Advertiser spend on sports sponsorship is predicted to increase five percent in 2020 to reach more than $48 billion globally, the strongest growth in a decade, according to a new study from WARC, “Sports Sponsorship Investment.”
a.list Daily reports record investment ahead of the 2020 Tokyo Olympics is the source of recent market growth as the event is expected to bring in $5.94 billion in revenue from sponsorships, nearly double the previous event. According to WARC, Olympic partners Coca-Cola and Procter & Gamble will spend $1.95 billion worldwide on the event, while domestic sponsors like Canon, Asahi and Fujitsu will spend $3.33 billion, four times higher than the Rio Olympics in 2016.
The majority of investment is concentrated in North America, fueled largely by the financial services sector ($5.3 billion in 2019) and automotive sector ($.24 billion). WARC predicts US brand associations with the National Football League (NFL), Major League Baseball (MLB) and National Basketball Association (NBA) will reach $3.97 billion in value in 2020, just over a quarter of total spend of $18.8 billion this year. The value of NFL sponsorship is forecast to reach $1.53 billion in 2020, up 4.9 percent from 2019. MLB partnerships are projected to increase 5.6 percent in value to $1.05 billion in 2020 and NBA tie-ins are expected to rise 7.1 percent in value to $1.39 billion for the 2020-2021 season.
WARC says that brand investment in esports is also growing rapidly and will reach $795 million worldwide this year, an increase of 23.1 percent from 2019. Sponsorships will account for about three quarters of that total, or $584 million, while spots during ad breaks will account for $211 million.
Despite investment growth, one in four advertisers has no confidence in measuring return on investment (ROI) from sports sponsorships.
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