So, hello everyone. I'm Sneha and I'm a mathematician by trade.I have a lot of experience about 15 plus years of experience all in analytical consulting, where we develop a lot of insights from the data for people to harness and get a more valuable insights for uh and and to access their data better. So you can reach out to me on my shared linkedin details that I've already mentioned here. And you can also reach out to me on Sneaker dot dot go.com. So what is our topic today? We are going to discuss about the different solutions and the techniques that we have deployed. Borrowing in from the financial modeling, econometric modeling solutions and techniques to actually measure the true value of your sponsor sponsorship in sporting events. Why is it important for us to look at this kind of an investment? Did you guys realize that in year 2018, the sports sponsorship revenue was as high as about $66 billion growing at a rate of 7% which would be about $100 billion by 2025. Some of the major leagues uh actually coin uh or, or uh translate the sponsorship revenues in billions of dollars annually. And there are brands across all the industries that invest in such partnerships and sponsorships.

What do you realize when we are talking about the sports sponsorship and why are brands associating themselves with it? Basically, to shape their consumer attitudes, build brand awareness, generate media exposure, take on a more corporate citizen role and generate new leads and partnerships.

Hence, most of the value that we see being analyzed using a sports sponsorship is often translated or related to the tangible gains from such event partnership, which is only coming from viewership or more ipods. And therefore all the assets associated with sports sponsorship are related to their visibility and their amount increases as big and visible. Your grant logos would be would be the clarity of the logo there, it appears the entire jersey of the sportsman is a real estate and also the location that you pay for. Uh uh the prominence is of relevance there. The share of voice, whether you have it on a single frame or there are many logos together that are present there for you to share with the size of course matters and the time for which your logos will be available to that asset while the people are viewing a certain spot. But the bigger picture still remains, people are investing millions of dollars with such partnerships. Are these monies also giving you disproportionate gains from the company's overall valuation, shareholder value and net sales values. Yes, today we are going to talk about one such strong financial growth measurement model that enables to give the true return on investment and the entire framework to build such models and give you the value for of all the investments that you are doing in such sports sponsorships.

So what are we looking at? We definitely need to look at the tangibles, the viewership and the eyeball that each and every asset returns. We also look at the intangibles, the growth in the business value proposition. Moreover, we all realize that such partnerships are not short term, you invest your or or block your monies, commitment is for a few years, if not two or four or maybe 10. And therefore, we collectively look at all these returns to finally compute the association valuation in today's discussion, we are mostly going to talk about the second part of it wherein how do you construct and build such models? What are the returns that you can quantify?

Are they statistically viable and effectively, what is the return on investment that you are getting for such high value investments that one is getting into? What exactly are the intangible measures that we are going to talk about and how are we going to build it? So we are going to touch majorly three intangibles in this entire methodology and framework. First, the market capital returns. Second, the the revenue growth and last, the brand equity, we also understand that when we talk about these nuances or uh or the media uh sorry or the business measures, it is very important that one realize the, the sports where it is being played, that nation will have a very different viewership and response to a stock market of the impact on sales growth versus the non uh planes nations.

But still the sports is being viewed there. Therefore, the entire methodology will be broken down by uh playing nations versus the viewing nations. Weather sport is not that dominant. Let's talk about the first intangible measure that we have computed and built the entire methodology bottom up.

That is sw return valuation. We all understand that market valuation is highly volatile in nature. Therefore, it is and it is highly impacted by the market investors and the consumer sentiments. Therefore, we have deduced a methodology where we compute the abnormal returns. What are the abnormal returns, abnormal returns are computed with your actual market proposition or the market value predicted against the market adjusted returns, category adjusted returns and self adjusted returns. We also bring up a holistic composite score which can then be deduced to compute the incremental abnormal return that you could expect if you would have done or got involved in certain kind of a sponsorship event vis a vis it would not have returned if you would not have involved in such kind of a sponsorship event.

Moreover, the risk adjustment factors are also in incorporated to tackle the market dynamics or the disruptions in the market. So as to correctly quantify that value, as I've already mentioned, these impacts will be very different for a sport dominating nation versus in the viewing nations where the sport is not that highly dominated. And hence the entire methodology is split and done separately for each geography individually.

The second metric that we are going to analyze and reduce is the return on sales. How do you compute it? We have actually looked at the entire plethora of econometric modeling solutions where we build state based markets. So we look at each and every asset that you purchase or invest on while getting involved in such sponsorships and partnerships. And what are the direct and indirect impact in re resulting in a whatsoever incremental value of sales in a short term and a long term perspective by both sports dominating nations and non and rest of the nations proof is in the pudding. So let us take you through the entire methodology and art solution and outputs for one of the use days where we get this for a spot of cricket. The events analyzed were all the IC C International Cricket Council tournaments which are precisely your cricket World Cup, men and women from the period of 2016 to 2019. So we analyzed a complete period of four years including all the major World Cup events like T 20 World Cup, men and women, this championship series and under 19 World Cup, we looked into more than 200 plus assets and the different property rights that a brand could have involved or engaged in while taking such sponsorship on board.

Moreover, it is of utter importance to aggregate and measure the effectiveness of each of these assets by the partnership model to effectively let one understand what is the gain that they are getting as such nuances at the lowest level. So yes, the first as we talked about measure the tangible, which is the easiest bit because there you are looking at the reach impressions, audience exposure on air time and the size location and the platform of the asset available to compute this metric. Most of the uh sponsorships and the sport events make this available for you and also value their asset proposition accordingly. But in today's discussion, let us look at how can we compute using the different techniques that I have already mentioned to actually measure the impact of such sponsorship on your stock returns if you are a listed company. So we look at an ensemble highly complex model where you look at ordinary lease for regression models where you model the normal return of asset out of time. So you look at the predictive score of market adjustment category adjustment and self ajus returns, which would have been your red curve.

But the brand is actually operating at the blue curve So all the abnormal return that you see, the deficit is basically attribute can be attributed to the event or the news or the market factors that we might have expected as an incremental. Then you also do a hypothesis test which is an entire statistical solution uh where you check for the significance of these returns to be applicable and could be credited to that specific event at that point in time and hence compute the overall return on investment from such investments.

So as we have already mentioned, you look at it from an exhaustive perspective and you also uh check for all the macro and microeconomic parameters like inflation policies. GDP S for the competition of yourself for the entire stock market moving on the sales analysis. So for the entire uh brand sales, you would differentiate it by the different geographies, the sport domination, geography versus the non sport, dominating geography and build an entire econometric modeling solutions where you take the concepts of confirmatory factor analysis, hierarchical models where you build the latent constructs and eventually able to align and allocate the attribute for every 200 plus asset on which you are investing to measure that its impact in driving whatsoever contribution in sales for that period.

And long term, we were able to actually simulate more than more than 3000 plus constructs for each and every individual asset to eventually contribute and identify their direct impact and indirect impact through synergies. Taken together. So you have multiple models coming from different domains of industry, like the financial models, the econometric models, the predictive models, the structural equation models, wherein you bring in the input parameters, all the tangible measures, the viewership coming from all your different assets, all the macro and microeconomic factors, the news feeds the trends, et cetera, build it all together and eventually try to understand the impact of abnormal returns in your uh market capital and the incremental impact of every asset by event on your sales returns.

Eventually we were actually able to then quantify the value for every brand associated in any of such partnership, buy every event and quantify the value that they would have got as annualized stock returns and their sales value. The name is anonymized but here, what you see is the impact for World Cup 2019 IC C World Cup 2019 men match uh brand sponsorship. And what was the return they got was $20 million as annualized stock return and $7 million as their overall sales return. Moreover, what we are trying to look at is such methodology. Taking it down. Could help you identify the value of the returns that you can get by each and every individual event. You are not only trying to do it at an overall level, but you can quantify the impact of uh of different events depending upon their reach, their uh following followership and their uh acceptance with the audience. So Men World Cup 2019 obviously hire viewership to expect higher return.

But how high will that return be as compared to the other events in the entire four year period? So for this brand fight that we had analyzed the entire four year period could actually be quantified to $48 million return in stocks and $17 million returns in sales uplift. As we have told you, this entire methodology will enable you to take it to the lowest grain and eventually help you identify which partnership model should one go for as you can then quantify the return on investment by each partnership model. But uh also what you can look at is that the different assets that you purchase is the sheer viewership or the eyeball that it can capture is the value that they put, that you buy those assets for. But those assets by the different partnership model have a very different return on investment. For example, we were able to differentiate it distinctly the out of venue branding, which was able to have a much higher impact in category partnership as compared to the global and official partnerships where the property specific rights had higher proportion and higher returns.

Therefore, all we suggest is that there are a lot of different solutions and domains in the market where you can pull in different solutions. Build an entire ensemble modeling technique tested through statistical regress regressions to check whether such nuances are applicable and acceptable for you to take it forward. And eventually you can quantify the impact of even as vague or as uh predominance of a sponsorship that people usually go in for just to increase the brand awareness can also be translated for you to measure the exact value from shareholders point of view, investor's point of view and market capital point of view.

So hopes this session will help you identify and make your strategy much more uh data driven and quantifiable for each and every dollar that you are spending through such high investment channels like sport, uh like sports and uh and sponsorships. So that's all what we have for today.

I am open for questions, please uh type in your questions here and we can take a couple of uh minutes to discuss that. Meanwhile, I'll also introduce uh who we are and why are we so excited and passionate about such uh solutions and such methodologies as because uh this is a team of highly engaged data scientists, we leverage different concepts from different uh domains. And we try to l see that how we can borrow ensemble uh measure even with the technology and the space that is available to us. We can actually see that a lot of things can be uh can be used in today's world and, and you can simulate those millions of possibilities to, to converge your outputs and solutions. So, pretty much that's who you are start exploring more domains uh leverage the outputs and the strategies that other predominance uh teams are using and see how you can take it to quantify your solutions going forward. Thank you. Uh Hope this was an informative session for all of you. You can reach out to me on my linkedin account and also uh sharing it here and also you can reach out to me at Smith dot Gupta at WM global.com.

So it was nice interacting with each one of you. Hope you all are uh staying safe and uh hope we all can recover fast from this uh crisis situation that is prolonging in the entire world. So, thank you very much. I'll log off here then. OK, there is a question here, how it affects the profits of the company. Of course, this is how you are developing a methodology where you are investing about millions of dollars and yet you are not able to quantify the impact that it is coming back. So as in the use case that we had shown the investments that the organization was making, they were eventually able to translate it to about $48 million as an annualized return with the fouryear Association from Stock markets and uh 20 another $20 million in sales. So effectively with the, with the investment that they had made, they were actually able to translate it back to about $60 million back. And then you can start looking at the profit and the because the cost you already know whatever incremental returns you are getting can be at attributed to this cost that now is uh is quantifiable which earlier was not and not many people had any way of doing it going forward.

So a very good question. Thank you. OK, thank you very much and uh hope to connect with you all in the near future. Have a good time in this conference. Bye.