Sponsorship Terminology Glossary
Understanding sponsorship terminology and valuation metrics is essential for maximizing the value of your sports marketing partnerships. This comprehensive glossary defines key concepts used throughout the Valiyou platform, from CPM calculations and brand exposure metrics to sponsorship lifecycle management and data analytics. Whether you’re new to sponsorship valuation or an experienced professional, these definitions will help you navigate industry terms with confidence.Quick Navigation: Use Cmd+F (Mac) or Ctrl+F (Windows) to search for specific terms.
Sponsorship & Valuation Terms
Brand Awareness
The degree to which consumers recognize and remember a brand. A foundational metric in brand building, but not sufficient alone—awareness without differentiation rarely translates to pricing power. Levels:- Unaided Recall: Consumers remember brand without prompts
- Aided Recognition: Consumers recognize brand when shown
- Top-of-Mind: First brand recalled in a category
Brand Equity
The commercial value a brand adds to a product or service beyond its functional benefits. Built through recognition, loyalty, perceived quality, and emotional connections with customers. Components:- Brand Awareness: Recognition in the market
- Brand Loyalty: Repeat purchase behavior
- Perceived Quality: Reputation for excellence
- Brand Associations: Emotional connections and values
- Pricing Power: Ability to charge premiums
Brand Exposure
The visibility and attention a brand receives through sponsorship assets like logo placements, mentions, and activations. Measured in impressions, reach, and engagement across various channels (TV, digital, social media, physical presence). Example: A shirt sponsor’s logo appearing on screen during a televised match generates brand exposure measured in viewer impressions. Related: Valuation Methods, Create ValuationBrand Indicators
Multipliers that adjust sponsorship value based on the strength and relevance of your brand. Common indicators include:- Brand Strength: Recognition and reputation in the market
- Brand Relevance: Alignment with sponsor’s target audience
- Fan Engagement: Quality and activity level of your fanbase
- Digital Presence: Online reach and social media following
- Competitive Position: Standing relative to peers
Brand Lift Study
Research methodology measuring advertising campaign effectiveness by comparing survey responses from exposed vs. control groups. Commonly used by platforms like Meta, Google, YouTube, and TikTok to measure tactical campaign performance. Typical Metrics:- Upper Funnel: Ad recall, brand awareness, campaign awareness
- Middle Funnel: Message association, favorability, familiarity
- Lower Funnel: Purchase intent, recommendation likelihood, consideration
- Minimum Spend: €10k–€350k per study (platform-dependent)
- Minimum Reach: 2M–5.5M impressions required
- Turnaround: 10-15 business days per campaign
- Limitations: Snapshot measurement only, 3-5 questions maximum
Brand Loyalty
The tendency of customers to repeatedly choose a specific brand over competitors, driven by satisfaction, trust, and emotional connection. One of three key sources of pricing power. Levels:- Behavioral Loyalty: Repeat purchases driven by habit or convenience
- Attitudinal Loyalty: Emotional preference and advocacy
- Monopolistic Loyalty: High switching costs or lack of alternatives
- Lower customer acquisition costs
- Higher lifetime value
- More predictable revenue
- Resilience during market disruptions
CPM (Cost Per Mille)
Cost per thousand impressions. The standard advertising metric used to value media exposure. “Mille” is Latin for thousand. Formula:Total Cost = (Impressions / 1,000) * CPM
Example: 1 million TV viewers at €5 CPM = (1,000,000 / 1,000) * €5 = €5,000 in media value
Typical CPM Rates:
- TV broadcast: €3-15 (varies by region and time slot)
- Digital display: €2-10
- Social media: €5-20
- Print media: €10-30
COGS (Cost of Goods Sold)
The direct costs required to produce a product or service. The absolute floor for pricing—selling below COGS results in losses on every transaction. The Three Lines of Business:- COGS (floor): Cannot price below this without losing money
- Price (competition): Where most companies compete, often in “race to bottom”
- Perceived Value (differentiation): Where market leaders separate themselves through brand equity
COGS = Direct Materials + Direct Labor + Manufacturing Overhead
Related: Perceived Value, Pricing Power
Engagement Rate
The percentage of your audience that actively interacts with your content (likes, comments, shares, clicks) rather than passively viewing it. Formula:(Total Interactions / Total Reach) * 100%
Benchmarks:
- Instagram: 1-3% is average, 3-6% is good, 6%+ is excellent
- Facebook: 0.5-1% is average
- LinkedIn: 2-3% is average
- Twitter/X: 0.5-1% is average
Media Reach
The total number of unique people who potentially saw your content or sponsorship activation. Different from impressions, which counts total views (including repeat views by the same person). Example: A TV broadcast with 500,000 viewers = 500,000 reach. If shown twice, that’s 1 million impressions but still 500,000 reach (assuming same audience). Related: Valuation MethodsMeaningful Differentiation
How well a brand meets both emotional AND functional customer needs while standing distinctly apart from competitors. The single most important driver of pricing power. The 94% Rule: Research from Kantar’s BrandZ database reveals that 94% of pricing power is explained by meaningful differentiation—not just brand awareness or recognition. Components:- Functional Excellence: Superior product/service performance
- Emotional Connection: Values, storytelling, and brand associations
- Distinctiveness: Clear separation from competitors
- Consistency: Reliable delivery on brand promise
Market Dominance
Significant market share that signals strong customer preference and creates pricing power. One of three key sources of pricing power alongside product differentiation and brand loyalty. How Market Share Creates Pricing Power:- Customer Validation: High share proves widespread preference
- Network Effects: More users increase value (platforms, social networks)
- Distribution Advantage: Ubiquity makes brand the default choice
- Supplier Power: Volume enables better cost structures
- Competitive Moat: Market position deters new entrants
- Market Leader: 30%+ share typically
- Strong Position: 15-30% share
- Niche Player: Less than 15% share (can still have pricing power through differentiation)
Marketing Mix Modeling (MMM)
Statistical analysis technique that quantifies the impact of marketing activities on sales and business outcomes. Used to measure how advertising campaigns affect price tolerance and pricing power. What MMM Measures:- Price Elasticity Evolution: How campaigns reduce price sensitivity
- Channel Attribution: Which channels drive most value
- ROI by Activity: Return on investment for each marketing spend
- Optimal Budget Allocation: Where to invest for maximum impact
- Reducing price elasticity (customers less sensitive to increases)
- Building meaningful differentiation
- Creating pricing power over time
Sponsorship Lifecycle
The complete journey of a sponsor relationship from initial contact to renewal or termination:- Prospecting: Identifying potential sponsors
- Proposal: Presenting package and value proposition
- Negotiation: Discussing terms and pricing
- Activation: Delivering sponsorship assets
- Fulfillment: Providing contracted deliverables
- Reporting: Demonstrating value delivered
- Renewal: Extending or renegotiating contract
Valuation
The calculated monetary value of sponsorship assets based on objective metrics like sales revenue, media exposure (CPM), and brand strength. Valiyou uses transparent formulas to quantify what sponsors would pay for equivalent advertising exposure. Components:- Sales Value (merchandise, tickets, transfers)
- Media Value (TV, radio, print, digital)
- Brand Multiplier (strength, relevance, engagement)
Platform Features
API Key
A secure authentication token that allows external applications (Power BI, Excel, custom integrations) to access your Valiyou data programmatically via REST API. Security: API keys should be treated like passwords — never share publicly or commit to version control. Related: API ManagementAudit Log
A chronological record of all significant actions in your organization (user changes, data modifications, permission updates). Available on Enterprise plans for compliance and security monitoring. Retention: Logs are retained indefinitely and cannot be edited or deleted (immutable). Related: Audit LogOrganization
Your company, club, or team account in Valiyou. An organization can have multiple users with different roles and permissions. All data (valuations, sponsors, packages) belongs to the organization, not individual users. Related: Organization SettingsPackage
A bundled offering of sponsorship assets (logo placements, social media posts, VIP tickets, etc.) with assigned pricing. Packages are built from your asset inventory and sent to sponsors as proposals. Related: Packages, LibraryPerceived Value
The customer’s assessment of a product or service’s worth relative to alternatives. The gap between perceived value and price determines purchase decisions. The Three Lines of Business Framework:- COGS (floor): Absolute minimum price to avoid losses
- Price (competition): Where most companies compete
- Perceived Value (differentiation): Where market leaders separate themselves
Price Elasticity
The measurement of how demand responds to price changes. Low elasticity indicates strong pricing power—customers continue buying despite price increases. Formula:% Change in Demand / % Change in Price
Elasticity Levels:
- Inelastic (< 1): Demand barely changes with price (strong pricing power)
- Unit Elastic (= 1): Demand changes proportionally with price
- Elastic (> 1): Demand changes significantly with price (weak pricing power)
Price Premium
The percentage or amount above market average that a brand can charge due to superior perceived value, quality reputation, or emotional connection. Formula:((Your Price - Category Average Price) / Category Average Price) * 100%
Example: If category average is €50 and you charge €65, your price premium is 30%.
Research Finding: Brands with strong meaningful differentiation can charge 4 percentage points higher prices per pricing power point gained. This premium compounds—brands improving pricing power grow 67% in value over 4 years vs. 33% for brands that don’t.
Related: Pricing Power, Meaningful Differentiation, Brand Equity
Product Differentiation
Unique features, quality, or innovation that distinguish a product/service from competitors and reduce price sensitivity. One of three sources of pricing power. Types of Differentiation:- Functional: Superior performance, features, or quality
- Experiential: Better service, user experience, or convenience
- Innovation: First-mover advantage, proprietary technology
- Quality Perception: Reputation for excellence
- Apple: Design + ecosystem integration + brand prestige
- Tesla: Performance + sustainability + technology leadership
- Starbucks: Coffee quality + “third place” experience + personalization
Pricing Power
The ability to raise prices without losing customers to competitors. The ultimate proof of brand equity and the most direct link between branding and business outcomes. The 94% Rule: Pricing power is 94% explained by meaningful differentiation—how well you meet customer needs AND stand apart from competitors (Kantar BrandZ research). Sources of Pricing Power:- Product Differentiation: Unique features, quality, or innovation
- Brand Loyalty: Emotional bonds that reduce price sensitivity
- Market Dominance: Significant share signaling customer preference
- 4% premium per point: Each pricing power point gained enables 4 percentage points higher prices
- 67% value growth: Brands improving pricing power grow 67% in value vs. 33% for others (4-year study)
- Inflation resilience: Strong brands maintain prices during economic challenges without losing customers
- Price elasticity tracking (marketing mix modeling)
- Gross margin trend analysis
- Meaningful differentiation scores
Permissions
Granular access controls that determine what users can view and edit. Examples: View Sales, Edit Marketing, Admin, Reports, API, Billing. Principle of Least Privilege: Grant only the minimum permissions needed for each role. Related: Team ManagementPlugin
An optional add-on that extends Valiyou’s functionality. Examples:- AI Insights: AI-generated analysis of valuation trends
- Cash Flow Visualization: Sankey charts showing value flows
- SocialDeepDive: Social media metrics integration
Proposal
A formal sponsorship offer sent to a sponsor, containing package details, pricing, inclusions, and terms. Proposals can be approved, rejected, or modified by the sponsor. Related: ProposalsRLS (Row-Level Security)
Database security that ensures users only see data they have permission to access. Valiyou uses RLS to isolate organization data and enforce permissions. Related: Security Best PracticesSSO (Single Sign-On)
Enterprise authentication that allows users to log in with their company credentials (Azure AD, Okta, Google Workspace) instead of separate Valiyou passwords. Availability: Enterprise plan only Related: SSO SettingsMetrics & Analytics
Approval Rate
The percentage of proposals that sponsors accept. Formula:(Approved Proposals / Total Proposals Sent) * 100%
Benchmark: 20-30% is typical for cold outreach, 50-70% for warm leads
Related: Analytics
Coverage Percentage
How much of a package’s sales price is covered by the actual cost of included items. Formula:(Total Item Cost / Sales Price) * 100%
Example: Package sold for €10,000 with €7,000 in item costs = 70% coverage
Typical Range: 60-80% (allows margin for overhead and profit)
Related: Packages
Customer Acquisition Cost (CAC)
The total cost of acquiring a new customer, including marketing, sales, and onboarding expenses. Strong brand equity significantly reduces CAC. Formula:CAC = (Marketing Spend + Sales Spend) / New Customers Acquired
Brand Equity Impact: Companies with strong brands enjoy lower CAC because:
- Higher organic awareness reduces paid advertising needs
- Brand loyalty drives word-of-mouth referrals
- Pricing power enables higher margins to offset acquisition costs
- Market leadership attracts customers naturally
- B2B SaaS: €200-€1,000+
- E-commerce: €10-€50
- Enterprise: €5,000-€50,000+
Impressions
The total number of times content or brand exposure was displayed, regardless of whether it was clicked or engaged with. Includes repeat views by the same person. Example: 1 person viewing a social media post 3 times = 3 impressions, 1 reach Related: Valuation MethodsResponse Rate
The percentage of proposals that receive any response (approval, rejection, or request for more info) from sponsors. Formula:(Proposals with Response / Total Proposals Sent) * 100%
Benchmark: 40-60% is typical
Related: Proposals
Seat
A user license in your organization’s subscription plan. Each active user (except pending invitations) consumes one seat. Related: Billing, Team ManagementTrend Indicator
The percentage change in valuation compared to the previous approved valuation. Shows if sponsorship value is growing, declining, or stable. Example: Current valuation €100,000, previous €90,000 = +11% trend ↗ Related: DashboardBusiness & Sales Terms
Activation
The execution of sponsorship deliverables — physically displaying logos, creating content, hosting events, etc. The “doing” part of sponsorship after contracts are signed. Example: Installing sponsor banners at the stadium, posting sponsored content on social mediaB2B (Business-to-Business)
Commercial relationships between businesses (e.g., club selling sponsorships to companies) rather than to individual consumers.Fulfillment
Delivering all promised sponsorship assets and services per the contract. Includes tracking completion and providing proof of delivery. Related: ProposalsGross Margin
The percentage of revenue remaining after subtracting cost of goods sold (COGS). A key indicator of pricing power and business health. Formula:((Revenue - COGS) / Revenue) * 100%
Example: €100 revenue with €60 COGS = 40% gross margin
Pricing Power Indicator: Consistently expanding gross margins while raising prices signals robust pricing power. Brands with strong differentiation can:
- Command premium prices (increasing revenue)
- Maintain or improve margins despite cost increases
- Resist discounting pressure from competitors
- Luxury brands: 60-80%
- Software/SaaS: 70-90%
- Retail: 30-50%
- Commodities: 10-20%
Pipeline
The collection of prospective sponsors at various stages of the sales process. Managed in the Sponsorships module. Related: SponsorsRenewal Rate
The percentage of sponsors that renew their contracts for another term. Formula:(Renewed Sponsors / Total Expiring Contracts) * 100%
Benchmark: 70-80% is healthy, 85%+ is excellent
ROI (Return on Investment)
For sponsors: the value received compared to money invested. For clubs: the efficiency of sponsor acquisition and management efforts. Sponsor ROI Formula:(Value Delivered / Sponsorship Cost) * 100%
Related: Valuation Methods
Technical Terms
CSV (Comma-Separated Values)
A plain-text file format for exporting data that can be opened in Excel, Google Sheets, or other spreadsheet applications. Related: ReportsREST API
A web-based interface that allows external applications to read and write data programmatically using HTTP requests (GET, POST, PUT, DELETE). Related: API ManagementWebhook
An automated notification sent when specific events occur (e.g., proposal approved, user added). Future feature for advanced integrations.Frequently Asked Questions
What is the difference between impressions and reach in sponsorship valuation?
What is the difference between impressions and reach in sponsorship valuation?
Impressions count the total number of times content was displayed, including repeat views by the same person. For example, if one person sees your sponsored social media post three times, that counts as 3 impressions. Reach, on the other hand, measures unique viewers—so the same scenario would be counted as just 1 reach. In sponsorship valuation, both metrics are important: impressions help calculate total brand exposure using CPM rates, while reach shows the actual audience size you’re delivering to sponsors.
How do CPM rates affect sponsorship valuation calculations?
How do CPM rates affect sponsorship valuation calculations?
CPM (Cost Per Mille) is the cost per thousand impressions and serves as the foundation for
calculating media value in sponsorship valuations. Different media channels have different CPM
rates—TV broadcast typically ranges from €3-15, social media from €5-20, and print media from
€10-30. To calculate sponsorship value, multiply your total impressions by the appropriate CPM
rate for each channel. For example, 1 million TV impressions at €5 CPM equals €5,000 in media
value. Understanding CPM helps you accurately price sponsorship packages and demonstrate value to
potential sponsors.
What are brand indicators and how do they impact valuation?
What are brand indicators and how do they impact valuation?
Brand indicators are multipliers (typically ranging from 0.6x to 1.4x) that adjust your base
sponsorship value based on factors like brand strength, market relevance, fan engagement, digital
presence, and competitive position. For example, if your base valuation is €100,000 and your brand
indicators average 1.2x, your final valuation would be €120,000. These indicators recognize that
stronger, more relevant brands deliver higher value to sponsors because they have greater
influence, better audience engagement, and stronger market positioning.
How is engagement rate calculated for social media sponsorships?
How is engagement rate calculated for social media sponsorships?
What is the typical sponsorship lifecycle and how long does each stage take?
What is the typical sponsorship lifecycle and how long does each stage take?
The sponsorship lifecycle consists of seven stages: Prospecting (identifying potential sponsors),
Proposal (presenting packages), Negotiation (discussing terms), Activation (delivering initial
assets), Fulfillment (providing ongoing deliverables), Reporting (demonstrating value), and
Renewal (extending contracts). The timeline varies: prospecting can take weeks to months, proposal
and negotiation typically 2-6 weeks, activation happens at contract start, fulfillment continues
throughout the contract term (usually 1-3 years), reporting occurs quarterly or annually, and
renewal discussions begin 3-6 months before contract expiration.
How do I determine the right coverage percentage for my sponsorship packages?
How do I determine the right coverage percentage for my sponsorship packages?
Coverage percentage measures how much of your package’s sales price is covered by the actual cost
of included items. The typical range is 60-80%, which allows margin for overhead, profit, and
value-added services. For example, if you sell a package for €10,000, your included items (logo
placements, VIP tickets, social posts) should cost between €6,000-€8,000. Lower coverage (below
60%) may indicate overpricing, while higher coverage (above 80%) leaves little room for
operational costs. The sweet spot balances competitive pricing with sustainable business margins.
What's the difference between a sponsorship package and a proposal?
What's the difference between a sponsorship package and a proposal?
A sponsorship package is a pre-defined bundle of assets (logo placements, social media posts, VIP
tickets, etc.) with set pricing that you create in your inventory. Think of it as a product in
your catalog. A proposal is a formal offer you send to a specific sponsor that contains one or
more packages, along with customized details, pricing negotiations, terms, and conditions. You
might create 5-10 standard packages but send dozens of customized proposals to different sponsors
throughout the year.
How do audit logs help with compliance and security?
How do audit logs help with compliance and security?
Audit logs create an immutable, chronological record of every significant action in your
organization—user changes, data modifications, permission updates, login attempts, and more.
Available on Enterprise plans, these logs are essential for compliance requirements (GDPR, SOC 2),
security incident investigation, and accountability. Because logs cannot be edited or deleted,
they provide a trustworthy trail for internal audits, regulatory reviews, and forensic analysis.
Logs are retained indefinitely, ensuring you always have access to historical activity records.
What is the difference between a seat and a user permission in team management?
What is the difference between a seat and a user permission in team management?
A seat is a user license in your subscription plan—each active team member (except pending
invitations) consumes one seat that you pay for monthly or annually. Permissions, on the other
hand, determine what each user can access and edit within your organization (View Sales, Edit
Marketing, Admin, Reports, API, Billing). You might have 10 seats on your plan but assign
different permission levels to each user based on their role. Seats affect your billing, while
permissions affect security and data access control.
How can I improve my proposal approval rate and response rate?
How can I improve my proposal approval rate and response rate?
Approval rate (percentage of proposals accepted) and response rate (percentage receiving any reply) are key sales metrics. To improve them: 1) Research sponsors thoroughly to ensure alignment with your brand and audience, 2) Customize proposals to address each sponsor’s specific marketing goals, 3) Use data-driven valuations to justify pricing, 4) Include clear deliverables and timeline, 5) Follow up promptly but not excessively, 6) Focus on warm leads (50-70% approval) rather than cold outreach (20-30%), and 7) Use Valiyou’s analytics to identify which package types and pricing strategies perform best.