There has been a great deal of debate over marketing spend during the recession. It seems that advertising spend has declined. Recent GroupM research found although global advertising spend is expected to fall 5.5% this year to £253bn but sponsorship will see a year-on-year increase of 2%, the only discipline to see growth. The reasons are interesting. Sponsorship of football for example will give the sponsor may hours of prime time coverage. Especially if you sponsor one of the top teams. Cost of sponsorship have declined and it is a buyers market at the moment.
Sponsors are looking for proof that there is a payback. This can be difficult to judge and here companies are looking for direct links between sponsoring a football team and meeting longer term brand building objectives. It is a little easier to tie sponsorship into shorter term tools such as specific product promotions.
The difference is that with sponsorship we are actively watching the sport and can spend hours at a time watching the game with the sponsors’ brand in full view. If the sponsor had to pay for 90minutes of advertising that would be a huge cost. The issue is that many people avoid adverts. Especially since the development of television recording such as Sky Plus. Whereas with the sponsorship we are not avoiding adverts.
The recession has much to answer for and that is shaping the marketing budget and the increased focus on marketing metrics and ROI