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Financial Services, Technology, and Automotive Industry to Spend $14.1bn on Sports Sponsorships in 2020

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Financial Services, Technology, Others to Spend $14.1bn in 2020

Over the years, sports sponsorships became an important piece of marketing plans of big companies willing to spend millions of dollars to get their brand displayed on big screens and stadium walls.

According to data presented by Safe Betting, the financial services, technology, and automotive industry, as the three leading markets, are expected to spend $14.1bn on sports sponsorships in 2020.

Financial Services Top the List of Sponsorship Deals

From basketball shoes and football boots to Olympic runners’ arms and stadium walls, sponsorship deals have taken a significant turn over the last few years. Thanks to its global reach, sports became a fantastic market for advertising, no matter the company location or target audience. Because instead of running many campaigns to engage with different cultures, sports sponsorships provide companies a unique image with an amazing reach.

Analyzed by industry, financial services top the list of sponsorship deals, revealed the Two Circles survey. Statistics show this sector is expected to spend $6.92bn on sports sponsorship deals in 2020. Companies from the technology market ranked second, with $4.58bn worth of contracts. The Two Circles data showed the automotive industry, as the third-largest sector on this list, is forecast to put $2.67bn in sponsorship deals in 2020. Telecoms, the retail sector, and soft drinks follow, with $2.55bn, $1.81bn, and $1.42bn, respectively.

Statistics also show that TV advertising has the biggest share in the combined value of sports sponsorship deals worldwide. That doesn’t surprise considering that the average television viewership of an NFL regular-season game in the United States during the 2019 season was around 16.5 million.

In 2019, 83% of the value delivery for sports sponsors came through TV ads. However, this figure is expected to fall under 73% in the next four years.

Total Sports Sponsorships to Plunge by 37% Amid COVID-19 Outbreak

Despite leading industries spending billions of dollars on sponsorship deals in 2020, the coronavirus pandemic put most new contracts on hold.

The Two Circles data showed the global sport sponsorship spending amounted to $44.3bn in 2018. By the end of 2019, this figure rose to $46.1bn. However, due to the COVID-19 crisis, global sports sponsorship rights-fees are expected to plunge by 37% year-on-year to $28.9bn in 2020.

As the leading investor, the financial services sector put a total of $12.6bn in sport sponsorship in 2019, with almost 40% of that value spent in the United States. However, this figure is expected to stumble by 45% in 2020.

The automotive industry, as the second-biggest spender in 2019, is expected to witness a 55% plunge this year with the total value of sponsorship deals falling by $3.2bn amid coronavirus pandemic.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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