Sponsorship ROI Calculator

How to use this sponsorship ROI calculator

To calculate your sponsorship ROI, enter the following information:

• Direct Sales: The revenue generated directly from the sponsorship.

• Value of Leads Generated: The estimated value of leads gained through the sponsorship.

• Media Exposure: The value of media exposure (e.g., media mentions, social shares, etc.).

• Brand Awareness Value: The estimated impact of the sponsorship on brand visibility.

• Sponsorship Fee: The total amount paid for the sponsorship.

• Activation Costs: Any additional costs incurred to activate the sponsorship (e.g., promotional materials, event activations).

The calculator will instantly calculate your sponsorship ROI based on these inputs.

Sponsorship ROI formula

Sponsorship ROI = (Revenue Generated - Sponsorship Costs) / Sponsorship Costs x 100

Here,

Revenue Generated = Direct Sales + Value of Leads Generated + Media Exposure + Brand Awareness Value

Sponsorship Costs = Sponsorship Fee + Activation Costs

Understanding the sponsorship ROI result

The ideal sponsorship ROI will depend on your targets, the nature of your sponsorship, your industry, etc. Generally,

• A high sponsorship ROI indicates that your sponsorship will generate/ has generated more value (in terms of sales, leads, media exposure, etc.) than it costs, making it a worthwhile investment.
• A low sponsorship ROI indicates that you need to optimize your sponsorship expenditure as it is not delivering the expected returns. A negative ROI indicates a loss, signaling a need for immediate reassessment.

When to calculate sponsorship ROI

• After major sponsored events or campaigns

• Annually, to evaluate the cumulative effect of all sponsorships on the brand

• When deciding on sponsorship renewals or expansions

• After the introduction of a new product or service tied to a sponsorship

How to calculate sponsorship ROI (with example)

Imagine that you have the following data regarding an event sponsored by you

• Direct Sales: $100,000

• Value of Leads Generated: $40,000

• Media Exposure: $25,000

• Brand Awareness Value: $30,000

• Sponsorship Fee: $50,000

• Activation Costs: $20,000

You can calculate your sponsorship ROI as follows:

Sponsorship ROI = (Revenue Generated - Sponsorship Costs) / Sponsorship Costs x 100

Revenue Generated = 100,000 + 40,000 + 25,000 + 30,000 = $95,000

Sponsorship Costs = 50,000 + 20,000 = $70,000

Sponsorship ROI = (195,000 - 70,000) / 70,000 x 100 = 171 %

The above example indicates that your sponsorship has returned 171% on your initial investment.

How to improve your sponsorship ROI

• Ensure alignment between sponsorship and target audience to maximize conversion rates

• Incorporate digital activations such as social media engagement or interactive features

• Negotiate better sponsorship packages that offer more exposure or benefits at lower costs

• Monitor and measure media exposure and engagement to increase the brand's visibility

• Create engaging post-sponsorship content that highlights your involvement and boosts awareness

• Introduce lead capture mechanisms at sponsored events to improve lead generation

• Evaluate the brand lift periodically to adjust future sponsorship strategies