Strategies to attract and maintain sponsorships in sports

Without a doubt, sports sponsorship is one of the most powerful tools in the world of marketing, both for brands and teams and athletes. In an increasingly competitive environment, organizations and people linked to sports must be increasingly creative when designing effective strategies to attract and maintain sponsors. In this article, I will explain the best practices and the approaches that in my opinion are the most innovative to attract the attention of sponsors and establish long-lasting and mutually beneficial relationships.

As this is going to be an extensive article, I want to start by summarizing all the aspects that I am going to cover in order to guide the reader through all the elements on which I am going to base my conclusions. I must also add that I have focused this article on offering sports marketing professionals and other managers and executives who operate in the sector a detailed vision that will help them face the challenges in such a competitive and versatile world.

Summary of the topics I will cover in the article

In this article, I will explore in depth the most effective strategies to attract and maintain sponsorships in the sports field. I will begin by analyzing the value that sports sponsorship brings to both brands and teams and athletes, as well as explaining how this type of partnership has evolved over time. I will then delve into the key tactics to capture the attention of sponsors, from deep knowledge of the target audience to the creation of personalized value propositions and the introduction of innovative elements in brand activations.

I will also present some examples of brands that, from a sponsorship perspective, respond well to the expectations of the current market. In addition, I will present the trends that outline the future of sports sponsorship, including the growing role of eSports, the importance of sustainability, and how digitalization is transforming how brands interact with fans.

Finally, I will present a set of frequently asked questions about sports sponsorship, thus providing a complete and practical guide that will help the reader understand both the benefits and the challenges associated with this powerful marketing tool.

Context

Sponsorship in sports has evolved significantly in recent decades. What was once simply a way for brands to display their logo on shirts and other areas of the club or athlete, has now become a strategic partnership that seeks to generate value for both parties. Well-managed sponsorship not only provides financial resources but also offers visibility, credibility and growth opportunities for both brands and the teams, institutions or athletes themselves.

1. Understanding the value of sports sponsorship

1.1. What are brands looking for in sports sponsorship?

Brands are looking for a partnership that will enable them to achieve their commercial objectives, whether it is to increase visibility, improve brand perception, or penetrate new markets. In this sense, sports offers a unique platform due to its ability to generate strong emotions and loyalty among fans. Mass sports, such as football, basketball or motorsport, enjoy a global audience, while more niche sports can offer access to very specific communities.

Ultimately, brands are looking to sell and do so in a way that clubs, athletes and other institutions contribute to generating an environment capable of meeting these expectations through a model based on strong collaboration. I stress the word “strong” because throughout my professional career, I have witnessed too many times lost business opportunities because sports entities were not prepared to establish a good framework for collaboration and develop a narrative capable of connecting the desires of the brand with the emotions of the fans.

I am aware that in the case of a sports entity we are talking about an organisation that lives its day-to-day life very intensely, a frenetic activity full of events that prevents it from tackling sponsorship projects as it should. But they must make a significant effort because brands also have changing expectations and in my opinion establishing a good collaborative environment necessarily involves forming work teams that include elite professionals who are from within or outside the organisation itself, capable of understanding the expectations of the brands and also capable of maintaining a fluid and exclusive relationship with sponsors who currently demand much more than mere brand exposure.

I have worked as a manager in some multinational new technology companies and when you work in a company of that calibre you witness the existence of business development departments, areas that are occupied by the best professionals in the company so that they think about how the organisation should evolve in the future and how it should adapt to the trends and movements of the markets both nationally and internationally.

Well, basically that is what I would do in a sports entity. Create a solid sponsorship department made up of elite professionals capable of understanding the needs of brands and with in-depth knowledge of the trends and intricacies of national and international markets. With this type of department, understanding between brands and sports entities is more than guaranteed, and building a long-term relationship will be a reality.

According to a study by Nielsen, 75% of sports fans believe that brands involved in sports sponsorship deserve greater trust and are more relevant than those that are not. It is time to get to work and take advantage of this entire environment.

1.2. The evolution of sponsorship: From exposure to experience

As I just mentioned, the focus of sponsorship has changed from mere brand exposure to creating authentic and memorable experiences for consumers. As with other industries I work in, such as the luxury sector, brands in sports are looking for opportunities to interact directly with fans, whether through live activations, digital content, or personalized experiences.

For example, Coca-Cola, through its sponsorship of the FIFA World Cup, not only displays its logo but also organizes events and promotions that involve fans in unique experiences, such as the World Cup trophy tour.

2. Effective strategies to attract sponsors

2.1. Deep knowledge of the target audience

Before approaching a potential sponsor, it is crucial to deeply understand the target audience of the sports team or event itself. Brands seek to align their products or services with audiences that reflect their target market. Therefore, providing detailed demographic data, consumer habits and audience behaviors can be a decisive factor. In other words, more than quantitative data, what I mean is that the sports entity must provide qualitative data on its fans, thus demonstrating not only a deep knowledge of its market but also its ability to establish a long-term relationship with any sponsor.

Key tool: The use of advanced analytics and big data tools allows sports teams to offer potential sponsors a clear view of who their fans are and how they behave.

2.2. Customized value proposition

The sports entity has its own personality, its community of fans, its history and its track record, but each sponsor has unique objectives, so it is vital to design a value proposition that fits its specific needs. I always say, one entity, multiple options, so instead of offering standard sponsorship packages, sports organizations must create customized proposals that highlight how they can help the brand achieve its specific objectives.

Tell me, which football team today does not have a sponsorship structure like the following? Main sponsor, premium partner, official partner…The world is full of closed sponsorship models with specific options in which the brand must fit and not the other way around. Well, I must say to all those entities that they are missing out on unique business opportunities that allow them to increase their income in exchange for giving greater value to the brand that sponsors them.

Recommended strategy: Let the sponsorship department be like the customization area of ​​a supercar that you are going to buy. That is, an area where the customer chooses the colour of their upholstery, the degree of interior finishes, the personalised inserts in different parts of the car’s cabin, etc. I appeal again to the luxury industry to take advantage of all its potential when it comes to making the customer (in this case the sponsor) feel like a unique brand. It is good to develop different levels of sponsorship that allow brands to choose the level of investment and exposure that best aligns with their strategies. But we must go a little further because these different levels constitute the gateway, but the sponsorship agreement will not be closed if fully personalised elements are not established from there.

2.3. Innovation in brand activations

Innovative brand activations are an excellent way to attract sponsors. These activations can range from the creation of exclusive content for social networks to the integration of cutting-edge technology, such as augmented reality, to improve the fan experience.

Success Story: The NBA has used virtual reality to offer fans the experience of being on the court during games, which in turn has attracted sponsors interested in partnering with these immersive experiences.

2.4. Building Long-Term relationships

I know that for many sports entities it is very difficult to focus on anything other than the current season. But beyond signing a contract, it is essential to build long-term relationships with sponsors. This is achieved through constant communication, by regularly presenting performance reports and by delivering measurable results. Sponsors must feel that they are an integral part of the success of the team or sporting event.

Pro Tip: Offering sponsors detailed reports showing their return on investment and key success metrics can strengthen the relationship and open the door to contract renewals and, most importantly, further investment.

3. Success stories and future trends

3.1. Examples of successful sponsorships

The examples I am going to discuss demonstrate how sports sponsorship when managed with a comprehensive strategy and with an eye to the long term, can become a powerful driver of growth and brand recognition. These examples only underline the importance of a well-designed sponsorship strategy to maximize return on investment and strengthen the emotional connection with the target audience.

3.1.1. Red Bull and extreme sports: An example of comprehensive sponsorship

Sponsorship Strategy: Red Bull is an example of how a brand can deeply integrate itself into a sports niche to create a strong brand identity. The company has focused its sponsorship on extreme sports such as surfing, paragliding, snowboarding, and above all, Formula 1 with its Red Bull Racing team.

Sponsorship Management: Rather than simply sponsoring events, Red Bull has created and produced its events, such as the “Red Bull X-Fighters” in motocross and the “Red Bull Cliff Diving World Series” in cliff diving. These events are designed from the ground up by the company, allowing it complete control over the brand experience, generated content and event narrative.

Key Results: Red Bull has seen significant growth in its brand awareness and sales due to this strategy. The Red Bull Racing team has been a huge success in Formula 1, winning multiple constructors’ and drivers’ championships, which has exponentially increased the brand’s global visibility. In addition, Red Bull Media House, the company’s media division, generates a substantial amount of content related to these events, further amplifying their reach.

Highlights:

Visibility: The Red Bull brand is now synonymous with extreme sports, reflected in its huge presence across video platforms, social media and global media coverage.

3.1.2 Emirates and football: Building a global brand through sport

Sponsorship Strategy: Emirates, the Dubai-based airline, has used football as a key pillar of its sponsorship strategy. The brand has sponsored some of the most prestigious clubs in the world, such as Real Madrid, Arsenal and AC Milan. This approach to sponsoring football teams not only provides them with visibility during matches, but also across all aspects of the clubs’ marketing, including shirts, training facilities and digital media advertising.

Sponsorship Management: Emirates not only partners with football clubs but has also lent its name to stadiums such as the Emirates Stadium in London, home of Arsenal FC. This type of sponsorship allows for a constant and highly visible presence of the brand, reinforcing its association with excellence and prestige in sports.

Key Results: Emirates’ sponsorship has been crucial to its global expansion strategy. Its association with teams that have a huge fan base around the world has helped the brand position itself as a leader in the aviation industry, especially in key markets in Europe, Asia and Latin America.

Highlights:

• Investment: Emirates is estimated to invest around €200 million a year in sports sponsorship, a large part of which goes to football.
• Brand Recognition: Thanks to its sponsorship strategy, Emirates is one of the most globally recognised airlines. A study by Brand Finance ranked Emirates as the most valuable airline in the world for several years running, partly due to its visibility and association with top-level football.

3.2. Trends in sports sponsorship

Digitization and the growing importance of Esports are opening up new opportunities for sports sponsorship. In addition, the focus on sustainability and social responsibility is leading more brands to seek partnerships that reflect these values ​​and the reach that a sports entity can have in these areas makes it the ideal partner to position the message in the right environment.

Projection: Sponsorship in electronic sports or Esports is expected to grow by 20% annually in the next five years due to the growing young audience they attract globally.

Trends in sports sponsorship: An analysis with real data

Sports sponsorship is constantly evolving, driven by rapid developments in technology, consumer preferences and global economic conditions. To better understand where this industry is headed, it is crucial to rely on current data and observable trends. Below, I explain some of the most important trends, supported by quantitative data and studies that I have recently had the opportunity to consult.

1. Growth of Esports as a Sponsorship Platform

Data and Statistics:

• Audience growth: Esports have seen explosive growth in recent years. According to a report by Newzoo, the global Esports audience is expected to reach 577.2 million viewers by 2024, a truly significant increase from the 495 million reported in 2020.
• Sponsorship revenue: Sponsorship revenue in Esports is projected to grow from $636.9 million in 2020 to approximately $837.3 million in 2024. This growth is largely due to the growing popularity of Esports among younger audiences, who are difficult to reach through traditional media.

Trend:
Sponsorship in eSports is becoming a key pillar for brands looking to connect with younger audiences globally. Companies such as Coca-Cola, Nike, and Mercedes-Benz have already invested in sponsorships within this space, showing the viability and potential for ROI in an industry that is undoubtedly booming.

2. Focus on sustainability and social responsibility

Data and Statistics:

• Consumer preferences: A Nielsen report shows that 66% of consumers globally are willing to pay more for products from companies that commit to sustainable practices. This shift in consumer preferences has led brands to seek partnerships that reflect their commitment to sustainability.
• Examples in sport: Sponsorship of sustainable sporting events is gaining ground. For example, the Wimbledon Tournament has implemented numerous green initiatives, and its official sponsor, Evian, has leveraged this to highlight its commitment to sustainability through the use of recycled bottles and other environmentally friendly practices.

Trend:
Brands are increasingly looking for sponsorships that not only give them visibility but also reinforce their image as responsible companies. This approach has led to an increase in sponsorships of events and teams that promote sustainability, which aligns with consumer expectations and companies’ goals to reduce their carbon footprint.

3. Digitalization and Personalized Experiences

Data and Statistics:

• Investment in technology: According to PwC, investment in digital technologies such as augmented and virtual reality, big data analysis and streaming platforms to improve the fan experience in sports exceeded $10 billion in 2022, and this figure is expected to continue to increase.
• Growth of digital content: The pandemic accelerated the consumption of digital sports content. A Deloitte study identified that 70% of sports fans prefer to consume content on digital platforms instead of traditional media, which has led to a notable increase in investments in digital experiences and sponsorships on these platforms.

Trend:
Brands are increasingly interested in partnering with sports teams and events that offer innovative digital experiences. This includes sponsoring exclusive social media content, live streams with interactive features, as well as creating custom apps for fans. Digitalization offers brands unprecedented opportunities to connect with their audiences more directly and effectively.

Frequently asked questions about sports sponsorship

As I stated at the beginning of this article, I want to summarize everything I have discussed through a series of frequently asked questions that will somehow better place the reader in the context of the current world of sponsorship. My goal is to provide clear and concise answers to help clarify any doubts that may arise.

1. What is sports sponsorship and how does it work?

Sports sponsorship is a commercial agreement between a company and a team, athlete, or sporting event, in which the company pays for its brand to be visible about the sport. In exchange, the company receives brand exposure, advertising, and other marketing opportunities. Sponsorship can include everything from placing logos on uniforms to creating brand-sponsored events.

2. What benefits does a company get from sponsoring a sporting event?

By sponsoring a sporting event, a company can gain several benefits, including:

• Increased brand visibility: By associating with a popular event, the brand can reach a large audience.
• Improved brand perception: Associating with successful sports or athletes can improve the brand’s image.
• Access to new markets: Sponsorship allows brands to enter markets where the sport has a strong fan base.
• Customer loyalty: Fans tend to support brands that sponsor their favorite teams or athletes.

3. How do brands choose which sporting teams or events to sponsor?

Brands choose sporting teams or events based on several factors. These are the most relevant:

• Target audience: Brands seek to sponsor sports that have an audience that matches their target market.
• Media reach: The visibility that the event or team has in the media, social networks, and live broadcasts is considered.
• Shared values: Brands tend to align themselves with teams or events that share their values ​​and mission, such as sustainability or innovation.

Return on investment (ROI): Companies evaluate the potential for return on investment based on media exposure and the emotional connection the sport has with its audience.

4. What are the differences between sponsoring a sports team and a sporting event?

Sponsoring a sports team involves a longer-term relationship, where the brand partners directly with a group of athletes over the course of a season or several. This type of sponsorship offers consistent exposure throughout the year. On the other hand, sponsoring a sporting event is usually a more one-time opportunity, but with the potential to reach a large audience in a short period. Events often offer unique opportunities for brand activation and audience engagement.

5. What is a brand activation in the context of sports sponsorship?

A brand activation is a campaign or event created specifically to attract public attention and encourage interaction with the brand during a sporting event. This can include interactive stands in the stadium, social media contests, augmented or virtual reality experiences, and other creative methods to engage fans. Brand activations seek to create memorable experiences that positively associate the brand with the sponsored event or team.

6. What is the average cost of a sports sponsorship?

The cost of a sports sponsorship varies widely depending on the sport, team or event, competition, and geographic location. Sponsorships can range from a few thousand euros for local events or small teams, to hundreds of millions of euros for elite teams in leagues such as the NFL, Premier League, or global events such as the Olympics. Brands must consider their budget and objectives when negotiating sponsorship deals.

7. How is the success of a sports sponsorship measured?

The success of a sports sponsorship is measured through several metrics. Among the most important I would highlight:

• Return on investment (ROI): Comparison between the cost of the sponsorship and the financial benefits obtained.
• Reach and frequency: Number of people exposed to the brand through sponsorship and the frequency with which they see it.
• Audience engagement: Public interaction with the brand, both at the event and on digital platforms.
• Brand perception: Changes in public perception of the brand before and after sponsorship.

8. What impact has digitalization had on sports sponsorship?

Digitalization has transformed sports sponsorship by opening up new ways of interacting with fans. Social media, mobile apps, live streaming and technologies such as augmented reality allow brands to create more personalized experiences and measure the impact of their sponsorship efforts in real-time. Furthermore, digital platforms have expanded the reach of sponsorship beyond physical events, allowing for continuous and global exposure.

In summary

Attracting sponsors in sport requires a combination of deep market understanding, creativity in value propositions, and the ability to build strong and lasting relationships. Sports organizations that manage to adapt to the changing needs of brands by offering unique and measurable experiences will be the most successful and those that will be in a position to build long-term relationships with both their fans and sponsors.

We have already seen in this article that sports sponsorship is not about putting a logo on a poster, but rather its objective should be to create stories and experiences that connect with both fans and brands. I would say that with the right strategies the potential to create mutual value is practically unlimited.

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