Synergy Launches New Valuation Tool - Synergy Decisions

Synergy has developed a tool which it says will help brands value sponsorships in the same way that companies and other assets are valued. Sponsorship impacts business revenue and costs, so should therefore be treated as any other financial asset, rather than just marketing activity, or as a communications channel.

The tool, Synergy Decisions, aims to help brands enhance their understanding of how much value sponsorship creates for their business.  

The key features of the tool include:

 ·         Acknowledging that sponsorship value is completely dependent on who the sponsor is and how they activate

·         Capturing the flexibility of sponsorship and the wide variety of ways it can create value

·         Using value-based measurements rather than traditional cost-based metrics like Advertising Value Equivalency (how much it would cost to generate the same level of exposure through advertising)

·         Expressing outputs in terms of pounds and pence (or dollars and cents), which is the language of the boardroom, to allow the comparison of sponsorship against other investment opportunities

·         Understanding where, why and how value is created is more useful than simply estimating a single monetary value.

The consultancy has spent the past year in beta testing where it has helped four different brands make significant investment and resource allocation decisions.