WHAT SPONSORS WANT

AND WHERE DOLLARS WILL GO IN 2016

www.sponsorship.com 1
 TOTAL GLOBAL SPONSORSHIP SPENDING
RESULTS OF THE IEG/ESP PROPERTIES
SPONSORSHIP DECISION-MAKERS SURVEY AND
OUR ANNUAL SPONSORSHIP SPENDING REVIEW

$60.2B
$57.5B
$55.3B
AND FORECAST PROVIDE GUIDANCE ON 2016

$53.1B
$51.1B
PRIORITIES FOR RIGHTSHOLDERS AND BRANDS.

Driven by corporate interest in sponsorship as a

platform to support international expansion—as well
as increased opportunities for brands to partner with
rightsholders beyond the properties’ home markets—

4.7%
4.1%

4.1%
3.9%
global sponsorship spending is projected to grow
4.7 percent in 2016, according to IEG’s 31st annual 2012 2013 2014 2015 2016
year-end industry review and forecast. PROJECTED

At that rate, worldwide spending would grow faster

than any of the previous three years and would top
$60.2 billion. TOTAL NORTH AMERICAN SPONSORSHIP SPENDING

North America, the world’s largest sponsorship $22.4B

$20.6B $21.4B
market, should also see strong growth this year, with $19.8B
$18.9B
spending up 4.5 percent over 2015. This would be
a rebound following two years in which the growth
rate, while still above four percent, declined. Growth
in 2015 was 4.1 percent, slightly higher than the
four percent projected in last year’s forecast.
4.5%

4.5%
4.2%

4.1%
North American sponsorship spending was
$21.4 billion in 2015 and is expected to grow to 2012 2013 2014 2015 2016
PROJECTED

$22.4 billion this year.

www.sponsorship.com 2
 GLOBAL SPONSORSHIP SPENDING BY REGION
2014 2015 INCREASE 2016 INCREASE
SPENDING SPENDING FROM 2014 SPENDING FROM 2015
(PROJECTED) (PROJECTED)

EUROPE $14.8 BILLION $15.3 BILLION 3.3% $15.9 BILLION 3.9%

ASIA PACIFIC $13.3 BILLION $14 BILLION 5.2% $14.8 BILLION 5.7%

CENTRAL/SOUTH
AMERICA $4.2 BILLION $4.3 BILLION 4.8% $4.5 BILLION 4.7%

ALL OTHER
COUNTRIES $2.4 BILLION $2.5 BILLION 4.2% $2.6 BILLION 4.0%

While the aforementioned appeal of using sponsorship Central and South America should see strong growth
to build regional and global brands applies to marketers as well (4.7 percent), while the more mature
based in all parts of the world, Chinese and Indian European market will experience the slowest growth
sponsors have been particularly active, with brands such (3.9 percent), despite a significant rebound from
as Huawei, Haier, ZTE, Tata and Mahindra partnering 2015’s 3.3 percent rate.
with rightsholders in multiple countries. Those types
of deals—combined with strong domestic spending in
China, India, South Korea, Japan and other countries—
are expected to make Asia Pacific sponsorship spending
the fastest growing of any region in 2016 at 5.7 percent.

www.sponsorship.com 3
 ANNUAL GROWTH OF ADVERTISING, MARKETING/
SPONSORSHIP GROWTH COMPARED TO PROMOTION AND SPONSORSHIP–GLOBAL
ADVERTISING AND OTHER MARKETING
MIX COMPONENTS

5.5%

4.5%

4.5%

4.7%
SPONSORSHIP’S GLOBAL GROWTH IS PROJECTED

4.2%
3.9%

4.1%

4.1%
3.9%
3.7%

3.4%
3.3%
TO BE ON PAR WITH SPENDING FOR ADVERTISING,
MARKETING AND PROMOTION.

According to the worldwide media and marketing 2013 2014 2015 2016
PROJECTED

forecast produced by IEG parent company GroupM— ADVERTISING MARKETING/PROMOTION SPONSORSHIP

the global media investment management operation

of WPP Group plc.—global ad spending will increase
4.5 percent in 2016, while spending on other forms
of marketing—including public relations, direct
ANNUAL GROWTH OF ADVERTISING, MARKETING/
marketing and promotions—is also expected to grow PROMOTION AND SPONSORSHIP–NORTH AMERICA
by 4.5 percent.

In North America, sponsorship growth should

7.1%
outpace the other forms of marketing, with ad
spending expected to grow just 2.6 percent and

4.5%

4.5%
4.2%

4.1%

.7% 3.7%
other marketing spending up 3.7 percent, according

3.4%
2.9%

2.6%
to the GroupM report.
2.1%

1.7%
1.5%
2013 2014 2015 2016
PROJECTED

ADVERTISING MARKETING/PROMOTION SPONSORSHIP

www.sponsorship.com 4
SPENDING ACROSS NORTH NORTH AMERICAN SPONSORSHIP SPENDING BY PROPERTY TYPE
AMERICAN PROPERTY TYPES 2014 2015 INCREASE 2016 INCREASE
SPENDING SPENDING FROM 2014 SPENDING FROM 2015
(PROJECTED) (PROJECTED)

In what has become a familiar story, SPORTS $14.35 BILLION $14.99 BILLION 4.5% $15.74 BILLION 5.0%
the property types that receive the ENTERTAINMENT $2.05 BILLION $2.13 BILLION 4.1% $2.22 BILLION 4.2%

most dollars are expected to again CAUSES $1.85 BILLION $1.92 BILLION 4.0% $2 BILLION 3.7%

grow at the fastest rates, as sponsors ARTS $923 MILLION $939 MILLION 1.7% $970 MILLION 3.3%

continue to invest marketing dollars FESTIVALS, FAIRS AND

ANNUAL EVENTS $847 MILLION $860 MILLION 1.5% $878 MILLION 2.1%
in properties that can deliver ASSOCIATIONS AND
customized benefits, integration MEMBERSHIP ORGANIZATIONS $574 MILLION $591 MILLION 3.0% $612 MILLION 3.6%

with digital and social content,

insights from audience data, and
top-notch servicing.

PROJECTED 2016 SHARES OF NORTH AMERICAN Sports will see the highest growth rate of the six
SPONSORSHIP MARKET major property categories, followed by entertainment.
The slight slowdown in projected growth for cause
ENTERTAINMENT sponsorships reflects the ever-changing mix in the
10%
way partnerships with causes are funded, specifically
CAUSES a small shift away from marketing-funded programs
9%
ARTS to initiatives more appropriate for CSR and
4% philanthropic budgets.
SPORTS 70% 4% FESTIVALS, FAIRS &
ANNUAL EVENTS
3% The other three sectors should all see more growth in
ASSOCIATIONS
2016 vs. 2015, as marketers exhibit more confidence
AND MEMBERSHIP
ORGANIZATIONS
in spending thanks to improving economic conditions.

www.sponsorship.com 5
 SPONSORS MAKE IT CLEAR THEY WANT
DIGITAL
How Valuable BENEFITS, SERVICES
Are The Following
Benefits To You?
THE RISE OF DIGITAL VS. TRADITIONAL MEDIA HOW VALUABLE ARE THE FOLLOWING BENEFITS TO YOU?
IS REFLECTED IN IEG’S MOST RECENT SURVEY
OF SPONSORS. Category Exclusivity 57%
On-site Signage 46%
BEGINNING WITH THE IMPORTANCE OF VARIOUS Presence In Digital/Social/Mobile Media 46%
BENEFITS, RESPONDENTS TO THE 15H ANNUAL Right To Property Marks And Logo 44%
IEG SPONSORSHIP DECISION-MAKERS SURVEY Access To Property Content 39%
RANKED DIGITALLY RELATED ASSETS HIGHER Tickets And Hospitality 33%

THAN EVER, WHILE BROADCAST AND TRADITIONAL Access To Property Mailing List/Database 33%
Broadcast Ad Opportunities 29%
ADVERTISING ELEMENTS HELD LESS APPEAL.
Title Of A Proprietary Area 28%
Presence on and in a property’s digital, social and mobile Right To Promote Co-branded
Products/Services
28%
media, which did not appear in the top ten benefits in the
2014 survey, tied for second with on-site signage in 2015. What Channels Do You Use To Leverage Your
Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable
Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey
Forty-six percent of respondents ranked those benefits as a Sponsorships?
Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable
9 or a 10 on a 10-point scale of importance, placing them Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey
WHAT CHANNELS DO YOU USE TO LEVERAGE
behind only category exclusivity, the perennial number-one. YOUR SPONSORSHIPS?

Access to property content for digital and other uses Social Media 95%
also rose in importance, ranked highly by 39 percent Public Relations 85%
of sponsors—good for fourth place—while broadcast On-site Interaction 84%
advertising opportunities were highly valued by only Internal Communications 80%

29 percent of sponsors, compared to 42 percent in the Hospitality 78%

Digital/Mobile Promotions 71%
2014 survey.
Traditional Advertising 64%
Digital’s advance also was reflected in the marketing Sales Promotion Offers 48%

communications channels used to activate sponsorship, Business To Business 43%

Direct Marketing 34%
where traditional advertising buys—which long topped
the list­—slipped behind digital and mobile promotions Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey
for the first time ever, ranking seventh this year. www.sponsorship.com 6

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

 How Valuable Are The Following
Property-Provided Services?
PROPERTY-PROVIDED SERVICES INCREASE HOW VALUABLE ARE THE FOLLOWING
IN IMPORTANCE PROPERTY-PROVIDED SERVICES?

THE MAJORITY OF SPONSORS SAID PROPERTIES’ Assistance Measuring ROI/ROO 53%

ASSISTANCE IN MEASURING RETURN AND Post-event Report/Fulfillment Audit 52%
44%
PROVIDING FULFILLMENT/RECAP REPORTS WERE Audience Research On Attitude/Image

Audience Research On Propensity To Purchase 43%

EXTREMELY VALUABLE TO THEM, WITH THE Audience Research On Recognition/Recall 39%
NUMBER WHO SCORED FULFILLMENT REPORTS Access To Data On Audience Behavior/Activity 33%
HIGHLY JUMPING FROM 32 PERCENT IN 2014 Tracking Of Promotional Offers 32%

TO 52 PERCENT IN 2015. Leveraging Ideas 28%

Audience Contact Information 26%
Third-party Valuation Statement 21%
In addition, significantly more sponsors this year saw
value in properties providing access to CRM and other Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable
Do properties meet
Source: IEG/ESP Properties yourDecision-Makers
2015 Sponsorship expectations Survey in helping you
audience data, as well as tracking and reporting on
promotional offers conducted through the property,
measure yourwhoreturn
Percent of respondents ona 9investment/objectives?
ranked the factor or a 10 on a 10-point scale, where 10 is extremely valuable
Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey
such as ticket discount offers, gate redemptions, etc. DO PROPERTIES MEET YOUR EXPECTATIONS IN HELPING YOU
MEAUSURE YOUR RETURN ON INVESTMENT/OBJECTIVES?

And while there was improvement in how sponsors

judged their partners’ ability to provide the top-ranked
service, still nearly two-thirds felt that rightsholders
fell short in meeting their needs.
YES 35%

65% NO

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey www.sponsorship.com 7

 NEARLY ONE IN FIVE SPONSORS CAN’T SAY When asked how their ROI from sponsorship was
HOW ROI IS TRACKING tracking over the last few years, 19 percent of
corporate marketers said they did not know, up
SPONSORS MAY BE TURNING TO PROPERTIES
from 15 percent in 2014.
FOR HELP WITH MEASUREMENT BECAUSE THEY
ARE NOT DOING A GOOD JOB AT EVALUATING Sponsors continued to allocate little to no money
RETURN ON THEIR OWN. for evaluating sponsorship performance—with nearly
three-fourths spending one percent or less of a
sponsorship’s budget on measurement.
Has Your ROI Increased, Decreased Or Stayed
The Same? What Percentage Of A Sponsorship’s Budget Is
HAS YOUR ROI INCREASED, DECREASED OR STAYED THE SAME?
SpentWHAT
On PERCENTAGE
Measuring Return?
OF A SPONSORSHIP’S BUDGET
IS SPENT ON MEASURING RETURN?

STAYED THE SAME

18% DON’T KNOW FIVE PERCENT OR MORE
19%
3%

ONE TO FIVE PERCENT 23%

DECREASED
6%
23% NONE

INCREASED 57%
ONE PERCENT OR LESS 51%

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey
Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

www.sponsorship.com 8
Regarding performance measures most important to SPENDING LEVELS TO HOLD STEADY
sponsors, top-of-the-purchase-funnel metrics such
Just 28 percent of sponsors say their spending will
as attitudes toward and awareness of the sponsoring
increase in 2016, with 23 percent cutting spending
brand or company continue to be ranked as more
and 49 percent maintaining budgets at 2015 levels.
highly valuable than tracking behaviors directly or
more closely related to sales.

How Valuable Are These Metrics In EvaluatingHow Will Your 2016 Sponsorship Spending
Sponsorships? Compare To 2015?
HOW VALUABLE ARE THESE METRICS IN HOW WILL YOUR 2016 SPONSORSHIP SPENDING
EVALUATING SPONSORSHIPS? COMPARE TO 2015?

Attitudes Toward Brand 86%

Awareness Of Products/Services/Brand 81%
Awareness Of Company’s/Brand’s Sponsorship 78%
DECREASE 23%
Product/Service Sales 66%
49% STAY THE SAME
Amount Of Media Exposure Generated 66%
Amount Of Positive Social Media Activity 62%
Response To Customer/Prospect Entertainment 56%
Response To Sponsorship-related Promotions/Ads 53% INCREASE 28%
Lead Generation 46%
TV/Logo Exposure 44%

Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely valuable
Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Percent of respondents who ranked the factor a 4 or a 5 on a 5-point scale, where 10 is extremely valuable Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey
Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

www.sponsorship.com 9
 As has been the trend in recent years, more sponsors The number of sponsors seeking to add partnerships
are willing to increase spending on activation than rebounded in this year’s survey, with seven out of ten
on rights fees. Nearly four in ten sponsors will grow saying they are in the market for new deals, compared
their leveraging budgets in 2016, while 51 percent are to just 63 percent in the 2014 survey. That number
keeping spending on par with 2015. Only 12 percent remains lower than two years ago, however, when
will lessen their activation dollars. 75 percent of sponsors said they were considering
first-time deals.

How Will Your 2016 Leveraging And

Is Your Company Considering New
Activation Spending Compare To 2015? Sponsorships In 2016?
HOW WILL YOUR 2016 LEVERAGING AND ACTIVATION IS YOUR COMPANY CONSIDERING NEW SPONSORSHIPS
SPENDING COMPARE TO 2015? IN 2016?

DECREASE
12%

51% STAY THE SAME 30% NO

INCREASE 37%
YES 70%

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

www.sponsorship.com 10
 Survey respondents allocated an average of 18 likely due to an increased share of budgets going
percent of their overall marketing/advertising/ to digital marketing.
promotion budgets to sponsorship, a decline of five
Sponsors report spending an average of $1.80 on
percentage points from 2014. While the average has
activation for every $1 spent on rights fees this year,
fluctuated between 16 percent and 25 percent over
up from $1.70 in 2014.
the 15 years of the survey, this year’s decline is most

What Portion Of Your Marketing Budget Is

Spent On Sponsorship Rights Fees? What Is Your Company’s Typical Promotional
WHAT PORTION OF YOUR MARKETING BUDGET IS SPENT WHAT IS YOUR COMPANY’S TYPICAL PROMOTIONAL
ON SPONSORSHIP RIGHTS FEES? Spending Ratio? SPENDING RATIO?

AVERAGE IS 1.8 TO 1

18% SPONSORSHIP 3 TO 1

9% 4 TO 1 OR MORE
14%
2 TO 1 19%

15% 0 TO 1

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey 43% 1 TO 1

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

www.sponsorship.com 11
 Is Your Company Seeking To Drop Out Of Any
Current Sponsorships?
Sponsors also reported being more satisfied with their IS YOUR COMPANY SEEKING TO DROP OUT OF ANY
current partners—to the extent they are not seeking an CURRENT SPONSORSHIPS?
early exit from their agreements. In 2014, 57 percent
said they were looking to drop out of current deals,
but that number dropped ten percentage points in this
year’s survey. However, the 47 percent figure remains 53% NO

higher than the 41 percent of sponsors who wanted

out of certain sponsorships two years ago. YES 47%

In terms of the most important objectives, there was

little movement among the top ten, with the somewhat
surprising exception of “showcase community/social
responsibility” dropping completely off the list, after
How Important Are These Objectives
Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

having been as high as fourth just two years ago. In When Evaluating Properties?
2013, 51 percent of sponsors said that objective was HOWProperties
Source: IEG/ESP IMPORTANT ARE THESE
2015 Sponsorship OBJECTIVES
Decision-Makers Survey WHEN
EVALUATING PROPERTIES?
a 9 or a 10 in importance; in 2015, the number
dropped to just 21 percent. Create Awareness/Visibility 64%
Increase Brand Loyalty 63%
The objective “capture database/lead generation” Change/Reinforce Image 47%
Stimulate Sales/Trial/Usage 38%
replaced “showcase community/social responsibility” Drive Retail/Dealer Traffic 32%
on this year’s top ten list. Access Platform For Experiential Branding 30%
Capture Database/Lead Generation
26%
Access Content To Use In Paid,
Owned And Earned Media 26%
Sample/Display/Showcase Products/Services 24%
Entertain Clients/Prospects 24%

Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

Percent of respondents who ranked the factor a 9 or a 10 on a 10-point scale, where 10 is extremely important
Source: IEG/ESP Properties 2015 Sponsorship Decision-Makers Survey

www.sponsorship.com 12
ABOUT IEG AND
ESP PROPERTIES
IEG has shaped and defined sponsorship over three decades. It is the globally recognized source for industry
insights, trends, training and events via sponsorship.com, its annual conference, online publications, trend reports,
surveys and webinars.

IEG is part of ESP Properties, a WPP company. As a commercial and creative advisor for rightsholders, ESP
Properties helps organizations unlock greater value from their audiences and brand partnerships.

Our consulting team assesses and advises how to grow the value of rightsholders’ commercial programs. We do
this through a full range of services across data, digital and content development to better understand audiences
and create more relevant ways to engage with them. This provides brand partners with new ways to connect with
communities of fans and followers, growing the potential value of commercial partnerships.

Our sales team provides rightsholders with partnership strategy and sales representation to the world’s most
active sponsors, within and beyond the WPP network of brand clients. Through WPP we have extensive contacts
and deep insights into what it takes to create successful partnerships.

For more information about the value of sponsorships and partnerships, IEG and ESP Properties, please visit
www.sponsorship.com, www.espglobal.com, or call Jim Andrews at 312/725-5110.

JIM ANDREWS
Senior Vice President, Content Strategy
IEG

© 2016 IEG, LLC. All Rights Reserved. www.sponsorship.com 13