eToro punts on sports sponsorships to boost its branding
eToro, the major trading platform with a presence in many countries, has long been using sports sponsorships to grow its user base being one of the first trading platforms in the world to use this strategy.
The company clearly understands that a majority of the traders still tend to be male and they are also likely to watch a lot of sports as a form of relaxation and to mingle with other people and traders as well. So, the company realized that its target market tends to have interest in sports and so it decided to sponsor sports teams, especially soccer clubs around the world to make its presence felt and also to remind its existing and new users of its growth and expansion as it began to sponsor more and more sports clubs. It currently sponsors more than 25 football clubs including those in the Premier League and Bundesliga.
The company recently posted its Q2 results where it continued to show some strong user metrics, mainly driven by the high interest in crypto trading. This has been a common trend in most of the trading platforms which have announced their results as for many companies, their trading volumes have been dominated by crypto trading during the course of the year, partly due to the high volatility and also due to the growing interest in this field.
The platform currently boasts around 2 million users with the strong possibility of future growth in the Americas, US, and Latin America. In the US, due to regulatory reasons, it can allow only crypto and copy trading for its users and if it does manage to get regulatory approval for other types of trading, then there is another possibility of massive growth in this region for the company.
Recently, the broker renewed their sponsorship with Aston Villa and Newcastle United which clearly shows that these partners are planning to have a long term relationship and this, coupled with the fact that the company continues to increase its userbase, shows that its strategy of aligning their brand with sports clubs is clearly working. Now, this strategy is also being followed by other trading platforms including crypto exchanges that have been trying to strongly align themselves with various sports brands in their respective regions. eToro continues to focus on copy trading and has achieved continued success over the years as it keeps adding more features and trading instruments to its platform.