Nielsen estimates crypto sports sponsorship spend at $5 billion in under 5 years

cnbctv18.com:

Global market research firm Nielsen expects sports sponsorships through cryptocurrencies to reach $5 billion by 2026. “As a sponsorship category, crypto has quickly catapulted into the limelight, growing exponentially faster than traditional categories.

Given the widespread exposure that sports provide, the opportunities for crypto-related sponsorships are blossoming, and the number of inked deals dramatically increased between 2019 and 2021,” Nielsen said in its latest sports marketing report for 2022.Nielsen projects a 778 percent growth in sports sponsorships by 2026 from the cryptocurrency, blockchain, and non-fungible tokens (NFT) spaces. Here’s a look at the sponsorship growth expected from each segment:Over the last year, sports sponsorships deals have seen stratospheric growth from the crypto, NFT spaces, with the percentage growth pegged at 1,100 percent, according to the report.

It has already left far behind.Fan engagement and legitimacy are key driversNielsen has explicitly mentioned that “legitimacy and fan engagement” will play pivotal roles in drawing crypto sponsorships. The firm added that revenue streams cannot compromise the quality of due diligence, and hence sponsors will have to be thoroughly vetted as well.“For brands looking to sports for sponsorship opportunities as a way to engage with new audiences, long-term success will hinge on bridging the gap between awareness and conversion.