Global data: Young people will listen to sponsors but some categories still need to play the long game

Sponsorship works

The simple version: sponsorship still works on the hardest audience in sport. Across the 11 markets in our NextGeneration research, 56% of 15-25s told us that a brand's presence in sport makes them more interested in its products. Another 20% said that it sometimes does. That leaves just 24% who say they are completely unmoved by the channel.

So the top-line data is encouraging and dispels some of the received wisdom about young people. 

There is great variation between countries on sponsorship receptivity

But as usual, the headline hides the nuance – and that’s the less simple version. 

There is great variation between the markets we polled. When it comes to whether sports sponsorship makes the next generation more interested in a brand’s product, China sits at 80%, India at 63%, MENA (made up of samples from Saudi Arabia and UAE) at 61% and Vietnam at 60%. 

But the established sponsorship markets all fall below the benchmark: the UK on 53%, Australia 50%, Germany 49%, the US and Canada both 47% - possibly because these markets are simply so used to sponsorship. 

By contrast, in markets like China, there is almost certainly novelty value (and perhaps national pride) in seeing domestic brands like Haier and BYD represented at international sports events – something which may feed into this enthusiasm for sponsorship.

Outright rejection makes the point more sharply. In Australia and Canada, 35% say sponsorship does nothing for them at all. In the UK and Germany it is 31%, in the US 30%. In China, it’s just 7%. 

The sight of previously unfamiliar brands (like BYD and Haier) at sports events may perhaps be contributing to this imbalance – with consumers in mature markets turned off by their presence and those in their home markets excited to see them.

What categories of company make the most natural sponsors?

We also asked which product categories feel like an authentic fit for sports sponsorship. Only 5% chose none of the above, so the door is open even if it’s not always wide. 

Sports brands lead on 41%. Food and drink follows on 31%, health and wellness and gaming and entertainment on 28% apiece and technology on 23%.

But the bottom of the chart is where you will find a good number of the industry's biggest spenders. Finance sits on 13%. Energy and utilities on 13%. Telecom on 14%. Automotive and retail on 15%. 

These low ratings, however, shouldn’t be seen as a failure of strategy. 

Being present in the arena of the competition you sponsor is a proven means of helping to build brand fame and most of the brands in these categories are using a wide combination of marketing channels to build affinity and drive customer acquisition. 

While younger people might not see those brands (or categories) as relevant to them in the moment, presence at these events builds a strong base for future consideration as this group’s needs change. For these brands and this demographic, sponsorship is part of the long game of customer acquisition. 

Two markets are notable. Germany is the most restrictive audience we surveyed, putting technology at 14% and gaming at 17%. Vietnam, meanwhile, is the most permissive, running at double the benchmark in several categories including telecom and finance, both on 29%. So a category strategy built in Frankfurt will not necessarily travel to Ho Chi Minh City – and that’s a lesson that’s likely to apply to plenty of markets. 

The grassroots premium

One last finding, and it may be the most commercially useful in this piece.

We asked whether young people notice when brands support grassroots and youth sport. 59% said yes, and that it makes them feel more positive about the brand. A further 30% notice but feel neutral. Only 11% do not notice at all.

Set that 59% against the 41% ceiling achieved by the single best performing product category and the implication is clear. Supporting the game at its base shifts more young people than being the right sort of brand does. The pattern is the same everywhere: China 80%, India 69%, MENA 68%, and even the sceptical Anglophone markets land at 51% to 53%, comfortably above their appetite for sponsorship in general.

Grassroots has long been filed under corporate responsibility. On this evidence it remains a relatively untapped commercial opportunity. Specsavers’ recent partnership with parkrun in the UK is a good example of a brand connecting with a grassroots audience through its support for runners with visual impairments and those suffering social isolation. It may be one other brands wish to explore. 

Young people are not anti-sponsorship but they are sceptical of sponsorships that aren’t credible. This new data shows that the market for their attention is justifiably strong. 

Source: GSIQ NextGeneration: Youth Sports Fandom, n=5,000 aged 15-25 across 11 markets. MENA figures combine Saudi Arabia and the UAE.