Most brands still believe in the power of sponsorships to connect with audiences but want more purpose-driven partnerships, according to the latest Frontier study by global sports and entertainment agency MKTG.
The study spoke with 800 industry professionals from across 30 countries – including brands, right holders and agencies - and took a detailed look at how the views and sentiment to the sponsorship, sports and entertainment market has shifted over the past 12 months.
As part of this study, 100 clients and partners from Australia were surveyed.
Despite the sports, entertainment and sponsorship industry feeling the effects the COVID-19 pandemic, nine in ten still believe sponsorships creates meaningful connection with customers and, when done right, meaningful brand action can lead to increased customer loyalty.
However, COVID-19 has also highlighted the need for more agility and adaption in agreements, with four in five brands believing flexible sponsorship deals are the way forward.
This year’s study saw a shift away from brands needing to focus on exclusive content and real world experience, to the need for greater flexibility between brand and rights holders, the need for marketers to properly understand IP and how to use it, as well as a heightened focus on how sponsorship can drive societal good.
Matt Connell, MKTG’s national managing director, says it’s safe to say that 2020 has been no normal year.
“There is no doubt that the market is feeling the effects of the COVID-19 pandemic and how this has impacted the sport and entertainment industry,” he says.
“In Australia, we have seen firsthand how agile codes such as the AFL have had to be, continuously amending plans and hubs to cater for the constantly changing circumstances, especially in Victoria.
“A key trend from our study is the rapid shift in sentiment towards whether brands should pay for all their rights or just those that are used. Pre-pandemic, there was an alignment between brands and right holders.
“Fast forward two months and 72% of brands now say that fixed sponsorship may not be the only way forward. This may signal a shift in how rights and partnerships are constructed in the long run.”
The 2019 study highlighted that exclusive content was king, but in 2020 sponsors are wanting more, including better access to social and digital content, as well as access to talent and experiential activities.
“The hiatus in live sport and entertainment has accelerated the need for brands to focus on how they are building meaningful connections with fans and what comes next,” says Connell.
“Access to talent and experiences may put pressure on rights holders and be more difficult to deliver than media facing assets, but if used well by brands, they can rapidly extend a rights-holders potential audience and reach.”
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