#BizTrends2025: Judith Mugeni - Back to the future, sponsorship in 2025

Judith Mugeni says success in 2025 will mean harnessing the power of sponsorship in a futuristic environment by returning to fundamental principles (Image supplied)

Going back to basics means adopting the value-based sponsorship definition by David Ross where at its core, sponsorship is defined as a mutually beneficial business relationship where the sponsor provides benefits in exchange for measurable results aligned with pre-defined objectives.

A value-based sponsorship

A value-based sponsorship has the target audience, the fans, at the centre and not the property. It asks what the consumer is truly passionate about (platform and property) and how can my brand authentically engage and develop a relationship with them in this space.

Key Foundational elements

Organisational alignment

• Aligning on and crystalising the definition of sponsorship marketing within your organisation.
  
• Aligning on brand and business objectives.
  
• Aligning the role that the sponsorship needs to play for the brand and different business units i.e. Pre-defined objectives that are measurable, Why sponsorship? What should sponsorship help solve? Brand, business and communication objectives.

Audience-centric approach

• Aligning on putting your target audience at the centre. Identify the target audience's passion points and interests, what are their passion points? What do they care about?

Data-driven decision making

• The market context is key in deciding on which sponsorships as well as maintaining the brand in the space. This approach allows for conducting landscape and gap analysis of the sponsorship market.
• Unpack key questions such as what is happening in the sponsorship market across different passion points, competitor activity within the passion points and audiences, spend within the categories, and which categories are cluttered. Which categories are over/under-invested in? Where are there gaps/low-hanging fruit?

Strategic selection criteria

• Develop custom-made criteria for objectively selecting strategic fit sponsorship platforms and properties. The above process eliminates executive whim.

Once the property is selected, it is key to:

• Leverage the sponsorships - logos alone do not foster long-term relationships.

• Develop measurement tools to track the sponsorship against the process outlined above.

Keep abreast of the trends

The AI prompt (Perplexity) on what sponsorship trends to look out for in 2025 in South Africa generates the following trends.

Data-Driven Sponsorships

Companies are increasingly utilising advanced analytics and AI technologies to gain deeper insights into target audiences, allowing for more personalised and effective campaigns.

Digital innovation

There's a growing emphasis on leveraging digital platforms to reach global audiences, share exclusive content, and host interactive experiences like live chats with players.

E-sports growth

The e-sports market in South Africa is experiencing a rise in sponsorship and advertising opportunities, with brands targeting the younger, tech-savvy demographic through digital and influencer marketing strategies.

Mobile-first approach

With increasing mobile internet penetration, mobile-friendly marketing strategies will become crucial for sponsors.

Influencer marketing evolution

The focus is shifting towards micro-influencers with more engaged and authentic connections with their audiences.

Sustainability and Social Impact

Brands will likely sponsor events or initiatives that align with their sustainability goals or social values, helping build a positive brand image.

Enhanced broadcast sponsorships

Sports broadcast sponsorship remains a key strategy, with the market expected to grow significantly due to increased television penetration and demand for local content.

Community impact

Sponsorships are focusing more on creating lasting impact and building meaningful connections with audiences

Back to the future means focusing on foundational elements and emerging trends, allowing brands to create impactful sponsorships that resonate with audiences and deliver measurable results in the evolving landscape of 2025.