US Origin★ Seize Opportunities in the Expanding Sports Market Through Advertising and Sponsorship!

◆The sports market is booming

The U.S. sports market is booming. According to PricewaterhouseCoopers, the North American sports market generated $53.6 billion in revenue in 2012 and is expected to reach $67.7 billion in 2017, as reported by Ad Age.
Revenue comes from admission fees, broadcasting rights, sponsorships, and merchandise sales. In the 2017 forecast, admission fees are expected to generate the most revenue at $19.1 billion. Broadcasting rights and sponsorships are expected to see significant growth, reaching 7.7% and 6% respectively.
One key driver of the sports market is advertising slots during sports broadcasts. These are often watched live, making them "DVR-proof" programs where viewers are highly likely to see commercials, making them a popular investment for companies. Recently, the use of second screens like smartphones has also increased. Advertising packages combining both aim to capture customers across both TV and devices.
Advertising activities extend beyond mass media. During this year's Super Bowl, Nissan ran native ads on FoxSports.com featuring interview videos with players who made "legendary big plays" in past Super Bowls. Gatorade conducted product placement at the NFL's fan event, Media Day. General Motors and Bud Light also launched experiential campaigns.

◆Utilizing Sports Sponsorship

In North America, the sports sector accounts for 70% of all sponsorship business. According to a report by IEG, a U.S. firm specializing in corporate sponsorship consulting, North American corporate spending on sports sponsorships in 2014 is projected to reach $14.35 billion, a 4.9% increase from the previous year. Jim Andrews, Senior Vice President of Content at IEG, shared insights on how sponsoring companies can maximize the effectiveness of their sports sponsorships.

① Collecting Fan Data
Sports teams are collecting data on "season ticket holders" – fans who purchase tickets for every home league game – on an unprecedented scale. Smartphone-based ticketing appears to be accelerating this trend. Consumers willingly provide their favorite teams with personal information and purchasing habits that companies find difficult to collect, so businesses should strive to obtain this data.

② Social Media Utilization
Traditionally, sports sponsorship focused on brand exposure through wall advertisements at venues or logos on uniforms. Today, however, social media is the most critical channel. Sponsoring companies need to consult with teams and event organizers on how to access audiences and viewers through social media, and how to leverage content from the sponsored sport on their own media platforms.

③ Strengthening Sponsor Support
Sports organizations traditionally lacked sufficient support staff for sponsors. However, there is now a trend toward strengthening support by assigning dedicated personnel for each industry sector, resulting in more robust sponsor assistance. Sponsors should confirm with the sports organization whether they can provide dedicated staff assigned specifically to them.

④ Flexible Response to Change
Sports organizations should flexibly adapt to changes in sponsor companies' needs, such as through regular reviews of sponsorship agreements. However, if such adaptation is not forthcoming, sponsors must initiate requests. During long-term contracts, brand policies and corporate goals may evolve. Sponsors must possess the skill to renegotiate their rights and benefits according to new objectives, such as launching new products or entering new markets.