TV Brand Building Through Sporting Sponsorship, is it a Golden Opportunity?

Brands are committing over £25.5 billion annually to European sports sponsorships as a strategic, long-term investment, which according to Nielsen, accounts for approximately 15% of a brand's annual marketing budget. However, with an estimated 66% of consumers more likely to purchase from sponsoring companies Source, you can understand the reasoning behind such decisions and in particular for challenger brands looking to disrupt the market.

For TV brands, major events like the Winter Olympics, which TCL is sponsoring through 2032 to gain ‘TOP’ tier prestige and challenge market leader Samsung, act as a catalyst for consumer electronics upgrades and bringing your brand into the consideration mix. Perhaps when your brand would have never registered with consumers without the mass exposure of say, the Winter Olympics, which is projected to have a global audience of 3 billion.

Hisense, which has heavily invested in football sponsorships and in particular the FIFA World Cup, has seen itself rise to be the second-largest TV manufacturer by volume, yet its domestic market share recently dropped, highlighting the need for continuous activation and strategic evolution.

Challenger brands such as Haier, who announced at IFA Berlin 25 their entry into the EU including the UK TV market, are positioning themselves with high-profile tennis sponsorships like the ATP Tour and Grand Slams such as the Australian and French Open. In doing so, they hope to target an affluent consumer electronics audience, as they aim to entice customers at the premium end of the TV market. Tennis sponsorship therefore suggests that a targeted, high end sports association is an effective strategy for Haier entering crowded premium markets such as the UK.

To read the published article by Daniel Todaro, Gekko Group CEO please visit ERT