Gemba, a company which provides insight, strategy and communications services to the sport and entertainment industry, has launched a new platform called Turnstile to aid more effective sponsorship valuation.
In an attempt to change the approach to valuing sponsorships, Turnstile will provide both buyers and sellers with the ability to recognise the physical assets and intellectual property of their sponsorships. The platform’s holistic approach will alert its users to the benefits of any potential partnership, the exposure that partnership will bring and predicted levels of fan engagement.
Gemba says that Turnstile has been in development for more than two years, with the company carrying out extensive testing with various international brands and rights holders, including global motorsport series Formula One, before putting the new platform on the market.
For the final stage of its development, Turnstile was piloted with Formula One in accordance with new owner Liberty Media’s desire to reframe the championship’s approach to valuing its sponsorship assets.
“The global sponsorship industry is a US$62 billion market, yet there has never been an effective valuation approach to help buyers and sellers assess the appropriate price for a sponsorship,” explained Gemba chief executive and director Rob Mills. “The industry does not need more media equivalencies - it needs a robust approach to pricing using actual market benchmarks.
“Turnstile provides a massive step-change in measuring the pricing of sponsorship properties and a new-found granularity in breaking down the areas of value within a sponsorship. In addition to mass media and digital channels, the valuation methodology also encompasses the emerging esports sector. Our recent work with Formula One was a great demonstration of the ability of Turnstile to capture all these channels in the valuation,”
“When Gemba showed us the concept for Turnstile it immediately struck a chord with the way we want to shape the conversation with our commercial partners and teams moving forward,” added Murray Barnett, head of global sponsorships and commercial partnerships for Formula One. “Turnstile is allowing us to clearly demonstrate the real value of an association with Formula One, whilst also helping us identify new opportunities to grow our commercial programme.”