How Tech Companies Can Boost Their Brand Through Sponsorship
Even when the economic landscape is plagued by challenges and uncertainty (as at the moment), it is nevertheless dynamic. This fact, paired with fast-paced technological advancements, leads to tech companies coming out of the crisis on top. One key strategy that helps them boost their brand and tap into new markets is sports sponsorship. Read on to discover why tech companies are benefiting from the current economic landscape and how they can expand their market presence through strategic sports sponsorship.
Mara Kottke
Published on January 15th, 2025
In this Insight:
Sports sponsorship relies on emotions and reach. Exclusive partnerships with sports teams connect fans with brands, while the sport offers companies a platform to access global markets quicker and more directly. This strategy’s impact is felt in times of crisis, in particular, as it enables brands to develop a positive, tangible presence amidst uncertain surroundings: a message that’s very well-received.
For tech companies, sports sponsorship is the perfect way to help audiences feel and experience their brand, forging a link between technological innovations and the emotional experiences that sport automatically provides.
Why Tech Companies Are The Winners In The Current Economic Climate
Digitalisation has thrust tech companies into the role of pioneers. Large firms, such as Microsoft, Google or Amazon, are benefiting from rising demand for digital solutions and platforms. Their market share is growing with technology’s increasing presence in all areas of life – and sport is no exception.
Sports sponsorship not only helps these companies boost their visibility but also assists with underscoring their capacity for innovation. While traditional enterprises are grappling with economic challenges, tech companies can tap into their dynamism and resources to – successfully – boost their brand via targeted partnerships.
How Sports Sponsorship Bolsters Tech Companies
Sports sponsorship gives tech companies an opportunity to position themselves as an indispensable partner for people and businesses. Exclusive partnerships with professional teams or major sporting events give them a chance to showcase new technologies or even integrate them into live play.
Successful Sports Sponsorship Strategies
Microsoft and the NFL
Microsoft Surface has firmly established itself as the official partner of the NFL. The tablets used on the sidelines by coaches and players aren’t just a handy tool: they’re a clever instance of product placement, too. The tablets are almost permanently on view during live broadcasts and are embedded natively within the game, practically making them a fixture in the sport.
Google and the NBA
As in the NFL, modern technology is at the forefront of the NBA, too. Google’s activities with the NBA focus on marketing its own smartphone range (Google Pixel) via an exclusive partnership.
Amazon and the DFL
Amazon Web Services (AWS) has been collaborating with the German Football League (Deutsche Fußball Liga, DFL) for many years. The use of machine learning and artificial intelligence has facilitated advanced data analyses for football, with the “Bundeliga match facts” providing real-time statistics and in-depth insights into games.
Oracle and Formula 1
As the main sponsor of Red Bull Racing, Oracle uses Formula 1 to show off its cloud technologies. According to the company, Oracle Cloud infrastructure has boosted the number of strategy simulations conducted by a factor of 1,000. The goal is to provide better predictions for more precise decisions in motor racing. A partnership backed by Oracle’s USPs: precision and speed through technology.
Trivago and Chelsea FC
The travel portal Trivago secured a multi-year partnership with Chelsea FC and could be seen on the professional team’s training kit. This collaboration multiplied Trivago’s reach by the millions, primarily via Chelsea’s and the players’ social media channels.
Indeed and Eintracht Frankfurt
The job search engine Indeed has been the main sponsor of Eintracht Frankfurt since 2017. This long-term commitment enabled Indeed to boost its brand recognition in Germany to a significant extent.
Autohero and the German Handball Association (DHB)
Autohero, the online store for used cars, has been a DHB partner since early 2022, with its logo featuring on the jerseys of the men’s national team.
The Future
As technology plays more of a role in sport, this will impact the role held by tech companies in sports sponsorship going forward, too. Artificial intelligence, virtual reality and data analysis are just some of the areas with the potential to revolutionise sports sponsorship. Companies that tap into these trends at an early stage will certainly be heading towards victory. Read on to learn how sponsorship boosts the brand presence and how brands can sensibly integrate this into their marketing mix.
Conclusion
Amidst a challenging economic landscape, tech companies have proven that their agility and capacity for innovation can make them winners. Sports sponsorship plays a key role in this regard. The numerous examples demonstrate just how effective and successful this strategy can be.
FREQUENTLY ASKED QUESTIONS
Everything you need to know
Sponsorship is the financial support for a sporting event, organisation or athlete by an outside body, for the mutual benefit of both parties. At the professional level this tends to be by companies, to raise the profile of their brand by associating it with the athlete.
The company aims to generate brand awareness and customer recognition, whilst the event, organisation or athlete receives a boost in funding.
A popular example is a brand logo printed on a team shirt. Visibility is guaranteed, even more so in the modern world with social media and online highlights.
In the land of media and marketing rights today, there is no cookie-cut solution for brands, and a simple logo placement will not provide the sufficient return on investment (ROI) for sponsorship, nor does it give their target audience the “why?” - the reason to spend their money and engage with the product.
Companies investing in sports sponsorship need to look at the bigger picture to engage with fans and not rely on just one piece of inventory.
Sponsors get the opportunity to showcase their brand and products to a greater audience of varying demographics. The global nature of sport today means that athletes feature within competitions that attract millions, sometimes billions of viewers worldwide. By placing their brand within this sphere, organisations can catch the attention of people around the world.
In modern times, the value of social media cannot be underestimated. Even traditional forms of sponsorship are likely to appear on social media, opening the brand up to an even wider audience - even appearing in new territories.
Through placements on jerseys and advertising boards, sponsors get a high visual presence and become part of the action. If visibility is the core objective, then it's a surefire way to succeed, whether that’s inside the stadium, TV or online.
It is the emotional engagement which sets sponsorships in sport apart from almost all other forms of advertising and sponsoring initiatives. Traditional advertising platforms such as TV can attain similar reach figures to sport, but can’t compete with sports fans’ engagement.
Key Performance Indicators (KPIs) for sports marketing help assess the success and effectiveness of marketing strategies in the sports industry. Here are several KPIs relevant to sports marketing:
Brand Awareness
This can be measured by brand mentions, logo visibility, and recall. It measures how well the audience recognizes and remembers the brand associated with sports events.
Social Media Engagement
Social Media Engagement can be measured by likes, shares, comments, and follower growth. It indicates the level of audience engagement and the virality of sports-related content on social media platforms.
Fan Attendance
The number of attendees at sponsored events.It reflects the popularity and success of sports marketing initiatives in drawing live audiences.
Lead Generation
The number of leads generated through sports marketing campaigns.It measures the effectiveness of marketing efforts in attracting potential customers or clients.
Conversion Rates
The percentage of leads converted into customers. It evaluates the ability of sports marketing activities to translate interest into actual business.
Return on Investment (ROI)
The financial return compared to the cost of marketing initiatives. It assesses the profitability and efficiency of sports marketing spend.
Ticket Sales
The number of tickets sold for sponsored events.It directly correlates with the impact of marketing efforts on event attendance and revenue generation.
Merchandise Sales
The sales of branded merchandise.It reflects the popularity of the brand and the effectiveness of marketing in driving consumer purchases.
Media Impressions
The number of media mentions and overall impressions. It quantifies the reach and exposure of the brand through media coverage.
Brand Perception
The results from brand perception surveys. This measures how the audience perceives the brand in association with sports marketing activities.
Sponsorship Impact
The effectiveness of partnerships formed through sports sponsorships.It assesses the success of collaborative efforts and the achievement of mutual goals.
Website Traffic
The number of visitors, page views, and time spent on the website.It indicates the impact of sports marketing on driving online engagement and interest in the brand.
Regularly monitoring and analysing these KPIs provides valuable insights into the performance of sports marketing initiatives, guiding adjustments and improvements for future campaigns.
Sports athlete sponsorships are those where individual athletes are sponsored by a brand. They may wear branded apparel whilst competing or during commercial appearances and press conferences, or they might appear in advertisements or other promotional materials for the brand. The brand will either offer a set fee to them, or pay for their kit, equipment or travel in return.
Sports organisation sponsorships involve entities like a team or league being sponsored by a brand. Like with individual athletes, they will either receive a fee from the brand, or payment for things like kits, equipment or ground maintenance.
In return, a team may display the company’s logos around its stadium, for example, while a league might include the sponsor in its name.
Sports event sponsorships are where sports events — like an international or regional tournament — are sponsored by a brand. This type of partnership can involve things like the event either changing its title to incorporate the brand’s name, or using the brand’s logo on official products. The event organisers will either receive a set fee or have expenditures like venue hire, hospitality, catering, publicity, programmes and officials’ costs covered.
Sports partnerships can be defined as a new level of sports sponsorships: they represent a tighter-fitted collaboration between sports and businesses or brands.
Partnerships are less based on standard marketing benefits and more tailor-made on the company’s specific needs, and several company levels are involved in the sports project: from marketing to Research & Development, from production to management.
Partnerships tend to be focused on the improvement and development of specific products or services, and are usually long-term. They can be very effective on the customers and clients, who witness a true affinity with some of the world’s most winning properties. Partnerships are often multidimensional and multi-layered, with the development of new tech, as well as new products and the marketing that comes with them.
Sponsorship activation refers to the strategic efforts and initiatives undertaken by a sponsor to maximise the impact of their sponsorship investment. It involves bringing the sponsorship to life through various marketing and promotional activities to achieve specific business objectives.
Activation goes beyond placing a logo; it aims to engage the target audience, enhance brand visibility, and create a meaningful connection.
Activation strategies may include experiential marketing events, social media campaigns, contests, exclusive content, and collaborations with the sponsored entity. The goal is to leverage the association with the sponsored property in a way that resonates with the audience, builds brand loyalty, and delivers a positive and memorable brand experience.
Effective sponsorship activation enhances the overall value of the sponsorship, creating a win-win scenario for both the sponsor and the sponsored entity.
Choosing the right sponsorship for your goals involves strategic consideration of your brand objectives and target audience. Follow these steps:
Define Objectives: Clearly outline your marketing and business objectives for the sponsorship, whether it's brand visibility, customer engagement, or community outreach.
Know Your Audience: Understand your target audience and align sponsorship opportunities with their demographics, interests, and behaviours.
Relevance: Choose sponsorships that align with your brand values and resonate with your audience, creating authentic connections.
Evaluate Opportunities: Assess potential sponsorships based on factors like reach, engagement potential, and the alignment of the sponsored entity with your brand image.
Budget Considerations: Evaluate the financial aspects, ensuring the sponsorship aligns with your budget while delivering significant value.
Negotiate Terms: Work with the sponsored entity to negotiate terms that meet your goals, ensuring a mutually beneficial partnership.
By aligning sponsorships with your brand objectives, audience demographics, and values, you can choose opportunities that effectively contribute to the success of your marketing and business goals.
Virtual advertising, also known as augmented reality (AR) advertising, is a technology-driven form of advertising that involves integrating computer-generated imagery (CGI) or virtual elements into live or recorded content.
This can include inserting digital advertisements, logos, or branding into the broadcast of sporting events, TV shows, or other media.
In the context of sports, virtual advertising is often used to customise advertisements based on the audience's location, creating a more targeted viewing experience. This technology allows advertisers to tailor their messaging for different regions or demographics without physically altering the on-site advertisements.
Virtual advertising enhances brand visibility, enables dynamic content delivery, and provides a more personalised and engaging experience for viewers.
Perimeter advertising refers to the strategic placement of advertisements along the edges or perimeters of a sports field or playing area during live broadcasts or events.
Commonly seen in sports like football, American football, and rugby, perimeter advertising utilises boards, banners, or digital displays situated around the playing surface.
These advertisements often showcase sponsor logos, brand messages, or promotional content and are strategically positioned to capture maximum visibility during televised or streamed broadcasts.
Perimeter advertising serves as a prominent and dynamic method for brands to gain exposure to a large audience, both in-stadium and through broadcast viewership.
The visual impact of perimeter advertising enhances brand recognition, reinforces sponsorships, and contributes to the overall commercial ecosystem of sports, providing a valuable platform for sponsors to connect with sports enthusiasts and consumers.
SPORTFIVE combines global reach, data-driven insights and a deep understanding of sports markets to deliver tailored sponsorship solutions that drive commercial success for rightsholders.
SPORTFIVE works across a wide spectrum of sports, including football (soccer), basketball, esports, motorsports, tennis, and more. The global presence allows SPORTFIVE to connect brands with top-tier sponsorship opportunities in almost any sport.
