Due to the rise in crypto popularity and its performance on the market, crypto sponsorships gradually increased between 2019 and 2021. However, since crypto's recent fall, more crypto organizations are more invested in new approaches to salvage the industry.
Many people no longer buy Bitcoin or other digital currencies as much as they used to; hence, the market is dwindling. Major worldwide cryptocurrency companies are looking toward sports sponsorship to reinvent the cryptocurrency market.
Sponsorships aid cryptocurrency players by giving them access to a large and diverse demographic. They employ alternative platforms to promote acceptability and the integrity of their products and services.
In this article, we take a look into how sports can help cryptocurrency grow. We explore how crypto projects support sports and what it gives to them.
Cryptocurrency and Sports Sponsorships: The Relationship
In 2022, sports advertising will be the most face-paced sponsorship category. According to the estimate, sports sponsorships will account for two-thirds of the market value of cryptocurrencies this year.
The crypto sector brings enormous value to sports leagues and teams worldwide. Most leagues are now attempting to engage with younger audiences within the Gen Z and Millennial demographics. They're an elusive and key demographic for the sports business that the cryptocurrency industry commands. This is why current sports and cryptocurrency collaborations are often win-win transactions.
Sports sponsorships are a wonderful way to attract new customers and potential investors to digital currencies. Crypto's connection with gambling sites that have just begun accepting crypto as a payment option makes them a good outlet for large sponsorships and marketing partnerships.
The NBA recognizes this and announced Coinbase as their crypto sponsor for all games, catapulting the platform into the spotlight. Coinbase is also registered with the WNBA, G League, and NBA 2K EAsports initiative.
ByBit, a cryptocurrency startup, also announced the newest expansion in its marketing plan, working with Oracle Red Bull Racing. These multi-million dollar collaborations have put bitcoin at the core of different sports, and the trend is only set to continue.
The advantages of negotiating crypto partnerships for sports organizations mostly lie with the prospect of unlocking an unexplored revenue source. With a successful deal, their branding will appear at every game that amasses millions of views. Crypto.com may even be the official sponsor of the 2022 FIFA World Cup.
The Impact of Sports Sponsorship On Cryptocurrency Growth
The sports sponsorship industry is worth over $40 billion. Last year, more than $3 billion was invested in sports sponsorships by several cryptocurrency organizations.
It may not currently represent an obvious pool for audience overlap, but crypto brands benefit from the massive reach of sports. They use several sports audiences to increase awareness and exposure to crypto industries. Through crypto sponsorships in the WNBA, NBA, Super Bowl, and many more, crypto brands can now reach people where they are.
The crypto industry's quest to deconstruct what can feel like a stressful and otherworldly technology to the average person just getting started. When numerous recognizable teams or athletes endorse a product, consumers are more inclined to pay attention and explore that brand.
People who already patronize that brand will naturally feel validated in their decision, deepening brand loyalty. In reality, sports sponsorships can lead stock prices to climb and sales to grow by as much as 4% in the first few months. This makes investing in cryptocurrency a more welcomed affair and, in time, brings in more projects that cause the industry's growth.
What Are Notable Ways Sports Sports Sponsorships Can Aid the Cryptocurrency Market?
Winning back a lost generation is a major way sports sponsorships aid cryptocurrency growth. It creates a mutually beneficial partnership because attracting young viewers has been a key mission for major sports leagues. The Gen Z demographic has grown up using smartphones with continuous internet access. They are, by all counts, the digital natives.
The Gen Z category is a key demographic for the sports industry because they are the future, and crypto projects can key into this. Their demographic includes avid gamers, social media users, and crypto enthusiasts. A few of the Gen Z demographic are sports fans, hence the need for sports partnerships with the crypto industry. Cementing ties with that demographic and the addition of 42% of millennials who are already sports fans enriches the sports industry.
By partnering with crypto organizations, the sports business demonstrates that it's in tune with the younger generation. It's a method for them to attract the next generation of fans, which is vital to the industry's future prosperity.
Numerous professionals now embrace cryptocurrency in innovative ways to expand and monetize their brands. They're now investing in social tokens and establishing ad partnerships with well-known cryptocurrency companies. Athletes are also at the core of helping sports sponsorships grow cryptocurrency.
The sports business offers crypto companies the opportunity and means to reach a larger audience within the digital asset demographic. These sponsorships and partnerships become incredibly beneficial regarding trust, customer acquisition, and retention. As such, both the sports and crypto industries essentially help grow each other.