The Changing World of Sports Sponsorship
The dust is settling on the Gold Coast 2018 Commonwealth Games, a competition still trying to find its voice. The competition sprung a few unforgettable moments - most notably Scotland’s Callum Hawkins’ heart-breaking marathon collapse, and the England Netball team’s awe inspiring victory. These will live on long in the memories of those competing and watching.
But outside of these, there was little noise about the Games, no real build-up and very little aftermath. If you were one of the many sponsors involved, has it been a success? We’ll have to wait and see. But what we do know is that there will be lots of questions asked in boardrooms over the coming months about the value of sponsoring the Commonwealth Games.
What has become apparent is the changing world of sports sponsorship, and how the last few years have really demonstrated that brands are starting to re-think what value these sponsorships bring. Gone are the days that a logo placement was a job done - hopefully, anyway!
Depending on who you talk to, the FIFA World Cup is the greatest show on earth. However, the last four or so years have been an extremely difficult period for them. Selling rights to this global show should be easy, right? Well not in today’s world, a time when brands are spending millions to build and protect their brand’s reputation and having to become stricter and stricter with choosing associate partners. Would you want your brand associated with a corporation that has the words ‘corrupt’ and ‘scandal’ popping up next to them on Google? Brands are not just interested in the number of eyeballs but increasingly seeking out events who share - and more importantly demonstrate - the same values.
Arguably the other greatest show on earth, the Olympics, is also going through a sponsorship transition. Since the Rio Games it’s lost a few of its big partners, McDonald's and Budweiser to name a few. Both global powerhouses point to a re-evaluation of their sponsorship strategies. You can’t help but think that reduced viewing figures, according to NBC, and the strict sponsorships guidelines, have played a part in these decisions.
In the past we’ve seen smart creative strategies from brands ‘looking’ like they are official sponsors. You only have to think back to the work of Nike and Beats by Dre for some standout moments. But this happened four years ago, a time when it was more difficult for brands without hefty budgets and a huge talent roster to get noticed. Fast-forward to today, and the development in technology has made it a much bigger playground. There are now opportunities for brands of all sizes to have a go at grabbing attention, without having to play to the rules of the organising committees.
The world of sports sponsorships has always been a valuable pillar of a brand’s marketing strategy, but as we move forward to Russia and Japan, it feels evident that brands will question the value of these sponsorships. Asking whether there are easier and more efficient ways to build direct relationships with consumers. Today consumers want to feel part of a brand, and traditional sponsorship simply leaves them out due to its passive nature. Brands will therefore only be a partner if the sponsorship brings a positive association to their brand, if the event provides real value and opportunities beyond what unofficial partners can achieve and ways they can build strong relationships with current and new consumers.
Whatever happens, global sporting events will live on. Who organises them and funds them is another question.
Alexander Preece is a Business Director at creative company Gravity Road whose clients include Sainsburys, Uber and PokerStars. He is also the host of the All Things Sport podcast.
