Trading platforms on the rise in sports sponsorships

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As it stands, the entire sports sponsorship market is finding itself in murky waters and it goes without saying that the global health crises of the last year and a half is largely to blame. Between 2019 and 2020, sponsorship fell from $46.1 billion to $28.9 billion – a drop of 38%.  It hasn’t exactly improved. Disrupted sport calendars coupled with events minus the spectators has made it tough for sponsors and rights holders to profit from partnerships. In addition, major sponsorship players such the automotive and airline industries have started to implement cost-cutting measures to circumvent the losses being incurred. There does however appear to be one industry that’s not just surviving, but making the most of the situation – and that’s the online trading and investment industry. 

Prosperity through the bad times

Online forex trading platforms have been able to prosper in the current climate of uncertainty due to more consumers seeking out ways to make money online. The work-from-home concept has taken hold and opened up all kinds of ways and means for people to seek out new and alternative means of profit. Online trading platforms have been able to provide many with the means to potentially see profitable returns. Deals between these platforms and sporting properties have experienced sustained growth throughout the global health crises, specifically within the realm of European football. As the trend continues, online trading platforms could see a continued upward trajectory as rights holders seek to recoup losses from sponsors who have not just been forced to re-assess their contributions, but from those who have literally had to pull out completely. 

The landscape of online trading platforms

Online trading has really only come into its own over the course of the last 10+ years. Prior to this period of tremendous expansion, the industry was very much deemed niche, exclusive and catering only to the wealthy. Technology has however changed the course of the industry, with the internet receiving the bulk of the credit. Online investment platforms have realised that their reach and penetration of the masses has become easier as the financial market place has become more accessible. As a result, millions around the world have taken an interest in online trading platforms and the products they offer. 

The present sponsorship landscape

As it stands, there are 118 active deals with various online trading platforms spanning 85 brands and equating an annual value of $143.08 million. The sport arena is in many ways the ideal platform from which online trading platforms can advertise themselves and create brand awareness due largely to the fact that the collective demographic of sport fans is very much in line with that of online brokers; thus online trading platforms are able to reach out to their target audience by way of sports sponsorship. While the demographic is predominantly male, women do account for a small fraction of growing numbers. However, the general consensus indicates a male majority with common interests in trading, sports and gambling.  By partnering with globally recognised sports such as European football and Formula One Grand Prix to name but two, online trading platforms are able to emit a perception of monetary strength, boost their global credibility and foster brand awareness.  These partnerships also allow them to expand their customer base thanks to the global appeal of their sporting partners. All in all, things are looking up for online trading platforms and sports. 

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