Study: Slow Recovery To Keep N.A. Sponsorship In Check In 2012
IEG blamed "the lingering effects of scattered economic crises throughout the world and a yet-to-stabilize recovery" for the industry missing IEG's sponsorship predictions in 2011. The report released earlier today reveals that sponsorship spending by North American companies increased just 5.5 percent in 2011, below their projected rise of 5.9 percent.
Looking ahead, the Chicago-based sponsorship consulting firm projects that North American sponsorship spending will grow by just 4.1 percent in 2012, to $18.87 billion. IEG says that corporate marketers appear to be holding off on bigger votes of confidence pending the outcome of solutions to national debt problems and the U.S. presidential election.
“Marketplace volatility will make 2012 a very interesting year for sponsorship—one likely to be full of contradictions,” said IEG senior vice president Jim Andrews. “Some rightsholders will earn record revenues while others struggle to maintain status quo.
Despite the tepid forecast, sponsorship is still expected to grow slightly faster than other forms of more traditional advertising, according to IEG's sister firm, GroupM.
Outside of North America, growth will be led by the BRIC countries, which the forecast says will help worldwide spending increase 4.9% to $51 billion.