From Formula 1 to ROI calculation formula

Mastervolt - Volvo Ocean Race ROI calculation

Question

An ROI (Return On Investment) report for the complete event from start to finish, including a detailed calculation of the social media returns. 

Process

We often adapt our calculation models to specific requests from clients. This time too. As well as the usual components – sales, promotion, relationship management and efficiency – we built in our first-ever customized tool for calculating the value of social media and banners on volvooceanrace.com.

Effect

The report showed that the completed action had generated sufficient returns to justify a follow-up.

Mastervolt designs and implements autonomous power solutions such as the systems used on board ambulances and boats. One very special category comprises the yachts of the VOLVO Ocean Race. It’s a big honour to be commissioned to fit out the entire fleet – the rules prescribe that every ship must be identically equipped – with Mastervolt’s superior systems.

The budgets for sponsoring this event are huge, because the exposure is truly enormous. It put ABN Amro on the worldwide map, to mention but one example. Mastervolt is not a sponsor, but acts as a supplier of vital components. This creates opportunities to organize meetings – within tight guidelines – with clients during the stop-overs and to deploy communication tools such as web banners. But do the benefits justify the costs?

Mastervolt put this question to Beewan, which developed a customized ROI report for this purpose. Based on this report, the company was able to make a well-informed decision about new investments for the next edition. The usual calculation pillars for commercial value, promotional value, client relationship value and cost savings were expanded with a module for online media returns. Fortunately, the outcome confirmed the company’s positive hunch that the benefits were indeed well worth the effort. This was not only reassuring, but also promising for the future. And last but not least: the outcomes, conclusions and recommendations in the report showed how the effectiveness could be further improved next time around.

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