Sponsorship trends to watch over the next five years
I recently put out a newsletter post about sponsorship of top-tier sports—think Formula 1 and the UEFA Champions League. It got me thinking about some of the trends that have come and gone in sports sponsorship, and how motorsport is often last to the party.
The post talked about how racing drivers can learn a lot from the highest level of sport but they need to be able to translate what's happening in the big leagues to fit their level. As much as I believe you can do anything you set your mind to, there's something to be said for being realistic.
I am ALL for the goal of getting Pepsi to sponsor your club racing career but you're probably going to have a lot more luck getting a local beverage brand involved instead. (Read the newsletter post if you want to know why.)
In this article, I'm going to outline three sponsorship trends to watch over the next five years and how you can use these as inspiration no matter what level you're racing at. This is going to go beyond motorsport sponsorship and will instead look at global trends across all sports.
1. Demand for original content grows
With the success of Drive to Survive, Welcome to Wrexham, and many other sports documentaries, it's clear that fans want this kind of insight into the championships and teams they love. On a smaller scale, short-form videos (such as those on TikTok) are also important for athletes, teams, championships, and sponsors.
In 2023, TikTok shared that 59% of its global users agree that watching sports content on TikTok can be more entertaining than watching the sport itself. This comes down to one thing: storytelling.
Brands want people to engage with their content. Another advert or shouting about a product's benefits isn't going to cut it. The people who buy things are bored of being sold to and are instead looking for experiences. Nothing is more engaging than sport, which is why it's been such a successful platform for the biggest brands in the world.
Storytelling as a racing driver
Leveraging this in motorsport requires some thinking outside of the box. If you already have a decent fanbase, you might find this a little easier. Consider how you can deliver experiences (either online or in person) that help your audience engage with your sponsor. Weaving the sponsor into your story is a great place to start.
You might also look for ways to let your audience directly engage with the sponsor, effectively allowing them to become part of the story. For example, you might set up an area in the paddock that allows your fans to directly interact with you and the sponsor's product. Give them a reason to post about the experience on their social channels as this generates valuable content for both you and the sponsor.
2. More focus on women's sports
Despite the growing number of women in motorsport, sponsorship has still been tough. Thankfully, there's a big push—at the top level, at least—towards women's sport. This is linked to a wider interest in diversity within sport and links to ESG (environmental, social, and governance) goals.
This isn't just about brands wanting to support women, there's a message behind it. One of the most viewed pieces of sponsorship content in 2023 was Hyundai's video about how far women's football has come. As part of its partnership with the FIFA Women's World Cup, it released a video with an important message.
As it stands, it's had 63 million views on YouTube. In its most simple form, this video is an advert for a car brand. But by linking it with women's sport it evokes an emotional response that's incredibly empowering. Hyundai places itself at the centre of the story while sending a powerful message.
This isn't just the case for women's championships. When you compare SportsPro's ranking of the most marketable athletes of 2014 with 2024, it's clear that female sports stars are gaining more traction. In 2014, there were just 13 women in the top 50 while in 2024, there are 22.
Tips for female racing drivers
For female racers, this presents an opportunity to do more. Working with a brand to promote women's sport goes back to storytelling and creating an emotional connection with an audience. While much of motorsport sponsorship is dominated by automotive and racing brands, there's the chance for women in the sport to do something different.
Across the wider sporting landscape, the sponsorship landscape for women's sport is quite different. A report from Sponsor United found that the apparel, financial, beverage, and healthcare brands are most interested in sponsoring women.
American racing driver Toni Breidinger is a great example of a driver who is going beyond the typical industries for sponsorship. Her current and past sponsors include Victoria's Secret, Raising Cane's, Celsius Energy Drink, and Huda Beauty. (Here she is on TikTok and Instagram, in case you're looking for extra inspo.)
3. Technology-driven experiences
I had the pleasure of judging the SportsPro Live Ignition Innovation Competition this year and it showed me just how much emphasis is already being placed on tech-enabled fan experiences. Many brands are already using augmented reality (AR) and virtual reality (VR) in their campaigns to give fans a new way to engage. While interest in the Metaverse might have dropped off, sponsors will continue to leverage technology to drive new experiences.
If you're interested in the tech stuff, this article from Brand XR lays out the different kinds of AR and how they're being used in sport.
Pizza Hut launched an interactive AR experience where fans could dance with Antonio Brown and JuJu Smith-Schuster from the Pittsburgh Steelers. Watch the video here, it's pretty cool. As well as allowing fans to meet their idols and feel a little closer to the action, brands are using tech to offer virtual scavenger hunts, letting fans get deeper insights into real-time stats, and delivering ultra-personalised experiences to those watching at home.
Perhaps one of the key areas for development is turning spectators into participants. This is all about allowing people to get closer to the action whether they are watching live or from the comfort of home.
This might mean making a 3D model of a football match to allow people to switch between player POVs (as you might in a video game). Or it might mean using blockchain to create tokens that act as a team's own currency, rewarding fans for interacting.
Bringing tech into the racing experience
For racing drivers, this is a little harder to implement but there's still so much you can do with technology to wow your fans. For example, can you rig up a 360-degree camera in the car so fans can get the full experience of what it's like to be in the middle of the action? Maybe have a VR headset in the paddock to allow fans to see things first-hand?
You could even keep it simple and set up a sim rig in the garage for people to try out. You could work with a partner to offer prizes to the fastest driver each day. If you team up with the right sponsor, this gives your fans a way to interact with the brand. The company might facilitate a competition or giveaway at the track. Or they might just have a presence in and around these fan experiences that positively link the brand with the cool stuff you're doing in motorsport.
As I've mentioned in the Racing Mentor newsletter, there's so much we can learn by looking at elite sports sponsorship. It's all about taking that as inspiration and making it fit the kinds of brands you're pitching at your level, no matter where you are on your journey.
Keep an eye out for part two of this post where I’ll be talking about how you can turn these ideas into a sponsorship pitch.
In the meantime, sign up to the Racing Mentor newsletter to get sponsorship tips and tricks straight to your inbox.