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Sports Sponsorship Market Size, Industry Analysis Report By Type (Signage, Digital Activation, Club and Venue Activation), By Application (Competition Sponsorship, Training Sponsorship) & Region – Forecasts

  • PUBLISHED ON
  • 16/08/2022
  • NO OF PAGES
  • 215
  • CATEGORY
  • Retails & Consumer

Global Sports Sponsorship Market

Market Overview:

The global Sports Sponsorship market was valued at USD 71,146.51 million in 2022 and expected to grow at a CAGR of 6.4% during the forecast period. Sports sponsorship is a type of marketing strategy in which a company sponsors a sports team, event, or athlete as a means of promoting its brand or products. The sponsorship can take different forms, including financial support, provision of equipment, and promotional support.

Sports sponsorship has become increasingly popular in recent years as a way for companies to gain exposure and increase brand awareness. It is a way for companies to associate themselves with the positive attributes of sports, such as teamwork, discipline, and excellence. In addition, sports sponsorship allows companies to reach a wide and diverse audience, as sports events and athletes are followed by millions of people all over the world.

Sports sponsorship can be used to achieve a variety of objectives, including increasing brand awareness, creating a positive brand image, and driving sales. It can also be used to target specific demographics, such as young people, who are more likely to be interested in sports.

Overall, sports sponsorship can be a highly effective marketing strategy for companies looking to increase brand awareness and reach new audiences. By associating themselves with the excitement and passion of sports, companies can create a strong emotional connection with consumers and drive loyalty and engagement.

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Covid-19 Impact:

The COVID-19 pandemic has had a significant impact on sports sponsorship. With the cancellation or postponement of many sporting events, sponsors have had to adapt their strategies and find new ways to engage with their target audiences.

One of the most significant impacts of COVID-19 on sports sponsorship has been the cancellation or postponement of major sporting events. This has resulted in sponsors losing out on valuable exposure and opportunities to promote their brands to a global audience. In addition, the economic impact of the pandemic has led to many companies cutting back on their marketing budgets, including their sports sponsorship investments.

However, the pandemic has also created new opportunities for sports sponsorship. With many people staying at home, there has been an increase in online and virtual events, and sponsors have been able to use these platforms to reach new audiences. For example, virtual races, online esports events, and other digital activations have become increasingly popular, providing sponsors with new opportunities to engage with consumers.

Another impact of COVID-19 on sports sponsorship has been the increased focus on health and safety. Sponsors have had to ensure that their activities comply with COVID-19 safety protocols, such as social distancing and personal protective equipment. In addition, there has been a greater emphasis on health and wellness, with many sports teams and events promoting healthy lifestyles and COVID-19 prevention measures.

Overall, the COVID-19 pandemic has had a significant impact on sports sponsorship, but it has also created new opportunities for sponsors to engage with consumers in innovative and meaningful ways.

Market Dynamics:

Drivers:

Brand exposure: One of the primary reasons companies engage in sports sponsorship is to increase brand exposure. By sponsoring a sports team, event, or athlete, companies can reach a large and diverse audience and build brand awareness.

Audience engagement: Sports sponsorship provides companies with a unique opportunity to engage with their target audience in a meaningful way. By associating themselves with a sport or team, companies can create an emotional connection with consumers and build loyalty and engagement.

Positive brand association: Sports are often associated with positive attributes such as teamwork, discipline, and excellence. By sponsoring a sports team or event, companies can associate themselves with these positive attributes and build a positive brand image.

Targeted marketing: Sports sponsorship can be used to target specific demographics, such as young people or sports enthusiasts. This allows companies to tailor their marketing efforts and reach consumers who are more likely to be interested in their products or services.

Return on investment: Sports sponsorship can provide companies with a strong return on investment if it is done effectively. By measuring the impact of their sponsorship efforts, companies can ensure that they are getting the most out of their investment and achieving their marketing objectives.

Overall, sports sponsorship provides companies with a unique and powerful way to connect with their target audience, build brand awareness and loyalty, and achieve their marketing objectives.

Restraints:

Cost: Sports sponsorship can be expensive, especially for major events or teams. The cost of sponsoring a sports team or event may be prohibitive for smaller companies or those with limited marketing budgets.

ROI measurement: Measuring the return on investment (ROI) of sports sponsorship can be difficult. While companies may see increased brand exposure and engagement, it can be challenging to quantify the impact of sponsorship efforts on sales or other key metrics.

Negative publicity: Sports teams, events, or athletes can be associated with negative publicity, such as scandals or controversies. If a sponsor is associated with a negative image or message, it can damage their brand reputation.

Lack of control: Sponsors may have limited control over how their brand is represented or promoted by sports teams, events, or athletes. This lack of control can make it difficult for companies to ensure that their brand is being promoted in a way that aligns with their values and marketing objectives.

Competition: Sports sponsorship can be competitive, with many companies vying for the attention of consumers and the opportunity to associate themselves with a particular sport, team, or athlete. This competition can drive up costs and make it difficult for smaller companies to compete.

Overall, sports sponsorship can be a powerful marketing tool, but it also comes with its own set of challenges and constraints. Companies must carefully consider the costs, risks, and potential benefits of sports sponsorship before deciding whether to invest in this strategy.

Segment Analysis:

Signage: This type of sports sponsorship involves displaying the sponsor's logo or messaging on physical signage at sporting events, such as banners, billboards, or stadium signage.

Digital Activation: This type of sports sponsorship involves leveraging digital platforms to increase brand exposure and engagement with fans. This can include sponsored social media posts, display advertising, or digital activations that encourage fan participation, such as virtual photo booths or interactive games.

Club and Venue Activation: This type of sports sponsorship involves partnering with specific sports teams or venues to create custom activations or experiences that align with the brand's marketing goals. Examples could include VIP fan experiences, sponsored halftime shows, or product giveaways.

Others: There are also a variety of other sponsorship types that could fall outside of these categories, such as product placement in TV broadcasts, sponsoring player uniforms or equipment, or sponsoring fan events or meet-and-greets.

Segment

Regional Analysis:

North America: The United States and Canada are major players in the sports sponsorship market, with major sports leagues such as the NFL, NBA, and NHL attracting significant sponsorship deals. The region also hosts major sporting events such as the Super Bowl, the World Series, and the NBA Finals, which attract a large audience and generate significant sponsorship revenue.

Europe: Europe is home to some of the world's most popular sports, including soccer, rugby, and cricket. Major sports leagues such as the English Premier League and the UEFA Champions League attract significant sponsorship deals from companies around the world. The region also hosts major sporting events such as the Olympics and the FIFA World Cup, which attract a global audience and generate significant sponsorship revenue.

Asia Pacific: The Asia Pacific region is home to some of the world's fastest-growing economies, including China, Japan, and India. The region has a large and growing middle class, which is increasingly interested in sports and entertainment. Major sports leagues such as the Chinese Super League and the Indian Premier League attract significant sponsorship deals from companies looking to reach this growing market.

Latin America: Latin America is home to some of the world's most passionate sports fans, with soccer being the most popular sport in the region. Major soccer leagues such as the Brazilian Serie A and the Argentine Primera Division attract significant sponsorship deals, as do major sporting events such as the Copa America and the World Cup.

Overall, sports sponsorship is a global phenomenon that varies in terms of the sports, events, and regions that attract the most investment. Companies must carefully consider the regional market dynamics and opportunities when deciding where to invest in sports sponsorship.

Region Segment

Competitive Landscape:

The global Sports Sponsorship market is highly competitive and fragmented with the presence of several players. These companies are constantly focusing on new product development, partnerships, collaborations, and mergers and acquisitions to maintain their market position and expand their geographical presence. Some of the key players operating in the market are:

·         Daktronics

·         Prismview

·         ANC Sports

·         Barco

·         Mitsubishi Electric

·         Panasonic

·         Sony

·         Toshiba

·         Leyard

·         Absen

·         Others

Segments

By Type

·         Signage

·         Digital Activation

·         Club and Venue Activation

·         Others

By Application

·         Competition Sponsorship

·         Training Sponsorship

By Geography

·         North America

o   U.S.

o   Canada

o   Mexico

·         Europe

o   U.K.

o   Germany

o   France

o   Italy

o   Spain

o   Russia

·         Asia-Pacific

o   Japan

o   China

o   India

o   Australia

o   South Korea

o   ASEAN

o   Rest of APAC

·         South America

o   Brazil

o   Argentina

o   Colombia

o   Rest of South America

·         MEA

o   South Africa

o   Saudi Arabia

o   UAE

o   Egypt

o   Rest of MEA


Quality Assurance Process

  1. We Market Research’s Quality Assurance program strives to deliver superior value to our clients.

We Market Research senior executive is assigned to each consulting engagement and works closely with the project team to deliver as per the clients expectations.

Market Research Process




We Market Research monitors 3 important attributes during the QA process- Cost, Schedule & Quality. We believe them as a critical benchmark in achieving a project’s success.

To mitigate risks that can impact project success, we deploy the follow project delivery best practices:
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  • Assign a senior SR executive as QA Executive
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  • Monitor realized value post-project

Case Study- Automotive Sector

One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).

Solution

The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research

The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.

Market Estimates and Forecast

In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.

Case Study- ICT Sector

Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.


Business Solution

An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.


Conclusion

The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.


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