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Home Industry news The Importance Of Sponsorships As A Critical Revenue Stream For Sports Organisations
  • Industry news

The Importance Of Sponsorships As A Critical Revenue Stream For Sports Organisations

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Modern Marketing
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October 31, 2024
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    For brands, sponsorships offer significant returns in the form of visibility and fan engagement, but measuring the exact ROI can be complex.

    The ongoing debate within SARU over a potential R1.3 billion equity deal with Ackerley Sports Group has sparked discussions about financial sustainability in South African rugby. The controversy surrounding this deal shows the importance of sponsorships as a critical revenue stream for sports organisations.

    Two major sporting events on 28 September in South Africa, Kaizer Chiefs vs. Mamelodi Sundowns and the Springboks vs. Argentina test match, demonstrate the value that sports sponsorship can deliver. ‘By tracking every mention of a brand’s name or logo, sponsors get the data they need to measure their exposure, audience reach, and return on investment which helps them make smarter decisions about their sponsorship strategies,’ said says Joe Hamman, Director of Novus Group.

    ‘Similarly, brands looking to attract sponsors can demonstrate their value by showcasing the assets that appeal to major sponsors. This serves as a proof point, providing concrete evidence of their ability to generate significant exposure and deliver measurable returns,’ added Hamman.

    The Kaizer Chiefs Vs. Mamelodi Sundowns Soccer Match

    The match attracted a whopping 3.26 million viewers on SABC 1 and SuperSport, with nearly half (46%) of the audience being female. The game’s top sponsors saw major returns: Kappa: R1.9 million in advertising value; Vodacom: R1.6 million; Absa, Toyota, and SuperSport: Each generating over R1.5 million in exposure.

    Springboks Vs. Argentina Rugby Championship

    The test match on the same day drew 447,341 viewers. Interestingly, 53% of those viewers were women, and 72% were aged 50 and older.

    For brands like Castle Lager, this translated into big returns with over R8.2 million in advertising value from logos, signage, and media mentions. Other top performers included: FNB: R3.4 million; Nike: R3.1 million; MTN: R3 million.

    Hamman continued, ‘These matches highlighted the importance of knowing who’s engaging with your brand. Our service provides real-time insights into the demographics and impact of exposure, giving sponsors the data they need to measure their investment’s true value and refine their strategies for maximum impact.’

    South Africa va Argentina Rugby Demographics.

     

    Chiefs Vs Sundowns Demographics.

     

    Chiefs Vs Sundowns Share Of Voice Sponsorship.

     

    NOVUS GROUP
    https://novusgroup.co.za/

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    • ROI
    • sponsor
    • sport
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