where
  • 00:50:10
    things get really really ky and if you
  • 00:50:12
    can't you don't have a client that wants
  • 00:50:13
    to a brand side client that wants to
  • 00:50:15
    work with you on that data it's
  • 00:50:17
    typically very very hard to ingest that
  • 00:50:19
    so that's why falling back on brand lift
  • 00:50:21
    is is generally good
  • 00:50:24
    for the performance-based model that
  • 00:50:26
    you're talking about how do you
  • 00:50:28
    attribute things like um you know
  • 00:50:30
    purchase intent consideration to your
  • 00:50:32
    specific sponsorship when a brand may
  • 00:50:34
    have multiple or be doing other things
  • 00:50:36
    like media based stuff as well so I
  • 00:50:39
    think it's different everybody in the
  • 00:50:41
    industry does it i wouldn't say
  • 00:50:42
    everybody in the industry does it
  • 00:50:43
    differently people in the industry do it
  • 00:50:45
    differently the way that we look at it
  • 00:50:47
    from a wasman perspective is based on
  • 00:50:49
    association for the most part so if you
  • 00:50:51
    can associate a brand with a partner we
  • 00:50:55
    assume that you have been impacted by
  • 00:50:57
    the partnership and we also assume those
  • 00:50:59
    who associate and those who don't
  • 00:51:00
    associate are served brands content at a
  • 00:51:03
    similar rate there is no reason to think
  • 00:51:05
    that just because this person has been
  • 00:51:07
    exposed to the IP of a partnership means
  • 00:51:09
    that they've been exposed to more
  • 00:51:10
    marketing content from Coca-Cola than
  • 00:51:12
    those who haven't right so that's how we
  • 00:51:14
    try to normalize it but there's no
  • 00:51:16
    perfect solution when it comes to that
  • 00:51:17
    you can't adjust for every single thing
  • 00:51:19
    that's going on in the market but
  • 00:51:20
    association feels the closest to us in
  • 00:51:23
    terms of removing everything we also use
  • 00:51:26
    lookalikes for association versus
  • 00:51:27
    nonassociation so you're eliminating
  • 00:51:29
    demographic bias psychographic bias
  • 00:51:31
    which could impact the ability for
  • 00:51:33
    somebody to see other marketing efforts
  • 00:51:43
    hey great stuff thank you for presenting
  • 00:51:45
    my question is have you seen any rights
  • 00:51:47
    holders or brands doing more unique
  • 00:51:50
    solutions when it comes to valuation
  • 00:51:52
    outside of just the standardized
  • 00:51:54
    approach yeah I think the big big brand
  • 00:51:58
    buyers right now are changing things
  • 00:52:01
    quite rapidly um we are working on
  • 00:52:05
    something for Coca-Cola right now and
  • 00:52:07
    they have basically built their own
  • 00:52:08
    evaluation system right they don't they
  • 00:52:11
    don't even use the typical hire an
  • 00:52:13
    agency to understand the media
  • 00:52:15
    equivalent return on the contractual
  • 00:52:16
    price they have their own tool that
  • 00:52:18
    they've built internally to evaluate
  • 00:52:20
    partnerships which is crazy um I
  • 00:52:23
    wouldn't be surprised if Proctor and
  • 00:52:24
    Gamble who is also a big buyer has been
  • 00:52:26
    doing that or something similar but
  • 00:52:27
    that's what I've seen on the brand side
  • 00:52:29
    for the most part i think that um the
  • 00:52:32
    rights holders on the women's side have
  • 00:52:34
    actually been the most innovative on it
  • 00:52:35
    because they've been forced to get
  • 00:52:37
    creative because they don't have the
  • 00:52:38
    contractual value to use
タグ
  • sports sponsorship
  • valuation
  • media equivalency
  • analytics
  • Cincinnati Bengals
  • Wasserman
  • sponsorship pricing
  • performance metrics
  • ROI attribution
  • brand objectives