Despite the crisis caused by Covid-19 and the consequences of its collateral effects, sports sponsorship has not stopped growing in Spain, mainly because it is not intrusive, but rather it is holistic, so “it allows various objectives to be achieved at the same time, as well as reaching different audiences with the same sponsored property”, according to Carlos Cantó, CEO of SPSG Consulting and member of the Spanish Marketing Association.
But, what are the brands most associated with sports sponsorship at a national level? Coca-Cola rises four positions in the ranking, compared to the previous year, followed by Santander, which rises one position and Bwim, which goes from second to third place. Movistar remains fourth, and Fly Emirates, which has gained a position, complete the “top 5” of the brands with the greatest notoriety as sponsors according to the latest SPSG Consulting Sponsorship Barometer to which elEconomista has had access. In sixth place, Rakuten and Red Bull tie, followed by BBVA, Aquarius and Caixabank.
Different investment sectors
Within sports sponsorship, the textile sector is the most relevant at a national level, since it accounts for 29% of the investment (273.7 million euros), followed by finance (12%) with 115.2 million, transport (10%) and 90.2 million, beverages (8%) with 77 million and, finally, the culture and media sector (7%), with an investment of 63.9 million, according to the latest report published by Relevance, sports marketing agency.
According to barometer data, brands estimated in December 2020 that practically 48% would invest the same or slightly more in sponsorship rights. While in activating sponsorship, 21% opted to increase their investment, 35% to maintain it and 45% to reduce it. “A factor that can be taken positively or negatively; everything depends on the vision of each one,” says Cantó, although he is one of the optimists.
Carlos Cantó: “There is no doubt that Spain is an attractive country for brands”
“Sponsorship makes it easy to develop experiences and generate unique content,” giving it a big advantage over (one-way) patronage, which brands take advantage of. For this reason, he affirms that “there is no doubt that Spain is an attractive country for brands”. And it highlights the importance of companies linked to football, in a country where football is the predominant sport, since “the brands that sponsor the country’s great teams have a higher level of association”, as is the case of Real Madrid and Fútbol Club Barcelona, major clubs not only nationally but also worldwide.
Sponsors of major disciplines
Emirates, Santander and Bwin lead the podium of the star sport. In basketball, Endesa and Movistar maintain their leadership, followed by Santander, which joins this discipline. In tennis, Rolex remains in the lead, followed by Kia and BNP Paribas; in motor, the Spanish Repsol wins the pulse to Ferrari and Renault; in cycling, Movistar remains the leader; in esports, PlayStation; in running, Aquarius; in Paralympic sports, ONCE and Caixabank. And in women’s sports, Iberdrola, followed by Movistar and Coca-Cola.
The study also reveals that naming rights are an element that enhances brand awareness in relation to its sponsor. This is the case, for example, with Santander or Endesa and their respective sponsored assets: LaLiga Santander, Liga Endesa and Liga Femenina Endesa.
In this sense, the long-term impact of investment is confirmed, through the “memory effect”, provided that, according to Cantó, the investment is “strategic and activated differentially”.
Regarding the Index of athletes with the best image (AMPI), Rafa Nadal is another year the outstanding Spanish player, along with Pau Gasol and Fernando Alonso, who remain on the podium. For his part, and at an international level, Leo Messi is the one who takes the gold, followed by Roger Federer and Cristiano Ronaldo. In this aspect, the barometer also highlights the brands most associated with certain athletes, teams or events (PSAI), where Nike, Kia and Santander are associated with Nadal, in the Gasol brothers Nike and Adidas win, as also happens with Carolina Marín, among other athletes.
By teams, Adidas, Emirates and Bwin resist as brands related to Real Madrid. At FC Barcelona they are Nike, Rakuten and Unicef. And in Atlético Nike, Plus 500 and Adidas. In basketball, La Liga Endesa continues to be dominated by Endesa as its title sponsor; Heineiken in the UEFA Champions League and Coca-Cola in the Olympic Games.
Great challenges after the pandemic: “Greater social sense”
The member of the Marketing Association of Spain highlights three major challenges for the coming years: the increase in the activation of sponsorship and digital assets linked to this sector; the growth of the confluence between face-to-face assets and digital assets, “phygital” -a combination of the physical and the digital-. And the activation of sponsorship with “social meaning”, linked to CSR policies (corporate social responsibility).
Cantó emphasizes the “prominence” that brands with a “family” and “social” character have achieved at the present time and that is growing in importance, both for properties (federations, clubs, leagues, competitions) and for sponsoring brands, as also documented in the Report on the Effects of Covid-19 on Sports Marketing prepared by CEMDE, in July 2020. A clear example of this is Movistar’s Megacracks Tour, an education, sports and integration program aimed at children and people with functional diversity, which also has the support and tax benefits granted by the Higher Sports Council.
On the other hand, and despite the “break” caused by Covid-19, the properties highlight the increase in digital activation, “the greater empathy between the property and the sponsor” and the need to rethink the design of their sponsorship programs -the big data, e-sports, gamification and geolocation as the most significant innovations.
In addition, the properties consider that OTT (Internet transmission) and SVOD (video on demand) specialized in sports content, together with the different social platforms, will be the most important in the market in the next five years.
“It is invested by analyzing more how, where, when and with whom, to obtain a greater return,” says Cantó. Being “multi-objective” sponsorship allows great flexibility to grow. And this, together with the fact that in the current crisis scenario “sponsors and sports properties have had to learn to understand each other”, has generated a change in the relationship between sponsors and properties that gives them greater “empathy” in a process of “sophistication” and “professionalization”, together with a new paradigm of access to audiovisual content that forces us to rethink the traditional sponsorship approach, both for sponsors and for sports properties.
Finally, and with the new paradigm of access to sports audiovisual content (more types and screen sizes, more access to content -PPV, OTT, SVOD-, social platforms, influencers, etc), there is an effect of “democratization “of access to audiovisual content, with which sports and events/competitions have a greater number of visibility windows. And, therefore, more opportunities to generate income through sponsorship.
The key, however, focuses on the differentiation of each property, on designing sponsorship programs that add value to the sponsor, beyond brand visibility, and the proactive activation of sponsorship, as well as the monetization of this engagement, regardless of sports competitions and the gender of athletes.
Sponsorship and Patronage Law
The Commission of Sports Marketing Experts (CEMDE) of the “Sport” Committee of the Marketing Association of Spain presented a manifesto for a new Sponsorship and Patronage Law in order to update and adapt the current law to the new times and new needs. , dating from 2002.
And in this new legislation it is necessary that sponsorship, in relation to events and initiatives of special interest, be specifically addressed, not only from a fiscal point of view but also from a purely marketing point of view, adding value to companies sponsors, who choose the different tax incentives.
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