ROI strategy is a must

I read with interest the comments from the ROI Roundtable (Jan. 14-20). I would add that econometric modeling is another valid sponsorship ROI tool.

ROI strategy must address three key areas: (1) Impact on consumer perception related to key brand attributes and brand behavior, (2) the effectiveness of affinity transfer from the property to the brand, and (3) a direct impact on sales. The latter is certainly the infamous “holy grail,” and a measurement many clients feel is unachievable.

However, advanced statistical regression techniques enable isolation of sponsorship programs from both unrelated media programming, as well as environmental factors, and can deliver specific sales data related to the sponsorship.

Clearly, this technique is most effective when some level of media weight is behind the sponsorship program. But if clients are effectively activating their properties, a 360-degree marketing plan that includes media would be an appropriate approach. That said, econometric modeling can make sense in most, if not all, fully activated client sponsorships.

Thanks for delivering a focused discussion on such an important topic. Look forward to more coverage in the future.

Bill Glenn
Dallas

Glenn is vice president, strategic insights and analytics, at The Marketing Arm.