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Blockchain companies' investments in sports sponsorship are projected to reach US$5 billion by 2026, according to a 2022 global sports marketing report by analytics firm Nielsen.
The report identified legitimacy and fan engagement as the two key factors that contribute to the future success of cryptocurrency sponsorships.
Nilsen adds that long term, it will be vital for organizations to properly vet sponsors and not let revenue impede due diligence.
The study found that long-term success in sports sponsorship will rely on establishing a connection between awareness and conversion, which is especially significant for firms in the cryptocurrency sector because it is a new and unusual industry.
Many people have yet to fully enter into cryptocurrency despite the increased overall awareness of it.
The Nielsen report, which identified esports and sports fans to be leading the crypto conversion, noted that 52 percent of esports fans and 39 percent of sports fans are aware of crypto tokens, significantly higher than the general population.
Additionally, 24 percent of sports fans also expressed an interest in non-fungible tokens (NFTs).
According to the report, cryptocurrency, blockchain, and NFT sports sponsorship investment will climb by 778 percent in comparison to 2021.
IT software and hardware will see the next highest increase of 44 percent. Retail, automobile, and energy sponsorship investment are anticipated to rise by seven percent, five percent, and four percent, respectively.
