Brands are becoming more selective about sponsorships, and here’s why:

A report found that sports sponsorship spending was up by 12% in 2022, but brands are becoming more picky about who they work with.

Brands are upping their expectations, with more demand for real-time performance metrics and asset recommendations, and they’re scrutinising potential partnerships more closely.

They want partners who fit their values, not just lucrative opportunities. Compared to 2019, sponsorship spending is up over 23%, and social media engagement and brand value earned are both up big time, by 46% and 39%, respectively.

The average annual deal size is also up to $326k from $273k in 2019.

As the average deal length increases to 3.3 years, brands and rights holders are focusing more on long-term objectives and planning.

With more spending and fewer deals, partnerships are under even more scrutiny. Social media is also a big deal, with fewer posts but more fans and engagement.

This shows that quality and subject matter are more significant than quantity. And finally, the top 10 teams driving the most value on social media for sponsorships are Real Madrid, FC Barcelona, Man Utd, PSG, Liverpool, Chelsea FC, Manchester City.

They also include the Indian cricket team, the Mercedes AMG F1, and the Golden State Warriors.

Source: Kore White Paper on Sponsorships 2022