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Sports sponsorship will be overloaded in 2023 with virtual advertising for the NBA and NHL jersey patches

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NHL jersey patch, NBA virtual advertising will overload sports sponsorship in 2023

Montreal Canadiens take on the Tampa Bay Lightning at the Bell Center in Montreal (Quebec, Canada), in an NHL game.

National Hockey League – Getty Images| National Hockey League | Getty Images

Advertising opportunities are increasing at the top US sports leagues.

The national basketball association is looking to increase its sponsorship through virtual advertising on the court. Major League Baseball joined the patch party by placing advertisements near the circle on the deck and behind pitcher’s mound. To offset the losses of corporate partners, the National Hockey League placed helmet ads. The NHL followed the jersey patch trend in other sports.

According to the Associated Press the NHL will add the patch to its kit starting in the 2022-23 season. Sports sponsorship could become saturated, especially at the team-level, by then.

Peter Laatz is the global managing director of IEG’s sponsorship rating agency. He said, “It feels as if we’re selling small things now.” “Everyone is trying the fill in of last year’s holes.”

The basketball court is used by the NBA

Jersey patches are not a new concept. Laatz explained that the NBA started its uniform program in 2017.

Since 2001, MLB has used virtual ads behind home plate. Only national partners can access the premium property, including Fox Sports which holds the rights to the championship games. MLB has partnered with Brand Brigade, an advertising technology company, to create signage and eight characters for the slots. This is a valuable asset due to its location in the main broadcasting environment.

Last year, during Orlando’s bubble, the NBA launched a version of virtual ads. Officials from the League gave guidelines regarding avoiding color, logo size, and ad placement. The NBA used the ads once again for the 2020/21 seasons and gave regional sports networks access to the asset.

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Networks can have two sponsors per game. Companies must sign media deals with the NBA or its partners in order to keep the national TV market. Industry insiders estimate that the ads would cost about $ 15,000 each quarter at the regional level.

Laatz described the NBA virtual ads as “disruptive” in a positive way because they are likely to grab viewers’ attention. The CEO of Innovative Partnership Group (a sports business company that assists in negotiating deals for teams), Jeff Marks described the NBA advertisement as a “high-quality asset” due to its position on the pitch. Brands have the option to negotiate virtual ads that allow rotation on the NBA sideboards under the scorer.

Marks spoke of the in-game signage, saying that it was “probably the most valuable inventory naming rights we have seen for NBA teams.” “Given how many impressions you get, they are a significant asset.”

Although the NBA has earned more than $ 150 million since the launch of its jersey patch program in 2011, its patch money seems to be stagnating. The league also increased visibility and created training kits options to increase value.

The NBA’s record-breaking sponsorship revenue of $ 1.46 Billion should only be increased if virtual ads are able to create media value.

The NHL will have to deal with problems regarding its kit plans

Virtual advertising is not a new concept for the NHL. The league plans to soon release jersey patches. The league now makes use of the extra TV presence, as ESPN and WarnerMedia are media partner.

The helmet sponsorship is already being used by teams like the Dallas Stars and the Detroit Red Wings. Morning Consult conducted a study to determine if consumers like the advertisements. According to the IEG, the NHL has received $ 676 million in sponsorship money.

Laatz stated that helmet sponsorship did not involve new money. “It was inventory. That was probably inventory.

The problem is, the NHL isn’t as flashy as the other leagues’ newest assets.

Because hockey is not as fast as the NBA, brands can get close-up shots of free-throw lines. While it is accepted in sports, corporate partners should be aware of the risks associated with NHL violence.

Laatz said that it would be a good idea for buyers to accelerate the discussion.

The NHL also has numerous ads on its broadcast. Laatz pointed out that the ads on the dashboard are highly effective because they provide “good contrast” and offer “good returns to sponsors.”

Laatz was discussing estimates of how much the NHL would bring in from the new patch. He predicted that the NHL wouldn’t ask the NBA that much. He said, “People don’t follow individual NHL players like they follow NBA stars.” “The star power piece of the game is different.”

Joe Maddon # 70 of the Los Angeles Angels speaks with the umpires on fan interference during the seventhinning against the Detroit Tigers at Comerica Parc, August 17, 2021, Detroit, Michigan.

Getty Images| Getty Images

Jersey jumble is coming

In 2023, there will be a lot of sponsorship options due to the NHL’s introductions of jersey patches.

There are many rights for arena naming, sports drink rights, and now jersey patches. Remember that Major League Soccer has patch agreements and international soccer teams like PSG slowly are gaining ground in the US.

Laatz stated that there was a saturated sponsorship market. It doesn’t necessarily devalue anything. It only makes it more or less worthwhile to have a conversation about something that already exists.

Laatz said that brands should not be associated new sports sponsorships unless the returns are accurate after the games end.

He stated that “Consumer sentiment” is distinct from media exposure. “The eyeballs were there or not. Consumer sentiment is shifting [discussing the product after the ad]”

However, multi-team ownership groups may be able to benefit from the NHL’s move.

Monumental Sports and Entertainment is the leader in this area. The group also owns the NBA Wizards and NHL Washington Capitals franchises. MSE has combined its jersey patch collections and is asking for $ 12,000,000 to fund its patch. The group hopes to spread its fortunes across four teams, which includes Esports as well as the NBA G League.

Laatz was very happy with the combination and called it “miniature naming rights”. Future versions of the package could include Capitals, which will only increase the MSE’s patch value.

Laatz said that MSE’s move was “great”. “Brands can conduct a transaction, contract, and kit patch asset across multiple clubs. Multiple entry points can lead to buyers being confused by multiple terms. This is a benefit for buyers who have multiple entry points across different contract terms. Marketing, merchandising, and marketing are all possible.

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