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Sports Sponsorship Market to Expand by USD 21.1 Billion (2024-2028), Driven by Increased Spending and AI’s Influence on Trends – Technavio Report

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NEW YORK, Sept. 13, 2024 /PRNewswire/ — Report on how AI is redefining market landscape- The global sports sponsorship market size is estimated to grow by USD 21.1 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of about 5.38%  during the forecast period. Increasing sports sponsorship spending is driving market growth, with a trend towards analytics gaining prominence in sports sponsorship. However, potential negative outcomes associated with sports sponsorships  poses a challenge. Key market players include Adidas AG, Anheuser Busch InBev SA NV, Electronic Arts Inc., Etihad Airways PJSC, Hero MotoCorp Ltd, HX Entertainment Ltd., Hyundai Motor Co., MACRON SPA, Nike Inc., PUMA SE, Qatar Airways Group Q.C.S.C., Red Bull GmbH, Renault SAS, Rolex SA, Samsung Electronics Co. Ltd., Super Group SGHC Ltd., and The Coca Cola Co..

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Sports Sponsorship Market Scope

Report Coverage

Details

Base year

2023

Historic period

2017 – 2021

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 5.38%

Market growth 2024-2028

USD 21.1 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

5.11

Regional analysis

North America, Europe, APAC, South America, and Middle East and Africa

Performing market contribution

Europe at 34%

Key countries

US, Germany, UK, China, and Japan

Key companies profiled

Adidas AG, Anheuser Busch InBev SA NV, Electronic Arts Inc., Etihad Airways PJSC, Hero MotoCorp Ltd, HX Entertainment Ltd., Hyundai Motor Co., MACRON SPA, Nike Inc., PUMA SE, Qatar Airways Group Q.C.S.C., Red Bull GmbH, Renault SAS, Rolex SA, Samsung Electronics Co. Ltd., Super Group SGHC Ltd., and The Coca Cola Co.

Market Driver

The sports sponsorship market has faced the challenge of measuring the return on investment (ROI) for several years. However, the introduction of marketing analytics is poised to address this issue. Marketing analytics gathers social media data from customers before, during, and after sports events, enabling sponsors to gauge public perception towards their brand. Additionally, it assesses customer reach, which refers to the number of individuals exposed to the sponsor’s marketing messages at a sponsorship activation. In the case of multiple sponsorship investments, marketing analytics can determine the ROI of each individual sponsorship. Furthermore, image analysis technology enhances the effectiveness of stadium sponsorships by recognizing logos in photographs, allowing sponsors to optimize signage placement based on frequency and reach. These factors are expected to fuel the expansion of the global sports sponsorship market during the forecast period. 

Businesses increasingly see value in sponsoring sports organizations, teams, leagues, events, and individual athletes. This exchange of funds for goods, services, or promotional opportunities provides brand exposure and visibility to large and passionate consumer bases. The Olympics and FIFA World Cup are prime examples of global events offering significant brand awareness. Digital and social media platforms offer new avenues for engagement with sports fans, who demonstrate immense loyalty and increased interest. However, the cost of sports sponsorship can be exorbitant, making it a challenge for startups and smaller enterprises. Regulatory restrictions and prohibitions on advertising specific products or in certain countries add complexity. Technological developments, such as augmented reality and virtual advertising, offer innovative solutions. Infrastructure investments and strategic brand partnerships can enhance ideals and reputation. The return on investment (ROI) justifies the cost for many businesses seeking to reach new markets and audiences. 

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Market Challenges

Sports sponsorships offer numerous advantages, but they also come with potential risks. One such risk is liability exposure, where a sponsor may face negative publicity due to alleged negligence during an event. For instance, if a fan gets injured and the sponsor is held responsible, it could harm the sponsor’s reputation. Another risk is insensitivity to public sentiment. In 2012, a financial services company faced backlash for denying use of other credit cards at the London Olympics and replacing most ATMs with its own. When its IT system failed, fans were frustrated, leading to criticism and negative publicity. Poor event presentation and underperforming teams or players are other risks. To mitigate these risks, organizations must carefully consider their sponsorship decisions and potential impacts. These factors may negatively influence the sports sponsorship market during the forecast period.Sports sponsorship presents businesses with unique opportunities to engage with passionate fans and increase brand awareness. However, it comes with challenges. Loyalty can be hard to maintain with the constant shift in fan allegiances. Major events like the Olympics and FIFA World Cup bring increased interest, but high costs can be a barrier for smaller enterprises. Globalization of sports opens new markets, but regulatory restrictions and prohibitions on advertising for specific products or countries can limit reach. Technological developments, such as augmented reality and virtual advertising, offer innovative solutions, but come with infrastructure and cost considerations. Reputation risk, economic downturns, and instability also pose challenges. Startups and smaller enterprises must carefully consider the ROI before investing in sports sponsorship. Exorbitant costs and limited reach can make it a challenging direct avenue for brand building. Sports sponsorship requires a strategic approach, balancing ideals and reputation with cost-effectiveness. Online platforms and social media offer more affordable alternatives for digital engagement.

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Segment Overview 

This sports sponsorship market report extensively covers market segmentation by  

Type 1.1 Signage1.2 Digital activation1.3 Club and venue activation1.4 OthersApplication 2.1 Competition sponsorship2.2 Training sponsorshipGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 Signage-  The sports sponsorship market is a significant business sector, with companies investing in partnerships with sports teams and events to increase brand visibility and customer engagement. Sponsorships can take various forms, including product placements, advertising, and experiential activations. These collaborations benefit both parties, as businesses gain marketing exposure, and sports organizations secure financial support. The sports sponsorship market continues to grow, driven by the increasing popularity of sports and the desire for authentic brand connections.

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Research Analysis

The Sports Sponsorship Market is a dynamic and ever-evolving industry where businesses engage with sports organizations, teams, leagues, events, individual athletes, and more, to exchange funds, goods, and services. This partnership offers various promotional opportunities, enhancing brand visibility among passionate sports fans and consumers. The market caters to diverse target audiences, reaching new markets through the globalization of sports. Technological developments, including digital and social media platforms, have revolutionized sponsorship, providing a direct avenue for brands to connect with fans online. New technologies like augmented reality and infrastructure upgrades further enrich the sponsorship experience. Overall, the sports sponsorship market is a valuable investment for businesses seeking to engage with their audience in a meaningful and impactful way.

Market Research Overview

The sports sponsorship market is a dynamic and ever-evolving industry where businesses engage with sports organizations, teams, leagues, events, individual athletes, and more, to exchange funds, goods, and services for promotional opportunities and brand exposure. This partnership offers businesses access to passionate and loyal consumer bases, increased interest, and engagement with sports fans. The Olympics and FIFA World Cup are notable global events that attract significant sponsorship. Brands seek to boost their brand awareness, visibility, and ideals through sports sponsorship, reaching new markets and consumers through digital, social media, and online platforms. However, the costs of sports sponsorship can be exorbitant, making it a challenge for startups and smaller enterprises to secure a return on investment (ROI). Regulatory restrictions, prohibitions on advertising specific products in certain countries, reputation risk, economic downturns, instability, and lower spending are other factors that impact the sports sponsorship market. Technological developments, such as augmented reality and virtual advertising, offer innovative solutions to increase infrastructure and strategic brand engagement.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeSignageDigital ActivationClub And Venue ActivationOthersApplicationCompetition SponsorshipTraining SponsorshipGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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NASA Johnson Invites Proposals to Lease Vibration Test Facility

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HOUSTON, Nov. 14, 2024 /PRNewswire/ — NASA’s Johnson Space Center is seeking proposals for the use of its historic, but underused, Vibration and Acoustic Test Facility. Prospective tenants must submit facility walk-through requests by Monday, Nov. 18.

Final proposals are due by 12 p.m. EST Monday, Dec. 16, and must promote activities that will build, expand, modernize, or operate aerospace-related capabilities at NASA Johnson and help preserve the historic and iconic building through preservation and adaptive reuse.

NASA plans to sign a National Historic Preservation Act (NHPA) lease agreement for the facility, also known as Building 49, for a five-year base period and one five-year extension to be negotiated between NASA and the tenant. To request a walk-through, send an email to hq-realestate@mail.nasa.gov

“This historic facility has been used for decades to ensure the success and safety of all human spaceflight missions by putting engineering designs and hardware to the ultimate stress tests,” said NASA Johnson Director Vanessa Wyche. “For more than 60 years, NASA Johnson has been the hub of human space exploration and this agreement will be a vital part of the center’s efforts to develop a robust and durable space economy that refines our understanding of the solar system and space exploration.”

All proposals must adhere to the guidelines detailed in the Agency Announcement for Proposals describing concept plans for development of the property, including any modifications proposed to the building; a statement of financial capability to successfully achieve and sustain operations, demonstrated experience with aerospace-related services or other space-related activities, and a detailed approach to propelling the space economy.

The nine-story building complex has a gross square footage of 62,737 square feet and consists of a north wing measuring 62 feet long, 268 feet wide and 106 feet tall, and a central wing about 64 feet long and 115 feet wide. Building 49 currently houses five laboratories, including the General Vibration Laboratory, Modal Operations Laboratory, Sonic Fatigue Laboratory, Spacecraft Acoustic Laboratory, and Spacecraft Vibration Laboratory. The south administrative portion of the building is not included in the property offered for lease. 

As the home of Mission Control Center for the agency’s human space missions, astronaut training, robotics, human health and space medicine, NASA Johnson leads the way for the human exploration. Leveraging its unique role and location, the center is developing multiple lease agreements, including the recently announced Exploration Park, to sustain its key role in helping the human spaceflight community foster a robust space.

In the coming years, NASA and its academic, commercial, and international partners will see the completion of the International Space Station Program, the commercial development of low Earth orbit, and the first human Artemis campaign missions establishing sustainable human presence on the Moon in preparation for human missions to Mars.

Johnson already is leading the commercialization of space with the commercial cargo and crew programs and private astronaut missions to the space station. The center also is supporting the development of commercial space stations in low Earth orbit, and lunar-capable commercial spacesuits and lunar landers that will be provided as services to both NASA and the private sector to accelerate human access to space. Through the development of Exploration Park, the center will broaden the scope of the human spaceflight community that is tackling the many difficult challenges ahead.

Learn more about NASA Johnson’s efforts to collaborate with industry partners:

https://www.nasa.gov/johnson/frontdoor/ 

NASA Johnson Space Center news releases and other information are available automatically by sending an Internet electronic mail message to listserv@listserver.jsc.nasa.gov.  In the body of the message (not the subject line) users should type “subscribe hsfnews” (no quotes). This will add the email address that sent the subscribe message to the news release distribution list. The system will reply with a confirmation via E-mail of each subscription.  Once you have subscribed you will receive future news releases via e-mail.

 

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SOURCE NASA

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Cabana Partners with Virginia Department of Veterans Services to Provide Comprehensive, Free Mental Health Support for Veterans, Guard/Reserve Members, and Their Families

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RICHMOND, Va., Nov. 14, 2024 /PRNewswire/ — Cabana, a modern mental health provider offering confidential, tech-enabled support, has partnered with the Virginia Department of Veterans Services (DVS) to provide free, comprehensive mental health resources to Virginia’s veterans, Guard and Reserve members, as well as their spouses and caregivers. This collaboration expands access to Cabana’s digital mental health services, including live peer support groups moderated by Virginia-certified Veteran Peer Specialists.

Originally developed through research and development initiatives with the U.S. Air Force, Cabana’s services are designed to meet the unique needs of military and veteran communities. With this partnership, eligible Virginia users gain full access to Cabana’s digital suite, which includes the full range of virtual, professionally facilitated groups offered by Cabana, as well as dedicated Virginia Veteran peer-led support groups. Participants can connect discreetly on topics such as transitioning to civilian life, managing family relationships, and coping with stress, all within a secure and confidential environment accessible from any device.

David Black, Founder and CEO of Cabana, underscored the mission behind the partnership: “We’re honored to work with the Virginia Department of Veterans Services to offer a holistic mental health solution for Virginia’s military-connected community. With Virginia-certified Veteran Peer Specialists and our full array of live support groups, we’re providing a powerful, confidential resource that veterans and military families can rely on, whenever and wherever they need it.”

Key Features of the Partnership:

Comprehensive Access to Support: Virginia veterans, Guard/Reserve members, and their families will have unrestricted access to all live virtual groups available through Cabana, in addition to specialized peer-led groups run by Virginia-certified Veteran Peer Specialists.Support for Families and Caregivers: The initiative includes spouses and caregivers, addressing the unique mental health needs of military-connected families through sessions tailored to issues like family dynamics, stress management, and the transition to civilian life.Confidential and Flexible Access: Cabana’s services are available on mobile and desktop devices, providing Virginia’s veterans and their families with an easily accessible, cost-free solution for mental health support.

This collaboration highlights Cabana’s commitment to supporting the mental well-being of those who serve and their families. By joining forces with the Virginia Department of Veterans Services, Cabana seeks to strengthen the resilience and wellness of Virginia’s military community.

For more information on the partnership between Cabana and the Virginia Department of Veterans Services, please contact:

Nick Armstrong, Ph.D.
Head of Public Sector, Cabana
nick@cabanahealth.org

About Cabana™
Cabana is a leading, modern mental health provider offering confidential, tech-enabled support solutions tailored to the needs of diverse communities. Through live, professionally moderated group sessions, evidence-based content, and adaptable wellness tools, Cabana helps individuals proactively manage their mental health. Our mission is clear: to make mental health care more accessible through technology and human connection.

About the Virginia Department of Veterans Services (DVS)

The Virginia Department of Veterans Services (DVS) is a state government agency with more than 50 locations across the Commonwealth of Virginia. DVS traces its history to 1928 and the establishment of the Virginia War Service Bureau to assist Virginia’s World War I veterans. Today, DVS assists veterans and their families in filing claims for federal veterans benefits; provides veterans and family members with linkages to services including behavioral health, housing, employment, education, and other programs. The agency operates long-term care facilities offering in-patient skilled nursing care, dementia/memory care, and short-term rehabilitation for veterans; and provides an honored final resting place for veterans and their families at three state veterans cemeteries. It operates the Virginia War Memorial, the Commonwealth’s tribute to Virginia’s men and women who gave the ultimate sacrifice from World War II to the present. For more information, please visit www.dvs.virginia.gov.

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SOURCE Cabana

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East Side Games Group Reports Third Quarter 2024 Financial Results

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Revenue of $21.4M in Q3 2024 and $62.8M Year to DateA-EBITDA of $2.56M in Q3 2024 and $9.2M Year to DatePOWER RANGERS: MIGHTY FORCE launched globally

VANCOUVER, BC, Nov. 14, 2024 /CNW/ – East Side Games Group (TSX: EAGR) (OTC: EAGRF) (“ESGG” or the “Company”), is pleased to announce its financial results for the third quarter ended September 30, 2024. All amounts are stated in Canadian dollars on an IFRS basis unless otherwise indicated. Building on the momentum from Q2, the company achieved its first growth quarter of the year, reporting a top-line revenue of $21.4 million, a 4% increase quarter-over-quarter and a 3% increase year-over-year.

The company’s adjusted EBITDA for the quarter was $2.56 million, representing a 12% margin and marking the eighth consecutive profitable quarter above $2.5 million. East Side Games Group continues to demonstrate strong performance metrics across its core portfolio, with an average daily user count (DAU) of 236,000, a stickiness rate of 24%, and an average revenue per daily active user (ARPDAU) of $0.99.

“Our focus on profitability within our existing portfolio has paid off, and we are excited to further enhance our user acquisition strategies,” said Jason Bailey, CEO of East Side Games Group. “With $8.3 million in cash—our highest balance since Q2 2022—we are well-positioned to invest in our future game launches and bolster our share buyback program.”

One of the key drivers of growth this quarter was the launch of POWER RANGERS: MIGHTY FORCE in August, which quickly garnered nearly 30,000 daily active users and demonstrated impressive return on advertising spend (ROAS) figures.

In Q3, the company also enhanced its revenue generation through innovative strategies. The introduction of bi-monthly season passes for popular titles like Trailer Park Boys: Greasy Money and Cheech and Chong: Bud Farm resulted in a remarkable 40% increase in season pass revenue.

In a major collaboration, East Side Games Group partnered with BBC and Paramount to create the Intergalactic Friendship Day crossover event between Star Trek Lower Decks: The Badgey Directive and Doctor Who: Lost in Time, generating substantial organic traffic and setting new ARPDAU records.

Looking forward to Q4, East Side Games Group is excited to introduce team-based cooperative and competitive play features into titles such as Trailer Park Boys: Greasy Money and RuPaul’s Drag Race Superstar, anticipating a significant boost in player engagement and monetization.

Moreover, the company is preparing to launch Trailer Park Boys: Greasy Money on the Epic Games Store, expanding its reach in a new mobile marketplace with favorable revenue-sharing terms. This is a very exciting opportunity, only being afforded to a few game studios.

Finally, East Side Games Group is thrilled to announce our upcoming title, RuPaul’s Drag Race Match Queen, developed in partnership with Funkitron and World of Wonder. Slated for a 2025 release, this hybrid match-3 game combines beloved gameplay elements with captivating fashion and character features, catering to the passionate fanbase of RuPaul’s Drag Race.

Mike Edwards will be stepping down from the ESGG Board of Directors to focus on other pursuits, effective immediately. ESGG thanks him for his invaluable guidance over the past 12 years and is currently in discussions with several highly qualified candidates for his replacement.

Three Months Ended Sep 30, 2024 Financial highlights

For the quarter ended September 30th, 2024, revenue was $21.4M.Q3 2024 a-EBITDA of $2.56M and 12% a-EBITDA margin.Cashflow for the Company for the quarter ended September 30, 2024 increased by $700k, ending at $8.3M.Daily Active Users in Q3 were 236k, with an ARPDAU of $0.99On November 14, 2023, the Company announced a renewal of its Normal Course Issuer Bid (“NCIB”) authorizing the Company to purchase 4,076,819 of its shares. Through September 30, 2024, the Company purchased 1,540,719 shares at an average price of $0.76. The company continues to buy back stock as restrictions allow.

Certain information provided in this news release is extracted from the consolidated financial statements (the “Financial Statements”) and Management’s Discussion & Analysis (“MD&A”) of the Company for the quarter ended September 30, 2024, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company’s profile on SEDAR and EDGAR.

Earnings Call Video

ESGG will release its third-quarter 2024 financial results and business outlook on its investor relations website https://eastsidegamesgroup.com/investors/financial-information on Thursday, November 14th, 2024, at approximately 2:00 p.m. Pacific Time.

ABOUT EAST SIDE GAMES GROUP

East Side Games Group is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty. Our studio groups entrepreneurial culture is anchored in creativity, execution, and growth through licensing of our proprietary Game Kit software platform that enables professional game developers to greatly increase the efficiency and effectiveness of game creation in addition to organic growth through a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, Star Trek: Lower Decks – The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who: Lost in Time, RuPaul’s Drag Race Superstar, AEW: Rise to The Top, Cheech and Chong Bud Farm, and Trailer Park Boys: Grea$y Money.

We are headquartered in Vancouver, Canada and our games are available worldwide on the App Store and Google Play. Additional information about the Company continues to be available under its legal name, East Side Games Group Inc., at www.sedar.com.

Forward-looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release.

SOURCE East Side Games Group Inc.

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