The Big Picture
Recently, Deloitte unveiled compelling findings on the rapid revenue growth in women’s sports. The firm anticipates that global revenue generated by women’s athletics will surpass the $2 billion mark by 2025, signifying an incredible 240% increase over the next two years. This growth is primarily driven by commercial revenue, projected to exceed $1.26 billion, fueled by heightened engagement, brand visibility, and sponsorship deals.
Key Insights for Brands
As trends such as multi-club ownership, treating leagues like start-ups, and enhancing audience access through streaming services become prevalent, key advice for brands centers on engaging from the outset and concentrating on return on objective (ROO). Understanding these insights can create valuable entry points into this flourishing sector.
Revenue Breakdown
Deloitte’s analysis indicates that commercial revenue will account for 54% of total global earnings in the women’s sports arena. Broadcast agreements are expected to generate $590 million, representing 25%, while matchday experiences contribute about $500 million, or 21%. Basketball is leading as the highest-grossing women’s sport worldwide, with revenues of $1.03 billion (44%), followed closely by soccer at around $820 million (35%).
Regional Revenue Highlights
In terms of geography, North America is set to dominate with an anticipated $1.39 billion in revenue, which constitutes 59% of total earnings. Europe ranks second, projected at $420 million (18%), while markets in Asia, Africa, and Australia are rapidly advancing in this space.
The Positive Impact on Sponsors
Sponsors in women’s sports are reaping substantial rewards in meaningful metrics such as brand affinity. Notably, Deloitte highlighted that partners of the WNBA Changemakers program witnessed an astounding average ROI of 286%, with one partner reaping $18 million from a $5 million investment. This indicates how brand strength—a key sales driver—can be significantly enhanced among women’s sports enthusiasts.
Exploring the ROO Factor
While ROI serves as a primary indicator of sponsorship effectiveness, it’s essential to embrace broader metrics like ROO. Deloitte advises brands to evaluate benchmarks in brand affinity, social impact, and fan engagement to truly assess their impact within women’s sports.
Conclusion: Investing in Women’s Sports
The findings from Deloitte emphasize that not only does investing in women’s sports yield considerable financial returns, but it also offers multiple benefits for brands. Associations with women’s athletics build favor with fans—a trend evident with companies like Ally, who are committed to strengthening their investments in this dynamic field. The future is bright for brands that see the value in supporting women’s sports.
