Driven By Increased Spending, Sports Sponsorship Market To Expand By $21.1 Bn (2024-2028)
The global sports sponsorship market size is estimated to grow by USD 21.1 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 5.38% during the forecast period. Increasing sports sponsorship spending is driving market growth, with a trend towards analytics gaining prominence in sports sponsorship. However, potential negative outcomes associated with sports sponsorships pose a challenge. Key market players include Adidas AG, Anheuser Busch InBev SA NV, Electronic Arts Inc., Etihad Airways PJSC, Hero MotoCorp Ltd, HX Entertainment Ltd., Hyundai Motor Co., MACRON SPA, Nike Inc., PUMA SE, Qatar Airways Group Q.C.S.C., Red Bull GmbH, Renault SAS, Rolex SA, Samsung Electronics Co. Ltd., Super Group SGHC Ltd., and The Coca Cola Co..
Market Driver
The sports sponsorship market has faced the challenge of measuring the return on investment (ROI) for several years. However, the introduction of marketing analytics is poised to address this issue. Marketing analytics gathers social media data from customers before, during, and after sports events, enabling sponsors to gauge public perception towards their brand. Additionally, it assesses customer reach, which refers to the number of individuals exposed to the sponsor’s marketing messages at a sponsorship activation. In the case of multiple sponsorship investments, marketing analytics can determine the ROI of each individual sponsorship. Furthermore, image analysis technology enhances the effectiveness of stadium sponsorships by recognizing logos in photographs, allowing sponsors to optimize signage placement based on frequency and reach. These factors are expected to fuel the expansion of the global sports sponsorship market during the forecast period.
Market Challenges
Sports sponsorships offer numerous advantages, but they also come with potential risks. One such risk is liability exposure, where a sponsor may face negative publicity due to alleged negligence during an event. For instance, if a fan gets injured and the sponsor is held responsible, it could harm the sponsor’s reputation. Another risk is insensitivity to public sentiment. In 2012, a financial services company faced backlash for denying the use of other credit cards at the London Olympics and replacing most ATMs with its own. When its IT system failed, fans were frustrated, leading to criticism and negative publicity. Poor event presentation and underperforming teams or players are other risks. To mitigate these risks, organizations must carefully consider their sponsorship decisions and potential impacts. These factors may negatively influence the sports sponsorship market during the forecast period.
Research Analysis
The Sports Sponsorship Market is a dynamic and ever-evolving industry where businesses engage with sports organizations, teams, leagues, events, individual athletes, and more, to exchange funds, goods, and services. This partnership offers various promotional opportunities, enhancing brand visibility among passionate sports fans and consumers. The market caters to diverse target audiences, reaching new markets through the globalization of sports. Technological developments, including digital and social media platforms. This has revolutionized sponsorship, providing a direct avenue for brands to connect with fans online. New technologies like augmented reality and infrastructure upgrades further enrich the sponsorship experience. Overall, the sports sponsorship market is a valuable investment for businesses seeking to engage with their audience in a meaningful and impactful way.
Market Research Overview
The sports sponsorship market is a dynamic and ever-evolving industry where businesses engage. With sports organizations, teams, leagues, events, individual athletes, and more. This exchange funds, goods, and services for promotional opportunities and brand exposure. This partnership offers businesses access to passionate and loyal consumer bases, increased interest, and engagement with sports fans. The Olympics and FIFA World Cup are notable global events that attract significant sponsorship. Brands seek to boost their brand awareness, visibility, and ideals through sports sponsorship, reaching new markets and consumers through digital, social media, and online platforms. However, the costs of sports sponsorship can be exorbitant, making it a challenge for startups and smaller enterprises to secure a return on investment (ROI). Regulatory restrictions, prohibitions on advertising specific products in certain countries, reputation risk, economic downturns, instability, and lower spending are other factors that impact the sports sponsorship market.
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports. With counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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