Euromonitor’s latest professional sports research illustrates that, even in a world where content and media saturation conflicts with shrinking attention spans, sports remain a platform where brands can connect with consumers in an authentic and powerful way. However, given the cost associated with sponsorship, there are key questions brands should seek to answer before putting pen to paper.
Is sports sponsorship a good fit for the brand?
Across many industries, the synergy with sports is impossible to ignore. Aggregated food and beverage categories accounted for 20% of total sponsorship deals tracked in the US in 2022. Other high-volume industries include finance and insurance and technology, media and telecommunications (TMT) each accounting for around 10% of deals. Even for these high-volume industries, brands therein need to be clear-eyed about where to play and how to spend.
Euromonitor’s Sponsorship Valuation Model looks beyond deal volume, estimating the cost of partnering with the world’s most followed teams and leagues in Europe and North America.
In 2022, 87% of total deal value tracked was concentrated in just 10 industries with brands spending, on average, USD12 million per year on main kit sponsorship deals
Source: Euromonitor International
Many top teams are now securing main kit sponsorship deals worth over USD50 million per year.
Spending big does not necessarily guarantee success. Effective activation strategies that strike the right tone with consumers and sports fans is key. Get this wrong and partnership impact will be at risk of dilution if interpreted as contrived.
What are the key indicators of a good fit?
Euromonitor’s League and Club Index highlights the key metrics needed to assess sponsorship potential for brands. This encompasses everything from live attendances to digital following, legacy and heritage, alongside macroeconomic indicators that provide further context. In the US, NBA franchise Golden State Warriors saw the largest growth in digital following from 2021 to 2022, seeing especially strong growth on TikTok where, in March 2022, the team became the first North American sports team to launch a TikTok storefront with the Warriors Origins merchandise line.
Sports properties that can illustrate to brands that they have their finger on the pulse of digital engagement rather than content being an afterthought that grinds to a halt when the season ends will continue to instil confidence with brands and win deals with greater frequency.
What activation strategy will help deliver results?
Sponsorship success does not hinge solely on sporting success or fanbase size. Brands are adopting ever more comprehensive corporate social responsibility strategies that seek to put stakeholders first and, in sports, “purpose” is a key pillar in activation strategies.
Sponsorship also provides opportunities for experiential marketing and consumer engagement, giving brands a chance to create unique and memorable experiences for fans that can translate into increased brand loyalty and sales.
For a brand, aligning any chosen path with its commercial objectives is crucial.
Key takeaways for a successful sponsorship strategy
- Decide if sports are right for the brand and, if so, where demographics and strategic priorities intersect. Stay cognisant of competitors but carve out a distinct brand identity in sports.
- Understand the size of the opportunity relative to the price tag and have a clear route to positive ROI.
- Determine compatibility regarding non-tangible factors, such as corporate social responsibility, ethics, and brand positioning.
Read our briefing, The Price of Sports Sponsorship, for more analysis on sponsorship activity across top leagues in Europe and North America.