Sponsorship spend down 4pc, but positive signs emerge - Onside survey
Sponsorship spend in Ireland fell by an estimated 4pc in 2011 to €120m, but some positive signals are emerging for the industry, according to a new study from Onside Sponsorship.
The company hinted at some stabilisation in the market, noting that the 4pc drop is an improvement on last year’s 6pc decline and saying a 1pc reduction in spend is expected this year.
“While some other marketing tools felt the economic downturn more rapidly, sponsorship on the other hand, due to its inherent long term nature, has been somewhat more sheltered from the effects of the wider economic uncertainty,” said Onside founder and managing director, John Trainor.
“2011 saw some significant deals concluded, including eircom and GAA Senior Football Championships, the National Lottery and Dublin City Marathon, along with a series of high-profile renewals such as 02’s partnership with Irish Rugby and Bank of Ireland’s renewal with Leinster Rugby also supporting a relatively good year for the industry last year.”
The survey reveals an improvement in the overall sentiment among sponsors, with two in three expecting spending to remain the same or increase in 2012, compared with just 27pc a year earlier.
While 86pc of sponsors expect to increase their use of social media to leverage their sponsorship programmes in 2012, 55pc of companies said they would be using public relations more in their sponsorship activations, up from 12pc planning an increase in this area last year.
O2’s sponsorships of Irish Rugby and The O2 were voted for most frequently by sponsorship industry peers as the standout activities of 2011, along with Guinness and rugby and the Aviva Stadium sponsorship.
Brian O’Driscoll again emerged as the most marketable personality in terms of appeal to a brand for personal endorsement deals, mentioned by one in four of those surveyed by Onside – followed by Katie Taylor, Rory McIlroy and Jonathan Sexton.
Looking forward, Onside said the betting / online gambling, energy and airline sectors have been tipped by the sponsorship industry as industries most likely to increase their spend on sponsorship in 2012, while rugby, GAA and broadcast TV are the areas seen to offer strongest potential for growth.
Trainor said “a particularly busy summer of events in 2012 will play an important part in contributing to stabilising spend on sponsorship this year”, citing events including Dublin Tall Ships 2012, Dublin City of Science, Volvo Ocean Race and Bavaria City Racing as new rights that can attract new brand spend on sponsorship.
In addition, the Onside survey found that one in four Irish sponsors strongly agree that their business is likely to see the UEFA Euro 2012 as an opportunity for their brand to engage with consumers in Ireland. One in five said the same for the London 2012 Olympics.
Source: www.businessandleadership.com
Date – 23/01/2012
