Sponsorship Spending To Total $16.78 Billion In 2008

18 January, 2008


Chicago, Ill. – Sponsorship spending by North American companies is expected to rise 12.6 percent in ’08 to $16.78 billion, according to IEG Sponsorship Report, the world’s leading authority on sponsorship.

That increase marks the sixth consecutive year that the growth rate will be higher than the year before and the biggest jump since ’00, according to IEG SR’s 23rd annual industry forecast. Spending in ’07 was up 11.5 percent over ’06, just slightly below IEG SR’s projection a year ago of 11.7 percent growth.

While the U.S. presidential election and the Beijing Olympic Games will help boost ad spending in ’08, sponsorship’s growth rate will continue to far outpace increases for traditional media buys. North American media spending should rise 3.9 percent in ‘08, according to the worldwide media and marketing forecast produced by GroupM, the global media investment management operation of WPP Group plc.

A greater proportion of the ’08 sponsorship dollars will go to sports properties, with that category garnering 69 percent-$11.6 billion-of the total. Spending on sports properties in ’07 was $9.94 billion, making the projected increase 16.7 percent.

No other property type will see double-digit growth in ’08. Corporations will spend unprecedented amounts on pro sports teams and other big-time sports properties, while other property types will see much smaller increases.

“The upcoming year appears to be a dramatic illustration of the rich getting richer,” said William Chipps, IEG Sponsorship Report’s senior editor.

Projected dollar amounts for the non-sports categories are entertainment tours and attractions: $1.61 billion, up 2.9 percent from $1.56 billion in ’07; causes: $1.5 billion, up 4.4 percent from $1.44 billion; arts: $832 million, up 3.4 percent from $805 million; festivals, fairs and annual events: $754 million, up 7.7 percent from $700 million; and associations and membership organizations: $482 million, up 4.6 percent from $461 million.

Three categories will see their share of total sponsorship spending drop by a point, as the sports category’s market share increases from 66 percent to 69 percent. Entertainment tours and attractions; causes; and festivals, fairs and annual events now claim only 10 percent, nine percent and four percent of spending, respectively.

Asia Pacific Region Drives Sharp Increase In Global Spending
With the less mature Asian sponsorship markets, especially China, witnessing a flurry of activity from new players similar to that experienced by Western markets 15 to 20 years ago, IEG SR is offering a second straight bullish outlook for worldwide spending.

Overall, including North American spending, ’08 global outlays on sponsorship should reach $43.5 billion, a 14.8 percent increase over last year’s $37.9 billion. A year ago, IEG SR projected that ’07 spending would reach $37.7 billion.

Taking out U.S. and Canadian companies, spending by the rest of the world should total $26.7 billion, 16.1 percent more than the $23 billion spent in ’07.

The region whose businesses spend the most on sponsorship after North America remains Europe, where spending should rise 10.4 percent in ’08 from $10.6 billion last year to $11.7 billion. Rapidly closing the spending gap with Europe, Asia Pacific companies will spend 25 percent more on sponsorship this year, going from $7.6 billion to $9.5 billion.

Spending by companies in Central and South America should rise 16.7 percent from $3 billion to $3.5 billion, while companies from all other regions are expected to grow expenditures 11.1 percent from $1.8 billion to $2 billion.


About IEG, LLC
IEG is the world’s leading provider of independent research, consulting, training and analysis on sponsorship. Founded in 1981, IEG provides corporations and properties with the strategies and tools to harness the sales and marketing power of sports, arts, entertainment and cause marketing.

IEG offers services that include sponsorship consulting, competitive intelligence and valuation. IEG also publishes IEG Sponsorship Report, the international biweekly newsletter on sponsorship; the IEG Sponsorship Sourcebook, the definitive guide to sponsors, properties and agencies; and other industry publications and sources.

IEG also is the leader in sponsorship training. Its internationally renowned Sponsorship Conference, now in its 25th year, attracts a capacity crowd of delegates each year. Through its conferences, seminars and webinars, IEG has trained more than 45,000 sponsorship executives worldwide.

For more information about IEG and the sponsorship industry, please visit www.sponsorship.com or call 800/834-4850 (outside the U.S. and Canada, 312/944-1727).

Acrobat Document IEG_PressRelease_SpendingProj_Jan08_guid8007a8e0d6.pdf


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