Benefits Of Sponsorship Deals In Sports

Global sponsorship spending in 2016 exceeded $60 billion, according to Crimson Hexagon. In North America, 70% of the sponsorship budget was spent on sports. In the case of Red Bull, a major sports sponsor, we can observe the influence of this type of funding.

In 2006, Red Bull purchased the Metrostars, a Major League Soccer team, & renamed it “The New York Red Bulls”.

Until recently, soccer in the United States lacked a following comparable to other major sports like the NFL and MLB, but Red Bull has seen a rise in popularity amongst some of the 18 to 29-year-old population, a vital demographic for the company. In fact, Red Bull usage among soccer fans is 63% higher than other energy drinks.

Sports sponsorships & targeted advertising in stadiums can have a tremendous impact on specific firms. A few of the advantages are as follows:

1. Great marketing exposure in live sports

For obvious reasons, sporting events of all kinds are hugely popular around the world and draw significant media coverage. This is largely because they include both cooperation and competition. When a competition is on the horizon, fans get together to show their allegiance to their chosen side. Premier League games are watched by 4.7 billion people throughout the world, according to Brandwatch’s data.

For brands, sports sponsorship is a viable investment because of the large audience it will reach, which results in a high return on investment. Soccer isn’t the only sport that’s being affected. Sponsorship opportunities abound in extreme sports like surfing, skating, and snowboarding.

2. Sponsorship monitoring facilitates easy tracking

In order to get a clear picture of the impact of your sponsorships, you need to know which of your investments are turning into powerful images and videos. In order to determine where their future investments should go, brands can benefit greatly from sponsorship monitoring.

When it comes to finding and predicting which social media personalities a brand might sponsor in the future, tracking user interaction is essential.

Brands require some kind of sponsorship tracking or analytics to stay up with the massive amounts of image and video content being shared and posted via social media. As follow-up and assistance become more reliant on data and tracking, the need for proof of return on investment (ROI) is also rising, according to Nielsen.

3. Sports and social media go hand in hand

Snippets of sporting events are becoming increasingly popular on social media platforms. Social media is used by 80 percent of live athletic event attendees and those who watch from home. It’s not just videos of the sporting event that appear online after the fact, but followers also post about the event as it happens. As a result, marketers now have access to a greater range of media to reach their target audiences.

For the first time, brands have the opportunity to sponsor not just sports teams and athletes, but also social media celebrities. This technique basically might open the door to a whole new demographic for brands to pursue.

In the age of social media, brands like Betway download, now have more opportunities to generate new revenue opportunities. To improve their connection with fans, teams and sponsors can use WiFi, HD screens, or beacon technologies in stadiums. The mix of smartphones, high-speed WiFi, plus stadium attendees equals higher engagement for businesses for the 70% of spectators who use cell phones.

4. Sponsorship promotes brand’s visibility

Both the brand and the team profit from sponsorships among brands and teams/athletes. In this case, everyone wins, and accessibility to social media extends the benefits. The sponsoring brand provides the committee with a financial contribution, as well as a marketing endorsement. With this agreement, the brand enjoys extensive global exposure and a significant share of the profits generated.

In addition to benefiting the brand’s employees, sports sponsorship fosters positive feelings about the brand among consumers because of the relationship between sports and health.

Data sources: Crimson Hexagon,  Brandwatch