One of the finest ongoing business relationships is the one that exists between the cryptocurrency market and the sports industry. As a relatively budding venture, cryptocurrency is still at the stage where many are unfamiliar with its operation. The question then becomes, how can those in crypto get the masses onboard? You guessed right, advertisement! Advertisement — a necessary tool for business progression.
Given that, sports advertisement has become the most effective way to get the attention of many. For the sports industry, crypto – like those traded on Paybis – has become its most reliable investor, making cryptocurrency the fastest-growing sponsorship category in sports advertising.
In 2023, crypto investments in sports sponsorship hit $366 million. Since 2023, this figure has tripled, leaving many wondering why crypto brands invest heavily in sports. What are the benefits of sports sponsorship, and where is this trend possibly taking the crypto market in the future? This article covers these questions as it looks into the new relationship between both industries and how it’s mutually beneficial to them.
The Crypto-Sports Relationship: How They Help Each Other Grow
A symbiotic relationship exists between the sports industry and the crypto market. In the past couple of years, this relationship has thickened, leaving many wondering how they compliment each other. Below are some of the ways sports enable crypto growth and vice versa.
Globally, the sports industry is one of the most thriving industries. In the past year, over $3 billion has been spent on sports sponsorships, with crypto being a major sponsor. The only grounds for business partnerships to thrive is when they’re mutually beneficial to the parties involved. The crypto market understands this; as such, sponsoring sports events has become its route to meeting people where they’re at.
It might not seem like an effective strategy, but crypto brands are taking advantage of the massive audience reach of sports. The aim is to use this as an opportunity to create awareness about a relatively new industry.
A sports sponsorship example like the Hong Kong and Singapore-headquartered Crypto.com paid millions for 30 seconds ads during the 2023 Super Bowl games.
Interestingly, these crypto brands rank top 10 in crypto exchanges worldwide, according to CoinGecko.
Sports, however, have become an effective avenue for crypto brands to humanize and simplify complex technology for people unfamiliar with crypto. Through sports sponsorships, many fans can start investing in cryptocurrency. Many are inclined to try them out when a celebrated athlete endorses a product. Thus, sports endorsement can cause the value of crypto to increase exponentially.
Pushing both industries forward
The purpose of crypto brands’ investment in sports sponsorship isn’t just to reach only a particular demographic. The intention is to attract the attention of as many demographics as possible. Especially Gen Zers.Why?
Records show that only 23% of Gen Zers are interested in sports compared to 42% Millennials, 33% Gen Xers, and 31% baby boomers. Now, it’s obvious why crypto brands target the attention of Gen Zers. They are the future; they understand the digital world better than other demographics and understand the relevance of crypto in the future.
However, the sports industry associating with crypto brands signals that they understand the younger generation. This strategy allows crypto brands to mingle with other generations and helps the sports industry acquaint themselves with Gen Zers.
An instance is how athletes are also embracing crypto. Many of them are now using social tokens and NFTs and signing deals with crypto brands, in order words, enabling them to move crypto projects forward. This type of deal and advertisement enables the crypto to retain customer interest and propagates the interest of Gen Zers in sports.
There has been a surge in sports sponsorship by crypto brands. Brands like crypto.com constantly invest heavily in various sports programs, and there is a reason behind this. The reason is that it helps these crypto brands build trust and attract and retain customers.
When customers intrinsically trust a brand, they invest heavily into it, knowing its benefits.
Therefore, brands invest in sports, and masses who are sports fans build trust over these crypto brands.
Currently, there are over 60 crypto brands actively investing in sports sponsorship. It’s not without results, as the loyalty of sports fans is a necessary tool in convincing them to invest in crypto.
With crypto moving very fast, many crypto brands are looking for ways to scale up quickly.
Now, sports sponsorship has proven itself as one of the effective ways to carry that out. It’s a critical marketing tool for building digital brands, for example, the growth of online betting platforms. Crypto brands see this and want the same for themselves.
Investing in sports has now become their leeway to build solid and reliable online brands.
Sponsorships in sports like football now offer a valuable opportunity to build brand awareness for a company. Through football, these brands position themselves in a manner that’ll captivate the interest of key demographics.
Since sports is also home to the world’s most recognized athletes, aligning with these globally respected organizations and individuals helps them drive trust and credibility, which is essential to brand building.
How Crypto brands Can Find For Sports Sponsorships Deals
With the rate at which crypto grows, new crypto brands are born continuously. Since there’s an already existing beneficial relationship between the market and sports, new brands also seek sports sponsorships. Here’s how new crypto brands can find sponsorships to enable their startup.
Contact local sports clubs
The easiest way to market your crypto startup through sports is to reach out to local sports clubs. These clubs will typically ask for a sponsorship fee. In return, they’ll help you market your brand and product. Small local clubs get funding to play while crypto brands get awareness, foster brand loyalty, and support the community – it’s a win-win situation for both parties.
Before now, the relationship between sports and crypto has not accelerated to this height.
It grew from realizing that sports are an indispensable marketing tool for crypto brands.
Since the start of the partnership, it has remained profitable for both parties.