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.

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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

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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.

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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 suggest this article on the advantages for sports clubs to have a CDM to centralize their data.

Pierre Gautier Arenametrix

Pierre Gautier

Would you like to carry out a data & CDM diagnosis of your organisation? Take advantage of 30 minutes of free consulting by reserving your time.

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