As games begin to rally again across the world on the cooling of the Covid-19 pandemic, data from SafeBettingSites.com, show that sports sponsorship by the three leading markets namely financial services, technology, and automotive industry may have plunged to $14.1bn in 2020.
Over the years, sports sponsorships have become an important piece of marketing plans by which big companies spend millions of dollars to get their brand displayed on big screens and stadium walls.
Leading industries have budgeted billions of dollars on sponsorship deals in 2020 but which the coronavirus pandemic has forced most new contracts to be on hold.
The Two Circles data showed the global sport sponsorship spending amounted to $44.3bn in 2018 and rose to $46.1 billion at the end of 2019. However, due to the COVID-19 crisis, global sports sponsorship rights-fees are expected to plunge by 37 percent year-on-year to $28.9bn in 2020.
As the leading investor, the financial services sector put a total of $12.6bn in sport sponsorship in 2019, with almost 40 percent of that value spent in the United States. However, this figure is expected to stumble by 45 percent in 2020.
The automotive industry, as the second-biggest spender in 2019, is expected to witness a 55 percent plunge this year with the total value of sponsorship deals falling by $3.2bn amid coronavirus pandemic.
From basketball shoes and football boots to Olympic runners’ arms and stadium walls, sponsorship deals have taken a significant turn over the last few years. Thanks to its global reach, sports became a fantastic market for advertising, no matter the company location or target audience. Because instead of running many campaigns to engage with different cultures, sports sponsorships provide companies a unique image with an amazing reach.
Analysed by industry spending, the financial services top the list of sponsorship deals, revealed the Two Circles survey as Statistics show this sector is expected to spend $6.92bn on sports sponsorship deals in 2020. Companies from the technology market ranked second, with $4.58bn worth of contracts while The Two Circles data showed the automotive industry, as the third-largest sector on this list, is forecast to put $2.67bn in sponsorship deals in 2020. Telecoms, the retail sector, and soft drinks follow, with $2.55bn, $1.81bn, and $1.42bn, respectively.
Statistics also show that TV advertising has the biggest share in the combined value of sports sponsorship deals worldwide. That doesn’t surprise considering that the average television viewership of an NFL regular-season game in the United States during the 2019 season was around 16.5 million.
In 2019, 83 percent of the value delivery for sports sponsors came through TV ads. However, this figure is expected to fall under 73 percent in the next four years.
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