Return on investment: Moments Lab discusses how AI is poised to redefine sports sponsorship
By Yvan Lataste, Moments Lab head of sports.
The global sport sponsorship market is projected to almost double in value in the coming years, from $97 billion in 2023 to reach $190 billion by 2030 [Statista]. With sponsorship revenues in Europe’s major sport leagues rivalling the value of broadcasting rights, delivering a clear return on investment (ROI) for brands has become a high-stakes game.
Traditional metrics like screen time, ad frequency, click-through rates and placement offer a limited view of a sponsor’s impact. Recent advancements in AI technology open new possibilities and push the industry to look beyond quantitative data towards a richer, contextual understanding of the impact of sports sponsorship on fans.
Social reach
Sponsorship in sports today is far more than a logo on a jersey or a stadium banner, yet moving past basic measurement frameworks remains challenging. An Adidas logo in the same shot as a dramatic boxing knockout evokes a different emotional response – and brand value – than the same logo displayed during a commercial break. That knockout moment is going to have much greater reach and cut-through as it’s replayed and shared and remixed across social channels long after the fight night.
Red Bull has built its entire marketing strategy around being synonymous with high-intensity, adrenaline-fueled moments. When ten-time French cliff diving world champion Gary Hunt takes to platforms at dizzying heights and prepares to launch himself into the air, viewers are immersed in and deeply engaged with Red Bull branding. The iconic yellow and red is there, following Hunt as he spirals into the water, championing an exhilarating way of life.
Currently, analysing social reach is one of the most effective tools for contextual scoring of a brand’s sponsorship visibility. Several AI-powered solutions offer strong results in assessing media value. However, the potential for AI extends further. Incorporating multimodal AI for example, would elevate analysis to account for the emotional and contextual nuances that define sporting moments, and enable rights holders to better demonstrate the potential of these moments to current and future sponsors.
Multimodal AI
The American entrepreneur and marketing expert, Seth Godin, famously said: “Is something important because you measure it, or is it measured because it’s important?” This sentiment captures the need to rethink sponsorship analysis. AI could be key to achieving a fuller understanding of ROI by considering contextual factors.
What if AI-powered video indexing and search tools could instantly assess the value of a match-winning goal that prominently features a sponsor’s logo, and provide this data either in near-real time or as a part of a wider sponsorship analysis? Multimodal detection of, for example, stadium crowd reactions, game phases, or cultural significance, would enable rights-holders to identify “high-impact moments” – the instances that resonate the most with audiences – and apply a multiplier effect to ROI calculations.
This innovation would not be without its challenges, including how to ensure transparency and impartiality in AI-generated data. A critical question emerges: should sports rights holders manage these technologies, or should independent entities oversee them? Balancing these interests is crucial to maintaining trust and integrity.
Redefining KPIs
To accurately measure the true value of sponsorship, the sports industry needs new key performance indicators (KPIs). Beyond traditional metrics like audience reach and logo visibility, we could factor in contextual KPIs to establish a score based on:
Sports intensity: Metrics that gauge the rivalry and suspense of a game. For instance, Barcelona’s iconic comeback against PSG in 2017 is worth more to Lay’s or Nissan, than an ordinary season match in terms of engagement.
Emotional impact: Moving moments, such as Roger Federer crying after losing the Australian Open to Rafael Nadal in 2009, can amplify the resonance of Kia’s logo displayed in the background and give the car company an entirely new way to connect with fans.
Cultural and social significance: Sponsorships linked to movements like “Black Lives Matter” or gender inclusivity create lasting value by aligning brands with societal shifts. For example, Nike saw its share price reach an all-time high in 2018 after issuing an ad with Colin Kaepernick, the American quarterback who famously knelt during the national anthem.
Historical achievements: Events, such as Armand “Mondo” Duplantis setting a world record at the 2024 Paris Olympics and breaking it 20 minutes later, provided a powerful association to Omega’s logo.
Combining these metrics with social reach and media value will enable rights-holders to calculate a more comprehensive and meaningful ROI for brands.
New market opportunity
For this transformation to take place, collaboration between sports rights holders, sponsors, and tech providers is essential. Rights holders, such as the Premier League or Bundesliga should take the lead in offering advanced AI tools to their partners. While AI providers have an opportunity to develop systems that capture the full spectrum of sponsorship value, from visibility to emotional engagement, and deliver actionable datasets.
By integrating quantitative and qualitative metrics with AI’s unparalleled ability to process data quickly, the sports industry has an opportunity to analyse the connection between impactful moments and brand association. This approach goes beyond merely tracking logo exposure; it captures the emotional and contextual significance, provided the AI tools have the necessary training on the sport’s context.
Realising this potential will require a blend of creativity, technological innovation, and a proactive commitment to adapt as AI continues to reshape the sports landscape. Rights holders, sponsors, and tech providers must collaborate to find the right performance indicators that measure the true scale and value of sports and brand partnerships in a video-centric world.