NEW
YORK, Sept. 13, 2024 /PRNewswire/ -- Report on
how AI is redefining market landscape- 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 poses 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..
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AI-powered analysis. Explore trends, segmentation, and growth
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Sports Sponsorship
Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2017 - 2021
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
5.38%
|
Market growth
2024-2028
|
USD 21.1
billion
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
5.11
|
Regional
analysis
|
North America, Europe,
APAC, South America, and Middle East and Africa
|
Performing market
contribution
|
Europe at
34%
|
Key
countries
|
US, Germany, UK, China,
and Japan
|
Key companies
profiled
|
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.
Businesses increasingly see value in sponsoring sports
organizations, teams, leagues, events, and individual athletes.
This exchange of funds for goods, services, or promotional
opportunities provides brand exposure and visibility to large and
passionate consumer bases. The Olympics and FIFA World Cup are
prime examples of global events offering significant brand
awareness. Digital and social media platforms offer new avenues for
engagement with sports fans, who demonstrate immense loyalty and
increased interest. However, the cost of sports sponsorship can be
exorbitant, making it a challenge for startups and smaller
enterprises. Regulatory restrictions and prohibitions on
advertising specific products or in certain countries add
complexity. Technological developments, such as augmented reality
and virtual advertising, offer innovative solutions. Infrastructure
investments and strategic brand partnerships can enhance ideals and
reputation. The return on investment (ROI) justifies the cost for
many businesses seeking to reach new markets and
audiences.
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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 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.
- Sports sponsorship presents businesses with unique
opportunities to engage with passionate fans and increase brand
awareness. However, it comes with challenges. Loyalty can be hard
to maintain with the constant shift in fan allegiances. Major
events like the Olympics and FIFA World Cup bring increased
interest, but high costs can be a barrier for smaller enterprises.
Globalization of sports opens new markets, but regulatory
restrictions and prohibitions on advertising for specific products
or countries can limit reach. Technological developments, such as
augmented reality and virtual advertising, offer innovative
solutions, but come with infrastructure and cost considerations.
Reputation risk, economic downturns, and instability also pose
challenges. Startups and smaller enterprises must carefully
consider the ROI before investing in sports sponsorship. Exorbitant
costs and limited reach can make it a challenging direct avenue for
brand building. Sports sponsorship requires a strategic approach,
balancing ideals and reputation with cost-effectiveness. Online
platforms and social media offer more affordable alternatives for
digital engagement.
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Segment Overview
This sports sponsorship market report extensively covers market
segmentation by
- Type
- 1.1 Signage
- 1.2 Digital activation
- 1.3 Club and venue activation
- 1.4 Others
- Application
- 2.1 Competition sponsorship
- 2.2 Training sponsorship
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Signage- The sports sponsorship market is
a significant business sector, with companies investing in
partnerships with sports teams and events to increase brand
visibility and customer engagement. Sponsorships can take various
forms, including product placements, advertising, and experiential
activations. These collaborations benefit both parties, as
businesses gain marketing exposure, and sports organizations secure
financial support. The sports sponsorship market continues to grow,
driven by the increasing popularity of sports and the desire for
authentic brand connections.
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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, have 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, to 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. Technological developments, such as
augmented reality and virtual advertising, offer innovative
solutions to increase infrastructure and strategic brand
engagement.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
-
- Signage
- Digital Activation
- Club And Venue Activation
- Others
- Application
-
- Competition Sponsorship
- Training Sponsorship
- Geography
-
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides 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 and 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.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio