By Judith Mugeni,
July 4, 2016
The dictionary offers the following definition of an intangible benefit: Subjective benefits that cannot be measured in monetary terms (business dictionary). Really? Or is it a question of how do i turn those subjective elements into tangibles because they are important to this valuation?
So you have an amazing property/brand/offering/asset, you can probably put a rand /dollar value to the tangible elements (quantitatively), but what about the intangible elements? Fear not, you can add further monetary value to your property by accounting for both the tangible benefits and the “intangible” benefits, those elements that are “not definite or clear to the mind” (but should be very clear to you!)
The IEG valuation model, offers a way that a sponsorship property’s intangible benefits can be measured (by professionals) by looking at 10 elements. You would be doing your asset valuation a disservice by not looking at these elements.
At a very simplistic level, the model requires you to derive a multiplier by scoring your asset on each of the 10 elements out of 10 , 1 being low and 10 being high (try it, its worth the exercise):
- Prestige of Property: how meaningful/relevant is your property/offering/asset to its audience?
- Recognition / Awareness: how familiar is your targeted audiences with your property/your offering/asset?
- Category Exclusivity: can a sponsor/partner forge a unique relationship with the property /your offering that sets it apart from its competitors?
- Level of Audience Interest / Loyalty: what is the propensity of your audience to actively support sponsors/partners because of their link to the property/offering?
- Ability to Activate: how easy will it be be for the sponsor/partner to promote its association with the property/offering?
- Limited Degree of Sponsorship Clutter: how many companies /partners are competing for share of voice related to the property/offering?
- Non-ambushability of Property: how well will you limit opportunities for sponsor/partner competitors to claim an association with your property/offering?
- Network Opportunities: what is the value of cosponsors/partnerships and is there opportunity for a sponsor to work with them?
- Newsworthiness: what is the ability of the property/offering to attract print and broadcast coverage
- Established Track Record: how well have you worked with previous sponsors/partners?
This is at least a start as opposed to the thinking that there’s “no monetary value.”
Views expressed above are of my own, for further details please contact me on firstname.lastname@example.org