In the world of global sports, brands are increasingly turning to corporate sponsorship as a “powerful marketing strategy.”
“Sports sponsorship has proven a powerful marketing strategy for the Hisense brand, offering a platform to connect with audiences and extend our reach to millions of fans around the world,” Fazalur Rahman, Regional Marketing Director for Hisense MEA said in an exclusive interview with Arabian Business.
The brand cited various cases with sports organisations like FIFA and Real Madrid which helped solidify the company’s position in the world of sports. However, Rahman emphasised that the benefit of these sponsorship go far beyond just brand visibility.
“These partnerships go beyond just achieving brand visibility; knowing how passionate sports fans are about their teams and watching sports, particularly here in the MEA region, we created immersive, technology-driven experiences during the recent UEFA EURO 2024 that brought consumers closer to the action; from interactive fan zones to ambassador programs with legendary athletes,” Rahman explained.
Unlike traditional marketing, which tends to be a one-way street, sports sponsorship allows brands to become an integral part of the experience of sports enthusiasts, fostering a deeper and more dynamic connection.
According to a recent market report The sports sponsorship Market grew from $105.47 billion in 2023 to $114.41 billion in 2024. It is expected to continue growing at a CAGR of 8.73 percent, reaching $189.54 billion by 2030.
“The necessity for sports sponsorship lies in its ability to deliver expansive reach and enhance brand image, as well as foster emotional connections with consumers through the sporting world’s passion-driven environment,” the report said.
The shift towards more immersive, experiential marketing is a key reason why sports sponsorship are seen as uniquely effective in building brand loyalty.
“Through integrating into the passionate, community-driven world of sports, sports partnerships certainly help to strengthen brand loyalty,” Rahman said.
By aligning with the passion of sports fans, companies can tap into emotional resonance that traditional advertising might not be able to match.
“Sports sponsorship ultimately increases customer engagement, creating a unique, culturally relevant connection and a more memorable brand experience than traditional advertising,” he added.
Moreover, the recent global rise in sporting events alongside the increased engagement of fans and the inclination towards healthier lifestyles has amplified sports viewership and participation, according to recent reports.
The benefit of sports sponsorship extend beyond brand exposure and fan engagement, experts said, they can deliver a tangible return on investment (ROI) for comapnies.
“The increased engagement translates into tangible business benefits, from higher product demand to an expanded customer base,” he asserted.
Red Bull for instance is a company whose marketing strategy involves a deep integration and heavy investment into sports sponsorship over traditional advertising, the brand is behind some of the best athletes in the world across several sports categories.
Perhaps one of their largest investments into sports is Red Bull Racing for the Formula 1, now a leading team with millions of supporters around the world.
The company entered F1 by purchasing the Jaguar racing team in 2004. Two decades later, Red Bull Racing has become a dominant force in the sport, with its team now valued at $2.4 billion.
“Through integrating into the passionate, community-driven world of sports, sports partnerships certainly help to strengthen brand loyalty,” Rahman said.
According to an article by the University of Wisconsin, sports sponsorship are categorised into four primary options:
Event sponsorship: This type of sponsorship involves sponsoring a specific sports event, such as a tournament or championship game. The sponsor typically pays a fee in exchange for the right to have their brand prominently displayed at the event, in advertising and marketing campaigns, and media coverage.
Team sponsorship: This involves sponsoring a professional, amateur or collegiate team. The sponsor pays a fee for the right to prominently display their brand on team uniforms, equipment and in advertising and marketing campaigns.
Athlete sponsorship: The sponsor typically pays a fee in exchange for the right to have their brand associated with the athlete, who will wear the sponsor’s logo on their uniform, use the sponsor’s products and appear in advertising and marketing campaigns.
Venue sponsorship: Venue sponsorship involves sponsoring a specific sports venue, such as a stadium or arena. The sponsor typically pays a fee in exchange for the right to have their brand prominently displayed throughout the venue, in advertising and marketing campaigns and media coverage.
The article further highlighted several benefits of sports sponsorship:
Reach new and targeted markets: Unlike traditional media ads, which target a broad audience, sponsorships offer a cost-effective way to connect with specific consumer groups. In-kind product sponsorships, especially, serve as a highly relevant alternative to traditional advertising since they align directly with the sports context.
Engage consumers: Sponsorship enables brands to shape consumer attitudes, create positive feelings about a brand and foster goodwill in relationships with customers, the community and investors.
Generate new leads: Companies can use the prestige of a sports entity to showcase their products to potential customers. Having knowledgeable representatives at an event to engage with attendees and offer sign-up options for updates is an effective strategy for generating leads.
Enhance business, consumer and VIP relationships: Sponsorship often provides unique perks, including access to exclusive networking events, VIP receptions, or events with industry leaders. Businesses can leverage these moments to connect with key customers and reinforce professional relationships, especially through thoughtful follow-up after the event.
Attract media attention: Sporting events are broadcast across television, radio, and online platforms, frequently featuring sponsors’ names within the media coverage.
Ultimately, the future of corporate sponsorships lies in creating deeper, more meaningful connections with the passionate communities.
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