Some companies sponsor sports as a way to advertise themselves. Some people think it is good, while others think there are disadvantages to this. Discuss both sides and give your opinion?

As the world of business continues to evolve, the way people advertise their products and services

also

changes

accordingly

to fit the newer generation of consumers. Recently, one of the most popular ways of advertising is the act of sponsoring certain sports to expose the

brand

of the

company

. As seemingly beneficial as it sounds, there are hidden costs and cons of

this

way of marketing.

Hence

, in

this

essay, both pros and cons of

sport

endorsing will be discussed.

Firstly

, it is certainly true that sponsoring popular

sport

activities

such

as baseball, football and basketball, through putting up billboards within the arenas or stadiums and playing commercials on the huge TV screens during break times, can bring a lot of attention to the

brand

of the sponsors. As a matter of fact, the whole purpose of sponsoring any kind of public gathering, that attract a large amount of people to participate in

such

as the Olympic, is done with the intention to unconsciously insert their

brand

awareness into the consumers' head, making them think or be reminded of their brands

first

when asked about a certain field of products or services.

For example

, according to a recent survey conducted by the researchers of the University of Oxford, it has been found that companies, consist of a high number of sponsorships in

sport

events, have approximately up to a whooping 90% chance of getting mentioned

first

by people when asked to list down the names of goods or services available in a certain market.

On the other hand

, there have

also

been some opposition to spending money to support sports players and activities due to the low level of "Investment Return Rate".

In other words

, by investing a large sum of fund into certain famous

sport

players and events,

company

risk the fact that their investment will not come back in the form of increasing sales,

brand

awareness, or strongly liked public reputation, as much as they expect it to. The reason behind

this

is because most of these advertisements are usually hidden in the background or costly to the

company

which can lead to financial ruins.

For instance

, there was a case in 2018 which was about a hair care product

company

becoming bankrupt due to overuse of the financial resources of the

company

just to support their

sport

marketing campaign. The

company

eventually got some of their sales going up,

however

, it was not enough to sustain the business, and

as a result

, filed for bankruptcy by the end of 2018. In conclusion, people face trade off, and in the business and marketing field is

also

no different. No matter what form of marketing a

company

might consider, proper measures between advantages and disadvantages must be considered before jumping into any operation. From a personal perspective, sports sponsoring should only be done by financially stable companies that have a lot of fund to spare.

Conversely

, medium and small companies must find other ways of advertising that does not eat up a large amount of money.