By Felicia Nwosu

Statista’s forecast for global sponsorship market segment growth outlook is envisaged to witness a steady growth of a Compound Annual Growth Rate (CAGR), of 6.34% between the years 2023 and 2028.

The research body noted that through the forecast, the market volume is expected to reach US$1.2bn by the year 2028.

Although the market is anticipated to rise at a considerable rate during the forecast period, the platform revealed that in 2022, the market experienced a steady rate, stimulated by the rising adoption of strategies by key players.

Incidentally, global sponsorship market has become a huge and growing investment with an expectation to  gather over $50 billion per annum. Statists data report showed that global advertising  will continue to grow at around 3% per annum while sponsorship is growing at 4% per annum.

Although the industry was initially projected to grow at a compound annual growth rate of 8.68 percent until 2030, reaching a value of almost 190 billion U.S. dollars.

The notable space announced that  sponsorship is the fastest growing marketing medium currently, unlike other forms of  marketing. It said this is because sponsorship marketing is a more cost-effective option with a higher return on investment, and is affected by fewer rules and regulations.

Reeling out some of the notable and long time industry  players who have sustained their major roles in the market segment to include global brands such as NIKE Inc, adidas AG, Anheuser-Busch InBev NV/SA, Verizon Communications Inc, and PepsiCo Inc and they have consistently occupied  the 5 top sports brands in the world in 2021 by sponsorship spend.

The global research brand reported that the sport has the most sponsorships top findings from 2022 include MLB, which as at 2022 had  the most sponsorship deals in professional sports.

According to the statistical report, 2022  marked a new feat  for MLB, being the year the league saw 3,350 sponsorships, though the NFL trailed closely behind with 3,000 deals, its $1.8B in sponsorship revenue was 50% higher than MLB’s $1.2B.

Attesting to the immense contribution of sponsorship to brands growth, the analysis pointed that  on average, sponsorship spend is 15% of the total marketing budget, representing a significant blind spot in the marketing mix. It urges brands  to shun the use of inaccurate data in measuring the impact of sponsorship  as this often result to a 68% potential error in ROI.

Among the global players, the report mentioned China as the most top player, with a projection to generate the highest revenue.

Note that in 2023, it is estimated that the revenue generated in China will amount to US$262.3m, where the average revenue per user (ARPU), is also  expected to be around 0.00, this stands as  the average amount of revenue generated per user in the Sponsorship & Advertising market worldwide.