Sports Sponsorship - Emerging Trends Set To Thrive in A Post-Pandemic Era
Sports Sponsorship - Emerging Trends Set To Thrive in A Post-Pandemic Era
THRIVING
TRENDS FOR
A POST-
PANDEMIC
ERA.
CONTENTS
1 2 3 4
04 INTRODUCTION 08 THE IMPACT OF COVID-19
09 Engaging sports
fans
15 WHAT DOES THIS
MEAN FOR THE
BUSINESS OF SPORTS
21 E MERGING TRENDS IN
SPORTS SPONSORSHIP
22 C
ontinued
SPONSORSHIP? digitisation
10 The continued rise
of sports
13 EsportsX Shifting
sponsorship
markets
25 T
alent
engagement
and the rise of
personal brands
28 EsportsX Shifting
markets
5 6 7 8
33 T OP TIPS: RIGHTS
HOLDERS &
SPONSORSHIP SALES
36 A LOOK TO THE
FUTURE
38 CONTACT DETAILS 40 CITATIONS
“THERE IS AN EVER-
PRESENT DEMAND FOR
SPORTING CONTENT
FROM PASSIONATE
AUDIENCES WORLDWIDE”
1
INTRO-
DUCTION
04
INTRODUCTION
47%
OF SPORTING EVENTS
SCHEDULED TO TAKE
PLACE IN 2020 WILL
EITHER BE CANCELLED
OR POSTPONED BEYOND
THE END OF THE YEAR [4]
05
INTRODUCTION
(US)
$17.2BN
THE PREDICTED
FALL IN SPORTS
SPONSORSHIP
SPEND IN 2020 [1]
Whilst sports rights holders are
facing an anticipated 37% reduction
of sponsorship rights fees this year,
US$17.2bn below the US$46.1bn
that was invested in 2019 [1]; one
thing we can rely on amidst waves
of uncertainty and disruption is the
ever-present demand for sporting
content, stemming from the passion
of audiences worldwide.
06
2
THE IM-
PACT OF
COVID-19
07
THE IMPACT OF COVID-19
ENGAGING
SPORTS FANS
In the world of sports sponsorship, our clients’
core activity is to engage fans across the globe.
Current circumstances have undoubtedly left a hole
in the lives of many, with only a handful of fixtures
and competitions returning to action this summer.
In fact, it is predicted that only 53% of scheduled
sporting events will go ahead in 2020 [4].
Eager to fill this void, rights holders have set about the challenge
of keeping fans engaged with great vigour, producing content and
experiences sure to be remembered well beyond the lifespan of
this pandemic.
Football Marathon
Danish club FC Midtjylland have realised their incredible The 2.6 Challenge was launched following the
plans for ‘drive in’ facilities that will allow fans to watch live postponement of London Marathon and cancellation of
matches from their cars on giant screens outside of the thousands of other mass participation events, engaging
stadium, sure to provide a sense of fanfare throughout the the public in ‘at home’ challenges to save the UK’s charities
remainder of the 2019/20 campaign
Olympics
Sailing Team GB and notably our client, British Gymnastics, have
SailGP, alongside its partner Oracle, have launched maintained fan engagement across its digital and social
‘Winning Calls’ - a new series of virtual events providing channels with through the delivery of their “At Home
an insight into how the series’ national teams make Games”, leveraging relationships with British Athletics
strategic decisions during races stars to do so
Darts F1
Fans have been able to enjoy the 2020 Unibet Home Tour The Virtual Grand Prix has perhaps been the shining
– a unique tournament organised by the Professional Darts star in a new wave of ‘traditional sports’ content provided
Corporation for players to play indoors, at their own homes during lockdown
- More than 30 million people tuned into the Virtual
NFL
Grand Prix across F1’s digital channels and television
The NFL superbly executed the 2020 ‘virtual draft’ which
broadcasting [11]
reach over 55 million total viewers [26]. Building on its
success, our client, the Jacksonville Jaguars, went on to - In the UK, F1 broadened their appeal by inviting sports
engage fans in creating highlight reels of their reactions stars from Football, Cricket and Rally to compete
throughout alongside their own drivers in the virtual series
- Not only have viewers been able to watch the broadcast
across all F1 channels (F1.com, YouTube, Twitch, Weibo
and Facebook channels), but the event was also
broadcast live with international broadcast partners
in over 100 countries, including Sky Sports and ESPN
09
THE IMPACT OF COVID-19
THE CONTINUED
RISE OF ESPORTS
The most significant legacy likely to arise from the COVID-19
period will be Esports cementing itself on the mainstage of
sporting competition with a largescale mainstream audience.
Despite boasting a global audience of 453.8 million [12], Esports
has previously been considered the arena of the gaming
elite. Now, without major barriers to entry faced by traditional
sports, Esports has filled the void for many sports fans in this
lockdown period.
To quantify the direct impact, Twitch has increased its viewership by 24% [13] whilst
Steam has recorded its highest ever concurrent audience [14]. In total, search for
gaming content has seen a 1054% increase so far this year, with a top indexing
audience of sports fans [2].
10
THE IMPACT OF COVID-19
1054%
and attracts a commercially-viable audience. He explains,
“… from a broadcast standpoint you’re going to see more
traditional broadcasters willing to be supportive and that
is a big opportunity for the gaming world.”.
11
THE IMPACT OF COVID-19
21 MILLION
THE NEW GLOBAL
AUDIENCE OF
GFINITY, WHO IN
COMPARISON WAS
RECEIVING 20,000
PAGE VIEWS PER
MONTH THIS[19]TIME
LAST YEAR
Without question, Esports will remain a hugely significant sports
property beyond the coronavirus period, even further bolstered by
the resumption of its live tournaments. Communities will continue
to grow, as will the attention and engagement of broadcasters and
brands who no longer perceive potential sponsorship in this field
as a niche opportunity.
12
THE IMPACT OF COVID-19
SHIFTING
MARKETS
Whilst sports rightsholders and
their partners continue to adopt
new methods to maintain active
engagement with their audience,
we cannot escape the huge income
loss that has been incurred since live
sport was halted globally in March.
A number of industry sectors who have, up to now, held a With that in mind, we are paying close attention to
significant market share in sports sponsorship are facing cross-industry performance which is in fact providing
severe budget cuts as a result of the pandemic and genuine reason for optimism as the likes of ecommerce,
consequently global sponsorship rights fees are projected subscription platforms, gaming and streaming, home fitness
to fall 37% from US$46.1bn in 2019 to $28.9bn in 2020 [20]. and Elearning and Esportrs sectors have all experienced
exponential growth in recent months following immediate
Projections suggest that spending within the Financial shifts in consumer behaviour.
Services sector, last year’s biggest investor, will fall 45%
this year to US$6.9bn. Add to this the severe impact felt Ecommerce (Retail)
throughout the Automotive sector, last year’s second Global sales in the ecommerce retail sector were up 209%
largest spender, and a further US$3.2bn is anticipated in April 2020 compared to the same period in 2019 [21]
to be lost across sports sponsorship [1].
Digital Entertainment Subscriptions
Another area hit hard by the pandemic is Travel & Barclaycard has recorded growth of 12.4% among
Tourism which continues to suffer due to the direct subscription entertainment services such as Netflix
impact of widespread bans on international travel. When and Now TV [22]
you consider the scale of last year’s spending; our work
securing the partnership for the lastminute.com London Home Fitness
Eye being just one of many multi-million-pound sponsorship Significant growth in equipment sales as well as subscription
deals, with other significant sponsorships secured in 2019 sales to home workout content has seen the Home Fitness
including Booking.com & UEFA Euro 2020 and Airbnb & sector flourish over the three months
The IOC; it comes as no surprise that investment in this -E.g. Icon Health & Fitness has seen a 600% increase
sector is anticipated to drop by ~ 60% in 2020 [20]. in year-on-year sales [23]
As we acknowledge where the forthcoming gaps in Game Streaming Platforms
investment are most likely to occur, one of the primary Twitch saw a 10% week-on-week rise in viewership
responsibilities of Mongoose, as an agency that is active figures during the early stages of COVID-19 [24]
in sponsorship sales, is to identify potential future revenue
streams for our rights holders. Esports
The entire Esports market is set to
grow by more than US$1bn in 2020 [25]
13
THE IMPACT OF COVID-19
14
3
WHAT DOES
THIS MEAN
FOR THE
BUSINESS
OF SPORTS
SPONSORSHIP? 15
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP
16
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP
£1BN
DROP IN REVENUES FOR THE PREMIER
LEAGUE FOOTBALL CLUBS, SHOULD
THE 2019-20 SEASON BE COMPLETED
SMOOTHLY IN THE NEXT TWO MONTHS [6]
£107M 84%
REVENUE LOSS TO BE
INCURRED BY THE RFU IF THE
Q1’S YEAR-ON-YEAR DROP
IN NET PROFIT IN F1, DOWN
AUTUMN INTERNATIONALS FROM $246M IN 2019 [8]
CANNOT BE PLAYED [9]
£100M
REVENUE LOSS TO THE
ECB, EVEN WITH
ENGLAND'S SERIES
AGAINST WEST INDIES,
PAKISTAN AND AUSTRALIA
SET TO GO AHEAD [10]
$12BN
ESTIMATED
LOSS ACROSS
AMERICAN SPORTS
LEAGUES IN 2020 [5]
17
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP
£37.5BN
EXPECTED BRAND
EXPENDITURE ON SPORTS
SPONSORSHIP IN 2020 [2]
72%
BRANDS LOOKING TO EXTEND
SPORTS SPONSORSHIP
CONTRACTUAL RIGHTS [3]
48%
BRANDS PLANNING TO REQUEST
NEW AND/OR SUBSTITUTE
SPONSORSHIP ASSETS [3]
18
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP
That being said, it is imperative that brands and rights holders continue to
innovate together, reimagining their business and acting nimbly to maintain
traction and engagement amongst their audience across digital channels.
Building on the notion of realistic positivity, many brands have picked up the
mantle and are delivering on innovation when it comes to sponsorship activation.
19
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP
20
4
EMERGING
TRENDS IN
SPORTS
SPONSORSHIP
21
EMERGING TRENDS IN SPORTS SPONSORSHIP
CONTINUED
DIGITISATION
OF SPORTS
SPONSORSHIP
As live sport resumes, it does so behind closed
doors and as a result, the full suite of sponsorship
rights is no longer available. Therefore, it is vital
that rights holders develop methods to interact
with their fans via digital platforms.
Not only are rights holders with expansive technological capabilities in
a stronger position when it comes to servicing their fans with relevant
content, but their ability to track consumer behaviour and engagement
allows them to benefit from deeper insight data. In the current climate,
with brands understandably placing an even tighter lens on return on
investment, digital tracking capabilities and online interaction will prove
fundamental in providing the necessary evidence that supports any
rationale to include sports sponsorship in future commercial strategies.
22
EMERGING TRENDS IN SPORTS SPONSORSHIP
23
EMERGING TRENDS IN SPORTS SPONSORSHIP
24
EMERGING TRENDS IN SPORTS SPONSORSHIP
TALENT ENGAGEMENT
AND THE RISE OF
PERSONAL CAMPAIGNS
Under such unique circumstances,
with global headlines and social
posts dominated by adverse
headlines, this global crisis has
highlighted the critical importance
of interpersonal relationships. As
society continues to grab hold
of all stories that invoke a sense
of ‘togetherness’, talent and
influencer marketing has come into
its own, demonstrating its potential
as a media channel to generate
meaningful impressions.
25
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP
3 BILLION
THE EXPECTED NUMBER OF ACTIVE
SOCIAL MEDIA USERS BY THE END OF 2020;
THE LARGEST COMMUNITY IN THE WORLD
220 MILLION
CRISTIANO RONALDO’S INSTAGRAM FOLLOWING;
THE LARGEST INDIVIDUAL FOLLOWING IN THE WORLD
40 MILLION
JUVENTUS FC’S INSTAGRAM FOLLOWING;
THE CLUB THAT CRISTIANO RONALDO PLAYS FOR
26
EMERGING TRENDS IN SPORTS SPONSORSHIP
27
EMERGING TRENDS IN SPORTS SPONSORSHIP
PURPOSE-LED
SPONSORSHIP
ACTIVATION
With the widespread impact of coronavirus
being incurred by consumers and organisations
worldwide, we are suddenly experiencing
heightened engagement and appreciation
for purpose-led activity.
28
EMERGING TRENDS IN SPORTS SPONSORSHIP
89%
OF CONSUMERS WOULD
CHOOSE A BRAND WITH
CLEAR PURPOSE OVER
ONE WITHOUT [29]
29
EMERGING TRENDS IN SPORTS SPONSORSHIP
Throughout our industry, rights holders and brands The current pandemic has certainly increased the profile
are no doubt highly focused on identifying the most of the humanitarian and community work carried out
effective ways to partner and deliver genuine value by our Armed Forces and as a result has broadened
both commercially and socially. Key to unearthing the minds of many to include sponsorship engagement
authentic opportunities is identifying common causes with the roster of sports under the likes of Army
that both parties actively wish to support, with some Sports Control Board and RAF Sports Federation, both
more relevant than ever. represented by Mongoose.
31
EMERGING TRENDS IN SPORTS SPONSORSHIP
32
5TOP TIPS:
RIGHTS
HOLDERS &
SPONSORSHIP
SALES 33
TOP TIPS: RIGHTS HOLDERS & SPONSORSHIP SALES
1 6
PLAY THE LONG GAME UTILISE AGENCY EXPERTISE
It’s a case of being practical and level- This will ensure that partnership activity
headed about managing the situation continues to evolve, creativity never
but being incredibly creative about making falters, and fans are kept engaged.
the best of it to fill the void for fans.
2 7
PURPOSE-LED SPONSORSHIP ACTIVATION MAINTAIN A CONSTANT DIALOG
Address the question, how can AND REMAIN FLEXIBLE
sponsorship dollars be put to best What waits on the other side of this
use to make the world a better place pandemic is unknown but one thing
whilst also satisfying the objectives we can be certain of is that the
of the rights holder and sponsor? environment in which our industry
exists will be different.
Be open to extension of agreements
beyond pre agreed term.
3 8
BUILD GENUINELY AUTHENTIC ACCOUNT FOR FLEXIBILITY IN
RELATIONSHIPS THE FORMATION OF SPONSORSHIP
This will pave the way for long-term RIGHTS PACKAGES
partnerships remaining relevant and
impactful.
In a recent Sport Industry Insight poll,
42% of attendees said that a “shared
narrative between sponsors and a team”
is the most important aspect when
forming successful partnerships.
4 9
COMMIT TO THE PARTNERSHIP EMPHASISE THE VALUE OF
A sponsorship is a partnership at the DIGITAL ASSETS INCLUDED IN ANY
heart of the agreement, the sponsor and SPONSORSHIP AGREEMENT
rights holder must work in true unison to
maximise the output and come through
this together.
5 10
CONSIDER THE NEEDS OF YOUR WORK WITH THE RIGHTS HOLDER TO
AUDIENCE FIRST DEVELOP ASSETS THAT UTILISE THE
Whilst brand alignment is essential, TALENT POOL AT THEIR DISPOSAL
shared goals and objectives must
resonate with your audience.
34
TOP TIPS: RIGHTS HOLDERS & SPONSORSHIP SALES
“SINCE THE
EARLY DAYS OF
SPONSORSHIP, IT
HAS ALWAYS
BEEN AND WILL
ALWAYS BE ABOUT
RELATIONSHIPS.
RELATIONSHIPS
NEED WORK FROM
ALL PARTIES,
EVERYONE NEEDS
TO ‘WIN’ AND TO DO
THIS, RELATIONSHIPS
HAVE TO GO BEYOND
BEING PURELY
COMMERCIAL –
SUPPORT OF EACH
OTHER IS CRUCIAL
TO GET THROUGH
THIS TIME.”
CHRIS O’DONOGHUE, CEO – MONGOOSE
SPORTS & ENTERTAINMENT.
35
6
A LOOK
TO THE
FUTURE 36
A LOOK TO THE FUTURE
37
7
CONTACT
DETAILS 38
CONTACT DETAILS
HARVEY
+44 (0) 7845 327732
[email protected]
mongooseagency.com
TAYLOR
SPONSORSHIP STRATEGY MANAGER
39
8
CITA-
TIONS 40
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