SPORTS SPONSORSHIP IN THE MODERN ERA: TRENDS AND PREDICTIONS
- Karl Mokom
The landscape of sponsorship is evolving rapidly, driven by technological advancements, changing consumer behaviours, and the ongoing digital revolution. Market research indicates that global sports sponsorship, valued at $73.5 billion in 2022, is expected to reach $151 billion by 2032, with a CAGR (Compound Annual growth Rate) of 7.1% from 2023 to 2032. Here are some key trends and predictions shaping the future of sponsorship:
- Data-Driven Sponsorships
Sponsorships are becoming increasingly data-driven, with companies like Nielsen, Relo Metrics, and Kantar providing advanced analytics on aspects such as demographics, impressions, brand mentions, Fan passion points, sentiment, exposure and so much more. The future will see an increased use of advanced analytics and AI technologies to gain deeper insights into target audiences. This will allow sponsors to create highly personalized and targeted campaigns, enhancing their effectiveness and tailoring sponsorships to specific objectives.
- Virtual and Augmented Reality
Emerging technologies like Virtual Reality (VR) and Augmented Reality (AR) are poised to revolutionize sponsorships. These technologies offer immersive experiences, providing new ways for brands to connect with audiences. For instance, a sports brand could sponsor a VR game that simulates a World Cup final or create virtual meet-and-greet platforms for fans to interact with their favourite athletes. The global VR market is expected to grow from $12 billion in 2022 to $22 billion by 2025, with the gaming sector driving much of this growth, highlighting the potential for virtual sponsorships.
- Sustainability and Social Impact
There is a growing emphasis on sustainability and social impact in the business world, which will influence future sponsorships. Brands may sponsor events or initiatives that align with their sustainability goals or social values, helping build a positive brand image and connect with like-minded consumers. For example, Engen’s sponsorship of the Engen Knock out Challenge and Champ of Champs reflects its commitment to supporting grassroots sports growth and excellence in South Africa, aligning with its values of loyalty and community development.
- Enhanced Broadcast Sponsorships, Improved Leveraging, and Engagement
In South Africa, sports broadcast sponsorship remains a key strategy for successful sports marketing, offering benefits like increased brand visibility, audience engagement, and revenue generation. The market is expected to grow significantly, driven by increased television penetration, demand for local content, and rising pay TV memberships. Brands can move beyond traditional broadcast sponsorship methods, such as on-screen logos and commercials, by creating engaging content like behind-the-scenes footage, player interviews, and interactive games.
In the evolving landscape of brand promotion, leveraging digital platforms has become a key strategy. This approach not only helps brands reach a global audience but also allows them to share exclusive content, host live chats with players, and provide live match analysis.
The next step in enhancing viewer engagement is personalization. By harnessing the power of data analytics, brands can tailor the viewer experience to individual preferences. This personalized approach can significantly boost engagement levels.
Furthermore, fostering a sense of community among fans is another effective strategy. This can be achieved through various means such as forums, fan clubs, or meet-and-greet events, all of which can enhance loyalty among fans.
In addition to these strategies, brands are also experimenting with innovative ad formats. These include sponsored content, product placements, and interactive ads, which offer less intrusive and more engaging ways to connect with audiences.
Collectively, these strategies enable brands to create a more engaging and personalized experience for their audience, thereby surpassing traditional broadcast sponsorship methods. This cohesive approach to brand promotion represents the future of sponsorship.
The future of sponsorship is dynamic and exciting, shaped by technological advancements and changing consumer expectations. Brands that adapt to these changes and leverage new opportunities will be well-positioned to succeed in this new era of sponsorship.