Sponsorship growth to slow in 2020 as viewing trends and consumer issues shift

Independent.ie, January 19th 2020, Samantha McCaughren 

John Trainor, Onside chief executive, said the market was going through a period of uncertainty, particularly in the sports sector. Last year, sponsorship spending increased by 10pc to €224m and according to Onside, there has been an 80pc increase in spending on sponsorship in Ireland over the past 10 years.

"As we enter a new decade, it is clear the sponsorship marketplace is in a state of flux due mostly to social, technological and economic changes impacting all forms of business and marketing," he said.

For example, a demand for more diverse sponsorship portfolios to include women's sports and LGBT-focused events is changing the industry.

Meanwhile, technology is changing where and how people watch live events, presenting further challenges.

"This is particularly true and causing dramatic upheaval in the sports sector, which accounts for more than two-thirds of all sponsorship euro," Trainor said.

Sponsors and rights holders in Ireland have more cautious plans for the year ahead, with 53pc open to buying a new sponsorship asset in the coming 12 months, compared with 79pc two years ago.

"Our research shows 46pc of Irish sponsors will hold the line on spend this year, while 38pc of sponsors are considering increasing spend and 16pc will be decreasing spend this year, showing levels of fluctuation last seen in 2015," added Trainor.

Tech, healthcare and energy are tipped to see growth in 2020, with banking and telcos also expected to continue to be key drivers of increasing spend this year.

As in previous years, seven in 10 sponsors looking for a new sponsorship in 2020 will be seeking out a sports opportunity, but Trainor noted "the rise of brands seeing properties in the area of sustainability and the environment as providing top growth opportunities for sponsors".

GAA has retained its lead position in offering strongest potential in terms of value for money. In addition to sustainability/environment, GAA and community-focused sponsorship, e-sports are seen as offering increasing opportunities to sponsors.

Meanwhile, just 38pc of industry insiders surveyed felt that sponsorship campaigns in Ireland in 2019 were 'more effective' than previous years, a drop of 19pc year on year.

The Olympic Games and Paralympics in Tokyo are among the opportunities noted by Irish sponsors for the year ahead.