LONDON, Today: Advertiser spend on sports sponsorship is expected to rise 5% this year to reach more than US $48bn worldwide – the strongest growth in a decade and ahead of growth projections for all traditional media, according to a new study from WARC.
Sports Sponsorship Investment, the latest Global Advertising Trends report from WARC Data, notes how recent market growth has been buoyed by record investment ahead of the 2020 Tokyo Olympics.
This event is expected to garner $5.94bn in sponsorship revenue during the current Olympiad cycle – almost double the previous one.
“E-sports offer a new avenue to hard-to-reach audiences for young, affluent brands.”
WARC believes $1.95bn will be spent by worldwide Olympic partners such as Coca-Cola and P&G – double the amount recorded during the previous Olympiad – while a further $3.33bn will be invested by domestic sponsors including Canon, Asahi and Fujitsu for Tokyo 2020 – four times higher than Rio 2016.
]ames McDonald, managing editor, WARC Data, and author of the research, said: “Legacy rights holders are set to benefit from a windfall in sponsorship revenue in 2020, as brands continue to vie for association with properties that provide access to engaged and enthused audiences at scale.
“E-sports is offering a new avenue to hard-to-reach audiences for brands, ones which are young, affluent, and more likely to take steps to block advertising online. It also presents new revenue streams for media owners; Tencent, Amazon, Google and Facebook all have a stake at play.”
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