Corporate Sponsorships on Track to Rise

Despite the recession, many corporations continue to fund a variety of 746420_contributionsponsorship programs. Though it can be difficult to measure return-​on-​investment when it comes to sponsorships, many executives believe that their corporate support of worthwhile programs drives sales and improves their image. Industry analysts at IEG predict a rise in sponsorship spending by corporations and the spending will reach the following levels in 2009:

  • Sports: $11.48 billion
  • Entertainment tours and attractions: $1.64 billion
  • Causes: $1.55 billion
  • Arts: $838 million
  • Festivals, fairs and annual events: $775 million
  • Associations and membership organizations: $498 million

The total spending of nearly $16.79 billion represents a slight increase over 2008 levels and reflects the general economic tightening by corporations. IEG analysts point out that increased sponsorship in the events category has been largely driven by local companies that are seeking to reinforce their community connections and " ‘ improve the quality of life for their employees,’ said William Chipps, senior editor of IEG Sponsorship Report.” However, analysts also point out that local music entertainment events are failing to find local sponsorships while major music events are doing well with national sponsorships.

As the economy continues to search for a bottom, corporations may increasingly scrutinize exactly where they’ll distribute their sponsorship dollars.

[Source: IEG releases, 2009] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.