What is the Hookit Valuation Model?
Every sponsorship dollar spent should be measurable and comparable. To do that, you need a way to track each investment using a standard set of KPIs, especially value. That’s where the Hookit Valuation Model™ and Adjusted Ad Value (AAV) come in. The Hookit Valuation Model is based purely off engagement, never assumptive metrics like impressions. Fans have to like, comment on, or share branded content for value to accrue. Once you’ve got valuation for each of your portfolio investments, you can make decisions on which to keep, which to grow, and which to exit. That’s how smarter sponsorship decisions are made.
The Hookit Valuation Model (HVM) allows brands to get actual ROI from social media by putting a dollar value to social media content with brand promotion. The Hookit platform aggregates all posts that have a brand logo or text promotion. Each post is assigned a Maximum Ad Value (MAV) based on actual Cost per Engagement (CPE) market rates then scored on Promotion Quality to arrive at an Adjusted Ad Value (AAV). That’s a lot of acronyms, so we’ve explained it in simple terms below.
MAXIMUM AD VALUE (MAV)
Formula for MAV: Engagements X Cost Per Engagement
Cost for an ad on the platform to get the level of engagement in the post being measured. Assumes 100% creative control.
Cost per Engagement (CPE) values are specific to interaction type (like, comment, share, view) and platform. They are updated daily and derived by averaging auction costs, actual campaign costs, and 3rd party supplied costs.
Sourced from Ayzenberg Group
0 – 100% score based on quality of promotion
Visuals (logos, products) and text (@ mentions, # hashtags, keywords, links) are analyzed for brand promotion quality. This down weights max ad value.
Quality is scored on the factors shown to the right. A perfect ad would score a promotion quality of 100%. A post must have excellent visual AND text promotion to score a 100%.
Ready to EVOLVE Your Sponsorships?
“We are using the Hookit data to make smarter decisions about who to sponsor, what content to push, and when to push it in order to maximize the ROI of our sponsorship investments.”
Ryan Lauder, Director of Consumer Engagement, TaylorMade Golf Company
“Hookit has more than paid for itself, providing several key insights that have helped inform our Global Sports Marketing strategy.”
Ray Hilvert, VP Sports Marketing, New Balance
“As an agency, we underpin all strategy with data. Hookit is an essential resource for developing campaigns and measuring effectiveness.”
Paul McCormick, Senior Director, Genesco Sports Enterprises
“Vans uses Hookit to capture the true value of how social works for each of our athletes and events. For the first time, Vans can measure and prove ROI on our events and athletes on social media.”
Bobby Gascon, Dir. Global Marketing / Action Sports, Vans
THE STATE OF SPORTS MARKETING ON SOCIAL MEDIA The goal of Hookit’s 2021 Sponsorship Year In Review is to provide a benchmark for brands and properties in sports to understand how they measure up on social media, where sponsorship value comes from, and how it is being...
Key Takeaways from 2021 & Lessons for 2022 Watch Roger Breum, Hookit’s Head of Marketing & Sponsorship Insights, walk you through the social media reach & growth of the series over the past season, the sponsorship impact for brands and which brands saw the...
Sponsorship is a unique form of marketing. Unlike advertisements, sponsorships leverage an individual or organization and all of the attention they garner. Athletes, teams, and leagues drive exposure and value for a brand via their owned social channels, but they also...
Trusted by leading brands across industries
We work with brands and rights holders across all major sports and esports: