Consumers have shown that they’re not shy about exploring a new frontier, but how will the crypto crisis affect their perception of the once-booming market?
In a financial era characterized by market volatility, meme stocks, and general economic uncertainty, people are making efforts to take back the reins and steer their financial futures. From booming cryptocurrencies to online sports betting, consumers have shown that they’re not shy about exploring a new frontier.
Marketers have taken note. In recent years, sponsorships in the crypto and sports betting spaces have soared, making companies bullish about investing in the areas. In our recently published report, State of Sponsorship 2022, we set out to provide a clear picture of the sponsorship industry in an effort to identify and address questions regarding the future of sponsorship.
So let’s dive right in and address the elephant in the room: Is the fanfare surrounding crypto and sports betting overblown? Here’s everything you need to know about both industries – beyond the hype:
Growth Trajectory
Far from a niche interest, crypto in particular has taken hold of our collective conscious. While some say that all publicity is good publicity, only 5% of consumers have a positive perception of crypto brands in sponsorship, leaving ample room for brands to educate consumers on their value offering. At the same time, our research is clear – from a category perspective, among sponsorship industry professionals, crypto has the greatest perceived growth opportunity, at 47%, more than double that of #2 ranked sports betting, at 23%.
In fact, the world's most-watched sporting event, the FIFA world cup is being sponsored by a crypto company this year. That’s right. The world’s fastest-growing cryptocurrency platform, Crypto.com, secured its spot as the official sponsor of the stratospheric sporting event.
However, it’s not hip to be bear on sports betting! Quite the opposite, as 54% of consumers reported that they’re interested in the future of sports betting. Industry professionals, on the contrary, aren’t so certain there’s a sustainable future. When asked about over-saturated sponsorship categories, 18% of insiders mentioned betting and 15% mentioned crypto. Unprompted, they additionally played back that sports betting and crypto may cease to exist as sponsorship categories in the next three years, at 10% and 6% respectively. With this in mind, paired with recent headlines reporting that the market’s downturn is negatively impacting existing crypto sponsorships, it’s imperative that marketers can cut through the noise to secure optimal ROI on their sponsorship initiatives.
Gaining Consumer Trust
While Goldman Sachs proclaimed in 2021 that online sports betting would be worth $40B by next year, there remains a long way to go for the category to win over the hearts and minds of consumers.
In fact, brands need to be strategic about educating consumers about the world of crypto and sports if they want to gain their trust. Hesitation is normal, but with only 8% of consumers reporting to have positive perceptions about sports betting, it will take time before society at large embraces it with open arms.
Draft Kings has already made strides in validating its offering in the eyes of consumers. Last year, the popular sports betting company was named the official betting partner of the National Football League. The partnership served to cultivate an image of legitimacy surrounding Draft Kings, effectively countering any soured perceptions that gambling platforms may be associated with.
The SponsorPulse Edge
With oversaturation and unfamiliarity being of concern, marketers looking to make waves in crypto or sports betting can access the transparency required to make bold sponsorship decisions with SponsorPulse. Book your demo today!
Access more insights by reading our full State of Sponsorship 2022 report.
