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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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  

1. Type 
   • 1.1 Signage
   • 1.2 Digital activation
   • 1.3 Club and venue activation
   • 1.4 Others
2. Application 
   • 2.1 Competition sponsorship
   • 2.2 Training sponsorship
3. 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