April 2008 Marketwatch: Measuring the ROI of sponsored events By Heather Kirkwood
Sponsored events have a return on investment that goes beyond traditional ROI measures, thanks to the nature of wordof- mouth marketing, according to The Viral Impact of Events, an EMI Strategic Insights Report by the Event Marketing Institute. As a result, event producers that have a plan to make the most of this phenomenon will get the greatest return on their investment.
For purposes of this study, “events” includes a broad range from company sponsored events and parties to sporting events, fairs or concerts. The principles remain the same, however, and can be useful to show organizers for proving the value of sponsored events.
According to the report, 98 percent of attendees that have a positive experience at an event tell others about the experience; more than half of those tell four or more people. At the same time, 95 percent will tell others if they have a negative experience, and 62 percent of those will tell more than four people.
Ninety percent of people attend an event with someone else, 20 percent with a group of five or more people. While these tagalongs might not be the targeted customer, they are frequently decision influencers.
Sixty-three percent of attendees at events could recall the name of the company that sponsored the event. Ninety-three percent gave permission to be sent coupons or special offers, and 92 percent were generally willing to give feedback if it was tied to an incentive. Not only will 27 percent of attendees consider switching brands after a positive experience at an event, but also their recommendations can sway colleagues and friends.
Heather Kirkwood is Senior Editor of EXPO. She can be reached at 913-344-1376, or e-mail: hkirkwood@red7media.com. Measuring Viral Impact If 55 percent of those who have a positive experience at a special event tell four or more people, what’s the impact on ROI?
• Company X spends $100,000 to sponsor an event that reaches 1,000 people. They might calculate their investment at $100 a person. • Company Y spends the same $100,000 to sponsor an event that reaches 1,000 people. But if they factor in the word-of-mouth marketing, they will calculate that they spent $100,000 to reach 5,000 people (the 1,000 attendees and four friends each) at a per-person cost of $20.
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