Slam dunk: How crypto brands are causing a sensation with the NBA and fans

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Despite the recent proliferation of cryptocurrency in the lives of Americans – hello Elon Musk on Saturday Night Live – cryptocurrencies have some ground to gain before they become ubiquitous with consumers and their finances. But they quickly became ubiquitous in the global sports industry. The significant increase in crypto sponsorship deals provides massive visibility to the nascent industry. Still, these crypto brands will eventually need to expand their efforts beyond naming rights, logo patches, and arena signage to be successful with consumers.

In just two years, crypto’s involvement in the sports industry has grown from niche investments to a huge engine of growth. According to Nielsen Sports Sponsorglobe, 84 new crypto / blockchain / NFT sports agreements were signed around the world in the first three quarters of 2021. This is 664% more than the 11 signed in 2019 during the same period. In comparison, auto transactions increased 52% and insurance transactions increased 6%. Of the deals signed this year, none were more remarkable than the recently announced $ 700 million 20-year naming rights deal that will turn Staples Center in Los Angeles into Crypto.com Arena on Christmas Day.

The name change is just the latest crypto deal from the NBA. In addition to being the new arena name for the Lakers and Clippers, Crypto.com recently signed a six-year contract as the official jersey patch partner for the Philadelphia 76ers. Separately, Coinbase is the official crypto partner of the NBA, FTX recently purchased the naming rights to the Miami Heat arena and made Golden State Warriors star Steph Curry its brand ambassador, and StormX is the partner. official jersey patches for the Portland Trail Blazers.

Crypto advertising and sports sponsorships make sense for a range of reasons, with visibility usually being the primary driver, especially among new brands and categories. In the United States alone, sports programs accounted for 98% of the most viewed programs through broadcast and 72% of the most viewed programs on cable TV between January and September, with Super Bowl LV accounting for 20.3 billion minutes views. Signage, displays and on-site activations at sporting events only add additional levels of awareness and promotion.

The benefit of these massive efforts is that consumers are very receptive to brand sponsorships at sporting events. In fact, Nielsen’s 2021 Advertising Trust Survey found that 81% of global consumers trust brand sponsorships at sporting events fully or somewhat, just behind referrals from friends, family and branded websites. High visibility and consumer sentiment towards sports sponsorships validates the dramatic increase in crypto investments; at the end of the day, brands will have to shift their efforts from awareness to consideration.

Through this lens, data from Nielsen Fan Insights shows why the NBA is such a strong partner for crypto. Notably, just under half of NBA fans (49%) express a general interest in crypto products, which is 80% more likely than the general U.S. population. Additionally, 46% of NBA fans intend to use a crypto product within the next six months, which is 61% more likely than the general population.

From a fan engagement perspective, non-fungible tokens (NFTs) have quickly gained momentum as leagues and teams use them for new and engaging ways to deliver added value to fans. NBA Top Shot, for example, is an NFT Marketplace offering officially licensed digital collectibles. After opening to the public in October 2020, NBA Top Shot has become one of the most publicized NFT hits to date.

Much like their receptiveness to crypto, NBA fans are more than aware of NFTs. According to data from Nielsen Fan Insights, 43% of NBA fans intend to buy NFTs in the next six months, which is 75% more likely than the general population. For NBA fans, NFT:

Despite the growing presence of crypto and blockchain technology in the sports industry, consumer familiarity and intent to use will take time to develop. Sports sponsorships are highly regarded in terms of trust, but just under half of NBA fans (48%) are still unfamiliar with NFTs and 43% are unfamiliar with cryptocurrency, let alone their need. However, the importance of some brand sponsorships, such as Crypto.com, Coinbase, and FTX, seems to be paying off both in terms of brand awareness and usage.

Unlike traditional sponsors, like those in the automotive, insurance and travel industries, cryptocurrencies, blockchain technologies, and NFTs have more to gain from a fan perspective than just outreach. Raising awareness through exposure is a critical first step, and the sports industry is teeming with visibility options. After building awareness of the cryptocurrency through these sponsorships (and others), there will come a time to bridge the gap between awareness and intention, moving from branding to conversion, as detailed in Nielsen’s White Paper on Brand Resonance. They will, like any brand, strengthen their unique value propositions and evolve their relationships with fans from one-way conversations to two-way conversations supported by education and trust building.

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