With athletes soaring as nano influencers, brands take the leap to sign them up

Over the past decade or two, Indian athletes have made huge strides on the international stage securing the country multiple medals at prestigious sporting events including the Tokyo Olympics, Thomas Cup and Asian Games. While these performances are a testament to athletes’ hard work, it also signifies a fast-blossoming culture of sports, which has had an impact on the commercial side of the competition as well.

2008 was a landmark year in this context with the inauguration of the Indian Premier League (IPL), which changed the dynamic of sport marketing forever. Ever since its conception the league has seen a consistent growth of brand investment and endorsement increasing the revenue generated from Rs 2423 crore in the first year to Rs 15766 crore in 2023, as per a report by GroupM.

Traditionally, brands preferred to rely on celebrities and macro-influencers to reach large audiences. However, with the advent of Olympic games, we can see brands increasingly collaborating with lesser-known athletes.

In 2023 athlete endorsement showed the highest YoY growth of 24% since 2015 with athletes like PV Sindhu becoming an ambassador for 14 brands as a result of her success in the last Olympic and 2022 Commonwealth games. Meanwhile rising star shooter Manu Bhaker is not only representing the nations on a global stage but also becoming a pivotal commodity for marketing. This shift highlights how brands are increasingly viewing athletes as powerful influencers, leveraging their unique audience connections and social media prowess.

The increasing influence and growth of athletes on social media platforms like Instagram and TikTok are causing this change in dynamics. Athletes possess niche target audiences (TA), high engagement rates, and a deep connection with their followers, making them ideal partners for brands looking to deliver personalised messages.

We can also take the example of Neeraj Chopra, whose medal spree since 2021 have not only brought him fame but also a loyal fanbase on social media along with 16 brand endorsements in his portfolio. This direct connection with fans offers brands an authentic platform to engage with potential customers and a more credible form of marketing as well.

The media boom in the 21st century has a crucial role in taking sports and athletes closer to the masses, providing extra visibility to sports and helping the audience understand the games better. This ultimately enhanced the relevance of the connection between the masses and athletes

While sponsorships and endorsements represent close association with specific competitions, brand associations with athletes are often signed for a short-term and focus heavily on social media. The transient nature of such platforms aligns well with the dynamic and fast-paced world of sports.

Such collaborations underline the power of social media in creating buzz. Athletes, with their strong emotional connections to their followers, are able to resonate deeply and draw out powerful emotions, making them a perfect choice for moment marketing.

Skipping traditional gatekeepers

A significant aspect of this trend is also the bypassing of traditional gatekeepers like teams and clubs due to advertising and broadcasting regulations becoming more stringent over the years. Hence, brands are increasingly forging direct partnerships with athletes, granting them more control over their brand image and content.

The shift is particularly evident after the International Olympic Committee’s (IOC) adoption of Rule 40, which limits advertising by non-official sponsors during the games. This rule gives athletes more power in selecting and managing their brand partnerships.

This autonomy allows athletes to curate their personal brands and engage in partnerships that align with their values and personal identity.

Athletes are evolving into content creators, a trend that brands have started to take a note of in their marketing strategies. The average conversion rate for athlete content creators stands at an impressive 5-6%, significantly higher than the 0.5-2% seen with traditional macro-influencers. This higher conversion rate can be attributed to the trust and credibility athletes hold with their followers.

Furthermore, athletes' established base of followers is often highly inclined to convert because they see the athlete as an expert in their field. As seen with USA gymnast Simone Biles, who gained over 100,000 followers in less than a month during the Olympics, boasting an engagement rate of 4.35%. Such figures demonstrate the potent influence athletes wield on social media.

 

 

 

 

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A post shared by Simone Biles (@simonebiles)

While short-term engagements can drive immediate results, brands must really think long-term to make this trend sustainable. Investing in prodigal athletes and supporting them throughout their careers can yield significant ROI. This strategy is not just effective in building brand loyalty but also helps in establishing a deeper, more authentic connection with the audience.

The partnership between Under Armour and NBA star Stephen Curry is a great example which exemplifies a long-term, sustainable relationship where the brand has supported Curry throughout his journey, leading to substantial ROI and brand loyalty.

Where do Indian sportspeople stand?

Indian athletes often face challenges in securing notable brand deals unless they achieve international success. Unlike their Western counterparts who can leverage their creator status, Indian athletes still struggle in securing lucrative partnerships without significant achievements on the global stage. However, successful performances can unite audiences and dramatically enhance ROI, as seen with athletes like Lakshay Sen and Manu Bhaker.

 

 

 

 

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A post shared by Manu Bhaker (@bhakermanu)

India is a nation with a large population and a lot of diversity. The rise of lesser-known athletes in brand partnerships during the Olympics and other sporting leagues marks a transformative shift in influencer marketing. Hence, as we move forward, it is essential to make sure that the benefits of the gains are accessible to different sections of the society - be it in terms of demographics, geography or even types of sporting interests

Brands that recognise and adapt to this trend can leverage the unique advantages these athletes offer: niche audiences, high engagement, and authentic connections. By considering athletes as content creators and investing in long-term relationships, brands can achieve sustainable success and forge stronger bonds with their target audiences.

Finally, it’ll be a miss not to acknowledge the role that women athletes like Mary Kom, Saina Nehwal, Sania Mirza, Meerabai Chanu, Vinesh Phogat, Manju Bhaker and so many more have played in bringing more eyeballs to their sports and causing this influx of investment from household brands. At the Tokyo Olympics 2021, a total 127 athletes qualified to represent the sporting nation. This included 56 female athletes, i.e. 45% of the sportspersons from India who participated were women.

The platform that we set for our athletes today will decide the future that our country will have on the podiums tomorrow and this includes not just infrastructural developments but also financial backups that we provide our athletes.

Krisneil Peres, co-founder and chief visionary officer, Fame Keeda.