Sports Sponsorship: Concepts and How to Apply it | The Sports Executive Path | Skillshare

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Sports Sponsorship: Concepts and How to Apply it

teacher avatar The Sports Executive Path, Sports Business and Management

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

10 Lessons (2h 12m)
    • 1. Introduction

      11:49
    • 2. The Evolution and Growth of Sports Sponsorship

      20:38
    • 3. The Added Value of Sponsorship in the Marketing Mix

      13:08
    • 4. Sponsorship Activation

      10:05
    • 5. The Impact of Sponsorship Through Media and Market Research

      12:35
    • 6. Sponsorship Case Studies

      21:31
    • 7. The Impact of Technology on Sponsorship

      13:56
    • 8. Digital Sponsorship

      8:17
    • 9. Trends, Development and Future Direction

      14:23
    • 10. Conclusion

      5:43
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About This Class

A Detailed Look at How Sports Sponsorships Work and Their Effect on the Sports Industry

Summary

Throughout history, sports sponsorships have been a massive part of the sports industry. Many sports are completely reliant on sponsorships and for others, sponsorships make up a big portion of their revenue. With the global sports sponsorship industry estimated at being worth more than $45 billion, it鈥檚 clear that there is a lot of value for both brands and rights holders in sponsoring sport.

Whether it鈥檚 through sponsoring an event, a sports team or an individual athlete, brands across the world see sports sponsorship as a way of gaining mass exposure and building their brand to a global audience. The very first sporting events in history relied on amateur athletes who needed sponsorships in order to dedicate their lives to training. This financial security helped athletes improve and get better over time and as the level of competition has grown, so too has the size of the sponsorships.

As the sports industry has rapidly expanded in the last few years, so have sports sponsorships. The arrival of new technologies such as the radio, tv and then the internet have all brought fans closer to the sport and given sports marketers new ways to reach fans. This has led to massive growth in the money companies are willing to spend on sponsorships, but companies need to understand how to use these deals effectively.

Sports have gotten saturated by marketing over time, and brands need to recognise that there is more to sponsorships than just buying views. A smarter approach to sponsorships needs to be taken to ensure that deals are being used effectively. Activating a sponsorship has become just as important as the sponsorship itself and brands that carefully plan out their sponsorships are much more likely to get a better return on their investment.

With technology continuing to improve and social media giving fans a closer connection to their favourite sports and athletes, sports sponsorships will find new ways to promote brands to fans. Sports are also becoming more inclusive to all types of people, and sports marketers need to focus on these new audiences to get the best possible results out of sponsorship deals.

What You鈥檒l Learn

Through this course you鈥檒l learn the following:

路 What is sports sponsorship, and how does it work?

路 Why do companies use sports to advertise their brands?

路 What types of sponsorships are there?

路 How did sports sponsorships first begin, and why?

路 How sports sponsorships have changed and adapted over the years

路 What role does sports sponsorship play in the marketing mix?

路 All about sponsors activation and its role in successful sponsorships

路 How do naming rights deals work, and what is their purpose?

路 The process of sports merchandising and how brands can deal with counterfeiting

路 How can a brand conduct market research the improve the effectiveness of their sponsorship?

路 Are sports sponsorship deals worth it for the sponsor?

路 What makes a sponsorship deal successful?

路 What factors can lead to a sponsorship being unsuccessful?

路 How technology is helping to improve sponsorships

路 In what ways is globalisation changing the sports industry and affecting the way sponsorships work?

路 What is digital sponsorship?

路 How social media is affecting the world of sports sponsorship

路 Future trends in sports sponsorship

Words from the Author, Saam Momen:

I have a true passion for teaching! I have proudly taught university courses in Switzerland, USA and Brazil. My career spans over 15 years in the sporting industry with jobs at the London Olympic Bid Committee, UEFA, CSM and TEAM Marketing. I possess a Master Degree in Sports Management and an Executive Education diploma at Harvard Business School on The Business of Entertainment, Media and Sports. I hope that throughout this course you are able to have a wonderful learning experience! Please do not hesitate to reach out should you have any queries.

Why Choose This Course?

Those working in the sports industry will understand just how important sponsorships are. Every major event such as the Olympics and the World Cup have a large part of their revenue made up entirely from sponsorships. A lot of athletes still make the majority of their salary from endorsements and other sponsorships. This course has been designed to help improve your understanding of how sports sponsorships affect the industry.

Considering how important sponsorships are to sports, it makes sense to try and develop your knowledge of this area, especially if you plan on working in the industry. It鈥檚 an excellent way to learn more about how sports revenue is generated. As the sports industry continues to grow, it provides new opportunities to people who understand how to create successful partnerships between brands and sports.

If you鈥檇 like to work in the sports industry, particularly if you have an interest in how sponsors work, this course is specifically tailored towards you. For those looking for careers in brand management and product management, there is also a lot of useful information here on how to plan and activate sports sponsorships. The course has been designed to be beneficial for anyone interested in sports marketing and those who want to gain a real-world perspective on how the industry operates.

Throughout the course, you鈥檒l be able to see direct examples of sports sponsorships, both those that were successful and the less successful. This information will help you apply the theory you learn into practice and understand sponsorship practices more clearly. These examples are all up to date, giving you a modern perspective of how the industry works and why sports sponsorships fail or succeed in the present day.

Some courses may focus on a single aspect of sports sponsorships, but this course will give you a clear picture of how deals work from all sides. You鈥檒l be able to see the perspective of sponsors and activation from the viewpoint of brands, sports teams and events plus the fans themselves. This multifaceted approach is useful in developing a better understanding of why sponsorships are important to sports. You鈥檒l also be able to understand how a brand can work with sports to deliver a better experience for the fans and why this is important for building brand recognition.

This course will aid you in understanding not just how sports sponsorships have changed over time, but why. You鈥檒l be able to use this knowledge to better prepare for how they might change in the future. The sports industry is incredibly competitive and fast-moving. New technologies and concepts are helping to change how sponsorship works all the time.

If you want to be successful in the sports industry, you have to understand how to adapt and change with the industry as it progresses. This course is designed to help you do exactly that, giving you insights into how sports sponsorships are evolving over time and examples of new practices that are helping to increase the return on investment of sponsorships deals.

Sports sponsorships can be complicated deals, but this course will help you to understand what makes them successful and how a deal can be improved. Once you鈥檝e completed the course, you鈥檒l feel more confident in your understanding of sports sponsorships and the sports industry as a whole. You鈥檒l have a better idea of how brands choose and create sponsorships and the steps they take to be successful. You鈥檒l also have a good idea of how sports sponsorships have changed over time and how they might continue to change.

Meet Your Teacher

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The Sports Executive Path

Sports Business and Management

Teacher

The Sports Executive Path is an online platform created to help anyone interested in gaining knowledge about sports management and the sports industry. Entering the world of sports is notoriously difficult and challenging, competition is fierce and jobs at the top of the pyramid are scarce. Through our courses we will provide guidance and tips, explain myths and grant access to valuable information for anyone wanting to enter this vast and exciting world.

 

The Sports Executive Path was founded by Saam Momen. Saam is an independent business professional who has over 15 years of involvement with the world of sports. His involvement with the sports industry started in a series of world-class sports events in Brazil. Further knowledge was acquired when obtaining a M... See full profile

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Transcripts

1. Introduction: Hi, My name is Sam Malone. Welcome to this course on sports sponsorship. Before we start, I'll give you a short introduction about myself. I have had the privilege of working for over 15 years in the sports industry in companies like you, a for which is the governing body of European football. Great sports marketing agencies like See Osama Team marketing, the London 2012 Olympic Bid Committee, a zealous in dozens of other sports related projects. In this course, we will be talking about sports sponsorship, which remains to date one of the most popular ways for brands to advertise. What you learned in this course is the following. What is sports sponsorship and how does it work? Why do companies use sports to advertise their products? The evolution of sports sponsorship over the years? What responsive activation and why is it so important? What makes a sponsorship deal successful? How technology is improving sponsorships? What is digital sponsorship, the effects of social media on the world of sports sponsorship as well as future trends? The idea is that not only this course, but all future courses are actionable and that you can implement the ideas immediate. There is a workbook in the project segment to write down not only your notes but to provide links toe all relevant content discussed in each chapter. If you have missed the other courses produced here, feel free to watch them. So without further ado, let's begin. Welcome to this course on sports sponsorship. Sports have Long Bean one of the most popular pastimes for people all over the world, and I such are powerful way for brands to connect with fans. One of the main ways companies use sports for marketing is through sponsorships. This course will explain what you need to know about sports sponsorships. You learn how sports sponsorship first began, how it's changed over time on what it remains one of the most popular ways for brands to advertise today. The increasing globalization off the world has led to a massive, ever growing market off sports fans. Companies from all over the world can now connect with these fans and self them easier than ever. New technology and media formats have helped to spread sports and sports sponsorships to new corners of the globe. In the modern world, sports fans have more control than ever over what they watch and when. This means that sports sponsorships have to be smarter and more selective. As sports have changed over time, so too have sports sponsorships. And it's necessary for those working in sports marketing toe. Understand the industry completely. This course will help you to understand the key concepts off sports marketing, how it's used effectively and how it can bring value to fans, brands and sports themselves. What you will learn throughout this course, you'll be looking at riel examples of sports sponsorship to help explain key concepts you learned the following What is sports sponsorship and how does it work? Why do companies use sports to advertise their products? How many types of sponsors are there, how sports sponsorships began and why the evolution of sports sponsorship over the years? How sports sponsorship fits into the marketing mix? What a sponsor. Activation on why it is so important. What are naming rights and how do they work? How does sports merchandising work and how do brands prevent counterfeiting? How do brands conduct marketing research to ensure their sponsorship is successful? Our sports sponsorships worth it? What makes a sponsorship deal successful? What makes a sponsorship deal unsuccessful. How technology is improving sponsorships. How globalization is driving change in the sports and sponsorship industries. What is digital sponsorship? The effects of social media on the world of sports, sponsorship and future trends? What is sports sponsorship? Sports sponsorship is a powerful marketing technique that's been used by companies all over the world to increase the exposure off their brand sports. Sponsorships are made up of two separate parties. The sponsor who hopes to gain brand awareness by paying money to the sponsored party to advertise their brand and a sponsored party or rights holder. Sponsored party is either an athlete, sports team or sporting event. These parties all need a source of finance to improve and maximize their performance. Sports teams and athletes need to pay for their equipment, training facilities, travel costs and more. While some sports rate and massive amounts of broadcasting fees for others, sports sponsorships are vital for keeping teams and athletes afloat. Sports are one of the most popular pastimes for billions of people all over the world, meaning that they have a huge global reach. This large reach is what makes sports sponsorship so attractive to companies they can put their brand in the mind's of sports fans and be associated with positive memories of the team or event they are sponsoring. A good example of sports sponsorship is the sponsors you can see across the sports team shirt. This company has paid the team for the right to feature their company logo or name across the shirt. This four off advertising gives the brand high exposure and visibility in the media the difference between endorsements and sponsorship. When it comes to sports sponsorship, you might hear both terms, sponsorship and endorsement used throughout this course. We're going to be talking about both. While the two concepts are similar, there are some differences between them. Sponsorship refers to a company paying money toe an event or team in return for something. For instance, a company like Emirates, which pays teams to have its logo featured on the shirts off sports teams Emirates pays the sports club a sum of money to feature its logo for a set amount of time. An endorsement tends to be a little bit more personal and involves an athlete or team giving their public support for a company. Endorsements are more usually seen by companies endorsing happens. For example, in the case of Nike, which endorses some of the world's biggest athletes, those athletes are usually then under contract toe only wear sporting a Perot produced by Nike and appear in promotional campaigns for Nike products. Why do companies sponsor sports? So we're companies spending billions of dollars per year on sponsoring sports events? Well, there are a variety of great reasons exposure as we already mentioned sports of billions of fans all around the world with the amount of time people spend watching sports, not to mention all the time reading and talking about it, too. There's a lot of potential for brands. Usually the primary objective off any marketing campaign is to expose the brand to new potential customers. Whether this is through a small at or sponsoring a global sporting event, the primary goal remains more or less the same. Naturally, many people will have already heard of companies such as McDonald's or Adidas, but this doesn't stop them from sponsoring events like the Olympics or the World Cup. So what else is in it for the sponsor? Positive association Sports friends are likely to have a highly positive association with memories associated with a major sporting event. Yes, that even includes times when their favorite team lost. Sports fans who were exposed to a brand during the sports event will likely associate this positive memory, at least partially with a brand, so companies aren't just aiming at exposing the brand to sports fan. They also want to make sure that those fans remember them and think of them in a positive way. Brand loyalty with Fence. Finally, the Holy Grail of any brand is to establish long term brand loyalty. Having consumers were loyal to your brand means that they're more likely to pick your products over any competitors. This is a massive advantage for a brand, as it means they can rely on loan term sales. Sports fans, in particular, are a big part of why sports sponsorships are so valuable. Sports fans often show lifetime loyalty to their sport or favorite team, and companies can use this to their advantage types of sponsors. We have already talked about sports shirts with sponsors as an example of sports sponsorships, but these aren't the only kind out there. There are lots of different types of sponsors, and most will have a different cost and benefit associated with them. Here are a few of the main types of sponsors individual sponsor or endorsement companies will pay an individual athletes to use their product. Sportswear companies often sponsored athletes, and that athlete will be seen always wearing the brand of the company, team or club sponsor. A company can often choose to sponsor a specific sports team or club. The team will use their branded equipment or sports wear or display banner or advertising around the stadium. Sports sponsor companies can pay to sponsor the sport or league itself. The company made by rights to change the name of the competition or to rebrand development programs and training facilities. Event sponsor Sporting events can be huge and present a lot of complicated problems for Organizer's when it comes to financing the event. That's where sports events sponsors come in. The following are all great examples of different kinds of events. Sponsorships. General sponsor General sponsors are often the only sponsor of an event or team and produce 50% of more of the events sponsorship revenue. This is more common for smaller events that may not be able to attract lots of different sponsors official sponsor on official sponsor, often sponsors one particular aspect off the sports events or team. For instance, there might be an official insurance provider or official car brand off the Olympics. Informational sponsor. The's sponsors are in charge of the P R and media coverage of an event. A sponsor. Providing free media coverage of an event can be a big boost for smaller events on more niche sports that might not be available to fans otherwise. 2. The Evolution and Growth of Sports Sponsorship: the evolution and growth of sports sponsorship in this chapter will take a look at the changing face off the sports industry. You'll be able to see how rapid changes in how accessible sports have become have lead to big changes in the value in sponsorships. We'll discover the different ways sports sponsorships have evolved from the early days into how they work today. We'll also examine why there has been so much change in a short time, not just to sports sponsorships but to the sports industry as a whole. You learn about how advances in technology and new types of marketing have all had an effect on changing the sports sponsorship industry for good. How sponsorships have evolved sports have come a long way from the early ancient Olympics, while they were little more than an amateur event back then. Today, millions of athletes in all kinds of different sports compete around in the world in different types and levels of competition. The biggest reason for sport changing so much since the ancient days is the introduction off technology that all started with a radio before the radio. If you wanted to watch sports, you have to go to the stadium to watch the game life or read the scores in the newspaper the next day. This obviously limited the number of people able to enjoy sport as not everyone could fit in a stadium. And not everyone lived close enough. The radio changed all that by allowing sports fans to listen to live broadcasts of events as they were happening. Fans could now enjoy life sports, no matter where they were, and more sports fence than ever were being created. With each life broadcast off course, It wasn't long before TV, cable TV and eventually the Internet came along. All of these technologies have helped to bring more sports fans than ever closer to the action and allow fans from all over the world to enjoy live events. This increased accessibility has been a dream come true for sports marketers, who now have an ever increasing number of people to target. Since the introduction of television and cable TV in particular, sports sponsorship started to spiral out of control. What began as a way for companies to attract eyes to the brand soon become a symbol off wealth and power for many companies. Some company executives were even accused of spending company money on sponsoring their favorite teams with little regard for the actual benefits off sponsorship itself. In 1987 an investigation into the effective ist auf sports sponsorships in the eighties found that around half of the companies didn't even assess the impact of their sponsorships . For many companies in these times, the thought process was that getting enough eyeballs onto your company logo was good enough . This led to sponsorship budgets getting out of control and general wastefulness of advertising budgets. In some cases, the lack of measurement by brands is due to investing too much money and time into the sponsorship itself. That there is little left over to allocate for testing. Other brands simply don't test because the sponsorship just feels right. It can be hard to argue with the idea that a large corporate logo featuring inside a stadium, which is packed with thousands of fans, could be anything other than a success. However, even with the increasing number of fans watching sports, it's vital for companies to utilize their spending properly to get any benefit out of sponsoring the team or event measuring success as with sports themselves with sponsorships , it's vital for companies to be able to measure success in the early days of sports sponsorship, it was enough to just put the company logo in front of fans. As the competition has started, using sports sponsorships to it's become more important than ever for brands to measure the success of their sponsorships. Spending measuring the effectiveness of sponsorships is vital for any company for the following reasons. The first is that it helps to justify the spending and protect the budget. It's also important as it helps, to prioritize opportunities and finding future sponsorships to ensure that the proper demographics are being reached. Finally, it can also help the company to re negotiate the existing sponsorship contract or to better allocate spending for future contracts. Being able to see the return of investment that you got from the sponsorship allows you to properly negotiate and plan for future sponsorships before any measurement of the success of a sponsorship can be done. The company must first properly define in class its target audience from year. The company should then conduct market research first, testing the awareness both unaided and aided off people to the company's sponsorship. For those that are aware of the sponsorship. You then test their perception. You ask them questions about how they feel about the campaign. Does it seem appealing on? Does it seem a good fit for the event or team that it's associate ID with? Lastly, it's also important to measure engagement that comes from a direct result off the sponsorship. This is difficult to do, but things like online searches, site visits and purchase numbers can be compared both before and after the sponsorship. You could also look at data off whether these numbers increased during or directly after an event where new fans would have been exposed to the brand. Here we'll see a video of a new way for brands to measure the success of sponsorships. Sports sponsorship a great way to increase brand visibility, whether it's stating, Sign it or logo on a player's shirt. More important than the fans watching in the stadium, or the millions of people watching on TV and online and sharing content on social media. But how do you measure how much that's actually worth? Technology company Gum gum thinks it's got the answer. Essentially, we teach computers how to find logos of brands as they appear on TV streaming or social media. Think sports sign Ege like a field level led at a football match or the helmet of a Formula One driver. Our methodology starts by using a media equivalent for TV or social media, for example, the cost of a 32nd commercial, or to buy a Facebook app. So after that, we apply a discount based on six different factors. These air quality factors, like clarity, prominent size visibility, share a voice and placement. In the case of the U eight Champions League final, it was between Real Madrid and event this gum gum scores. We found over 517 million engagements on social media, billions of impressions and over literally 61,082 seconds of brand exposure associated with thousands of social media posts, right? And those air social media posts that contained those sponsors, right? Not just any social media posts about the game right, and whether it's a shirt sponsor or field level led. This equated to more than $164 million of media value. It's a big it's a big number, and the big winners of that were Adidas and Fly Emirates right, because they saw combined $113 million of media value as the kit and the shirt sponsor of the winning team, Real Madrid. And don't forget the power of celebrity. So not sure if it's a surprise at this point. But Ronaldo's own social media accounts right? Rinaldo drove over 100 69 million engagements featuring sponsor, signing and about 38% of the overall media value. Right. $63 million was driven just by Ronaldo. It all sounds very clever, but is this really artificial intelligence at work? Absolutely. I mean, a I answered the question. How do you scan millions of social media posts for sponsor scientist, Right? And then you have to attribute it to a very specific game, right? It's not enough to just find the signage and isolation, right, because you can have, say, a Heineken logo show up in a social media post, and it's just a bottle at a local pub. It may have nothing to do with the game, not at all. So why is measuring brand visibility on social media so important? Well, we're ultimately focused on solving two problems here first is about the changing nature of content consumption shifting to digital. So with the TV ratings declining, brands need to know the full value that they're generating. And to answer this question, you need to cover multiple platforms, including social and then secondly, brands. They want comprehensive data right that is delivered in an efficient manner. So given that the fans are turning more to social media to consume those you know, the sports highlights that used to go to TV for they need a technology that can measure this activity. Ultimately, it's value for both sides where they really want 1/3 party kind of independent party that they can trust to provide. You know, this accurate measurement it was about the future. How could the technology be used to further develop the sports sponsorship market? Once buyers and sellers of sponsorships better understand media value, we see the next opportunity as creating a marketplace where these brands could essentially bid on sports sided in near real time, so globally, right, so across all of the different leagues, being able to buy those ladies where you know, say a brand were able to purchase Ah prominent led just during the last two minutes of the game. That's within three points, right? Say a basketball game for a football match. They could look at which players air set, t hit certain milestones and bid just on on those games where those big milestones happen. Because those live on forever using social media to measure sponsorship effectiveness. A new way for brands to measure engagement with their sponsorships is through social media . Social media has become a powerful to for brands to engage with fans and consumers around the world. If a company knows what to look for, it can provide many useful insights into the effectiveness of a sponsorship in a marketing campaign. The following factors are important things to consider when using social media as part of a sponsorship campaign. Engagement's engagement through social media comes in a variety of different ways and often depends on the platform itself. This can include things like likes, comments and shares. The engagement of a post is the most important thing to consider when talking about its value as it shows the number of people who took action after seeing the post promotion quality. A promotion isn't enough by itself. It's important to make sure that the promotion itself is of high quality. Is your brand the soul brand in the post, or are there other brands Also visible or mentioned? Is the brand logo featured in the promotion? And if so, is it clear enough that it's instantly recognizable? Brands can use social media data such as engagement to quantify the value off their sponsorships. Is social media engagement increasing as the result of a sponsorship? And if so, how much? These are all questions that help companies to assess the effectiveness of their sponsorships, and social media is helping them to do so. Expanding sponsorships in an expanding industry. In 2018 the value off the global sports industry reached more than $485 billion a 4% increase from 2014. By 2020 to the industry is expected to hit more than $614 billion increasing by nearly 6%. These figures demonstrate just how much the sports industry is on the fact that it's been growing each year since the invention. Off the radio, it might seem strange to see that the sports industry is still growing After all, how big could it possibly gets? The truth is that no one knows, and right now emerging markets such as Asia, Africa and the Middle East are helping to fuel rapid growth. North America is currently the largest sports market in the world and makes up more than 30% with Europe Right behind this expansion into new markets is a big reason for the continued growth of the industry. And rapidly, countries like China and India are spending more than ever on sports sports. Sponsorship spending in India grew by a massive 19% as more companies begin to take advantage of this emerging market. Most of the spending came directly from companies sponsoring the Cricket World Cup and the Indian Premier League 2020 competitions. Cricket is huge in India and as an emerging market, many companies will be hoping to reach new fans within the country. China plans to increase the Chinese sports industry to $813 billion by the year 2025. The Chinese government is rapidly increasing investment into sports and the country, and this includes improving current facilities and sports infrastructure in the country. China is a nation obsessed with sport on this obsession has been felt in recent years by foreign leagues. Competitions like the Premier League and N Ba all see a lot of fans from China and high viewing numbers from China. The increasing globalization off the world has meant that fans from across the world are able to watch the biggest and most popular sports events. As foreign leagues grow in stature around the world, foreign sponsors are increasingly being attracted to sports biggest leaks. Some of Asia's biggest companies now sponsor Premier League football teams with brands like A i A Yokohoma tyres on M 88 all appearing on English football shirts. The fact that 38% of the primer leagues global viewers are all from Asia means that many big brands are jumping at the chance to spend big money and gain exposure this way. As sports continue to expand into these emerging markets, it makes sense for sponsorship numbers to keep rising. Farm sponsorship isn't without its downsides, however. The n Ba recently suffered sponsorship trouble after a team manager tweeted in support of the Hong Kong protests. Chinese nationalists were infuriated by this and threatened to boycott Chinese brands which were associate it with the N B A. This led to many of the world's biggest basketball league stop sponsors toe end their business with the MBA. Why have sports sponsorships changed so much as we discussed earlier in the chapter? The biggest reason for the changes in sports sponsorships have bean increased accessibility of sports Fans from all over the world are now able to June in and watch their favorite sports life regularly. Throughout the week. Companies originally thought that there was a lot of value and simply using a sporting event or team to expose the brand defense Over time, more brands are starting to realize the value of building engagement with fans rather than simply buying eyeballs. This change came as a direct result of many companies overspending without properly judging the return on their investment when it came to sponsorships. Wastefully misusing advertising budgets without your concern for measuring the impact eventually stopped being as common. But that still happen today. Part of the reason for the change in how sponsorships work is due to fans becoming more cynical towards advertising and sponsors. Fans have to believe that a sponsor fits a teen and for the sponsorship to feel natural rather than just sponsorship for sponsorship sake. Many brands now make a big efforts to connect with the fans of the team they're sponsoring and release campaigns tailored towards thes fans. Better methods off analytics and ways to directly measure the impact of sponsorships and endorsements have led to sponsorships getting smarter and more effective for both the sponsor on the event or team they're sponsoring. It's become a lot more common for a sponsor to spend time evaluating events or teams to sponsor and picking an option where they know they can build a strong connection with fans . Social media is a relatively new development, but it has already helped to massively change the way sponsorships work. We'll talk more about social media in later chapters, but we've already seen in this chapter how it helps brands study rates of engagement and measure the success off their sponsorships. With the sports industry expanding rapidly and new developing countries being exposed to live sport exports, many new fans on demographics present prime targets for brands operating in those countries . Because of this, foreign investments in the world's biggest sports leagues are taking off at a rapid pace. Globalization is allowing fans from all corners of the globe toe watch whichever sports they like, and the biggest competitions usually win out. As the world becomes increasingly digital and mobile friendly, new avenues for sports sponsorship and sports marketing are opening up. A large number of sports fans use their mobile as a second screen while watching events. This second screen usage can potentially be utilized by sponsors and advertisers to reach fans in new ways during life games. 3. The Added Value of Sponsorship in the Marketing Mix: the added value off sponsorship in the marketing mix in this chapter will be discussing the marketing mix and how sponsorship forms a part of it. The marketing mix is a term used to describe a number of different factors that businesses control. To help influence the sale of products, we'll be looking at how sponsorship fits into the marketing mix on why it's such a valuable part of the mix. You'll be able to look at riel examples of how sports sponsorship took a brand to new levels. You'll also be able to examine the different advantages and disadvantages off sports sponsorship and decide for yourself how effective it is. What is the marketing mix? The term marketing mix was first used in 1953 by Harvard advertising professor Neil H. Borden in a speech to the American Marketing Association board and described the marketing mix as a way for marketers to develop and execute a successful marketing plan. The marketing mix is composed of different elements of marketing using it. Companies can identify and focus on specific areas to help make the correct marketing decisions and increase profits. Planning marketing properly and using the marketing mix can help a business with the following developing strengths while limiting weaknesses, increased competitiveness and adaptability in the market, improving profitable collaboration between internal departments and external partners. The marketing mix has changed, adapted over the years, but generally it contains the following seven piece product. The product is what is being sold by the business. This could be a tangible product or an intangible product like a service. It should be aimed towards a certain target group, and it's important to be sure that demand exists for the product. Marketers also need to consider the product life cycle and reinvent the product once sales diminish price. The price of the product is one of the most important aspect of marketing. Price will depend on the true cost of the materials and labour, plus the customers perceived value off the product. Changing the price can dramatically effect how customers feel about it, with lower priced products potentially appealing to more customers. While higher price products denote exclusivity and quality promotion, promotion is any kind of advertising, including TV and online ads, sponsorships and more. It also includes public relations like press releases, trade fairs and conferences. Promotion helps to increase recognition of the brand and product leading to increased sales place. This refers to the placement and distribution off the product toe along consumers. To purchase it, you must make sure the product is readily available to your selected target markets. There are many different types of distribution, including brick and mortar stores, online sales and Franchising. Think about what each method needs and whether one has a distinct advantage over the others . Packaging the packaging of the product doesn't just refer toa what kind of box you put it in. It refers to the way your product or service appears to someone outside your company. Think about everything that the customer sees from first being introduced your brand to making a purchase. This can include your website, how your staff appear, the building you use for your business advertising and any other visual aspect. Positioning positioning refers to how your product or service is positioned in the minds of the consumer. Think about how you want your brand to be perceived by the general public and what it would take for them to think that how do you need to change the way your business interacts with consumers to change the way they think about the business. How you're seeing unthought off by your customers is critical to your success in a competitive market, people. The final piece of the marketing mix is the people who are responsible for the success of your product and its marketing. These include people inside and outside your company. The rest of the marketing mix is undone if a business cannot hire and retain the right people with the right skills, adding sponsorship to the marketing mix when deciding to use sports sponsorship as the promotion part of the marketing mix, the company needs to plan carefully to make the most out of any partnership. It's important to judge how much exposure can realistically be gained from a sponsorship and factor in the cost of the deal. When companies promote their goods and services, they need to constantly experiment with methods and know that there's no exact formula for a winning sponsorship. Promotion is a constantly changing field, and companies have to put a lot of effort into adapting and finding what works at the moment. With sports sponsorships, brands need to place a lot of attention towards engaging with the fans themselves, companies no longer gain more exposure by spending more, as fans will often ignore advertising and sponsorships altogether if they're not since here , with a lot of competing brands all vine for the same attention from fans, companies need to stand out from the crowd. Modern sports sponsorships need to tell a story and let the fans feel a part of it, helping to create an emotion connection with sports fans. In this way, sports sponsorship can be highly valuable as a promotional tool, rather than directly trying to sell fans a product. A sponsor needs to create something of value that catches the interest of fans and helps to reach their target demographic. What makes sponsorship so valuable sponsorships formed the promotion part of the marketing mix and promotion can have a huge effect on how successful a company is. Sponsorships are so valuable to businesses for the following reasons. Sales exposing the brand toe, a wider audience and increasing sales is the main reason for almost any sport. Sponsorship sponsors are willing to pay large amounts of money to be associated with a team or event, mainly because they know it will increase sales off the product or service that they are offering. It can be difficult to measure the exact impact of sponsorships on the sale of a product. However, while methods of measuring the direct impact off sponsorships are improving, it can still be hard for companies to get a proper idea off the return on investment off their sponsorship reputation as well as benefiting the sales of a product. Sponsorships can also have a positive effect on the reputation of a company. A company being a high profile sponsor off a large event or sports team will gain a positive association from the partnership. Fans will view the sponsor as a company which aligns with their own interests and more likely to purchase the product or recommend it to their friends. Employees pride. Not only can sports sponsorship help increase the company's reputation with fans and consumers, but it can also help to increase employee pride in the company. The study found that sponsoring the Olympics increased simply pride in the company and organizational structure. This isn't exclusive to sponsoring big events like the Olympics either sponsoring small events or even local teams can still have a positive impact on employees and helps to increase the feeling of goodwill and community spirit. Media exposure. Traditional positive media coverage is often difficult to attain for most companies, and outside of paid press releases doesn't usually help promote a business with sports sponsorships. However, media coverage happens spontaneously. If a company's logo is featured around the stadium or on the uniform of an athlete, it will feature across multiple media outlets with no extra cost. Sporting events are always covered by a lot of media, and typically the bigger the event, the more coverage present. Companies can have their logo inadvertently shared across large media outlets and social media without any extra effort. Differentiating from competitors sponsoring an event or teen, particularly if it's an exclusive sponsorship, can help a company to stand out from competitors. A big sports brand getting the exclusive sponsorship of a mega event, for example, added, It's which sponsors the World Cup helps to set it apart from its main rivals like Nike and pool disadvantages off sponsorship. Deciding whether to go ahead with a sponsorship deal or not will depend on a lot of factors . A company has to make sure that they're getting good value and that the costs and benefits have been examined properly. We have seen benefits that can be gained from sponsoring a sports team or event. Now, here's some of the costs involved. Cost. The cost of sports sponsorship can vary widely, depending on what events or team is being sponsored and whether it's an exclusive sponsor or one of many different sponsors. As an example, the largest known sponsorship in football is American car manufacturers sponsoring Manchester United 71 million euros a year. Chevrolets global marketing chief who was responsible for the deal, was sacked just weeks after it was signed with Chevrolet as upper management, perhaps thinking that the costs were far too high Risk off damaging reputation. In a lot of cases, sponsoring sports and sporting events can lead to a positive association. But sometimes the reverse can be true. If a company is endorsed by an athlete who ends up having a bad reputation, it can also damage the reputation of the company sponsoring them. Examples include the likes of Lance Armstrong, Mike Tyson on Oscar Pistorius. All these athletes made headlines for the role reasons and were subsequently dropped by sponsors who were afraid of the negative repercussions that could be fall, their brand difficult to accurately measure results. As we mentioned in the previous chapter, it's getting easier to measure the effectiveness of a sponsorship. New methods are being used to accurately judge the return on investment off a sponsor's budget. But even now it's still difficult to properly assess the impact. Sales, public perception and employee satisfaction can all be measured. But it's not always easy to know how, exactly thes relates to the sponsorship. It can be a gamble for companies, particulary, if the sponsorship is expensive. In some cases, as we saw with Chevrolet, this gamble can go horribly wrong for the ones who were involved in negotiating it. 4. Sponsorship Activation: sponsorship activation in this chapter will be looking in more detail at sponsor activation . Here you will learn exactly what sponsor activation is and how it works for brands, right holders and fans. You get a chance to look at some real world examples and learn about sponsor activation for each example. What is sponsorship activation? As we talked about in previous chapters, Sponsorship isn't a simple a sticking a local on an event or team and hoping for the best sponsorships need to be a lot smarter in orderto actually make the most out of the opportunity to properly utilize a sponsorship, A brand has to focus on making the audience happy rather than trying to directly sell the product. When companies use a sponsorship for the sole purpose of gaining exposure or selling a product, they risk alienating viewers on their target demographic. This becomes particulary important with sports sponsorships, as fans can be particulary dismissive off brands which don't fit in with the identity off the team. Sponsorship activation is essentially like switching on the sponsorship. It isn't all about the wants and needs of the sponsor or the events. 14 being sponsored. Proper activation should lead to the goals of the audience, sponsor and sponsored party, all coming together and helping to achieve the goals for a sports sponsorship. This could be about a brand not only helping to increase sales but also providing value for fans in the form of an entertaining advertising campaign. The main idea behind sponsorship activation is to change the outdated model of using sponsorship as advertising and instead use it to create engagement with the funds. Proper engagement leads to a better fan experience, and happier fans means a more positive association with a brand. How sponsor activation works for brands. Brands involved in sponsorships need to survey the fans of the event or team that they sponsor. It's important to know exactly what the fans expect and wants to see from a sponsorship. Do they place a higher value on entertainment work in the community or special offers? For example, once the fans have been surveyed, the brands can try to implement these ideas into their sponsorship. This helps brands connect with the fans off the team or event that they're sponsoring. Without activation. There would be no interaction between the fans and the brand, meaning most fans probably wouldn't notice the sponsorship at all. A. Brown has to realistically assess what they hope to achieve from their sponsorship. This has to be a specific and measurable outcomes during and after the sponsorship. It's important for brands to measure how successful the sponsorship waas and judge if there was any way that the activation could have been better. How sponsor activation works for rights Holders Rights holders are the entities that own the rights for an event or sports league. This includes organisations like FIFA, You, EFA, N Ba and the International Olympic Committee. Rights holders determine who gets to sponsor the event, and this isn't always a case of who is paying the most money for rights holders. It pays for sponsorships to come from a company that understands the event and the funds. If rights holders constantly sell out to the highest bidder, it can cheapen the event in the eyes of fans. Too much calmer civilization can cause fans to lose interest in an event, so it makes sense for rights holders to look for ideal sponsor rather than just a sponsor who pays well. It's also important for rights holders that brands activates their sponsorship as this gives the sponsorship better results. Better results mean that the company can pay more in the future. Keeping both fans and brands happy is reliant on proper sponsor activation. Rights holders can help brands to activate their sponsorship by assisting with fan surveys . It's easier for the rights holders themselves to judge the opinion off fans, and this information can be relate to the brands for them to activate their sponsorship. How Sponsor Activation Works for Funds Friends are what makes sports marketing so unique, and brands and right holders must always cater to the fans if they want to be successful. Fans aren't just consumers. They are extremely loyal to their favorite events or team. But this loyalty can be shaken if events or teams used ineffective sponsorships. Sponsorships that don't take the time to build a connection with fans will be dismissed and can hurt the reputation of a rights holder amongst its fans. Having a sponsor that cares about the fans and what they think is the key to successful sponsorship activation. Fans are far more likely to trust and respect a sponsor that not only cares about the event and it's sponsoring, but also shows effort to connect with fans. Those sponsorship campaigns, which do work in the local community, are particularly effective in winning the hearts and minds of sports friends. Now let's have a look at this sponsor activation at the Rugby World Cup, so this activity here at average is part of our launch activity for our Rugby World Cup partnership with Coca Cola. On this activity in particular, is what we call the sports ball amnesty. It's the chance for people to come down here in person, on exchange any type of sports or whether it's a golf ball, a squash ball or indeed, an old football for one of our a 1,000,000 Coca Cola Rugby World Cup People's Coca Cola is on extremely large brand and, as a result of size, has a responsibility to affect consumer behavior in particular around physical activity. Our association with ALS sorts of sporting partners. Whether that's Rugby World Cup in this case or indeed FIFA World Cup or the Olympics, Ueno has an impact on the legacy on getting people more active. This partnership in particular is important to us because in providing up to a 1,000,000 rugby balls to people, it's impossible to imagine getting irrevocable. And they're not being active with so contribution. That that will make to getting the nation more physically active, I think is significant. Part of today is about launching this activity from a consumer perspective, ensuring that people understand that they can win a rug. People in the same way that we offered a football last year is part of our fee for activity , and up to one million roubles will be available to consumers on our packs of Coca Cola across the range. In particular, Coke zero will be benefiting from activity that we do with the Rugby World Cup for the first time since we launched our one brand strategy back in March. Way have the opportunity to foreground one of the individual product variants in this case , Coke zero. To benefit disproportionately from the partnership that we have with world rugby in the right, we welcome. So, as with any partnership, are thinking. First of all, starts with the Coca Cola brand understanding what the rights partners are for Coca Cola on since we've established that that one brand strategy that becomes even more important because Coca Cola now clearly houses a number of different product variants. So the approaches ensure that Coca Cola is a good fit on the partner is a good fit with Coca Cola. Once we've established that, then becomes a question of understanding which of our individual products would most benefit would be best suited to being further grounded in the piece of activity. In this case, it's Coke zero because we think there is a massive opportunity for Coke zero to benefit from an association with directly World Cup, and also to benefit from the growth that we see coming on Coke zero in the future. So this forms part off the total campaign this'll launch event here. Tab Bridge. In addition, our TV campaign broke on Saturday and will run for the whole month of August. What's really important about the TV campaign is that the campaign itself forms part off the overall Coca Cola intrinsic campaign. So we have taken the framework of a Coke zero commercial that's been running already and inserted elements off our promotional activity around the Rugby World Cup Into that framework, In addition, will obviously be activating our in store promotions with all of our grocery and indeed Cold channel customers a swell as activating our networks on digital on in particular in social 5. The Impact of Sponsorship Through Media and Market Research: the impact of sponsorship through media on market research In this chapter will be looking into the impact of sponsorships through both media on market research. We'll be taking a look at how companies perform proper market research and why market research is so necessary. We'll also be looking more closely at how a sponsor can measure the success and effectiveness of a sponsorship. Being able to properly measure the effectiveness off sponsorships is useful for both. The sponsor on the rights holder finally will also be examining whether sports sponsorship is really worth it. Billions of dollars are spent each year on sponsoring sport, but how much do brands really get out of it? A lot of sports may be dependent on sponsorship, but if a company doesn't see a return on their investment, is it worth it? Performing proper market research sponsorships can often seem like a good idea, but in many cases they can produce sub optimal results for the sponsor. In most cases, this comes down to a lack of proper market research on the company, viewing the sponsorship as an end in itself rather than just one part in a marketing plan. Market research is described as an organized effort to gather information about target markets and potential consumers. Market research is essential and ensuring that a sponsor is effective and helps the brand to realize its objectives When it comes to sports sponsorships. Market research needs to assess the wants and needs off the fans and think about how to create value for them. Sponsors and right holders should work together to survey fans and find out exactly what they want to see from sponsorships. This helps the sponsor as it gives them a clearer picture of how to achieve their objectives. It also helps the rights holder as sponsors who can achieve their objectives more easily, will pay more money before beginning a sponsorship. The company must ask the following questions. Can you clearly define your objectives? The company should always determine its goals and assess whether sponsorship is the right course of action toe. Achieve those goals those your brand fit with the team, athlete or event that you are sponsoring. A sponsor should ideally align with the ethos of the rights holder they sponsored. Those that don't often struggle to connect with fans and we also have disagreements over which direction the brand should be heading. What value can you bring to the fans? Every successful sponsor helps its promotional partner and brings value to the funds. A sponsor can also use the value it brings to negotiate on cost. More value can mean a lower cost. How can you activate the sponsorship As we saw in a previous chapter? Sponsor activation is vital for the success of a sponsorship. Knowing exactly how to activate your sponsorship will increase the return on your investment. Is there a way to accurately measure the response? If you have clear targets and goals, it's important to collect clear data that shows the effectiveness off the sponsorship. This will also help to improve any future sponsorship deals measuring the effectiveness off sponsorships. If a brand is going to spend a lot of money on a sponsorship deal, particularly one that lasts several years, there needs to be a way for them to measure its effectiveness. The company should always aim to measure the full return on investment off a sponsorship. Not only will this help to find, tune and improve the current sponsorship, but it will also help to improve any future sponsorships the most common way to measure sponsorship effectiveness is through surveying friends. Sponsors should regularly survey fans of the sport they sponsor and test their recall off. The brand tests can be prompted and unprompted. Although tests can be crude, they do give a rough idea of how much brand awareness is increasing due to sponsorship. It's also worth testing the awareness of both die hard fans and more casual fans to see if there are differences between the two. Aside from this, there are lots of different tools, which can be used to measure the effectiveness off sponsorships. Social media has become an increasingly useful tool for sponsors to measure negative and positive sentiments. The use of branded hashtag is particulary useful for this. They allow companies to instantly find discussion about their sponsorship and gorge fans reactions. Engagement rates of sponsored content can also be measured easily through social media. A company can see how many shares likes and comments a branded post receives and whether the comments are positive or negative. Companies can also measure how often their brand name or logo appears during a match. This could be compared with the number of people watching the match to get an accurate picture off opportunities to view the brand. While this won't give an idea of how much brand awareness is being built, it can be compared to brand awareness data obtained through surveys. Finally, companies can also assess whether site visitors increase or sales increased during the sponsorship contract. This doesn't give a full picture off the effects of a sponsorship, as other marketing strategies may also be partly responsible. Over a long period, however, the effects of a sports sponsorship on site views and sales can be measured more accurately . Is sports sponsorship worth it? Billions of dollars are spent on sports sponsorships each year, and although they're nearly always good for sports, are they worth it? For companies? For a lot of brands, the sports sponsorship can be a costly mistake. For others, it can create a lot of brand awareness with a loyal fan base and, combined with other marketing efforts, will lead to increased sales. The difference between a sponsorship being worth the money and costing too much money is how the deal this planned out. If a brand expects to gain increased sales just from adding their logo onto a team's shirts , they will be sorely mistaken. A sports have bean saturated with sponsors. Companies need to get smarter with their sponsorships to see a good return on investment. As we've already spoken about, a company needs to properly plan and conduct market research and analysis to get a good return on investment out of a sponsorship. Assessing the overall objective off a contract, the target demographic and how a sponsorship can help to increase awareness, loyalty, purchasing or consideration are all needed to make a sports sponsorship worthwhile. Companies need to measure the following metrics. First, cost for reach reach is the number off people being exposed to the brand? This can be through media such as TV, social media and others, or in person at life events. Ideally, the reach should focus on target demographics rather than the total reach figures. It should be measured on a regular basis, quarterly or monthly. Using measured data costs are any fees relating to the sponsorship. This includes right fees, activation fees and advertising seconds. Unaided awareness per reach. Elated awareness is the percentage of survey respondents who can recall your brand without being prompted. Market research involves serving fans and asking them to recall sponsors off their sports. If they can recall the brand without being prompted, it's a good sign off brand awareness being built. This is measured against the reach off the sponsorship, particularly the reach within the target demographic. It gives brands a better idea of how effective the sponsorship is. After all, there's no point in having a wide reach if it isn't being used properly to build brand awareness again, this should be tested regularly and the marketing can be adjusted based on the results of the survey third sales margin per dollar spent. It's important for a company to judge how much sales or profit margin has increased based on the dollar spent. It's difficult to directly judge the effect of sponsorship on sales as we discussed. However, over a long period of time, sales data can be judged against the increase of reach to determine the impact of sponsorship on sales. Direct sales through online links can also be tracked, and customers making purchases can be surveyed on their opinions off the brand and its sponsorship. Consumers who answer that their purchase came as a direct result off the sponsorship can be noted. This will help to give a clearer picture off the sales per dollars spent on sponsorship. Fourth, long term brand awareness One of the biggest effects that sports sponsorship can bring toe a brand is brand awareness. This means that consumers will have a clear idea off the brand, and it's more likely to affect their consideration when purchasing a product or service instead of focusing on short term goals like sales, companies that invest in sports sponsorship should consider how powerful long term brand awareness can be in taking ah, hold off the market today. Nike and added. US are two of the biggest sports brand in the world, and this is because they've been sponsoring sports for decades. Sponsors also need to make sure that the event or team they sponsor aligns with their core values, as this will help to give consumers the right idea about the brand Fifth indirect benefits . While a lot of sponsorships, are mostly focused on building sales and brand awareness, indirect benefits can also make them highly valuable. Large companies sponsoring sports events often received tickets, and these could be used to host clients and executives to build trust and partnerships with other businesses. Even if a sponsorship doesn't positively affect sales, the indirect benefits it brings can still make it worthwhile 6. Sponsorship Case Studies: sponsorship case studies. Though we have already examined some examples of real life sports sponsorship in previous chapters here will be taking a more in depth look. We'll be looking at some specific case studies of effective and less effective sports sponsorship deals. You have a chance to see what went right and what went wrong. Looking at Rio case studies is a great way to deepen your understanding of a subject. And there are loads of great sports sponsorships examples which can help you to learn more about how sponsorship deals work. Creating the successful sports sponsorship deal is complicated. There are a lot of factors that need to be controlled to ensure that the deal is its success. From the point of view of both the sponsor on the sponsored party, whether it's an event team or an athlete, Disposer party needs to avoid cheapening their brand, and we want the sponsor to get a good return on investment to encourage future sponsors. We have already looked at the ways both sponsors on sponsored parties can work together to get the most out of their deals. Now we're going to see that in action effective sports sponsorships, an effective sports sponsorship is one where both the sponsor and the sponsored party can be happy with the outcome. Better yet are those that also leave fans of the sport feeling happy about the sponsorship . This usually translates into a much better return on investment for the sponsor. The following examples are those that got it right. Nike and the Woman's World Cup even though added as sponsored the 2019 Women's World Cup, it was rival sports brand Nike that got everyone talking. The Sports, a Perot giant, has become well known for its sponsorship off the best athletes and launched a huge campaign toe help propel the woman's World Cup into the mainstream. Nike sponsored 14 out of 24 teams off the tournament, producing the kids for over half of the teams, including three off the four semifinalists. The sports brand used its advertising power to generate increased support off the U. S. Women's team with a huge campaign that involved giant billboards and murals across major cities. Thanks to this campaign, the USA Women's Team shirt became the highest selling football shirt off any team, men's or women's and saw shirt sales up 200% from the last tournament when the U. S women's team won the 2019 World Cup Nikes announcement on social media was viewed more than 20 million times. The success of Nike in promoting the Women's World Cup has led to increased sponsorship from other brands that see a lot of potential in women's football and woman sport as a whole. Microsoft and the NFL The NFL is America's most popular sports league, and regular NFL games average at around 16 million viewers. The Super Bowl is one of the biggest sporting events in the world, and it attracts an audience of around 100 million viewers just from the USA. With such a large domestic audience, the NFL is incredibly valuable for American companies. In 2013 Microsoft decided to sponsor the NFL in a five year deal worth $400 million. This all Microsoft take over as the leading technology supplier for all NFL teams and events. The sponsorship saw the Microsoft surface become the official tablet off the NFL, a sport where coaches regularly used technology to quickly deliver information about tactics and team changes to players during breaks in the game as coaches regularly used the Microsoft surface during games. Fans watching at home get to see the technology in action themselves. Microsoft also launched their next gens. That's service, which tracks data from players using wearable sensors. This data gives coaches better insights into their players and gain tactics. Fans are also able to access the same stats live during the game using an app designed by Microsoft. This coordination between the sponsor and the league helping to bring value to the teams and fans is why the sponsor has been so successful for Microsoft. The surface tablet has taken back some of the market share from Apple's iPads on. The investment must be working as Microsoft on the NFL renewed their partnership as the five year deal came to an end. Red Bull on their sports projects Red Blue has slowly been building itself as a global sports brand since it first appeared as a shirt sponsor in the Austrian league back in 1989 . Over the years, the energy drink company has gone on to sponsor hundreds of different athletes and events across multiple sports, with an emphasis on extreme sports football and Formula One as the brand has grown around the world, so to have the popularity of their events, including the Red Bull air race, Red Bull soap box racing and various motorcross, snowboarding and other extreme activities. This has helped to popularize Red Bull amongst young fans, particularly as Red Bull has focused on making sports more accessible to younger viewers. Taking ownership off a Formula One team on multiple football teams across several countries has helped take the brand to a new level. Not all fans have been happy to be taken over by the energy drink giant, citing commercialization and excessive corporate interference. In sport, however, red boo teams like Red Bull Salzburg, New York, Red Bulls and Red Bull Leipzig have all improved under their ownership. The company also has its own media production company, Red Bull Media House, which produces easily digestible content for fans all over the world. One of the most famous red blue events in recent history was the Red Bull Stratos Project, which saw Austrian skydiver Felix Baumgartner breaking the world record for the longest freefall. This event was streamed live over multiple social media platforms and with the Red Bull logo clearly printed on Baumgartner's spacesuit, it exposed their brands to more than 40 million viewers. This kind of unique sports sponsorship has helped allow Red Bull to become one of the biggest and best known drink manufacturers in the world. Unsuccessful sports sponsorships. So now we have seen some examples of when things go right for sports sponsorships. It's time to look at when it goes wrong. We can learn a lot from successful sponsorships, but we can also learn a lot from failures. These allow us to see what went wrong and why. Although the full details are not always available for us to see we can get is an idea of why the sponsorship failed on how the company and teen could prevent future failures. Newcastle United and longer loans Newcastle fans reacted with fury when their new shirt sponsor, WONGA Loans, was revealed. The payday loan company, now defunct, was at the time accused of exploiting those struggling to make ends meet with its 4.214% annual percentage rate loans. Although longer paid Newcastle United 拢24 million over four years, many fans were unhappy that the club had sold out to advertise a company which many felt preyed on poor people. Players like them debe poppy si se and check your even refused to wear shirts featuring the logo off the company as it went against their religious beliefs. Although the payday loan company did make efforts to appease fans by supporting the Newcastle Foundation, which helps young people find work, many felt that the company went against the ethos off the club longer also helped to invest in the Newcastle United Academy. Because Newcastle and the North east of England are areas that have some of the highest insolvency rates in the country, fans were perhaps right to protest against the sponsorship. Could wander, have Dunmore to get fans on their site. They invested a lot of money into the club and the local community. But it seems that when a company doesn't fit in with the culture off the team it sponsors, fans will never support the deal. This wasn't the only thing wrong with the sponsorship. Longer decided to rebrand the company, introducing a new logo design, however they re branded Just hours before Newcastle United new kit was released, This meant the old logo was still being printed on all Newcastle kits and replica kids in the end longer ended up ending the sponsorship contract two years early, with falling profits and the company having to pay financial compensation to customers it had misled. Wonga didn't see much of a return of investment on their sponsorship of Newcastle. In hindsight, they probably should have considered another avenue of marketing as football fans were never going to be receptive to the idea off the loan company sponsoring a major Premier League club, Lance Armstrong and Nike, Lance Armstrong was one of the biggest names in the world of cycling, thanks to his seven Tour de France wins and his battle to come back from cancer. Lance Armstrong was a household name in the USA and a well known athlete across the world, his fame and sporting talent. So Armstrong signed up by Nike, who used the cyclist to endorse products and sponsored him to compete the value off. Armstrong's deal isn't known, but also was one of the highest earners from endorsement deals. While he was competing in 2012 the US Anti Doping Agency alleged that Lance Armstrong and his team members had been taking performance enhancing drugs for more than a decade. Nike initially supported Armstrong as lots claimed that the allegations were false. Nike eventually dropped Lance Armstrong and released a statement saying that he had misled them and that they didn't condone the use of illegal performance enhancing drugs. While Nike was relatively quick to drop Armstrong once they realized their mistake, it can be highly damaging for a company to sponsor. An athlete was accused of cheating or foul play, although it's not Nike's fault that Lance was cheating and there was no way for them to know. A lot of athletes who are endorsed by Nike have ended up being dropped by the sponsor for bad behavior. Does Nike need to vet athletes more carefully before endorsing them? Should sponsors be testing their own athletes to help eliminate cheating at the highest level? These high profile cases can potentially damage the reputation off a brand like Nike, fans will start to associate the company with athletes who showed unsportsman like behavior . Manchester United and Chevrolet Manchester United are one of the biggest football teams in the world, and at the time of signing the sponsorship deal with Chevrolet in 2012 the club had been competing for the English Premier League title. General Motors side the massive seven year deal with Manchester United paying 拢410 million toe have this Chevrolet brand logo featured on the front off the team's kit. The idea, according to General Motors global marketing chief Joe Vanek, was to increase brand exposure for Chevrolet, particulary in Europe and Asia, according to evident the data they look that suggested that the deal would give a return of four times their investments. A no brainer for sure. However, Less than 18 months after the deal had been announced on before the logo even appeared on the kits, General Motors withdrew Chevrolet from the European markets. Off course. This wasn't the end of the world by itself, as the Premier League is one of the biggest competitions in the world with the massive global families. What made it worse for Chevrolet was that Manchester United's legendary manager, Sir Alex Ferguson, retired in the first year off the sponsorship, and since then the results have been poor. The club has failed to qualify for the Champions League on multiple occasions and has struggled in the league. Negative results can become associated with a sponsor. Justus positive ones can on the Chevrolet era for Manchester United has been poor. Clearly, the results of match the United are out of the hands of Chevrolet and not something the sponsor can change. It does raise a point about long term sports sponsorship, however, just because a team is on top now, it doesn't mean they will always be, and brands should exercise caution when it comes to long contracts. General Motors should have also planned the deal better and perhaps chosen another sponsor altogether if they knew that they were withdrawing Chevrolet from the European market. When Canadian sprinter Ben Johnson was revealed to be doping at the 1988 Olympics in Seoul , athletics clean facade was suddenly wiped away. Over the years, it seemed like every sport has since had its own Ben Johnson story, whether it be related to doping or other behavior deemed incompatible with the image of a sports person. But now more is at stake. Power of sports talent has led to brands investing millions into one person, a person who, in an age of complete connective ity, can publicly slip up at any time as the likes of Ben Johnson, Lance Armstrong and, most recently, Ryan. Locked proven sports stars Influence can be erased almost immediately, making sports talent sponsorship a risky business. If I was brand Onda, I'm endorsing it, and I think that's doping or that's falling out of a nightclub over week. What is that saying to the consumer that I would like that That I would like to be buying my product is not saying it's a double standard. It's It's hypocritical. When you invest in talent, you got to do your homework. I think there are obvious, huge cases that we've seen. Whether it's the Tiger Woods Lance Armstrong scenarios, we're probably unprotected. Nike were in the eye of the storm on both of those sides, but there's no way they could have protected that yet. The decision to cut all ties with the disgraced athlete isn't such a black and white one to make cases such as the Armstrong revelation sent brands running. Yet when tennis star Maria Sharapova tested positive for a banned substance in March this year, her racquet sponsor head announced it would stand by her and even extended her contract. So when something does go wrong, what should a brand do about a potentially toxic talent contract? Tiger Woods got out is a sexaholic. I don't think Nike should have dropped it if Nike campaign on their brand. If they campaign on family values, absolutely, they don't. So the fact that Tiger Tiger Woods was trying to be a recidivist shag doesn't automatically mean that Nike should walk away in title with this case. That was very moral stance. You know, it depends on how you feel about adultery. Some people don't care. Some people think that, well, what you know. Why should anybody care about what he's doing? His personal life? In the case of doping, I think 99.9% of people expect there to be some punishment for an athlete. You don't want to feel like a Brandis saying it's OK. Some of the brands have thrived. If you like on having talent and individuals will be Eric counting Andre Agassi and in the power they have a really edge to them, you know. Nike thrived on nightly created a Brown don't about having those personalities that lived on the edge. It's the rock star element of sport. If you if you like one brand that is taking the rock star approach is skins. The sportswear retailer brought Ben Johnson on board for its pure sports campaign to disrupt corruption in the industry. It may sound counterintuitive, but the sprinter was chosen to front skins. Choose the right track initiative, which raised awareness around the consequences of doping. Bbd perfect Storm were brought on to execute the campaign. Jamie came to many said, We've got to do something about Kiefer. We've gotta do something about Blatter. I actually said to him, Are you serious? Have you any idea of their legal firepower? We've taken on some campaigns in our time, but this one is bigger than both of us could possibly imagine them in. And then I said to him, Okay, let's do it. But can we have an agency? And deputy first? Jaimie Fuller approached me from Skin wants to create this campaign about Pierce sport clean sport, trying to make a difference in our society, risk of those people. So police don't do this because you'll align your brand with probably the world's first and foremost way sort of sore. Beyond that, we thought that particularly for Ben's turning, Bennett being through pretty horrible journey for 25 years, based on a lie based on a narrative that were being sold by the IOC and the I double that he was alone diaper when he wasn't because we're dealing with a culture of darting within athletics. That was why Dave, than anybody really is about generating in society and their fear playing game in in sports that people can enjoy and feel comfortable off watching the game on Even the young generation are the young kids who want to be a part of This is great. So if Ben Johnson contar nous indiscretions around for a sponsorship deal 30 years later, perhaps in the future will be seeing Lance Armstrong back in advertising campaigns again. Or perhaps will be seeing a different type of talent altogether. The biggest. The biggest change that I've seen is what you describe is talent, because everybody bloggers on my talent floaters in my town. That's ridiculous. So it's a point having the right choice and being really, really, really selective ruling that so that's where the game is changing. So it's not just all about the Ronaldo's of the world online and message of the world and the All Blacks in the Beckhams, there's a whole underground movement that often you don't see unless you follow that individual. But that is where the Browns are playing now. One brand playing in that influence or space is e. It enlisted a team of football fanatic bloggers headed up by Spencer FC to lead its Wembley Cup campaign throughout August in September. They all have sort of carved out a little unique sort of unique view of the football world because they have to, because this is because they're competing against one of each other effectively from a YouTube perspective for subscribers. So bringing them all together just creates a brilliant opportunity for people not have to just choose one YouTuber to subscribe to their all their, I think also it just brings Maura and just bring in a bunch of professional footballers together who have one thing in common, which is they play football for a living. You know, these guys were a little bit different. So Spencer is regarded as someone who's knowledgeable about football, has an opinion about football, is consulted his after be a pundit. His reputation is at the same level as some traditional media stars say on as his reputation is growing as his subscription base is developing further on YouTube, that's only going to go further, and he's only going to become more, more well known. 7. The Impact of Technology on Sponsorship: the impact of technology on sponsorship. We have covered some aspects of technology and how it can affect sports sponsorships, but now will be taking an in depth look. We have seen how sports have taken off around the world, thanks to fans having better access. And a lot of this is due to technology. Technology has improved most our lives in hundreds of different ways, but it's also made things easier for sports sponsorships. In this chapter, you'll be able to discover how technology is changing sports sponsorships for the sponsors , teams and fans. How technology has effectively improved sports sponsorships. Rapid improvements in technology have helped to make sports more accessible than ever. It's brought fans closer to the sports they love and given athletes new ways to connect with fans. On top of all, that technology has vastly improved how sports marketers work. There are now really ways to accurately measure engagement. Technology is also improving how fans can interact with sports all the time, giving brands new ways to reach funds. The following are some of the main ways that technology has helped to improve sports sponsorships. Virtual reality Virtual technology is rapidly improving All the time and is already being used by major sports like the N Ba VR is a great way to bring the more immersive experience defends watching sports at home. It's being used to bring fans closer to the action and can provide an experience second only to the best seats in the Stadium League's offering. VR events can work with sponsors to provide interactive features during halftime and create exciting content for friends. Social media driving, fan engagement. Social media has allowed fans to get closer to their favorite athletes and teams than ever . If used properly, it's a great way for sports teams toe work with sponsors to increase engagement and brand exposure. There are millions of fans out there. Social media provides a great way to not only reach them but also connect with them more than with traditional advertising mobile phones as a second screen during games. Many fans like to use their phone as a second screen toe, either read or updates social media message friends or read more updates about other matches. This gives sponsors a lot of potential for reaching fans during the game, either through social media or by releasing as dedicated app with fans able to connect with sports and new and exciting ways, sports sponsors are able to build better connections with the fence. This in turn, leads to better sponsor activation, which leads to a more successful sponsorship. As we've seen in the examples we've looked at, technology has a lot of potential to keep improving how brands sponsored events and teams. It lets brands reach more fans than ever before and create a lasting impression on them when used properly. Technologies such a social media, virtual reality and sports data all helps to create more effective sponsorship. Better sponsorships can lead to more brands, choosing to sponsor events and provide more value for both fans and the teams they sponsor technology As a sports sponsor, technology isn't just helping to shape sports sponsorship. It's also activate Lee participating in sports sponsorship. Like never before, technology is being used more than ever across all areas off the sports industries, and big technology companies are seeing a great way to promote their company by sponsoring events. The following are all areas where technology is impacting sports wearable devices for athletes, wearable devices are becoming more widely used than ever. These devices give athletes and coaches useful real time data about positioning speed, distance covered on other performance metrics. These could be used to give coaches and athletes better insights into their performance and improve tactics and training. Better ticketing systems for finds at the game. Fans are now able to book tickets online, have improved ways to prevent ticket touting and easier and faster payment options. All of these creates a better experience for match going fans, helping them get into the ground more easily and enjoy the sports they love augmented and virtual reality for at home viewers, augmented reality and virtual reality are two technologies that are slowly increasing in usage across sports broadcasts. He's helped to improve the experience of fans watching back home, creating deeper immersion and adding new ways to watch sports. Technology companies have seen this demand for increased technology as a way to improve their brand exposure. Many companies, including the likes of IBN Amazon Web services Samsung and A T and T, have become the official technology partner of a team or event. An official technology partner, rather than simply providing their logo on a shirt, provides the team or event with a useful application off their technology. This gives the company a way to showcase its new technology in a high profile setting. Through these sponsorships, companies aren't just throwing a company logo into the stadium there, showing fans and potential consumers the potential off their technology. An example we already looked at was Microsoft Surface as the official tablet provider off the NFL. Another example is IBN, which sponsored the Masters and provided fans with an app that analyzed data from the tournament giving fans new insights into the competition, the globalized world and sponsorship. The Internet has led to sports being more available than ever before. Fans from all over the world cannot watch live events, highlights and short video clips off their favorite sports. Just a few decades ago, if you wanted to watch 24 hour sports content, you'd have to subscribe to expensive satellite TV. Now it's available through the Internet, with many sports leaves giving fans free content. This increasing spread of sports across the world has led to globalize sports industry, and teams in countries like the US and UK now have fans in foreign countries that outnumber domestic fence. This has led to a shift in sports sponsorship With many foreign companies now willing to pay big money to sponsor teams from outside of their country, this growing spread of globalization has created an ever expanding sports sponsorship market, one that is fueled primarily by technology. With firms now having better access to expanding markets, it's no more profitable than ever to sponsor a globally recognised sports team. As we saw in a previous chapter, many foreign companies are jumping at the chance to sponsor major sports team in Europe and North America as the biggest leagues grow their global viewership numbers. Companies also now have improved ways to measure the success of sponsorships, making use of engagement ring data on social media to track the return on their investment . North American countries currently spend the most ball sports sponsorships, but areas like the Asia Pacific are quickly catching up. North America currently accounts for around 36% off the total sports sponsorship market, whereas Asia Pacific is A 25.2% and Europe sits at 26.7%. It's expected that has leaves like the Premier League and NBA grow in rapidly developing markets like India and China, the number of Asian brands willing to spend big on sponsorship will increase. On top of that, the growing prevalence off esports, highly popular in countries across Asia, is spreading a new wave of companies taking a chance on sports sponsorship ways. Technology could improve sponsorships in the future. With the influence of technology over sport increasing all the time, we're likely to see technology also increasing its impact on sports sponsorship. As we have already seen, technology is rapidly being used to great effect improving the relationship between sponsors and fans. A lot of technologies have helped to increase the value that sponsors bring to the team and sports fans. Now let's look at how that can continue to improve in the future. Here are some ways that technology is continuously improving Sports sponsorship. Smart stadiums. Smart stadiums are away for event organizers to improve the conditions for a match. Going fans and bring stadiums into the 21st century. Using the latest technology and smart stadiums are designed to give the best possible match experience for friends, offering increased connectivity that allows fans to instantly upload clips off the game. A smart stadium also makes it easier to find concessions to find friends in the stadium and generally make it a more fun place to be user generated content is a big part of social media and many fans enjoying sharing clips and pictures off themselves up the game. Offering free WiFi encourages fans to share media off the match that can be included with sponsor Hashtags for the chance to win prizes. Sponsors can help improve match going fans experiences with the use of smart stadium technology, giving them ways to stay connected and not miss out on any of the action. Other uses include augmented reality, which can be used to project key information and advertising around the pitch up connectivity. Sports events are starting to make better use of APS than ever, with social media participation and specially built APS now the norm for big sporting events. Sponsors have new ways to interact with fans while they attend matches and watch games. Social media is increasingly used by companies to increase activation off their sponsorship . Social media not only provides insights into fans but also a way for brands to connect with them directly. Social media and APS present fans a great way to connect and share their excitement of the match, and sponsors have a great way to get involved with this. The increasing use of social media by brands means that companies have to get smarter than ever when using the service. Fans get tired quickly off brands that shove advertising in their face, so companies have to be subtle and use the APP or social media to provide value to fans before rather than attempting to sell them anything. Facial recognition Facial recognition has been used in stadiums for security purposes for a while, and it has a lot of implications for sports. Sponsorship to facial recognition can be used on a fairly simple level to impose team logos and colors onto the selfies are friends. It can also be used to gods the fan interest in adverts while using an APP, facial recognition and artificial intelligence can read human emotions and determine if a fan is interested in the product or service being show. This type of measuring can effectively improve the quality of advertising that fans are exposed to and ensure that advertiser contain blur their ads to hit their target. Demographics better targeted advertising sports teams are able to collect more data than ever from their fans through the use of social media and APS. This data can be used by sponsors to specifically target certain demographics and improve the effectiveness off their campaign. With foreign advertising also increasing, stadiums can use smart advertising boards that display different adverts to different regions off the world on live broadcasts. This way, a stadium can sell multiple companies the same advertising space, and each company will get a much better return out of the ad by targeting a specific region . 8. Digital Sponsorship: digital sponsorship in this chapter will be looking more closely into digital sponsorship. We've already looked a bit at social media and how sponsors can use it, but now we'll be taking a more in depth look. We'll also be looking at sponsorships through the Internet in general, on how sports streaming services can take sponsorship to the next level. With people now spending more time on the Internet than on watching TV, it's clear that the Internet is not the best way for brands to reach consumers. The increase in users active on social media also means that brands can now advertise directly to specific demographics and fans that have specific interests or live in specific locations. All of these reasons and more are why digital sponsorship has become such an important segment of sports sponsorship as a what is digital sponsorship. As we've seen, sports sponsorship has constantly being evolving. Ever since the wealthy ancient Greeks used to sponsor athletes from their city digitization , and the availability off the Internet has brought fans closer to sports than ever before. With this closeness, brands have a new way to reach fans and gain exposure. Digital sponsorship is the use of digital tools and techniques to deliver branded contents to fans and potential consumers. Rather than relying on analog methods like advertising boards and logos on shirts, digital sponsorship, Let's brand get closer to fans and create unique content that sets them apart from the competition. Digital sponsorship is all about utilizing social media and other digital media to create storytelling that engages with fans. While this might sound a little less like marketing and more like a waste of resource is to some people focusing on building a relationship between the sponsor on the fans is far more effective than trying to sell to them directly. Fans now have the ability to watch their favorite sports from around the world in a variety of different ways. The option to stream sports 24 7 means that brands have a lot more potential for exposure than ever before. Major sports also have global audiences in most cases, which gives brands the ability to reach fans all over the world provided they use their sponsorship properly. Social media and sponsorship. Social media has become one of the most powerful tools for sports sponsors in the digital age. It's why didn't the perspectives, giving brands more opportunity to build brand presence before sports sponsorships were only effective during the game itself a logo around the pitch or on a shirt. Now, with social media, it's possible to generate exposure even when sports aren't on events. Sports teams, athletes, fans and the sponsors themselves all post content, including videos and photos, which can contain the brand logo. Or promotional hashtag designed to build brand presence with social potential for reaching fans. It's no surprise to see so many sports teams using social media. Most major sports teams now have multiple social media accounts that posts updates means on other content in different languages for their fans across the world. It gives sponsors away to directly interact with fans of the post and specifically target fans from particular countries. One of the main advantages off social media marketing over other types of advertising is that the effectiveness of advertising is much easier to measure. The number of shares likes and views are always displayed to the owner off the post, and companies are also able to see other metrics about the people engaging with their posts . You can see ages, locations and other details about people that like and share social media posts, giving a brand better insight into how to reach their target market. People are spending more time than ever online and social media is now one of the most popular areas off the Internet. There are around 3.5 billion social media users worldwide, and people spend on average three hours a day using it. Social media is also becoming increasingly important for sports fans as it allows them to receive instant news and updates, plus feel more connected to their team and other friends. With 22% of Internet users saying that the main reason for using social media is to follow sports, there's a massive number of fans which can be reached through the various platforms. Sports sponsors can get a lot of value from using social media to spread branded content and connect better with friends, influencers and their impact. With the growing impact of social media comes a new way for brands to advertise their products. Endorsement deals were big in the eighties, and although there are still big endorsement deals today, they tend to only be with the top athletes. Social media is changing that as athletes become influencers to their millions of fans, the biggest mega stars still have regular endorsement deals. Christiano Ronaldo has a $1 billion lifetime endorsement deal with Nike. The sports brand not only gets to use Ronaldo to endorse their products in adverts, but they also feature heavily on his social media accounts. Ronaldo has over 220 million followers on Instagram, making him one of the most followed athletes in the world. Brands like Nike, which pay Ronaldo was set amount of money to appear in a post can reach an extraordinary number of people. And what's more, there is a lot of data to suggest that people are more susceptible to influence your style . Advertising a celebrity athlete giving their endorsement to a brand has a lot more value than the brand. Just releasing an ad. It isn't just the biggest athletes that are becoming influencers. However, The value, often influencer, isn't just about how many followers they have, but the engagement that they receive on each post. Although an athlete could have millions of followers, they're not worth as much to a brand if their fans don't comment and like on their posts. Athletes who want to become athlete influencers and maximize their earnings need to make the most of social media. That means regularly interacting with fans, providing unique and interesting content that fans will enjoy. Other ways to boost engagement include giveaways and live Q and A sessions. By making the most out of social media on increasing fan engagement. Even lesser known athletes can land big social media endorsement deals. Niche sports and athletes can still have big followings online. And if they make an effort to boost engagement, they can boost their earning potential. It's always important to remember that fans will quickly grow tired of excessive advertising. As with other forms of sponsorship, focusing on the fans above all else will produce the best results. 9. Trends, Development and Future Direction: trends, development and future direction. In the previous chapters, we have seen how technology and its advances have helps to improve sports and sports. Sponsorship in this chapter will be going further by taking a look at how technology can continue to improve this area off sports marketing. We will be covering some topics we have already looked at, but also going more in depth and seeing how these technologies can create sponsorships that work better for everyone. We'll also be looking closely at concepts that are being introduced to sports sponsorships and how sports sponsorships are getting smarter and more inclusive. Sports sponsorships have been around for a long time and have changed a lot in the upcoming years. We can expect to see them change even Mawr, as new demographics of sports fans appear and new technologies arrived to make our lives easier cause marketing cause marketing is a form of marketing that's done by a for profit business that looks to not only increase profits but also provide a benefit for society. The company uses this benefit or activism as a way of promoting the brand and helping the business to grow, not to be confused with corporate philanthropy or social marketing. Because marketing is strictly carried out by businesses with the intention of making a profit, as consumers become more aware off the world around them and their impact upon it cause marketing becomes more popular than ever, the lunar of consumers who buy products that they associate with a good cause is increasing . In 12 2047% of consumers bought from a brand that supports a cause on increase of more than 40% from the two years prior to that, a survey of Americans reviewed showed that 83% of them wish that more of the products, services and retailers that they use supported a good cause cause. Marketing is a brilliant way for brands to build loyalty, and the figures show that supporting a worthwhile cause can really resonate with consumers . The future of sports marketing will likely see an increase in the amount of cause marketing . As more brands look for ways to build loyalty with friends, many fans are becoming increasingly wary with some of the excessive marketing and over commercialization off the top sports cause. Marketing is a great way to get these fans back onboard and excited about two sports sponsorship cause marketing can help to build trust with fans and shows that the sponsor cares about issues close to the fans and the sports team or athlete. Another big advantage of cause marketing over other types of marketing is that it's more likely to generate a response on social media and in press coverage. People are more likely to talk a new sponsorship if the sponsor is also committed to helping a local cause, and both press coverage and social media provide free exposure. Women's sports women's sports, like golf and tennis, have been highly popular for years, and a lot of stars have been created from women's sports. Women's tennis benefits from a lot of media spotlight and viewing figures are sometimes even higher that similar men's matches Compared to men sports, however, women's sports still have room to grow. Viewing figures for some sports, such as women's football or basketball, don't reach nearly the same numbers as their male counterparts. This is an area that has a lot of potential for improvement on the future holds a lot of exciting development for female athletes and women's sports. Women's sports are growing in both participation numbers and viewing figures. As more people get into women's sports and it attracts new fans, sports sponsorships have a new avenue to gain exposure. The last few years saw a shift in the perception of women's sports, and with more games available for fans to watch, the interest in womens sport has been growing. 2019 saw women's sports reaching new heights as the Women's World Cup drew in record viewing figures. A combined 1.12 billion people tuned in to watch, with the final bringing in more than 200 million viewers. The viewing figures for the final were up by 56% from the previous competition, while the average viewing figures per game increased by a massive 106%. It's clear from this tournament that there is an appetite amongst fans for women's sports, and many fans would also point to the viewing figures of women's tennis to prove this. Women's tennis has been popular for many years, so it seems strange that broadcasters are only just realising the potential for other sports to be popular too. With the increasing viewing figures, comes more interest from sponsors right now, women's sport accounts for a mere 0.4% of total sports balls airship spend. But if the interest continues to grow, then this figure will likely increase massively over the next few years. Over the years, big brands have been reluctant to take the leap. But now, with Visa A, I G and other big sponsors sponsoring important women's tournaments, it's expected that many big companies will follow suit. It will be interesting to see how many differences there are between women's sports sponsorship on the sponsorship of male sports. Sponsoring women's sport has the potential for better interaction with fans and more passionate fans, something that will be a dream come true for brands. Many fans view women's fourth as more progressive and Uncluttered by sponsors, meaning it's a great opportunity for any brand getting in at the ground level. A 1,000,000,000 people tuning into the match between you're ready, you know, done. - Women's football game sets new sales record The way the world again seen in sports field making opportunity for coach Alex sculptor continue to be league's first female coach makes history incredible. Way big. - Thanks . You ready? E Sports e sports are not exactly a sport, but they are shaping up to be the next big thing. E sports are any form of organized competition involving video games. Hundreds of millions of people around the world play video games every day, and now millions are also watching them play. E sports events often take place in a stadium or arena, watched by a live audience of thousands of fans. Just like with regular sports, E sports events draw viewers in from all over, and fans can wash the game streamed Life online. Major broadcasters are also starting to pick up on the popularity of these events, and fans can watch some of the major tournaments on their TV. While E sports have been popular in countries like South Korea and China for many years, they're starting to grow in Europe and the US to an estimated 26 million people from the U . S. Watched E sports in 2018 and this number is going up year by year by 2023 it's expected that more than 40 million people will be tuning in tow, watch live e sports events with such a big rise in viewing figures, E sports represents huge potential for brands. In 2017 brands spent more than $230 million on sponsorship, and this will likely increase with each year. He sports have a fairly wide range of viewing demographics. Around 1/3 of E sports fans are female. This range of demographics shows there is a lot of potential for big brands to come in and sponsor E sports events. E sports are particularly popular most younger generations and those who don't typically watch sports. It's also estimated that most E sports fans watch a far greater amount of esports content than sports fans do with traditional sports. These points show us that brands can get a lot of value from sponsoring events and teams, particularly those targeting younger demographics, augmented reality and virtual reality. As we have already seen in previous chapters. Augmented reality and virtual reality can be powerful tools for sports sponsorships for forward thinking brands. Both A R and V are already being used to create exciting brand exposure opportunities, just as it took some time before company started utilizing social media to full effect. So far, we haven't seen the full capabilities off a AR and VR However, it's clear that these technologies, just like social media, have enormous potential for better sponsorships. Activation. Both a AR and VR provide the opportunity for companies to create something unique for fans . The perfect way to increase brand exposure they are around the stadium during games can be used to present interesting match facts, a social media commentary, feed and match highlights. This could be used in conjunction with an app on a mobile phone to instantly watch and share clips off the much. VR has a growing number of use cases in the sports industry. As the technology improves, fans of the N ba can already buy a virtual season tickets, allowing them to enjoy a courtside experience from their homes. PR has also been used by NFL teams to give fans the chance to play with our favorite athletes and view 360 degree interviews. Right now, both VR on A are are still in their infancy, and the potential for sports sponsorships to use them to connect with fans is remarkable. Brands have agreed chance to build interactive and immersive content for fans that can also give exposure to their brands. As we saw with the introduction of the radio, TV and the Internet. New ways for fans to watch and enjoy sports can have a massive impact on sports sponsorship . TV and the Internet allowed more funds than ever. Toe watch sports movie R and A are have the same effect. It's up to brands to properly utilize the technology if they want to take their sponsorships to the next level. As we saw in previous chapters, creating a connection with fans is more valuable than just displaying the logo and V, R and A are can both give fans exactly what they want. 10. Conclusion: conclusion, Let's know recap everything that we've learned from the course. You should now have a clear picture of exactly how sports sponsorship works. You should understand how a deal is made between both the rights holder on the sponsor. You should also understand that sports sponsorship is different from other kinds of sponsorship. Thanks to the funds, fans typically hold a greater amount of loyalty towards their favorite sport. Team. Athletes or event sponsors can use this to try to build brand loyalty with fans by forming a connection with the fans and their favorite sports sports. Sponsorship may seem like a new concept, but it's actually been around for more than 1000 years. The earliest organized sports involved athletes that were often sponsored by politicians and business owners to bring more glory to their city. Nowadays, the reasons and methods are a little different. But sports sponsorships are still highly popular as the way fans air able to consume sport has improved. So has the ability for brands to advertise to them, the first modern sports sponsorships usually involved in athlete endorsing a brand or product to help improve sales. Today, fans are less likely to buy directly because of endorsement or advert. While endorsements are still used, sponsorships in general are typically used to build brand awareness. Building brand awareness isn't a simple is placing an advert in the stadium or placing a local on a team shirt. The's methods have to be used in conjunction with other marketing in what's become known as sponsorship activations. As we saw in the course, sponsorship activation is the key to successful sponsorships and building brand awareness. To properly activate sponsorships, brands need to plan and execute their sponsorship strategies carefully. It's important to find a partnership that fits. Many fans will reject or disapprove off sponsors who go against the ethos of the event or club, as we have seen from McDonald's at the Olympics, longer at Newcastle and many others, it's also important for brands to create actual value for fans. It's not enough to simply pay money to the sport and expect to increase sales to properly activate the sponsorship. A Brad List carefully work with the fenced to provide something of value that will not only increase awareness but also helped to build loyalty as we saw from the examples in the course building brand loyalty is difficult, but sports sponsorships are one of the best ways to do it. Many sports fans aren't just more likely to recall a brand which has sponsored their club but are also more likely to consider it and spend money on it. One of the things helping companies to improve their sponsorship activation is the introduction of new technology like social media. The Internet as a whole has helped more fans than ever to stay up to date with their favorite sports, but it's also become a way for sponsors to improve their sponsorships. Social media in particular, is helping brands to target specific demographics, measure the success of their sponsorships and interact with fans directly. Other technological improvements that are improving house sponsorships work include augmented reality, virtual reality and smart stadiums. These concepts, along with things like women's sports, e sports and cause marketing all have a lot of potential to improve how brand sponsor events in the future. Over the years, sports have become fairly saturated with advertising and sponsors, and now more than ever, sponsors need to be smarter with how they spend their marketing budgets. Technology is helping sponsors to reach a wider audience than ever before. But this is meaningless if brands don't pay attention to the fans and measure the response to the marketing. The key take away from this course should be that sports sponsorship is an extremely effective form of marketing. When used property a brand that invest time and money into not only sponsoring a sport but also conducting market research and testing the effectiveness off the sponsor can build a lot of brand loyalty. It's especially effective over longer periods of time. And when the sponsor makes an effort to provide value to the fence overall, you should now be confident in your understanding off the world of sports sponsorships and its history. You should be able to determine why a particular example of a sponsorship was successful or why it was unsuccessful. You should also have an idea about the future trends and developments that lie ahead for the sports industry and how sponsors can use certain technologies to their advantage. This knowledge is essential in a fast paced industry where lots of different sponsors are all clamoring for the attention off the friends