Development of sports sponsorship: The age of sponsorship 4.0
In today's world where digital connections are fundamental to engaging with fans, sports sponsorship is undergoing a significant transformation. Some of the most innovative companies are leading the way towards "Sponsorship 4.0" by using digital platforms to maximize their impact. This new approach not only ensures the distribution of financial resources, but also strengthens the bonds between sports communities and their sponsors by changing the way fans interact with brands.
Traditionally, sports sponsorship has focused on brand visibility through events, teams, athletes and static advertising. However, with increasing digitalization and also with the mindset shift of Generation Y upwards, the need to move to more dynamic and interactive strategies is becoming clear. Digital platforms have emerged as crucial tools that allow brands to engage more effectively with their audiences.
Digital platforms as a place for the community
A platform in this context is a digital environment - a website - that uses advanced technology to facilitate interactions and transactions. In the area of sponsorship, for example, these platforms can combine traditional sponsorship with crowdfunding. This allows brands to connect directly with projects and communities and transparently ensure that resources go where they are most needed and where they are wanted by the community.
Develop sponsors into brand ambassadors
For a local sports club, such platforms offer the opportunity to obtain the necessary funds to, for example, improve facilities, participate in an international competition, buy new equipment, etc., strengthening the cohesion and common purpose between the club and its sponsor. These connections created are essential as they turn club members into natural brand ambassadors who share their projects, success stories and gratitude on social media.
The Toyota Crowd as a benchmark
A clear example of innovation in this sense can be found at TOYOTA Germany. This multinational corporation received a large number of requests for sports sponsorship. Since not all requests could be answered positively, this led to a high level of negative communication, as cancellations had to be made. To minimize this negative communication, Toyota Germany, with our help, launched a digital platform that centralizes and automates all these requests. Furthermore, it enables collaboration with the community and thus facilitates and enables the funding of most of the submitted projects.
The experience on the platform has been a complete success and has enabled the distribution of more than 3.2 million euros to 546 sports projects to date. This has been realized through the TOYOTA sponsorship pot and donations from over 42,000 sponsors. An excellent example of real interaction with the brand, blatant transparency of sponsorship distribution and validation of the projects by the community itself.
Unbureaucratic emergency aid in times of crisis
The German Olympic Sports Confederation (DOSB) has taken a similar approach. Its digital platform, which was set up after the pandemic with a funding pot of 100,000 euros, managed to distribute more than 420,000 euros, increasing its economic impact fourfold. This success demonstrates the potential to increase the resources distributed by combining crowdfunding methodology with traditional sponsorship. In addition, thanks to the platform, the DOSB saw a significant increase in its social media presence, which noticeably increased its return on investment (ROI) in terms of media value.
Creating positive cycles
Sharing projects, experiences and successes creates a positive cycle of success and collaboration that benefits everyone involved. Social media becomes the main stage on which stories are celebrated and shared. User-generated content plays a crucial role in this process, as it allows fans and community members to share their own perspectives and real-life experiences. This type of content not only increases the reach and authenticity of sponsorship campaigns, but also fosters a stronger sense of belonging and engagement among participants, turning them into enthusiastic supporters of sponsor brands.
Sponsoring 4.0 creates more interaction between brand and fans
To summarize, Sponsorship 4.0 is not just a development in sports marketing, but a profound change in how brands and fans interact. Brands that continue to rely on the same traditional sponsorship methods run the risk of losing touch with their communities and falling behind in an increasingly digital and dynamic environment. With the modern tools available, the community can be actively involved, creating the participation demanded by the younger generations. At the same time, this also strengthens our democracy, which needs to be strengthened more in current times. This not only multiplies the impact of their sponsorship, but also maximizes the media value generated, increasing their influence and relevance in today's digital world.