SponsorPulse

State of Sponsorship 2022

Following the uncertainty of the COVID-19 pandemic, the sponsorship industry is making a comeback. On the surface, our industry is healthy, and while the external factors have been impossible to ignore, the time has come for the industry to look within.

In this report, we bring to light the good, the bad and the unknown, to help sponsorship industry pros understand which trends are here to stay and how we can leverage consumer opinion to foster greater transparency.

Overview

Introduction

The sponsorship industry has been put through the ringer over the past few years with postponements and cancellations, format changes, furloughs, and layoffs, and ultimately managing the delivery of value in an increasingly uncertain time. Despite a significant contraction in the sponsorship industry throughout that time, it appears to be rebounding in a big way.

Whether it be the investment of cryptocurrency and sport betting brands, the emergence of hobbies as professional sport businesses like disc golf or pickle ball, the introduction of NFTs and new streaming and content offerings, or the increasing exposure of women's sport that it has always deserved, there are many reasons to be bullish about the industry’s future.

We set out to provide a comprehensive view on the state of the sponsorship industry to identify and address some of the biggest questions that we grapple with by bridging both the industry and consumer perspective. We first surveyed 217 sponsorship professionals from over 200 unique organizations, 15 countries and at varying levels of seniority. Then, we surveyed 1,771 consumers from 14 countries across the globe to provide insight on where there are commonalities and differences.

The 2022 State of Sponsorship report paints a positive picture of the current health and future potential of the industry. A healthy industry, poised for growth and becoming more critical to the marketing mix. The challenges? There are concerns of clutter, measuring return on investment and discrepancies between industry and consumer perspective to name a few. But in my opinion, the biggest challenge this report reveals is an overwhelming lack of transparency and trust. If most professionals don’t trust one another, how can the industry continue to grow at the current rate?

Adam Mitchell
Adam Mitchell

CEO @ SponsorPulse™

The Good

Industry professionals and consumers agree that sponsorship works, it’s here to stay and there are lots of growth opportunities on the horizon.

Perceived Health of the Sponsorship Industry

70%

of industry professionals believe the industry is in a healthy state, particularly industry veterans with 10+ years experience (76%)

Specifically, how would you rate the health of the sponsorship industry? Base: Total Sample (n=217); Healthy (n=153); Unhealthy (n=40)

Perceived Health of the Sponsorship Industry

% Selected, among total

Top 5 Reasons For Industry Health

Unprompted, there are five common themes that surface driving optimism for the health of the industry

Top 5 Reasons For Industry Health

% Mentions, among those who selected V/SW healthy

  1. 27% Bouncing back after COVID / post-COVID

  2. 19% Lots of opportunity / deals being signed / brand eager to be involved

  3. 19% New technologies / formats / innovations / more digital

  4. 14% New brands / categories eg. Crypto on the market

  5. 12% Money is available / budgets are allowing it

Specifically, how would you rate the health of the sponsorship industry? / Why do you feel this way? Base: Total Sample (n=217); Healthy (n=153); Unhealthy (n=40)

Sponsorship Impact on Consumers

1 in 2

consumers agree that sponsorship has a positive impact on brands involved

How strongly do you agree or disagree with the following statements? Base: Total Consumer (n=1771)

Agreement with Sponsorships Statements (Consumer)

% Strongly Agree/Agree, among total consumers

Benefits of Sponsorship

There’s general alignment between consumers and industry professionals on the top benefits of sponsorship

Top Ranked Sponsorship Benefits

Industry
  • Brand equity / perceptions
  • Brand awareness
  • Purchase conversion
  • Brand understanding / comprehension
  • Corporate responsibility
  • Hospitality/entertaining
  • Employee engagement
What does your organisation, organization view as the greatest benefit of sports sponsorship?
Consumer
  • Increasing my awareness of the brand
  • Increasing my consideration of purchasing, using, or visiting the brand
  • Increasing my understanding of what the brand does or stands for
  • Increasing my feelings or attitudes towards the brand
  • Increasing my view that the brand is a good corporate citizen
When you see or hear of a brand sponsoring a sports organization else organisation you follow, what would you say is the most likely outcome?

Technology's Impact on Sponsorship

65%

of industry professionals agree that the industry is embracing innovation and creativity

Evolution in content delivery, NFTs and augmented reality are among the top technologies creating waves within the industry

How strongly do you agree or disagree with the following statements about the industry as a whole? Base: Total Sample (n=217)

Technologies That Will Have the Biggest Impact in the Next 3 Years

% Selected, among total

Which technologies, if any, do you feel will have the biggest impact on sponsorship in the next three years? Base: (n=217)

Consumer Interest in Specific Technologies

Consumers are actively participating and / or interested in the innovation coming to the sponsorship world

Agreement with Sponsorships Statements (Consumer)

% Active / Interested, among total consumers

How would you describe your interest level in the following? Summary - Active or Interested Base: Total Consumer (n=1771)

Properties Leading the Way in Creativity and Innovation

The NBA, WNBA and their respective teams rise to the top as the sport leading the way in creativity and innovation, followed by soccer leagues and teams, the NFL and Formula One.

Sports Properties Leading the Way in Marketing Creativity / Innovation

% Total Mentions

SponsorPulse

Industry vs Consumer on Property Innovation

The NFL and NBA leagues are neck-in-neck in industry mentions, but the consumer perspective is quite different as they call out sports versus particular leagues or teams.

Industry vs Consumer on Properties Leading the Way in Innovation

Industry
  • 29% NFL
  • 28% NBA
  • 22% Formula One
  • 11% English Premier League
  • 8% Esports/Gaming
In your opinion, which sports properties lead the way in terms of marketing creativity and innovation? Base: (n=217);
Consumer
  • 19% Soccer
  • 4% Cricket
  • 3% NBA
  • 3% NFL
  • 3% Basketball
In your opinion, which sports events, leagues, or teams do a good job of highlighting their sponsoring brands into their connections with fans? Base: (n=1771)

Industry vs Consumer on Brand Innovation

At a brand level, Nike is the undisputed #1 ranked brand in sport sponsorship, while Adidas and Red Bull rank with industry and consumers

Industry vs Consumer on Brands Leading the Way in Marketing Creativity / Innovation

Industry
  • 30% Nike
  • 18% Red Bull
  • 13% Crypto / Crypto.com
  • 10% Adidas
In your opinion, which brands lead the way in terms of sponsorship marketing creativity and innovation? Base: (n=217);
Consumers
  • 11% Nike
  • 7% Adidas
  • 5% Coca Cola
  • 3% Pepsi
  • 2% Puma
  • 2% Heineken
  • 2% Red Bull
In your opinion, which brands do a good job of integrating with the sports events, leagues, or teams you care about? Base: (n=1771)

Growth of Women's Sport

Industry and consumers want to see more investment in women’s sports, while emerging alternative sports appear to be a significant opportunity with consumers.

Property with the Biggest Growth (Industry)

% Selected, among total industry

Which type of property do you feel is the biggest growth category for the sponsorship industry? Base: (n=217)

Would Like to See More Investment In (Consumer)

% Selected, among total industry

Specifically, where would you like to see more sponsorship investment – if anywhere? Base: (n=1771)

Brand and Property Accountabilites

Current Accountabilities

The industry is aligned on roles and accountabilities in sponsorship today

Current Party Accountability

% Selected, among total

In your opinion, which party is currently accountable for the following? Base: Total Sample (n=217)

Future Accountabilities

Looking forward, that general alignment remains true, but properties will be expected to take on greater accountability across the board

Future Party Accountability

% Selected, among total

And in your opinion, which party should be accountable for the following in the future? Base: Total Sample (n=217)
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The Bad

There’s concern over the amount clutter in sponsorship and in measuring attribution and return on investment. These concerns are widespread and may be contributing factors to an overarching lack of transparency felt by industry professionals that headlines this section.

Transparency

59%

agree that sport sponsorship lacks transparency, particularly among professionals with 6-10 years experience (71%)

How strongly do you agree or disagree with the following statements about the industry as a whole? Base: Total Sample (n=217)

Biggest Challenges For Brands Investing In the Industry

% Selected, among total

In your opinion, what are the biggest challenges for brands investing in sports sponsorship today? Base: Total Sample (n=217)

Biggest Challenges For Properties Seeking Investments

Similarly, properties face the same challenge of delivering and demonstrating value to partners

Biggest Challenges For Properties Seeking Investments

% Selected, among total

In your opinion, what are the biggest challenges for sports properties seeking investments today? Base: Total Sample (n=217)

On the Brighter Side

The positive is that there are several tools working toward helping the industry address the issue of transparency through measurement

Current Method of Uncovering True Market Value of Sponsorship/Asset

% Selected, among total

How does your organisation/organization go about its current task of uncovering the true market value of a given sponsorship or asset? Base: Total Sample (n=217)

Impact of Sponsorship Assets

Of 11 unique sponsorship assets, industry professionals believe digital content, athlete activations and title sponsorships drive the greatest return on investment.

Assets that Provide the Best Return on Investment

% Selected, among total

Which of the following assets or inventory do you believe generally provides the best return on investment? Base: Total Sample (n=217)

Industry vs Consumers on Impactful Assets

But consumer perspectives differ on the most impactful assets, with event title sponsorships, charity partnerships and promotions and prizing claiming the top 3 spots

Top Ranked Assets Driving Impact

Industry
  • Digital & video content
  • Athlete-led activations
  • League/series/event title sponsorship
  • Front-of-shirt/uniform branding
  • Experiential activations
  • Stadium/arena naming rights
  • Charity/community partnerships
  • Pitch side/on-court/on-ice/on-field/venue advertising
  • Promotions and prizing
  • Additional kit/uniform branding (sleeve, jersey patch, shorts, etc.)
  • Packaging & retailer presence
Which of the following assets or inventory do you believe generally provides the best return on investment?
Consumer
  • Title sponsorship of an event or league
  • Charity/community partnerships
  • Promotions where you save money or have a chance to win a prize
  • Logos elsewhere on the 'jerseys' 'kits' of athletes (sleeve, patch, shorts, etc.)
  • Logos on the front of the 'jerseys' 'kits' of athletes
  • Naming a stadium or arena
  • Advertising beside, on, or near the court/pitch/surface of play
  • Partnerships with individual athletes
  • In-person experiences like games, product samples
  • Digital & video content
  • Integration on packaging & retail store presence
Which of the following ways that sponsoring brands get involved with sports organization else organisation do you feel is the most likely to positively impact you?

Sports compared to Other Forms of Entertainment

Sports is largely considered best-in-class in delivering awareness and ROI, but struggles significantly on whitespace/clutter

How Sports Compares to Other Forms of Entertainment

How Sports Compares to Other Forms of Entertainment

% Selected, among total

How do you feel sport matches up against other forms of entertainment (music, cause/charity, lifestyle, etc.) on the following factors? Base: Total Sample (n=217)

Category and Property Oversaturation

Among industry professionals, sports betting and cryptocurrency top the list of over saturated categories, while Soccer/EPL top the list on the property side

Sponsor Category with the Most Oversaturation

% Total Mentions

SponsorPulse
Sports Property with the Most Oversaturation

% Total Mentions

SponsorPulse

The Unknown

Are today’s growth drivers going to be sustainable into the future? How will the marketing mix continue to evolve? There are some important questions that both industry professionals and consumers are keeping an eye on.

Trajectory of the Sponsorship Industry

77%

of professionals believe that we’ve yet to reach the peak of the sponsorship industry

How would you describe the current trajectory of the sponsorship industry? Base: Total Sample (n=217)

Perceived Trajectory of the Industry

% Selected, among total

Evolution of the Industry

43%

of sponsorship professionals feel the industry is undergoing an evolution with mixed undertones of optimism and concern

What words or phrases would you use to describe the overall state of the sponsorship industry today? Base: Total Sample (n=217)

Positive Momentum for Trends

The industry senses positive momentum in favor of athletes and personalities, causes and culture

Positive Momentum for Trends

% NET Positive, among total

Looking at recent trends, what kind of momentum do you foresee for...? Base: Total Sample (n=217)

The Disconnect between Industry and Consumers

But there’s a disconnect between what the industry sees having the strongest momentum and what consumers want to see sponsors getting more involved in

Industry vs Consumer on Strongest Category Momentum

Industry
  • Athletes / personalities
  • Cause and charity
  • Culture and lifestyle
  • Sports teams
  • Entertainment and music
  • Sports leagues
  • Amateur sport
Looking at recent trends, what kind of momentum do you foresee for...? - Summary - NET Positive
Consumer
  • Cause and charity
  • Amateur sport
  • Entertainment and music
  • Culture and lifestyle
  • Sports teams
  • Sports leagues
  • Athletes / personalities
Where would you like to see more - or less - sponsorship involvement from brands?

Perceived Growth Within Categories

Industry Perceptions

From a category perspective, cryptocurrency has the greatest perceived growth opportunity, more than double that of #2 ranked sports betting

Brand or Category with the Biggest Growth

% Selected, among total

Which brand category do you feel is the biggest growth category for the sponsorship industry? Base: Total Sample (n=217)

Categories Likely to be Non-Existent

Ironically, some industry professionals believe there’s a chance that those top two growth categories become non-existent over the next three years

What categories, if any, do you think will be non-existent in the sponsorship space in three years? Total Sample (n=217)

Consumer Perceptions

There’s a long way to go for those high growth categories to win over the minds and hearts of consumers

Positive Perceptions of Categories (Consumer)

% NET Positive, among Total Consumer

How well do you feel when you see the following types of brands sponsoring sports? Base: Total Industry (n=217); Total Consumer (n=1771)

Content Delivery Preferences

Despite diversification in content delivery, consumers have a strong preference for live sports on the biggest screen through a traditional TV subscription

Live vs Recording

% Selected, Among Total Consumer

Technology Usage

% Selected, Among Total Consumers

Provider

% Selected, Among Total Consumers

SponsorPulse

Let's stay in touch!

You've successfully signed up for our newsletter

Subscribe to our newsletter and get the latest sponsorship industry insights delivered to your inbox.

By submitting this form, you agree to receive marketing communications from SponsorPulse according to the terms and conditions and privacy policy. You can unsubscribe at any time.