Global Sponsorship Spend Remains Positive for 2009

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Despite the economic gloom and shrinkage of marketing budgets, sponsorship spending remains positive for 2009. Growth has slowed from 15% in 2008 to 3.9% in 2009. These estimates are provided by IEG which has been tracking global sponsorship expenditure for more than 10 years.

Given that traditional advertising budgets have been reduced to see sponsorship increasing slightly in this environment indicates a greater share of the pie for sponsorship itself.

This is a trend in the market that has been driven by two key factors.

Media Fragmentation

It is very difficult to reach key segments of the consumer market, especially 16-24 year olds with traditional scheduled television. They are just not watching TV the same way as they did 10 years ago. The internet, MySpace, Facebook, IM, YouTube, X-Box, Wii and digital media have captured audiences attention.

Sponsorship of key events is something that does bring this fragmented audience together especially as new media integrates with sponsorship itself. For marketing, major events can cross the media clutter and enable marketers to communicate through sponsorship.

Globalization

Major global events and properties are collectively reaching massive audiences. For brands these global properties can serve as activation points for global marketing campaigns. These global marketing campaigns significantly driving up the value of sponsorship deals.

Growth by Region

From the attached slide we can see that globally the industry is set to increase 3.9% in 2009 with growth in North America slowing to 2.2%. Asia on other hand is growing at 7.7%. Europe maintains a moderate growth of 4.4% and Latin America a more moderate 2.9%.

Summary

In summary, the fundamentals are strong for the future of sponsorship. As long as sponsorship is effective in achieving a marketing result then companies will continue to invest. Given that Coca-Cola just announced a 29% increase in sales in China because of the Beijing Olympics then that will probably be the case for some time yet.

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