Leveraging Athlete Partnerships for Global Expansion
This post originally appeared on the ProStories blog
If you’re a growing sports brand, expanding to new markets isn’t just a nice idea, it’s the best way to take advantage of economies of scale and tap into new groups of hungry consumers.
The numbers are there. 87% of Instagram users are outside of the U.S. 87%! The US makes up only 19% of all ecommerce sales—and it’s 10th in growth.
Makes 4th place in the FIBA World Cup seem pretty good.
But how do you do it? How do you tap into these markets?
Running ads is one way to go. NIL and superstar endorsements from players in the NBA and the NFL are another. But one more option, one that’s way friendlier to your pockets and more effective is partnering with a group of athlete influencers with a special advantage in overseas markets: international pros.
Advertising and NIL influencers
Any advertiser who tries to play nice with audiences on Google, Instagram or Twitter knows that ROAS (return on ad spend) is the name of the game. But with so much competition in recent years, that game is becoming increasingly hard to win.
Instagram’s cost per click (CPC) has risen to almost $3.00. If you’re converting on average, which is about 1% according to The Bazaar Voice, that means you’re spending around $300 per sale. Unless you’re selling luxury shoes or computers, this cost per sale is probably not sustainable. Not to mention the thousands of dollars of nurturing and testing it takes to even find that profitable audience.
Rather than battling it out on the ad networks, many sports brands are turning to NIL deals, the new darling of influencer marketing. And while it’s a great opportunity, it’s not for everyone.
Right now, NIL is best for local businesses who are in the same area of a university’s athletes. That, paired with a cloudy future led by university-funded collectives with no clue about what legislation will be passed down in the coming months and years, means that NIL might not be the long-term solution for everyone.
Now, I don’t want this to seem like I’m bashing NIL. It’s a net positive for sports, and especially for college athletes who can finally get paid for the huge amount of value they bring to their respective programs. But is it the best option for a sports brand, especially one who has sights outside of the US? Probably not.
The benefits of working with non-US professional athletes
Fashion, family, technology—today’s athletes are multi-faceted influencers. But overseas pros have an extra layer that makes them ideal for partners looking to go global: proximity.
Just as universities have local fan bases that make NIL deals effective, professional teams and athletes in cities throughout Europe, Asia and Africa have a deep level of connection with their communities. While global superstars like Naomi Osaka and Lamelo Ball are easily recognizable around the world, it’s the local heroes who have the trust of the communities.
And with smaller, more intimate settings of games (although no less raucous), as influencers their effectiveness is incredible. Not to mention many overseas pros started their playing careers at US universities, opening up your brand to the best of both worlds: US markets and specific cities around the world.
Bringing it all together
No doubt, there are challenges and special considerations when working with pros overseas. Cultural differences, local regulations, and language/timezone barriers are some of the big ones. There’s also the logistics of needing to ship a product to Spain or Lithuania for an athlete to try out.
And while these barriers might have stopped companies in the past, we live in an increasingly borderless world.
Getting over some of these hurdles is becoming easier, and with a partner like ProStories on your team, that specializes in finding international professional athletes for your brand, you can see a much better return on your marketing dollars, and start to lay roots around the world.
Get in touch to connect with athlete partners who are ready to help you go global.