MLB Revitalized Sponsorships and the Sport — Here's What the Numbers Say
Major League Baseball (MLB) made headlines with its strategic overhaul earlier this year, aiming to make the sport more dynamic and engaging. Shorter games and new rules translated to less advertising time, but recent data reveals a surprising trend - quality has triumphed over quantity. Team sponsorship revenue has surged by 23% to reach an impressive $1.5 billion this season, according to SponsorUnited. This substantial growth was driven by 500 new sponsors, pushing MLB's deal volume beyond that of even the NHL and NFL.
The changes implemented by MLB have not only made games more exciting but also substantially increased the sport's viewership. In core markets, league viewership has outpaced top primetime shows by an astonishing 125%. This surge in visibility led to 135 additional deals compared to the previous season. New advertising opportunities, such as dynamic dugout signage, became a game-changer, with 67 brands seizing this asset, making it the most popular choice in 2023.
Bob Lynch, founder and CEO of SponsorUnited, noted the challenge of reduced exposure time during shorter games, but he also highlighted MLB's remarkable 23% growth in total sponsorship revenue year over year, making it an outlier even when compared to other professional sports leagues.
The research, which delved into 850 brands and 3,500 deals, also encompassed 13,500 assets from the league, teams, athletes, and brands. This comprehensive analysis, conducted between Jan. 1, 2019, and Sept. 30, 2023, drew data from SponsorUnited's proprietary platform. Social media data from all 30 team accounts, spanning platforms like Instagram, TikTok, and Facebook from Feb. 1, 2023, to Sept. 26, 2023, was included. Player endorsements were measured by the number of times a player actively promoted or advertised for a brand through a campaign or brand activation within the past 12 months.
New Game, New Blood
MLB's resurgence isn't solely attributed to rule changes; the infusion of new talent has played a significant role. The encouragement of attempts to steal bases and the emergence of 38 top prospects have energized games. Young players like Corbin Carroll and Gunnar Henderson experienced a social media presence boost of 327% and 97%, respectively. These rising stars have become magnets for advertisers, particularly as their online influence continues to grow.
Bob Lynch emphasized MLB's approach of relying on its athletes, especially the younger ones, to build their brands. Notably, Henderson secured two deals this season, while Carroll secured four, indicating a strong inclination among brands to partner with promising talents early in their careers. Julio Rodriguez of the Seattle Mariners led the player endorsement game with a remarkable 20 endorsements in the past 12 months, making him the most endorsed player of the season, followed by Vladimir Guerrero Jr. of the Toronto Blue Jays with 13 endorsements.
Social media engagement has emerged as a key driver of brand engagement, with teams like the Los Angeles Dodgers and the Houston Astros leading the way. Chevrolet and T-Mobile have stood out as the most engaging brands.
Top Dog Advertisers
Financial services takes the top spot as the league's leading advertiser, contributing around $200 million in revenue. This category witnessed a remarkable 38% increase in investment from the previous year. However, the most significant gain came from the technology sector, with a substantial 53% increase generating approximately $80 million in revenue. Interestingly, the automobile industry was the only one among the top 10 to decrease its spending, with an 8% drop.
A notable shift in MLB's advertising landscape involves the alcohol category. Traditionally, beer has been integral to baseball marketing, but it no longer dominates MLB's sponsorship deals, experiencing a 10% decrease to hold a 45% share this season. This share is now equal to the combined share of ready-to-drink products and spirits, reflecting changing consumer preferences.
Bob Lynch commented on this shift, noting that other categories are diversifying the portfolio of sponsorships, expanding beyond the historically dominant sectors. MLB has encouraged advertising purchases by offering various assets in addition to jersey patch deals, including video board advertising, ribbon board advertising, outfield advertising, and different types of backstop signage. This customer-centric approach has proven successful, emphasizing the importance of creating special events and delivering signage in innovative ways.
In a rapidly evolving marketing landscape, MLB's story serves as a valuable lesson for other sports leagues, emphasizing the prioritization of fan experience while accommodating brand partners. By creating relevant and special events within a condensed timeframe, MLB has successfully delivered value to consumers and brand partners alike.