22 Apr Expand your sponsorship revenue in the digital age
Expand your sponsorship revenue in the digital age
Let's start with a definition
Data Sponsorship embodies the evolution of sponsorship approaches in the digital age. It refers to actions based on the exploitation of data and the monetisation of a sports institution's commitment platforms. At a time when our consumption habits dictate economic models and successes (Amazon, Uber, Doctolib...), this world of monetization opens up flourishing prospects for our market.
Digital, the preferred communication vector for advertisers
In 2018, digital advertising grew by 17% - the strongest since 2009 - further widening the gap with other media: television (+2.4%), radio (-0.2%) and press (-4.7%). Even more interesting is the increase in the digital perimeter of these so-called "traditional" media (+9.4%), which says a lot about the importance of transforming our economic model in the digital age. In the end, these figures simply reflect the migration of the public to these media and social platforms. We spend more than 2 hours a day on our smartphone, Facebook has more than 33 million active accounts in France and Snapchat claims 13.6 million visits per day; it is therefore quite natural that advertising investments are now pointing towards digital.
In 2019, this trend was only increasing: +13.4% for digital advertising (€6.8bn investment).
Figures from BUMP studies: Unified Advertising Market Barometer
An opportunity for sports institutions?
According to The Metrics Factory, a specialist in digital measurement, the level of engagement of a community is far above the norm when it comes to sports content - on average 12 times more. This figure reflects the emotional appeal of sport and, in essence, the power of the rights-holders' relationships with their communities. Are we valuing this natural commitment appropriately?
The question deserves to be asked. While the Sports Innovation Lab introduces us to the concept of the Fluid Fan, in search of experiences, in search of identity, always more connected and therefore highly monetisable, the majority of rights holders continue to place the traditional media in pole position, especially when it comes to enhancing sponsorship spaces.
So no, digital is no longer here to dress the bride. It's a multi-million euro global market that's waiting to be wisely exploited.
The key: your communication platform
Fans today have the choice to consume the content they want, where they want and when they want it. It is therefore essential for rights holders to build a digital ecosystem that provides sufficient points of contact to capture and engage these communities. Once this platform is active, monetization is naturally done with advertisers taking advantage of a fertile environment to build their own audience and generate leads by activating a highly qualified target.
As we discussed in a previous post, sport is now a platform that needs to be monetized at its true value.
Sponsorship and digital: reserved for the "big guys"?
On the contrary, digital technology allows so-called "minor" sports to sharpen their blades on another battle than that of TV rights: commitment. Because in today's advertising world, 20,000 known and committed licensees carry as much or more weight as 500,000 volatile and unidentified viewers. This is something to rejoice in sports, which are currently suffering from a lack of interest from the traditional media.
For example, take a look at the partnership between Booking.com and UEFA. Concluded in 2017 thanks to data, it intelligently activates the digital assets of Euro 2020 to amplify the logistical and event experience of the fans; this is the virtuous circle that we will present on February 11th during our Data Sponsorship seminar.
To go further, we propose this article on the advantages for sports clubs to have a CDP to centralize their data.
Olivier Spaeth
Would you like to carry out a data & CDP diagnosis of your organisation? Take advantage of 30 minutes of free consulting by reserving your slot.
Share this article with your friends!
Read more on our data & entertainment blog:
How to market its reduced gauge ticketing offer?
The reopening of the stadiums and arenas seems to be close even if we will have to rely on reduced gauge ticketing in the first instance.
The TOP 3 of our professional sports articles 2020
To conclude a year rich in news, we present you with a selection of our best articles on professional sports.
Professional Sport: How to acquire new fans with statistical twins?
Sports Clubs: How to acquire new fans thanks to statistical twins? Presentation of the Arenametrix x Paris Basketball use-case
Arenametrix celebrates its first 100 users! - Arenametrix
Posted at 12:20pm, May 25...whether it's setting up your marketing automation, or data sponsoring; let's keep growing, together...
CDP - top5 benefits for a professional sports club
Posted at 3:10pm, May 25to provide encrypted returns to advertisers. For more information on data sponsoring, [...]
Sport is not just for fans, it is also a business platform.
Posted at 09:18h, 26 May...Digital platforms, such as Uber and AirBNB, are undergoing rapid economic development in our society. Considering that sport is a microcosm of society, sport economist Stephen Bourke says that the sport industry has also become a platform for business. […]
Boost your ticket sales with early bird fares.
Posted at 09:41h, 26 May[...] selling "early bird" tickets gives you more means and credibility for sponsoring. Let's face it. The more you can give to the sponsors, the more they invest...
Engaging audiences in times of containment: the example of the United States
Posted at 2:12pm, May 26th...can present previous productions and events online. This will allow you to enhance your platform, build audience loyalty while giving potential future visitors a taste of your productions and events.