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How Artificial Intelligence is transforming sports marketing and sponsorship

In this article, C. Deep Prakash, Assistant Professor at SPJIMR, explains that AI-driven Virtual Product Placement is transforming sports sponsorship into dynamic, localized, and personalized brand storytelling — enhancing fan engagement, inclusivity, and real-time advertising relevance globally and in India.

by Guest Column
October 16, 2025
in Authors Corner
Reading Time: 4 mins read
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How Artificial Intelligence is transforming sports marketing and sponsorship
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A new era in sports marketing

Artificial Intelligence (AI) is no longer a futuristic buzzword. It is reshaping industries today. In sports, AI has influenced performance analysis, ticketing and fan engagement. But the most disruptive shift is emerging in sponsorship and advertising. The traditional model of static billboards and jersey logos is giving way to Virtual Product Placement (VPP), an AI-driven approach that allows brands to integrate seamlessly into sports broadcasts.

In September 2025, two developments spotlighted this shift. In Europe, FC Barcelona’s Barça Innovation Hub (BIHUB) invested in Adspective, a Polish startup specialising in virtual advertising. In India, JioStar launched Moments.AI, a contextual advertising platform designed to redefine brand visibility in sports (YouTube demo). Though geographically distant, both moves reflect a common trajectory: AI is reshaping sponsorship into a contextual, dynamic and deeply personalised experience.

What Is Virtual Product Placement?

Traditional product placement is familiar to most fans—a soft drink on the table during a broadcast or a shoe brand’s logo on a player’s jersey. These are fixed, expensive and negotiated months ahead of time.

VPP transforms this model. By combining AI, computer vision, and augmented reality, brands can digitally insert logos or products into live or recorded sports broadcasts. These ads appear natural, integrated into the scene, and most importantly, can change dynamically.

Imagine watching a Barcelona match in Mumbai and seeing Indian brands like Tata, while a fan in Madrid sees Spanish sponsors. Or picture a cricket broadcast where an energy drink ad appears the moment a wicket falls. VPP is not just scalable; it is contextual, localized and aligned with the rhythm of sport itself.

FC Barcelona’s bet on Adspective

When FC Barcelona makes a move, the sports industry pays attention. Through its innovation hub, the club has invested in Adspective, whose technology allows dynamic ad placements within broadcasts. For European football, this opens immense possibilities. Sponsors can target segmented audiences across continents without being bound by static boards or season-long deals. A single game can host multiple sponsorship layers depending on who is watching, maximizing revenue and ensuring local relevance.

For FC Barcelona, the investment signals a commitment to remain more than a football powerhouse, positioning itself as a global leader in sports innovation. For fans, it suggests a cleaner in-stadium experience with less physical clutter and a more engaging digital viewing environment.

JioStar’s Moments.AI in India

In India, where cricket dominates the national imagination, contextual advertising could be revolutionary. JioStar’s Moments.AI platform focuses on embedding ads triggered by real-time events. When a wicket falls, a celebratory product placement might flash on-screen; when a football goal is scored, a festive ad could appear. Rather than interrupting the game, advertising becomes part of the narrative.

This shift is especially significant in India’s sponsorship market. Smaller brands, previously excluded by high costs, can purchase ‘moments’ instead of season-long packages. This democratization allows Indian startups and local brands to share space with multinationals while reaching audiences at emotionally charged points in the game.

Common threads: Barcelona and JioStar

Despite their differences, FC Barcelona’s Adspective investment and JioStar’s Moments.AI share striking parallels. Both replace static placements with dynamic, AI-driven branding. Both prioritize personalization and localization—FC Barcelona through geographically segmented ads, JioStar through context-sensitive triggers. And both showcase the scalability of VPP, where global giants and local businesses can coexist in the same ecosystem. These developments reveal a future where sponsorships are no longer about one-size-fits-all campaigns but about tailoring messages to audiences in ways that would feel natural and engaging.

Why the Indian market is poised for change

India is uniquely suited to adopt these innovations. Its young, mobile-first population consumes sports digitally, and cricket alone commands hundreds of millions of viewers. Younger audiences value authenticity and are often resistant to disruptive advertising. Virtual placements embedded into the game itself are more likely to resonate with this demographic.

India’s cultural and linguistic diversity further enhances the appeal: AI-driven ads can be localized for different languages or regions without escalating costs. For brands, the biggest advantage lies in measurability. Unlike traditional sponsorships, which often struggle to prove return on investment, AI-driven placements provide real-time engagement data, tying ad spend directly to outcomes. This transparency is invaluable in a price-sensitive market like India.

Looking ahead: Resonating with the next generation

The future of sports sponsorship will be defined by personalization and emotional relevance. Fans could soon experience hyper-targeted ads: a teenager watching a highlight reel might see sneaker promotions, while a parent viewing the same clip might see financial services.

Advertising will also become more emotion-driven. AI could analyze real-time fan reactions or social media sentiment to trigger ads that reflect the prevailing mood, whether joy after a goal or anticipation before a penalty.

Equally important, this shift will declutter live venues. Stadiums packed with physical banners could give way to cleaner environments, while digital broadcasts carry fluid branding tailored to viewers. And because sponsorship becomes accessible in micro-moments, local startups could compete alongside global corporations, making the ecosystem more inclusive.

A new playbook for sponsorship

The announcements from FC Barcelona and JioStar are not isolated events. They represent a global shift from static sponsorships to AI-driven, contextually relevant storytelling. For India, this transformation is particularly exciting. With a vast sports-loving population and a vibrant advertising market, the country could become a proving ground for innovations that later scale worldwide. For fans, it means seeing brands not as interruptions but as natural participants in the drama of sport. And for brands, it offers sponsorship that is not just more effective but also more meaningful. To conclude, AI is not just changing how sports are played or watched; it is changing how sports moments will be remembered by individuals.

Views are personal.

Tags: C. Deep PrakashSPJIMR

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