A new research report has estimated that in 2019, there would be a 4 per cent growth in the business spending on sports sponsorship are reach upto £35 billion globally.
This prediction has been published by research from agency Two Circles and its report on the matter claimed that sponsorship deals are being underutilizing and under-exploiting by the rights-holders, such as leagues, teams or tournaments. But the report further claimed that the outdated rights packaging was possibly resulting in lost revenues of £14 billion which could have been generated. The report also pointed out that it was necessary for other industries apart from sponsors such as carmakers, financial services, airlines and gambling, should come forward and be included as advertisers and sponsors of sports.
“Most rights-holders continue to package and sell sponsorship just as they did 20 years ago – offering brand exposure through linear (TV) broadcast coverage as the main benefit for brands,” says Two Circles boss Gareth Balch.
Global and regional sports bodies are also not completely utilizing the potential and the power of digital marketing, he said.
“Rights-holders are adapting,” Balch added, “and we predict a sports sponsorship correction”.
“By embracing the power of digital and data to create sponsorship assets that better satisfy the objectives of brands, rights-holders will realise the true value of their sponsorship businesses,” he further said.
Between the years 2020 and 2024, there would be an increase of 6 per cent on the average year on year in the total spending on sponsorship of sports, predicted Two Circles. The report predicted that the sponsorship amount would touch about £48 billion on the overall by the end of the aforesaid period.
In recent times, there are rising concerns about restrictions being imposed on marketing by gambling companies. The importance of sponsorship in sports by this sector is illustrated by the fact that gambling advertisements account for almost 12 per cent of the total sponsorship in sports in the United Kingdom alone. Therefore any restriction on the marketing and advertisement of this industry could have a negative impact on the overall sports sponsorship scenario, fear market experts.
The problem of gambling in the UK is being attempted to be tackled by concerted action by health bodies, charities, regulators and businesses.
The Gambling Commission has drawn up a three-year strategy that focuses on prevention, education and treatment and support for problem gamblers.
Announcement of stopping all sponsorships in football shirts as well as stopping perimeter advertising at matches was made by GVC Holdings, which owns Gala, Ladbrokes and Coral, the company has said.
(Adapted from BBC.com)