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 A disrupted world is changing the value of sponsorship. The uncertainty of the COVID-19
pandemic has accelerated shifts in the way rights holders sell sponsorship, brands make
sponsorship investments and how commercial partnerships are activated. Evolutions in the
way fans work, travel, communicate, spend and socialize, fueled by advancing technology and
connectivity, are informing and shaping the sports sponsorship market in 2021 and beyond.
New sponsorship entrants, new channels and new fan necessities are key drivers that will
impact the value of sponsorship. The identification and measurement of these drivers are
essential to unlocking growth for the global sports marketing industry.

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 Global economies are Major movements are Media consumption habits
recovering at different growing in prominence are changing as we spend
paces with catalyzing and social attitudes are more time at home and on
consumer habits. changing. mobile.
Expect China to take an Brands are refocusing Digital channels, ranging
increasingly prominent role in efforts on purpose-driven from streaming platforms to
the sponsorship landscape and sponsorship strategies, while social media, are increasing
new/renewed categories to athletes are setting the agenda their share within the sports
become more frequent, with through effective media mix, requiring
total reach continuing to be a communications, leading to consistent metrics and
key component of sponsorship changes in how brand equity, methodologies to measure
value. media reach and engagement sponsorship value across all
are tracked. media types.

The rollout of COVID-19 A global financial outlook

vaccines will see the gradual that remains uncertain
return of mass gatherings at means increased scrutiny of
live events. business investments.
New and innovative touch Expect sales to be an
points to connect with fans essential and measurable driver
remotely will continue to grow, of future sports partnerships in
leading to a wider range of fan both the short and longer term.
experiences and engagements
that will need to be measured
within and against traditional
experiences to size the impact on
sponsorship value.

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Brands are pivoting, adapting and recalibrating business Traditional sponsorship categories are shifting as
and marketing models to meet the changing needs of products and services change. Some consumer habits
consumers. The sponsorship market is evolving as a will remain beyond the pandemic, and new and
result. renewed categories will take the stage.
While governments attempt to resolve the pandemic The role of esports within the sports sponsorship
with vaccines being deployed in many countries, global offering is another unsurprising evolution. There was
economies will recover at very different paces. significant claimed growth in esports viewership in 2020,
According to the World Bank in January, China’s with 16% of global respondents in Nielsen’s Esports Fan
economy is expected to expand by 7.9% this year, Insights Report indicating they were watching more
following 2% growth in 2020, the fastest and largest competitive esports events. There is also increased
expansion globally. By contrast, U.S. gross domestic interest in playing video and mobile games. Esports
product is forecast to see a 0.1% contraction and the sponsorship revenue has been increasing rapidly for
Euro area a 3.8% contraction over the same two-year years - growing at a compound annual growth rate
period. This will impact sponsorship investments – (CAGR) of nearly 32% between 2014 and 2019; further
globally and locally - and their origins. growth is anticipated.

Over the next 10 years, Chinese brands will be As these brands will primarily be using sponsorship
responsible for one-third of all growth in the and sports platforms to enter new markets, media
global sponsorship market. As part of a journey reach and fan awareness will be primary drivers of
that began with the Beijing Olympics in 2008, value - although measured holistically across the
Chinese companies are increasingly using sports different touchpoints to engage fans.
sponsorship as a platform to support the growth
of their brands.

Between 2015 and 2019, sponsorship spend of

China-based brands rose at a CAGR of ~8.9% -
far outpacing rivals in Europe and the U.S. With
its sponsorship of the 2018 FIFA World Cup,
white goods and electronics manufacturer,
Hisense, significantly increased its sponsorship
spend, while technology company Vivo, sponsor
of FIFA, UEFA EURO 2020 and EURO 2024, also
saw growth. Source: Nielsen Sports Sponsorglobe Analysis

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 As consumer behaviors shift away from traditional
banking models, the established financial services … of global financial
sponsorship sector will see the emergence of services
nontraditional business models. Additionally, new sponsorship spend
categories will continue to grow as investments in will come
disruptive business models skyrocket. Airbnb has from …
already challenged the traditional sponsorship model,
creating a purpose-driven sponsorship - pushing
sustainability and supporting Olympic athletes - while
avoiding the traditional media play.
Source: Nielsen Sports Sponsorglobe Analysis

For categories like fashion and clothing, the move from

physical to digital could shape the future of
sponsorships. With the pandemic accelerating the shift
from physical stores to digital shopping by five
years, expect to see a rush of established retail brands
activating their sponsorship properties using their e-
commerce channels in the near future.
Source: IBM US Retail Index

Esports are an effective way to connect with new and

$842M younger audiences while being well-placed to solve
one of the major challenges of the pandemic with in-
person events cancelled. This makes esports even more
$347M 2025 attractive to brands looking
for robust sponsorship platforms and
to rights holders in traditional sports
PRE POST looking to unlock brand marketing spend.
Source: Nielsen Sports Analysis

New categories and new brands entering the sponsorship market are ultimately looking for methods to target the
sports audience. While the fundamental metrics of audience reach and brand awareness will continue to be part of
sponsorship performance KPIs, they must be assessed and measured in the new media reality. Measurement of
those metrics across sponsorship campaigns, on mobile, through online videos, on social platforms like TikTok and
Facebook, and direct-to-consumer (DTC) platforms created by rights holders, will have to be integrated into
traditional frameworks.

For brands targeting the internet-born generation as well as the internet-adapted generation, consistent
measurement of all these platforms with the ability to compare cross-media will be the key driver of sponsorship
value growth.

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A divided, tribal world, the rise of populism, inequality and a
changing global environment have resulted in a range of political,
social and charitable causes coming to the forefront and gathering
momentum over the past year. These campaigns, movements, acts of
solidarity and protests have been accelerated and fueled by social
media.

Brands are reacting with new marketing approaches, where

sponsorship objectives polarize toward purpose and community
benefits. Of the top 20 global sponsorship brands by spend in 2019,
the vast majority have made an active shift in their sponsorship and
advertising messaging over the past five years.

However, it is athletes more than sports organizations who are

setting the agenda and feeling increasingly empowered to promote,
highlight and campaign on social issues and causes close to their
heart. Athletes such as Naomi Osaka, LeBron James, Lewis Hamilton
and Marcus Rashford, plus many others, have proved adept at using
their own increasingly powerful platforms to make their feelings
known, shine a light on injustices, galvanize large audiences and
influence decision-making.

These causes and issues are resonating with fans and followers - in
particular, a younger demographic - and spurring them into action.
Half of the younger population globally say they have a greater
interest in brands that act in a socially responsible way.

Source: Nielsen Fan Insights, Nielsen Sports Sponsorglobe Analysis

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 Brands are increasingly seeking rights
holders that can provide them with a
Athletes posted more about social causes in 2020
platform to promote their own
than in 2019, becoming increasingly important and
values, such as sustainability.
influential in highlighting or amplifying campaigns
or social injustice.
Source: Nielsen Sports Analysis
Source: Nielsen Sports Digital Analysis

95% of athletes with more than 5 million followers

$1.2B on Instagram advocated for causes on social media
in 2020, collectively generating $314 million worth of
QI* media value. This underlines the potential
x4 benefits for brands who partner with athletes
prepared to take a stand or voice their opinion on a
cause that resonates with fans. The series of major
+80% global events in the calendar over the next two
$314M years, including the Olympic Games and FIFA World
$174M Cup, are platforms upon which athletes can protest
or highlight causes.

2019 2020 2023 Source: Nielsen Sports Digital Analysis

Athletes are now offering purpose-driven sponsorship platforms that can be integrated as a measurable monetary
component within the sports marketing mix. The ability of athletes to influence the sports audience will have an
impact on brand equity-building objectives. This impact must be measured with holistic and consistent metrics, to
calculate the sponsorship value in both the short and long term. The number of fans reached and engaged once
brand content has been adapted to the athletes’ communication approach will be an integral part of sponsorship
value.

* QI = Quality Indexed (media value). Nielsen Sports calculates an adjusted media equivalency that accounts for the ambient nature of sponsor led exposure. The quality
of each exposure is calculated by the QI Score and is applied to the 100% Media Equivalency.

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Consumers were spending more time online while utilizing multiple devices prior to the pandemic, but the
enforced COVID-19 lockdowns in many countries accelerated this trend. In the U.K., time per day spent online
amongst adults rose from 3 hours 11 minutes in September 2018 to 3 hours 29 minutes in September 2019, then
to 4 hours 2 minutes during lockdown in April 2020 (Source: Ofcom).

As a result, in the ongoing battle for eyeballs and attention, digital or nonlinear TV channels have grown in
prominence as part of the media - and therefore marketing - mix. Even as live sports TV viewership picks up
globally following the return of leagues and events, media continues to fragment. As of Q2 2020, streaming now
comprises one-quarter of all TV minutes viewed in the U.S. among streaming-capable households (Source: Nielsen Total
Audience Report).

The growth of social media and streaming platforms has solidified their role as marketing channels, with the ability
to deliver ancillary content for rights holders and their partner brands, through behind-the-scenes documentaries
and original films. This type of non-live content, for example Netflix’s F1 series Drive to Survive and Amazon’s
various All or Nothing documentaries, now forms an increasingly important element of a rights holder’s fan
acquisition strategy.

2018/19 42%

2019/20 68%
Across the top 5 U.S. digital sports platforms,
11 million more people in the 25-54 age bracket This change is indicative of the greater time
were consuming content in September 2020 spent online, the growing familiarity of digital
compared with September 2019, a reflection of platforms amongst fans and the way in which
both the fragmentation of the media market and teams are investing more than ever in highly-
the accelerating growth of digital platforms. produced, bespoke content across these digital
Source: Nielsen Digital Content Ratings
channels.
Source: Nielsen Sports Social Valuation

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 Tottenham Hotspur’s “All or
Nothing” documentary series
has not only provided a new
lens through which fans can
watch their team, it is having
a positive impact on feelings
98%
66% towards the club - for example
TV - average 50% in the U.K. and U.S. …
Social - average 34%
50%

2%

14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24

The average social media value for the top eight NBA teams could
overtake TV media value by the 2023/24 season. When looking at the
English Premier League, the average share of social value versus TV is
24%, increasing from below 5% in 2015. Increased engagement and
further investment in content is resulting in new and enhanced partner
assets, notably through branded content, all of which can be properly
measured and can generate significant return on sponsorship
investment. Source: Nielsen Fan Insights

Source: Nielsen Sports Social Valuation, Sport24

Sponsorship value is increasingly driven by digital channels, including OTT services. These services may not yet be
providing significant subscription revenues for rights holders but are effective marketing tools for sponsors and a
contributor to the overall sponsorship value. The use of streaming platforms, social media, mobile devices and
other technologies has reached a “materialization.” As these platforms continue to grow, their role in sponsorship
agreements and assets creation will become more prominent.

Given the number of different channels, increasing consumption and the various combinations of
brands/platforms/target audience/content, a unifying measurement system is needed. This will ensure value grows,
help de-risk sponsorship investments and result in more sustainable sponsorship strategies.

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A successful rollout of COVID-19 vaccines will ultimately see the
return of mass gatherings at live events. However, a return to
capacity crowds at venues will be a gradual process, and there will
be some permanent changes to large-scale events, as new
technology solutions, hygiene protocols and crowd behaviors are
introduced.

Rights holders and brands will continue to develop the type of

virtual and digital solutions rushed into action during the initial
outbreak of the virus in 2020. Live and virtual will merge, opening
new opportunities for fan connections, personalized experiences,
reimagined sponsorship assets and even new sponsorship revenue
models.
For fans at home, the picture will change too. Several of the
innovations introduced into broadcasts when the pandemic
rendered stadiums empty will remain, with further investment in
new broadcast technologies anticipated to be up 67% (Source: IABM).
According to Nielsen Fan Insights, over half of fans say they are
more likely to consider brands that are actively enhancing the way
live sport is viewed. This includes the kind of technology and data
visualization solutions offered by the likes of Microsoft and Amazon
Web Services. Hospitality offerings, meanwhile, will evolve as virtual
experiences.

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 With stadiums empty, new
sponsorship inventory was
created at the start of the
pandemic and generated
around
generated per
game through

for sponsors during the

2020 regular season for the for sponsors of Premier
average NFL team. League clubs last season.

generated from Microsoft’s

during the summer of 2020 in the bubble.

Many existing rights holder and brand
partnerships have been reevaluated, especially
those involving a technology component. New
solutions to enhance the at-home fan
experience and drive additional value for
brands will continue to emerge.

Source: Nielsen Sports Media Valuation, Sport24

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 Cycling’s Milano-Sanremo
Virtual Experience and the
Spartan Race obstacle course series are just a
couple of examples of successful virtual events
that are now leveraging various digital
With the vaccine program rolling out platforms. A major focus on providing virtual
globally at different speeds around hospitality will be developed, following the lead
the world, leading to longer-lasting of major rights holders like F1 and Extreme E.
impact on spectator sports, future value growth will be
generated by delivering engaging content, available to
fans virtually.
Source: Nielsen Fan Insights

COVID-19 has accelerated the adoption of technologies aimed at creating unique experiences for fans. With virtual
events continually being developed and refined, there will be an increase of fan touchpoints and thus an increase
in the complexity of the fan journey. Engagement and participation of fans in these new hybrid experiences will
become dominant sponsorship metrics. The quality of fan interactions as well as eyeballs will become even more
important with the objective of identifying the most valuable stages of the fan journey and enabling tangible
outcomes for sponsors, specifically tied to sales.

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COVID-19 continues to affect the global economy and Examples include performance-related deals, short-
dominate government investment decisions and term agreements, sponsorships split by distribution
priorities across the world. Amid the continuing channel and the bundling of assets and properties.
uncertainty, many brands, particularly those in the Their effectiveness, however, remains unproven and
West, are facing cuts to marketing budgets. Research no single model for the future has emerged thus far.
organization WARC projected that global advertising
Under pressure to justify decisions around
spend in 2020 would fall by 8.1% - some $49.6 billion
sponsorship and activation, and with e-commerce
- to $563 billion (Source: WARC Global Advertising Trends
becoming more relevant for B2C brands (as indicated
Report).
in the first trend), brands are demanding more clarity
Across product categories, advertising spend is on ROI, underlining the need for a sophisticated and
significantly down: travel and tourism (-31%), leisure robust measurement framework that is able to
and entertainment (-29%) and financial services directly link sponsorship investment to sales
(-18%) are among the sectors hit hardest. generated. Proving sponsorship’s contribution to
Inevitably, the decrease in advertising spend has a sales, both in the short and longer term, is now
knock-on effect for sponsorship and rights holder essential for any brand engaging in a partnership, or
revenue streams. As a result, several new and rights holder selling sponsorship.
innovative models of sponsorship are being evaluated
and trialed.

When I look at any sponsorship deal, I always have these two lenses: is it building value
for the brand and the business in the long term? Is it driving sales in the short term? Some
of them do better in one side than the other, but [sponsorship investments] always have to
have both components and brands that are overlooking one or the other are missing an
opportunity. It’s not an easy discipline [to ensure short-term and long-term targets are
met] because tools [to be able to measure the results] have to be developed, but it’s
absolutely doable.
Former Head of Global Sponsorship
at the Coca-Cola Company

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Across Nielsen clients, on average 15% of brand marketing
Measuring sponsorship with the
budgets is allocated to sponsorship but is often not measured
appropriate metrics linked to sales
in relation to direct sales. This means a brand’s full marketing
impact and doing so in context
impact is not being determined. Although there is increasing
with other marketing activities can
pressure to justify decisions around sponsorship and
generate up to a 20% increase in
activation investments, many brands are still using basic and
ROI. Through enhanced
inefficient measurement frameworks.
measurement, this ability to prove
sponsorship’s contribution to sales
both in the short and longer term
is now an essential asset for any
brand engaging in a partnership, or
rights holder selling sponsorship.

First 6 Months 53%

After 6 months 47%

Longer-term sales impact is almost always ignored and as a

result the true ROI is often significantly understated. This is
especially true in sponsorship, which tends to focus on brand
rather than product-level communication, generating long-
term impact.

Source: Nielsen Client Base Analysis

The value of sponsorship will be directly related to the ability of a partnership to generate sales within a brand’s
marketing mix. Vanity metrics, like eyeballs or social media “likes,” will be supplemented with sales metrics,
acquisition rates and retention rates. These must be measured with a standardized approach to identify the
contribution of sponsorship versus other marketing activities on short-term and long-term sales.

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 This examination of how sponsorship value is changing has been compiled using
various Nielsen Sports insights and thousands of conversations with clients around the
world. Those discussions, across 1,700 brand and rights holder clients, have
underpinned the increasing focus on value and the need to understand return - in full,
across channels and over time - as a business necessity.

Measurement needs to be holistic and adaptable:

The evolution of the sponsorship industry is transforming the definition of value in a
complex and fragmented environment. New consumer behaviors, new and more
channels, new and more platforms and new and more fan experiences are creating
multiple combinations that are responsible for driving the true value of sponsorship.
As tangible outcomes are the only way to establish value, sponsorship value needs to
be assessed through a sophisticated measurement framework utilizing standard and
adaptable metrics.

Value comes from both brand equity and sales impact:

Key metrics like cross-media impressions, brand awareness and familiarity, and actual
and predicted sales within sponsorship must be measured consistently across
platforms and assets to understand ROI.

Nielsen’s Return on Sponsorship Investment model allows key

industry stakeholders to compare and calculate return on
sponsorship, minimize brand investment risk and develop
increasingly effective rights holder platforms. This allows both
brands and rights holders to grow faster, reduce waste, and focus
on creating partnership value.

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 Nielsen Sports is the leading source of sports measurement and analytics
around the world, with solutions spanning cross-platform media valuation, fan
insights and digital & social analysis. With unrivaled data, products and
consulting services, Nielsen Sports is uniquely positioned to help brands,
leagues, teams, federations and agencies optimize sponsorship portfolios and
maximize investments in sports. Nielsen Sports is part of Nielsen Holdings plc
(NYSE:NLSN), an S&P 500 company with operations in over 100 countries,
covering more than 90% of the world’s population.
For more information, visit:
www.nielsensports.com

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