Growth In Global Sponsorship Prompts Consumer Backlash
The rapid growth of the global sponsorship market appears to be something of a double-edged sword for advertisers, with almost half of consumers believing it has reached saturation point.
The latest MediaLab study from Mediaedge:cia shows that 46% of respondents believe that global events are far too heavily sponsored, a figure which rises to 50% for sports properties and TV programmes.
The global sponsorship market has expanded by 220% over the past ten years and now accounts for almost £16 billion of marketing expenditure worldwide. In response to this, Mediaedge:cia’s Sensor study polled 13,200 people in 20 countries to gauge their attitudes to the sponsorship of global events, sports properties, TV programmes and good causes.
Commenting on the findings, MediaLab director, Andy Richmond, said: “The growth of sponsorship has, in part, been driven by the declining effectiveness of traditional advertising media (especially television) in the face of excessive commercial clutter. Ironically, the Sensor survey would suggest that the sponsorship industry faces similar challenges.”
However, sponsorship was found to be effective in terms of its ability to raise awareness and influence consumer attitudes towards brands. The study shows that 45% of respondents claimed to notice the companies and products that sponsor events (51% in the case of sports), 42% believed these companies and products to be of high quality (44% in the case of sports) and 28% claimed that they would buy products from the companies that sponsor events (30% in the case of sports).
50% of respondents believed TV programmes to be too heavily sponsored, but 47% claimed to be aware the company or product involved in the sponsorship. 32% believed that that broadcast sponsorship was a sign of high quality and 24% of consumers said they would buy products as a result of a company’s association with a TV programme.
The study identified the sponsorship of good causes as a potential area for growth, with just 25% of consumers believing this area of the market to be saturated. 56% of people claimed to notice brands associated with good causes, 43% believed them to be of high quality and 53% said they would buy products from the companies that sponsor good causes.
Richmond added: “The sponsorship industry is certainly facing stronger resistance as increasing levels of clutter and intrusion begin to heighten consumer rejection, but used effectively sponsorship will still have the ability to raise awareness and influence consumer attitudes. As long as there are fans, affinity groups and clear brand associations, sponsorship is still uniquely effective.”
A recent study from Sports Marketing Surveys also highlighted the potential pitfalls of event sponsorship by suggesting that sports fans do not differentiate between brands that invest millions of pounds in sponsorship and those that simply use advertising hoardings at sporting events (see Research Claims Sports Sponsorship Misses The Mark).
Mediaedge:cia: 020 7803 2000 www.mediaedgecia.com
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