Chocolate eggs

Easter is a time of the year people enjoy for different reasons. A YouGov survey in 2017 revealed 76% of UK adults associated Easter with chocolate eggs. This was followed by the public holiday (67%), hot cross buns (62%) and the son of God (55%) which was even lower amongst 18- to 24-year-olds (44%). And when it comes to the favourite chocolate egg brand, you guessed it, Cadburys. Online there were two Cadbury products that dominated the eggs search, the Crème Egg (29%) and Mini Egg (14%). However, research from Captify reported an increase in searches for healthy (+1000%) and sugar-free (+850%) Easter eggs. The increased demand was attributed to changing dietary requirements and lifestyle choices. No doubt many of these eggs will be hidden as part of an Easter egg hunt to keep children occupied for a few hours before they become a sticky mess.

The sport sponsorship industry is a bit like hunting for Easter eggs. Twenty or thirty years ago there were few research agencies specialized in sponsorship measurement. Most research was media valuation based converting brand exposure gained from sponsoring a team or event into an advertising value equivalent of traditional TV advertising. It was rudimentary but provided sponsors and rightsholders with some insight into the distribution and theoretical value of the exposure generated by the shirt, perimeter boards or other branded assets. For many it was the only way to monitor or justify the sponsorship investment. It was eyeballs and impressions versus fan engagement, brand activation, purpose driven marketing, propensity to purchase and sales that are the success metrics of today.

Technology and market research methods have improved significantly in recent years that provides marketers with more granular insights to measure, predict trends and identify new sponsorship opportunities. As the sports industry emerges post-covid, attracting brands from sectors who are increasing marketing spend and sponsorship is critical to the recovery and growth of the industry. Recent reports from Nielsen Sports predicts Chinese brands will be responsible for one-third of all growth in the global sponsorship market over the next 10 years. Payment Solutions and Money Transfer providers are also identified as major investors potentially accounting for 16% of sponsorship spend in the coming period. And esports sponsorship revenue growth is projected to increase from $374 million pre-covid to $842 million post-covid. Impressive figures and opportunities.

But with each new opportunity there are more variations and considerations. Can governing bodies, leagues, teams, broadcasters, and athletes offer the ingredients and flavour brands are seeking? The younger generation is more interested in brands that act in a socially responsible way. A rights holder with a sustainability agenda might expect a growth of 11% over three to five years from new sponsorships. Is there greater value for brands partnering with athletes who generate 63% more engagement compared to other owned social media engagement? Or should there be more emphasis on TV connected devices where sports fans are spending more time whilst streaming live sports events through digital platforms? Almost seven out of 10 people now play video games weekly on a smartphone or tablet.

Through high quality research and insights brands and rightsholders are in a better position to make informed decisions about where to invest and how to engage with avid sports fans, armchair consumers or those who only turn up for the big events, virtually or physically. But what the latest research also demonstrates is the increased complexity of entering a sponsorship that will deliver according to the brand health metrics and business objectives that were defined in advance. Not everyone can be like TikTok and generate 130 billion views of #football as a sponsor of UEFA EURO 2020 in four months. With new OTT services like ‘LaLigaPass’ for super fans being launched later this year the landscape is constantly evolving for fans and sponsors.

Just like chocolate eggs, there is more choice than ever before. Building a successful sponsorship might take a bit longer but quality research should help avoid the rotten eggs.

Happy Easter.