In 2019, global sports sponsorship expenditure was poised to reach £35 billion, with forecasts predicting an average annual growth of 6%, culminating in £48 billion by 2024. This raises a critical question for brands: how can they ensure that their investments not only place them at the forefront of the action but also maximise returns?
At a Glance:
It is widely acknowledged that media consumption patterns are undergoing significant changes. Viewers now exert greater control over when and where they engage with content, spanning dramas, entertainment, films, and sports. This trend is complemented by an increased use of multiple screens and platforms, enabling viewers to deepen their engagement with their passions. However, event television, especially sports, continues to capture large audiences.
Changing Consumer Habits in Sports:
Over the past decade, particularly in the last five years, there has been a noticeable shift in consumer behaviour, driven by the proliferation of social and digital channels. This shift is most pronounced among younger audiences who favour on-demand and catch-up viewing options. Nevertheless, live sports events remain predominantly watched in real-time, with television being the preferred medium—accounting for 85% of all sports viewership, which is on the rise.
Sports serve as a vital engagement point for media owners and brands, offering significant opportunities to tap into the intense emotional connections fans have with their favourite games. Fans are eager for deeper insights into game statistics and upcoming fixtures, and broadcasters play a crucial role in providing supplementary content that satiates this demand. This scenario presents brands with excellent opportunities to engage with fans intensely during peak moments and consistently throughout the week via various touchpoints.
Live Sport on TV in 2020:
The preference for watching sports live, and ideally on large screens, remains overwhelmingly strong among consumers.
The year 2019 was stellar for sports, with highlights including the Women’s World Cup and England’s triumph at the Cricket World Cup. Notably, the Cricket World Cup’s climactic ‘Super Over’ attracted one of the largest UK cricket viewerships ever, and Premier League broadcasts on Sky saw a 29% increase in viewership. The Women’s World Cup also marked a significant breakthrough for women’s football, with the semi-final between England and the USA attracting 11.7 million viewers—a substantial increase from previous tournaments.
Being live events that stimulate discussions and loyalty—such as conversations about game highlights or referee decisions—sports broadcasts have become ingrained in our cultural fabric.
Advancements in technology have simplified access to sports broadcasts, allowing viewers to follow cricket, Formula 1, golf, or football on the move. The integration of live TV, social media, and online platforms means broadcasters can offer additional ways to engage fans, thereby providing brands with greater access and opportunities to reach their target audiences.
Why Sport is Important for Brands:
Aligning with sports provides immense benefits for brands, as does partnering with a trusted broadcaster. This combination allows a brand to leverage the broadcaster’s credibility and place itself close to the action and its desired audience.
Brands can either enhance an existing association with an event through broadcast sponsorship or forge entirely new relationships. By building on the heritage of live sports and leveraging the multiple touchpoints now available, brands can create flexible and effective marketing strategies. Additionally, referring to Binet/Field research, sports platforms are ideal for achieving a balance between short-term impacts and long-term goals.
Four Ways Brands Can Engage with Changing Consumer Habits:
- Choosing and Trusting the Right Sponsorship:
- How: Opt for television, the most trusted medium according to Thinkbox research. TV not only provides a brand-safe environment but also allows brands to benefit from both long-term visibility and immediate relevance.
- Why: Trust is crucial. Sponsorships enable brands to tap into the trust viewers have in broadcasters, placing the brand at the center of the action and conversation, and enhancing authenticity. For brands looking to establish or rekindle a sports relationship, TV offers the necessary widespread reach.
- Success Example: Renault’s sponsorship of Premier League football coverage on Sky Sports, featuring Thierry Henry, allows the brand to connect directly with football fans, extending beyond live broadcasts to include various related programming and digital content.
- Reinforcing Event Sponsorship on TV:
- How: Extend event sponsorship to television to dramatically increase audience reach, targeting specific demographics.
- Why: This approach enhances the resonance and visibility of the brand at the event and through associated programming, making the brand more prominent compared to other sponsors.
- Success Example: Rolex’s long-standing sponsorship of The Masters, complemented by sponsoring the dedicated ‘Sky Sports: The Masters’ channel, enables deeper engagement with a premium audience through enhanced coverage.
- Amplifying Event Sponsorship Across Multiple Platforms:
- How: Collaborate with a trusted sports broadcaster to extend the brand’s association with an event across various platforms, including on-demand services and podcasts.
- Why: Multi-platform campaigns allow brands to weave a richer narrative and achieve growth across all key metrics, catering to fans who desire up-to-date information and content.
- Success Example: Visa’s partnership with Sky Sports during the Women’s World Cup expanded its reach through daily reports, a dedicated women’s sports podcast, and interactive TV ads, significantly boosting engagement and support for gender equality.
- Creating Bespoke Branded Content:
- How: Partner with broadcasters to leverage digital, social, and broadcast platforms to create tailored content that resonates with sports fans.
- Why: Custom partnerships allow brands to be more responsive and relevant, placing their products at the forefront of sports conversations.
- Success Example: Budweiser’s creation of the ‘Kings of the Premier League’ programme, in collaboration with Sky Sports, showcases the brand’s integration into both long- and short-form content, reaching broader audiences through multiple platforms.
Why Brands Thrive with Sports:
Media consumption is evolving, and brands can now connect with audiences through various channels. By utilising content strategically, whether through mass-reach sponsorships or in-depth multi-platform partnerships, brands can effectively engage different demographics.
As broadcasters adapt to the preferences of younger, digitally-savvy fans who seek a deeper connection with sports, the opportunities for brands continue to grow, allowing for more flexible and impactful sports sponsorship strategies.
TV remains central to this dynamic, providing a robust base for brand engagement. With sports content’s compelling allure, a multi-platform approach enhances effectiveness, increasing brand visibility and resonance significantly when combined with event attendance.
Despite the shifts in media consumption, the allure of live sports as a must-watch experience persists. For brands aiming to make a genuine impact, it is essential to be present across all platforms where fans congregate, ensuring credibility through partnerships with trusted entities.
In conclusion, sports sponsorship offers brands a dynamic, creative, and potent avenue for investment, demonstrating time and again its capacity to engage deeply and effectively with audiences.
