There is a new Football Sponsorship In Forex industry as Exness Real Madrid Partnership deal and Ronaldo sponsorhip hit the news earlier this week. So, we look into details, is it worth it?
3 August, AtoZ Markets – Exness, a Forex broker with high leverage option and big exposure in Asia. They are also trying to establish themselves in Europe as well. With their recent regulation acquisition in the UK and Cyprus their EU ambition is getting bigger and bigger. Meanwhile, what will Exness Real Madrid Partnership deal bring to the company? Exness Real Madrid Partnership deal is signed for 3 years and likely to cost the company as much as $3 million per year.
It is not the first time that brokers sponsor big Football clubs. FXPro initially started the sport sponsorship trend back in 2010. IronFX FC Barcelona sponsorship attracted strong attention back in 2014. However, Exness is the first official Forex broker-sponsor of the Real Madrid. Exness Real Madrid Partnership deal will give Exness an access to exclusive promotional material and PR rights for players and the brand. It also will have an access to digital channels.
Exness Real Madrid Partnership deal - $3mln/year
What kind of benefit does Exness Real Madrid sponsorship deal offer? This is the main question for many Forex industry participants.
Like many other marketing channels, Sports Sponsorship enables brokers to reach the club fans. Indeed, there is correlation between Football fans and the Forex industry. Both Forex and Football involve adrenaline. And by sponsoring football clubs like Real Madird Exness sponsorship, Forex brokers aim to tap into adrenaline loving new potential clients.
For Exness, this seems to be a part of their marketing strategy. If you look into the Real Madrid fan map, you can see that the club has most of its fans in the following regions:
- South East Asia (Indonesia, Thailand, Singapore, China)
- Europe (Spain and the EU)
- South America
- Central America
- Gulf countries (UAE, Bahrain, Kuwait)
Exness Cristiano Ronaldo sponsorship
Immediately after announcing Real Madrid media partnership, they also announced that Exness is sponsoring the Real Madrid star Cristiano Ronaldo. Cristiano Ronaldo was previously also the Brand ambassador of Xtrade. Xtrade leveraged Cristiano Ronaldo name targeting China, however could not sustain their clients. The Chinese clients started protesting, CySEC suspended Xtrade license as well saying the company was not fair.
So, the main question is how well can you handle traders? How will they provide education to those traders who have no idea about Forex trading risks?
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Exness Real Madrid Partnership deal - is it worth it?
The CEO of Exness, Peter Valov, made the following statement:
"Exness' unwavering spirit and passion to be the best in our field is our most defining characteristic, and we have an insatiable appetite for success. So I truly could not think of a more suitable partner to join forces with in a joint pursuit of constant breakthroughs.
Real Madrid stands for excellence, empowering leadership, and fair practice: the very foundations Exness was built upon. We look forward to breaking new records and establishing new standards together."
Is it worth it for Exness to spend $3 million every year for Real Madrid sponsorship? What about sponsoring Cristiano Ronaldo sponsorship (we don't know the cost yet)?
If a company is operating as a full STP broker, such a partnership would be too costly to sustain. However, Ronaldo and Real Madrid together have millions of fans globally. Just a Twitt from Ronaldo with Exness logo or appraisal of Exness will reach to thousands of people.
People will just want to register on Exness website to see what Exness does. Most people generally don't pay attention to the risk disclaimer in any case. Meanwhile, Exness does not have a minimum deposit requirement for their cent and mini account types. Additionally, Exness offers "unlimited" leverage on these accounts. Thus, people will just deposit $50 or $100 to test the industry and not knowing what they do. They will lose their entire account for the spread only thanks to "unlimited leverage". To avoid this, Exness will have to have a strong education base.
AtoZ Markets has reached out to Exness team for comments, however they have not provided comments yet despite saying they will.
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