Sponsorship Loses Steam, But Continues To Outpace Ad Growth | NORMBONDMARKETS.COM

Sponsorship Loses Steam, But Continues To Outpace Ad Growth

via MediaDailyNews by Joe Mandese

Describing the effect of the global economic crisis on sponsorship spending as a "wet blanket," GroupM's IEG unit released results of its annual year-end review and forecast, nonetheless calling for spending on sponsorships to expand 4.1% in 2012 to $18.87 billion in North America. IEG calls that rate of growth underwhelming because it is not as much as the industry had originally projected.

For 2011, the survey estimates that North American sponsorship spending rose 5.5%, down 0.4 points from the 5.9% that was originally expected for last year's growth.

"Corporate marketers appear to be holding off on bigger votes of confidence pending the outcome of solutions to national debt problems and the U.S. presidential election," the research and publishing firm said, adding that the "global spending picture is slightly brighter" than in North America.

IEG estimated that spending in emerging markets such as Brazil and India are offsetting tighter markets in Europe, and projected that global spending grew 5.1% to $48.60 billion in 2011, just below IEG’s original forecast of 5.2%.

For 2012, worldwide spending is projected to expand 4.9% to $51.00 billion.

On the bright side, sponsorship spending in North America will expand slightly faster than "traditional advertising," according to estimates from GroupM's media spending forecasts.

Among North American sponsorship categories, IEG projects that sports and entertainment has and will continue to grow faster than other forms of event sponsorship, noting that this "is typical when marketers turn conservative during economic turmoil."

For 2012, IEG said "risk-averse sponsors" are likely to be drawn to "packages that bundle media exposure and offer activation platforms including retail, digital and on-site marketing."

Sports sponsorship spending grew 6.2% in 2011, and is projected to expand 4.6% percent in 2011 -- making it the fastest-growing sector, just ahead of entertainment.

Entertainment, which includes concert tours, theme parks, and branded entertainment sponsorships, grew 6.0% in 2011 and is projected to expand 4.0% in 2012.

"Overall, the sports sector will account for 69% of North American sponsorship spending this year, a one point increase from 2011," the IEG report estimates. "The festivals, fairs and annual events sector will see its share of spending dip from five to four percent in 2012, while all other sectors retain the same share they had in 2011."

Norm Bond
NORM BOND shows people how to use digital marketing tools to find customers, grow sales and increase profits. And if you're not using digital tools he shows you how to do that too. He currently splits his time between Bangkok, Thailand and the U.S. He is available for consulting and speaking.
Norm Bond


Digital Marketer, Growth Hacker. Solution Dealer. Crashes servers. Sells out events. Highly influential | Contact me via Earn https://t.co/IUO5w9KNVX
When you can’t see around the next bend, it’s tougher to make ... More for Pisces https://t.co/7ouCQU58Uf - 4 hours ago
Norm Bond
Norm Bond
Spread the Word!


Join our weekly newsletter to learn things like "How to Use Digital Marketing to Attract New Customers". Get proven tips for effective Web, email and social media marketing. Don't wait.  GET IN NOW!

Read previous post:
7 signs you’re not ready for entrepreneurship

If you recognize yourself in any of the following, reconsider before taking the entrepreneurial plunge: