Your Mid-Year Sponsorship Trends Report: What Has Come True?

Can you believe we’re more than halfway through 2024 already? It feels like just yesterday we were talking about what the year could be. Now, a lot has already come to pass.

While 2024 is nowhere near finished yet, I thought now would be a good time to see which sponsorship predictions and trends have come to fruition and which still may. Let’s take a look!

These Are the Biggest Sponsorship Trends That Have Dominated 2024

It’s time to take a peek behind the curtain to see what’s been having the biggest impact on the sponsorship industry as the year rolls on. These trends have staying power, so while they’re big in 2024, that can continue to be the case as we look into next year and even beyond. 

Category-Specific Sponsorship Deals Are Still Big

I’ve always tried to guide my clients away from general sponsorship deals. Many companies that offer partnerships in a sponsorship capacity aren’t looking for services anyone could provide. They want to work with experts, specialists, masters of their craft.

You run a business or nonprofit organization because you’re good at what you do. Don’t offer a sponsor everything but the kitchen sink because you think that’s what you’re supposed to do. 

Instead, let your specialties shine. It’s better to offer fewer but more expert-level services than it is trying to be the jack of all trades. 

Sponsorship Deals Are Worth More Than Ever

Here’s one that doesn’t come as much of a surprise. The amount of money in sponsorship continues to climb, and that’s due in part to sports sponsorship. According to data from Statista, sports sponsorship achieved $97.35 billion globally in 2022. 

Projected forecasts for 2023 saw an increase to $105.47 billion, and this year? Up to $189.54 billion. That’s not just a small, incremental increase. That’s a jump!

And while sports sponsorships bring in the big bucks, part of that is because deals with teams also cost a lot. Sportico reports that in 2023, a standard team sponsorship arrangement was valued at $935,000. 

Of course, it’s worth considering that the study Sportico cited its data from only looked at big cities, such as Madrid, London, Toronto, Austin, Charlotte, Chicago, Los Angeles, and New York City. 

Everything is more expensive in a big city, including sponsorship. That means less costly deals are still out there, but it all depends on where you are and where you look.  

Sports Betting Is Still Big

ReearchAndMarkets.com published an informative and engaging study called The Sponsorship Sector Report – Gambling & Betting Americas 2024 in June. I think it was perfect to have this data to look at as we reach the midway point of the year. 

The report found that American football (you know, like the NFL) has the lion’s share of betting and gambling spending in the Americas. If you’ve ever turned on American football or seen clips on YouTube, that shouldn’t surprise you. It seems like every other commercial is about sports betting. 

Caesars Entertainment and NFL had one of the most fruitful deals worth $40 million per year. Yes, you read that right. $40 mil!

It’s not only American football that’s taken over the sports betting scene. Soccer has more than 110 active betting and gambling deals in the Americas, with their yearly value the second highest. 

That’s followed by basketball, which had the third-highest value in the Americas. 

Of course, one can’t overlook the UFC. Its DraftKings deal is worth tons, valued at $350 million over five years. The NFL’s deals with DraftKings and FanDuel also rake in money by the millions. 

And why is all the info only catered toward the Americas? Betting and gambling brands have dedicated 75 percent of their spending toward sports organizations and leagues in the Americas. 

VR and AR Still Shape the Landscape 

You can’t talk about ways that sponsorship innovatively continues to grow without mentioning VR and AR specifically.

If you don’t know what I’m talking about, VR is short for virtual reality while AR refers to augmented reality. Both are forms of integrating the 3D world with the real-life reality we all live in. 

In the case of AR, there’s some immersion in the 3D world but still in the basis of our world. For example, the ultra-popular Pokémon Go phone game is AR in action.

VR is more immersive still, allowing people to put on headsets and be transported to any world they wish. 

Both types of tech have found their places in sponsorship. For example, you can use AR to make scavenger hunts better. It’s handy for behind-the-scenes sneak peeks and virtual fan experiences like meet and greets. Fans can also try on merch and other goods using AR. 

Being able to get a preview of an item or piece of clothing before purchase can go a long way toward attracting attention to a sponsor’s booth and promoting higher sales. 

VR is also flourishing in sponsorship. I must mention the VR FedExCup Playoffs as a great example. This August 2024 event with Golf+, a VR game, and Mastercard was part of PGA Tour promotions.  

Players, which were estimated to number 100,000+ overall, could try their hand at virtual golf and partake in The Mastercard Moment Golf+ Sweepstakes, which lasted the whole month. The giveaway rewarded five random Golf+ Club Members who recorded their Top Shots in the VR playoffs with prizes. 

If you haven’t heard of Golf+, that’s because the company has had relatively small sponsorships until this one. Now it’s coming in white-hot. 

Sports, Especially Women’s Sports, Remain Dominant 

You already know that sports sponsorships rule the landscape. More and more, for the last 10 years, US businesses are spending copious amounts on sports sponsorship opportunities, found Statista.

Given the upward trend in sponsorship spending for sports opportunities, this is one of those trends I don’t see dying off anytime soon. Sports viewership admittedly fluctuates depending on which sport we’re talking about, but Super Bowl LVIII, the 2024 game for the 2023 season, got 123 million views, says Statista.

And why is that important, you ask? No single telecast has ever achieved that many views before the Super Bowl. And no, it wasn’t only because of Taylor Swift. Statista reports that digital live sports viewers total almost 75 million people and that the number of live sports viewers is nearly 160 million. 

But it’s not only men’s sports that continue to make a huge impact on sponsorship. I reported in my sponsorship trends report earlier this year that women’s sports could have a banner year, and indeed, that has come to pass thus far. 

Between 2023 and 2024, Gatorade has racked up 51 sponsorships with women’s sports, which is crazy. Overall, over 5,500 sponsorship deals were started with women’s sports teams or organizations. 

So, what kinds of brands are getting involved in women’s sports sponsorship? They run the gamut from healthcare to finance and apparel and include worldwide sponsorship deals. 

Brittany Isenhour, a retired American pro soccer player, and Mikaela Shriffin, an alpine skier, are the two ladies in sports with the most sponsorships, boasting more than 30 brand deals apiece. 

So, why such an increased interest now? Women’s sports are getting more media coverage, and thus more viewership, and brands are paying attention.  

AI Doesn’t Slow Down an Inch 

I wrote an entire guide to using AI in sponsorship. In that article, I broke down where AI excels in sponsorship and where it can still use some help.

And honestly, it’s good at some of the tasks that could take you longer to do yourself. For example, it can help with asset and activation ideation, original image generation, email writing, putting together a sponsorship proposal or wrap-up report, and performing audience segmentation. 

That said, AI can’t assist you with everything when it comes to sponsorship. It’s no good at negotiating sponsorship deals. It also can’t help when renegotiation time comes around. And of course, it can’t pull audience data through a survey the same way you can, although it can parse through raw data.

Most importantly, perhaps, is that AI can’t lead you in your discovery sessions. It can help you come up with questions to ask, icebreakers, and light conversation topics, but you have to be the one there face-to-face in the meeting.

And while I’m sure that AI will make great strides in little time, the areas where it can’t excel now in sponsorship aren’t likely to change. That’s why it’s important to use AI the right way throughout the sponsorship process: as an augmentative tool, not as a crutch. 

Procurement Grows in Sponsorship 

Lastly, there’s sponsorship procurement, which has had a slow start to 2024 but is steadily gaining momentum. So, let’s talk about it.

Sponsorship spending is up, as established. Most brands that spend on sponsorship do so only with media spending ahead, yet they lack reliable management solutions. Sounds frustrating, right? It can be. 

However, data indicates that more brands have begun allocating procurement resources for sponsorship. Paying more attention to procurement is paying off in multiple areas, everything from compliance to deal management, and negotiations, so I hope it continues its upward trajectory.  

FAQs

What types of sponsorships are becoming more popular?

This year, online media has continued seeping into sponsorship, with social media influencer partnerships, podcast sponsorships, and online media deals gaining a lot of steam. Of course, one can’t discount the value of cash sponsorships, which will likely always be popular. 

How do I start sponsorship in 2024?

First, you need to know thyself. What are you hoping to achieve through sponsorship? Once you can answer that question, you have to know thy audience. After gauging their preferences, needs, and interests, you can begin building out a list of potential sponsor partners to work with. 

Wrapping Up 

Many of the trends that had begun picking up steam as 2024 began have steamrolled through the sponsorship world in the first half of the year. But, you know, in a good way. These trends are mainstays, with tech-based trends like AR, VR, and AI expected to continue influencing how sponsorship seekers obtain partners and work together. 

Sports sponsorship is on an unprecedented ascent, especially in areas such as women’s sports and sports betting/gambling. However, with sponsorship spending up across the board, there’s never been a better time than now to get involved in sponsorship no matter your specialty or niche. 

If you’re ready to get started, call the Sponsorship Collective. We’re happy to guide you through the process and help you achieve the results you’re looking for.