Sponsorship Pricing Index^TM

Market coefficients play a key role in our learning algorithm, and their values must evolve to reflect changing times. QUANT invented the Sponsorship Pricing Index^TM (SPI), similar to a stock index, that can accurately predict future sponsorship value based on market performance. The SPI is the first and only index of its kind.

ELIMINATES GUESSWORK

Over the years, numerous industry scholars bemoaned a lack of available historical data and reliable measurement tools.

This led to a dependence on industry-related agency reports, published sale prices and short-term trends, not to mention guesswork.

For this reason, “fair market value” as currently defined by most sponsorship agencies is inaccurate, because all of those metrics are pressured by buyers, sellers or their agencies.

MEASURES REAL GROWTH

The term “exponential” is almost always used by experts when describing sponsorship industry growth.

Based on our Sponsorship Pricing Index, there were definitely periods of exponential growth, especially during the early 1980s and 90s.

But the overall trend is linear.

Corporate sponsorship spending has just grown at a faster rate than other sectors.

ALLOWS DATA TO DRIVE

For salespeople on the front lines, value is often determined by what something sells or can sell for on the market.

The entire industry seems to be caught in a feedback loop, as if the next sale always has to equal, or be greater than, the last sale.

When compensation is based on commission, this type of thinking is understandable. But this is also partly to blame for sponsorship’s rapid, unchecked growth and many failures.

THE SPI^TMCREATES TRANSPARENCY AND CONTEXT

The SPIforecasts fluctuations in future sponsorship value based on past macroeconomic, industry-related and other disruptions—such as the introduction of new media, pandemics or recessions—which have transpired since a specific period in history when corporate sponsorship, as we currently define it, emerged. Our strategic vision is to make the SPI readily accessible to the general public. Until then, QUANT identifies SPI for sponsorship packages on a project-by-project basis for our clients.

WHY IS THE SPI^TMIMPORTANT?

For those new to sponsorship, finding new streams of revenue is paramount. Our clients can use the SPI to compare new opportunities to what similar packages should be worth in the market based on current and future performance.

For experts and experienced buyers or sellers, the SPI offers a new perspective on data that, until now, has never been collated and made public.

Overall, we believe the sponsorship industry needs the SPI to make real-time assessments of value for money, however that value is defined, especially as it shifts toward long-term, strategic investments.

But more importantly, despite billions upon billions spent annually on corporate sponsorship around the world, we believe there is money being left on the negotiating table, or being spent in the wrong places.

With greater transparency, we hope to change that.