Invented by career valuation analysts, our learning algorithm adapts the data science behind artificial intelligence for the sponsorship industry. Since the beginning, sponsorship professionals have struggled to value the intangible, or qualitative, aspects of a sponsorship deal. Not anymore.

Introducing BRAiN^TM, the next generation of sponsorship valuation.

HOW IT WORKS

BRAiN^TMwas designed to replicate how a valuation analyst thinks about sponsorship. Based on years of industry experience, QUANT distilled the qualitative functions of sponsorship into simple coefficients, or mathematical variables, that represent the key factors of the decision-making process. This allows the BRAiN^TMalgorithm to quickly measure qualitative value above and beyond the hard advertising costs that correspond to physical assets (e.g., signage), broadcast exposure, social engagement and other quantitative benefits.

FAIR MARKET VALUE vs. true sponsorship value

Sponsorship is a cousin to traditional advertising. In fact, corporate sponsorship became a popular alternative for companies to align their brands with prestigious television programs when sponsored content was relegated to 30-second ads during the 1960s.

For this reason, it is important for sponsorship sellers to have a strong understanding of the Fair Market Value of marketing benefits that are included in a package. Each one has its equivalent in advertising. Thankfully, advertising rates for broadcast and other media are not only regularly measured, but publicly available.

However, identifying a package's Fair Market Value, or its advertising equivalency, is only the first piece of the puzzle. Sponsorship can provide additional value above and beyond hard advertising costs. But it can also add risk. The BRAiN algorithm helps buyers and sellers identify the true sponsorship value of their opportunities versus advertising value.

qualitative INPUtS > measurable outcomes

Some industry experts still claim that sponsorship is always more valuable than advertising. However, sponsors relinquish full control over the message in exchange for association with the messenger. In theory, this association should provide more value than an advertisement, but not always. When millions of dollars are at stake, this can be a risky gamble.

The BRAiN^TM algorithm converts qualitative inputs into empirical value, using several categories of coefficients that influence sponsorship decision-making. Using our analysis, properties and sponsors can determine how much a package of sponsorship benefits is actually worth in today's marketplace, which may be greater than, less than or equal to a comparable package of advertising benefits.

FORECASTING FUTURE VALUE

Coefficients are an important function of the BRAiN^TMalgorithm. By design, their values will change over time. QUANT uses various industry metrics, including our proprietary Sponsorship Pricing Index (SPI)^TM, to compare and predict how a market basket of consumer goods, media assets and sponsorship benefits will escalate over the term of an agreement.

For example, professional sports Naming Rights agreements range between 15 and 25 years, on average. A lot can happen in 25 years. Dynasties come and go. Physical assets depreciate. Costs of living and market populations change. Reputations could be damaged and repaired.

Together with the SPI^TM, the BRAiN^TMalgorithm can forecast with certainty how changes to the above factors and more will directly impact the annual value of each opportunity over time.

MORE DATA = BETTER DATA

Compared to other valuation methodologies that only claim to measure qualitative or intangible value, the BRAiN algorithm allows buyers and sellers to make informed decisions based on real, measurable data, instead of emotion, conjecture, or simply bad science.