More marketers are investing in sponsorships as a way to get noticed in the local community. This trend is great news if your media company is managing events and selling ad space at the same time.
Marketers often complain that one of the challenges of digital advertising is measuring their return on investment. It turns out that accurately measuring how much is being spent on various digital formats is also a challenge. This difficulty is linked to agreeing on the definitions of which types of ads belong in which formats. Given all that, eMarketer has just announced that spending on digital sponsorships is growing.
Marketers are returning to sports sponsorships after having cut back on this line item during the recession. These sponsorships are a time-proven way to connect with consumers who might notice who is helping to pay for the event are enjoying. The biggest sponsorship money typically goes to sports like basketball, football, or auto racing but new research shows that marketers can effectively use sponsorships to reach fans of less popular sports, especially tennis.
One good way to stand apart from the crowd in the always-on advertising world is to allocate marketing dollars to sponsorships. U.S. businesses are planning to spend more on sponsorships this year, betting that consumers will notice them as they enjoy watching their favorite team compete or take in the local music festival. But, experts warn that sponsorship marketing is undergoing big changes at most enterprises.
As the summer season begins, more marketers are likely to connect with consumers through events like music festivals. But do these expenditures make a difference? Havas has been researching this topic and shared some encouraging findings.
Sponsorship marketing continues to be a key wayfor marketers to reach part of their target audience. Whether it’s covering the cost of uniforms for the local baseball team or partnering with the local symphony to print programs, sponsorships can be a great way for a marketer to show community support. Will this marketing sector grow in 2012?
Marketers continue to turn to new channels to promote their products and services. One rapidly growing channel in the past 2 decades has been entertainment marketing spending. This group broadly includes event sponsorships and marketing and paid product placement. The channel generated $24.63 billion in 2009, a figure which represented a small drop (1.3%) from the previous year. However, PQ Media analysts expect growth to resume in 2010.
Marketers are under more pressure than ever to quantify the ROI for spending on everything from print ads to social network sites. The pressure to perform and lack of metrics is even more intense in the sponsorship industry. And the lack of demonstrated ROI may be one of the reasons that the industry witnessed a 28% drop in the asking price of sponsorship proposals last year. This drop includes both sports and non-sports.
Sales in the paid recorded music industry continue to struggle
but many marketers believe in the connection between branding and sponsoring music festivals. Companies plan to spend $1.09 billion sponsoring musicians, festivals and tours this year.