There is an Epidemic Occurring in the Sports Industry…
There is an Epidemic in the Sports Industry, and most people on the outside have zero clue what it is.
I am about to let you in on a little secret when it comes to sports sponsorships…
The system is broken
Currently, securing a sponsorship in the sports world is nearly impossible — unless you are a Fortune 500 company with a nearly unlimited budget and thousands of industry connections.
But if you are a smaller brand or a start-up with a decent budget, you have no shot at breaking that barrier of entry and establishing that brand awareness you truly desire.
Let’s face it, it’s difficult to determine if all social media marketing is worth pursuing. Considering all of the bots, fake accounts, and market saturation. But one industry that is a sure-fire bet to build brand awareness is sponsorship through professional sports.
The NFL saw it’s television ratings dip substantially last year. But even with the dip, the sport was still — by a long shot — the most-watched television across America. Take a look at golf, which is considered one of the Top-3 sports in the world behind Soccer and Formula One racing.
Professional golf takes center-stage on one of America’s four major news channels for over 12 hours every weekend of the calendar year. The brands who sponsor the players and events receive millions of dollars worth in brand exposure. And it’s a guarantee that people are seeing those brand names and not swiping away from them on their phone screen.
Identifying the 3 Major Problems in the Sports Sponsorship Industry
The Process is TOO LONG
By definition, a process is supposed to take up time before a goal can be accomplished. The current sports sponsorship landscape requires at least a 5-month process to take place before securing just ONE Sponsorship with a given rights holder.
Imagine 5 months dedicated to a single deal, that is quite a long time. That process includes cold calling, research, more cold calling, negotiating, and traveling. Oh, and that process is expensive. A brand needs to pay the employees to cold call, then pay for lawyers and legal documents, and then pay to travel and sign the deal with the given rights holder.
It’s an exhausting process.
The Barrier of Entry is TOO DENSE
Unless you have solid connections in the sports industry, you will struggle to find sponsorship opportunities. And this goes back to the pain-point of cold calling and cold emailing rights holders to secure information.
Countless hours can be wasted on just talking with no result. It’s a poor return on investment for the person paying the cold-caller.
Cross-Border Transaction Fees are TOO EXPENSIVE
International brands struggle with this the most. Millions of dollars is spent each year on cross-border transaction fees when brands look to acquire sponsorship inventory in the United States and visa-versa.
Sports are becoming increasingly globalized with the expansion of streaming services and unification of fans through social media and the internet. This will put global sports sponsorships at a premium for both rights holders and potential sponsors, but in order to execute cross-border transaction fees need to become a non-issue.
The Solution
Instant Sponsor aims to solve all three of these pain points with a blockchain-powered platform. This network is a step toward a new direction for sports sponsorships. A way for brands and rights holders to meet on one platform to sell and purchase sponsorship opportunities.
The elongated process will be eliminated with Instant Sponsor’s Campaign Consultant feature, which matches brands with sponsorship opportunities based on demographics and budget imputed by the potential sponsor. Once the sponsor and rights holder have matched they can negotiate and transact on the platform. Turning a 5-month process into a simple solution that takes no less than a couple hours.
Additionally, this platform will open up doors to the sports sponsorship industry for smaller brands. That barrier of entry will no longer exist for companies who use the Instant Sponsor marketplace.
As for cross-border transactions, our internal Sponsor Coin will tokenize sponsorship opportunities so sponsors and rights holders can transact in Instant Sponsor’s native cryptocurrency and do away with those pesky exchange rates and cross-border fees.
Sports sponsorship acquisition will now become a simple and pain-free purchase.
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