Why do financial companies sponsor sports?
It is a regular practice for financial organizations’ sponsorship of sports. These companies have generally had to collaborate with the biggest sporting organization in the world, which is part of a trillion-dollar business. This regular relationship between financial institutions and the sporting industry has impacted both sectors in a major way. With professional deals being the most prominent of the partnership. You'll likely have already thought of some major sports sponsors, especially if you are a big fan of car racing, European football, horse racing. However, these companies are always engaged in a particular industry, some of which are betting brands, airlines, and financial institutions.
Just like any other business in the world, financial companies invest their money in marketing as well. Most companies often endorse influencers, to promote and market their products and services. Such as in social media influencer marketing. Financial companies sponsor sports to gain exposure and recognition. In other words, they are putting themselves out there. Many may wonder the link between financial companies and sporting activities, and how such sponsorships could be profitable for the companies. Despite the disparity between the two fields, sponsorships by financial companies have proven to be very successful and have been standard practice for a very long time. This explains why you can see Master or Visa card sponsorships in soccer matches. And due to the massive global audience of the platform, the companies gain the exposure they so desire. With a global audience and billions in revenue, many sporting investors find these a breeding ground for more money. However, during this period where we have the world plagued with a global pandemic, what investors are looking for is more stable investment grounds, especially as sporting events were delayed for health concerns.
It’s not for everybody though
Based on research of different financial company marketing choices we can easily say that sponsorships are usually something best for large companies. For example, a small or medium-sized company would benefit from other forms. Based on the approach that Axiory broker had in this regard it’s more likely to see things like social media promotions, some Google search rankings through content marketing, etc. The reason why we brought Axiory as an example is due to the contrast. Axiory is far from being a huge company and therefore is the perfect comparison for the difference between sponsorships and just plain old digital marketing campaigns.
As a basic customer administration industry, the aim of the financial companies is to guarantee that their brands are remembered. Brands such as Mastercard as earlier mentioned, Visa, Bank of America, and Allianz are the big financial institution names you might have seen on sporting platforms. For these companies, working with new players has proven to be quite profitable. One of the most remarkable tools for brands to reach fans or potential fans has been social media, ever since it emerged. Fans always follow the trends of their favourite leagues, teams, and athletes on social media, fans easily trust and prefer brands that are advertised by their favourite athletes. It has opened new ways for sponsors to tell the people what their brand is all about directly to potential customers and current customers alike, through their own social media pages or through influencer partnerships.
The greatest establishments have their names all over baseball, soccer, golf, football, and numerous different games. It is no coincidence that you get to see the name of these big brands in soccer, football, baseball, golf and a whole lot of other sports, not because the league or the influencer liked the particular institution so much, but because they are getting paid to showcase these institutions. Some of these banks are spending huge amounts of money like $80 million or $85 million each year. This is especially the case with City and Bank of America.
