Conxeo Financial Valuation Services

Is a new sponsorship opportunity being considered? Are you trying to determine if renewing a sponsorship deal is the right decision?

Before any final decision is made, calculating the real marketing value of the assets offered (print, digital, TV, radio, promotions, public relations, naming rights, etc.) is a vital step in understanding if the proposed deal is priced well or not.

Conxeo's financial valuation services allow for the rare, truly independent assessment of asset values in sponsorship proposals and agreements.

How?

  1. Unlike most other sponsorship valuation services, Conxeo valuation customers are primarily sponsors—not properties. Therefore, there is no organizational bias to overstate values based on property imperatives or market pricing claims.
  2. Values are based on the marketing value of each asset — not claimed market value.

    The market value is the last price someone paid for something, just like the prices of stocks and bonds. But unlike stocks and bonds, there is no sponsorship exchange that shows recent prices of assets transacted in deals.

    That’s why marketing value is so important. It reflects the value of each asset based on the benefits delivered — not what someone reportedly paid or (asked to pay) — as estimated and monetized by the best available information in each asset category.

Why is this distinction so important?

There are at least three categories of sponsorship assets (Signage, Display Space, and IP Rights) where CPM standards don’t exist and/or need to be rigorously adjusted based on a variety of factors affecting exposure and engagement potential.

The singular value of IP Rights (generally, sponsors promotional use of property name and logo) is particularly critical for two reasons:

  1. Sometimes it can be the largest valued asset in a proposal (depending on the property’s type, market location, calendar duration, legacy, and other factors).
  2. The isolation of IP Rights value allows for two things most other companies and methodologies do not enable.

    • A direct comparison between all other assets as valued by Conxeo versus the values estimated by subject-expert vendors (agency, media company, etc.) as stand-alone assets.
    • When IP Rights are added to the value of all other assets, a truer, more accurate understanding of any premium in proposal cost based on so-called market value.

Conxeo has valued well over 2,000 sponsorship agreements worth in excess of $750 million (and countless other proposals) since 2006 while working with customers like MasterCard, MillerCoors, Bank of America, General Motors, marketing agencies of all sizes, and many more. Customers have told us that they prefer our services over others due to our team’s professionalism, quick turnaround, unbiased methodology, aggregation of multi-discipline expertise under one roof, innovative methodologies for non-traditional assets and reasonable cost.

Whether you are considering negotiating a sponsorship, renewing one, or just need an independent perspective of your properties/portfolio please give us a call at 914-729-7232.