How crypto manufacturers are making a splash with the NBA–and followers – Nielsen

Despite the recent proliferation of cryptocurrencies in American lives – hello Elon Musk on Saturday Night Live – cryptocurrencies still have something to gain before they become ubiquitous in consumers and their finances. They are ubiquitous in the sports world. The sharp rise in crypto sponsorship deals gives the emerging industry tremendous visibility – but these crypto brands must ultimately expand their efforts beyond naming rights, logo patches, and arena signage to be successful with consumers.

The role of crypto in sports has gone from being a niche investment to being a major growth driver within two years. According to SME Sports Sponsorglobe, 84 new crypto / blockchain / NFT sports deals were signed worldwide in the first three quarters of 2021. That is 664% more than eleven were signed in 2019 in the same period. Auto deals grew 52% while insurance contracts grew 6%. The most significant deal of the year was the $ 20 million, 20-year naming rights contract that will turn the Staples Center in Los Angeles into the Crypto.com arena. It’s worth $ 700,000,000.

This is the NBA’s newest crypto deal. Crypto.com was recently named the Clippers and Lakers’ new arena. It also became the official jersey patch partner for the Philadelphia 76ers. Regardless, Coinbase is the official crypto partner of the NBA, FTX recently acquired the naming rights to the Miami Heat arena and made Golden State Warriors star Steph Curry its brand ambassador, and StormX is the official jersey patch partner for the Portland Trail blazers.

Crypto advertising and sponsorship in sports makes sense for a number of reasons, with visibility usually being the most important factor, especially with new brands and categories. In the US, sports programming made up 98% and 72% of the top rated programs, respectively, and cable television made up 72%. Super Bowl LV accounts for 20.3 billion minutes. Activations, signage and displays at sporting events provide additional advertising and attention.

These massive marketing efforts have the advantage that sporting events are more open to sponsorship. In fact, the Trust in Advertising 2021 SMB survey found that 81% of global consumers trust brand sponsorship at sporting events either fully or slightly, just short of recommendations from friends and family and branded websites. Because of the high level of consumer interest in sports sponsorship, brands need to shift their attention from viewing to awareness.

The data from SME Fan Insights shows why the NBA is such an excellent partner for cryptocurrencies. Only 49 percent of NBA fans are interested in cryptocurrency products. That is nearly 80 percent more than that of the general US population. Additionally, 46% of NBA fans intend to use a crypto product in the next six months, which is 61% more likely than the general population.

Non-fungible tokens have grown in popularity as teams and leagues use them to provide added value to fans. NBA Top Shot is an NFT marketplace that sells officially licensed digital collectibles. NBA Top Shot was launched in October 2020 and was a huge success.

NBA fans as well as crypto-savvy players are not only open to NFTs. SME Fan Insights data shows that 43% of NBA fans intend to purchase NFTs within the next six months, which is 75% more than the average population. The NFTs are a great option for NBA fans:

• They are a great way to interact with your team (26%)
• Offer growth potential (23%)
• A tax authority (21%) recommended it

Although blockchain and crypto technology are gaining traction in the sports sector, it will take time for people to get used to them. While sports sponsorship is highly regarded for trust, only 48 percent of NBA fans are unfamiliar with NFTs, and 43% don’t even know what cryptocurrency is. However, certain brands like Crypto.com and Coinbase are gaining popularity and increasing usage.

Blockchain technologies, NFTs and cryptocurrency have more to offer than traditional sponsors like those from the insurance, travel and auto industries. Exposure is the first and most important step in raising awareness. The sports industry offers many opportunities for visibility. Now that cryptocurrency awareness has been created through these and other sponsorships, it is time to bridge the gap between awareness and intent and move from branding to conversion, as outlined in the SMB Brand Response whitepaper. Just like every brand needs to do, they consolidate and expand their relationship with customers from one-way conversations to two-way conversations, supported by education and trust building.