According to the Market Statsville Group (MSG), the global sports sponsorship market size is expected to grow from USD 69,660.0 million in 2022 to USD 154,339.3 million by 2033, at a CAGR of 7.50% from 2023 to 2033.
Sports sponsoring is financial support for a game by a person or by an organization for mutual benefit. Sponsoring takes place at all levels of sports. For instance, athletes can be given large sums of money for particular sportswear or branded equipment, or school teams can have a sponsored team. Sports sponsorships can be seen in various ways, such as the brand logo printed on a sports team’s jersey.
Sports sponsorship has benefits such as raising awareness of the company or brand, advertising products and services, providing rewards or incentives for staff and customers, enhancing revenue or sales through improved media exposure, increasing brand loyalty/premium prices, and decreasing tax through tax relief.
The growing number of sporting events, as well as the fact that sponsorships have a wider reach than traditional marketing methods such as advertising and sales promotions, are expected to boost the sports sponsorship market in the coming years. The increasing popularity of sports and demand for online sports by viewers is anticipated to increase the demand for sports sponsorship during the study period.
Sports sponsoring is a mutual beneficial-financial support for a game by a person or by an organization. Sponsoring takes place at all levels of sports. For instance, athletes can be given large sums of money for sportswear or branded equipment, or school teams can have a sponsored team. Sports sponsorships can be seen in various ways, such as the brand logo printed on a sports team’s jersey or branded shoes with signage or special edition ones.
Further, esports popularity is incrasing day by day. E-sports is an electronic sports, which includes PC, tables and mobile games. Due to the high popularity of the esports events among gamers and spectators, the Esports sector is becoming profitable. Several universities and colleges are offering scholarships and even esport courses. So that gamers can have a opportunity to pursue e-sports as a professional career.
The coronavirus pandemic will have a number of effects on the sport sponsorship market. Although history's estimates mostly concentrate on estimating income loss, it will be vital to include potential future investments needed to manage the slow recovery to a new normal. Without live coverage of the sport, sponsors are unable to begin their marketing campaigns, fan interaction initiatives, and other initiatives involving the rights and assets they have purchased. In recent years, corporate sponsors have become an increasingly important part of sport, particularly elite or professional sports. Everyone used to claim that the sports industry was immune to a recession or a worldwide catastrophe. That was as long as events were held, tickets were sold, media wanted to broadcast, and corporations sought to sell through sport.Everything has altered as a result of the crisis. Agreements will exist but will not be fulfilled. Even if a sporting event is postponed, it may no longer be as valuable to the sponsors, venue, participants, spectators, and many other stakeholders.
The sports business will continue to experience an inflow of funding from new sources, changing college sports power dynamics, increased use of emerging technologies, and a focus on bigger societal issues. One common objective for brands sponsoring sporting events is to create or reinforce their positioning in the competitive era. Sponsoring a sporting event can reinforce a certain perception in consumers' mind, thereby improving the brand image, which is likely to have an impact on sales and revenues. Strategic partnerships While sports event sponsorship can directly increase brand visibility amongst consumers, it also offers brands the opportunity to engage with new business partners and potentially build strategic partnerships. Such events let brands demonstrate their expertise in a certain field and build their reputation within the industry. As sports sponsors tend to come from diverse industries, this is also usually an opportunity to gain access to a new audience. Sports events are currently planned and governed in ways that produce adverse effects for cities, regions, and residents. Two of the biggest and most awaited tournaments in 2022 are ICC World T20 and FIFA World Cup. The ICC World T20 is scheduled to start on October 16 and conclude on November 13. Australia will host this cricket tournament. On the other hand, FIFA World Cup will kickstart on November 21, and its final will occur on December 18. Qatar is the host of the 2022 FIFA World Cup. Thus, the growing number of sports events across the world has driven the sports sponsorship market.
The usual goal of a brand sponsoring an event is to boost revenues and sales. The appropriate metric to measure this is ROI or Return on Investment. While this is the most important metric for a brand, this is also the most difficult to measure. First, sponsorship investment and revenues aren't perfectly correlated. Indeed, many other factors such as product innovation, sport popularity, advertising, and others can have an impact on sales, in addition to sports sponsorship. Second, receiving returns for sponsoring sport events can be a very lengthy process. Being a sponsor of a sporting event for decades reinforces peoples' perception of the brand over time, and benefits may only be seen years later.
With the explosion of social media, brands now have numerous channels at their disposal to sponsor and advertise a sporting event. In addition, more traditional channels such as advertising on jerseys and in stadiums also receive greater visibility, due to the arrival of social media and streaming platforms, which present live events and highlights. While there are more advertising options than ever for brands, this also comes at a greater cost. Further, by sponsoring a sporting event, an athlete or a team usually associates the image of a brand with that of the party being sponsored. While this can be very powerful when sponsoring a successful event/athlete/team, it can also generate a negative perception of the brand should the party being sponsored misbehave or perform poorly. Unfair-play is probably the main misconduct brands do not want to be associated with.
Endemic sponsors (i.e., sponsors from inside the esports ecosystem, such as software, computer component, and peripheral manufacturers) have made investments in the industry. At the moment, 60 percent of esports collaborations come from nonendemic brands. Esports, despite being a very new phenomenon, is growing and can compete with traditional sports in many economic aspects from prize pools to viewership to fan monetization. Its resilience in the face of the current COVID-19-related shutdowns is much higher than that of traditional sports.
For each video game there are a series of tournaments and leagues for teams to compete in and determine the best in the world. Prize money in these competitions has reached or exceeded that of many traditional sports competitions in the past year. For example, Dota 2’s “The International” championship awarded over USD 34 million (over USD 33 million of which was crowdfunded) and the 2019 Fortnite World Cup Finals awarded USD 30 million in total prize money. On the spectator side, the professionally produced broadcasts are distributed via various media. Compared to traditional sports, this predominantly happens via streaming (e.g., Twitch, YouTube, Mixer). Linear TV for esports has been popular in South Korea.
The study categorizes the sports sponsorship market based on sponsorship type, application, gender, and sport type area at the regional and global levels.
Signage segment accounts for the largest market share by sponsorship type
Based on the sponsorship type, the market is split into signage, digital activation, club and venue activation and others. The signage segment is expected to dominate the market share in 2022 in the global sports sponsorship market. Signage is a kind of sponsorship involving banners, LED screens, hoardings or any kind of sign including the brand name and logo of the sponsor. The conventional signage sponsorships which are still prevalent are the plastic banners fixed to walls or fence or strung between objects and many more. Later sponsors began to illuminate the banners for the visibility during the evening tournaments.
Signage is still popularly used by many sponsors even today, as its a great approach for advertising to stand out and develop their brands through signage. In addition to viewing angles and square footage, it also enables building owners and promoters to consider new chances to highlight sponsors and other financial backers. There are countless locations where sponsor branding may be displayed utilizing signs and banners of every variety once the brand starts thinking outside the box and looks for ways to accommodate marketers. For instance, at baseball stadiums signages can be seen along the baselines, outfield walls, concession stands, scoreboards, entrances/exits and many more.
Based on the regions, the global freight procurement technology solutions market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific and South America. North America is projected to account the highest market share in 2022. as Due to the expansion of new sporting events and rising sports sponsorship investment. The highest adoption rates of these technologies in this nation are observed in the baseball and basketball leagues. North America is primarily responsible for the global sports sponsorship industry. Around 37 cents of every dollar spent on sponsorships worldwide originate in the American and Canadian markets, where the starred and striped states respectively play a significant role.
Globally, Asia Pacific is estimated to hold the highest CAGR in the global sports sponsorship market during the forecast period.
India is the fastest-growing region in the Asia Pacific, especially in e-sports. Recently, BGMI game developer Krafton has named iQoo as the title sponsor. The company has agreed to be a title sponsor for four tournaments, namely BMOC – Battlegrounds Mobile India Open Challenge 2022, BMPS – Battlegrounds Mobile India Pro Series 2022 Season 1, BGIS – Battlegrounds Mobile India Series 2022, BMPS – Battlegrounds Mobile India Pro Series 2022 Season.
Moreover, In January 2022, Tata took over title sponsorship from the Vivo of IPL (Indian Premium League). The Tata group inked an agreement with BCCI (Board of Control for Cricket in India) for IPL title sponsorship for the 2022 and 2023 seasons. As per the reports, Tata Group has paid nearly USD 86.5 million for the title sponsorship.
The sports sponsorship market is extremely cutthroat, and significant competitors in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
Frequently Asked Questions
The global sports sponsorship market is expected to register a CAGR of 7.50%, during the forecast period (2023 to 2033).
On the basis of sponsorship type, the digital activation segment have the highest growing rate during the forecast period (2023-2033).
In the global market of sports sponsorship leading manufacturers are Adidas, Nike, Inc, PepsiCo, Rolex, The Coca-Cola Company, Tata, Jio, Puma, Samsung, Castrol and Intel.
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