Survey: # of New Sponsorship Deals Increases in 2009
According to The World Sponsorship Monitor Annual Review, a survey published by IFM, the number of reported sponsorship deals held up well in 2009 despite the sagging global economy. The survey released today found that the number of reported new deals rose 15% in 2009 while withdrawals remained steady year over year at 8%.
The sports sector still dominates with 88% of all deals in both number and value according to the survey.
While the number of new deals was promising, the IFM reports that there were fewer deals over $10 million in value reflecting the overall economic climate, the study says.
Nigel Geach, Director of IFM Sports Marketing Surveys commented:
“Sponsorship as a marketing discipline gives an excellent return on investment. Both rights holders and sponsors are working together more to maximise this return – the figures in the TWSM annual review are very encouraging for the future”
While the number of deals might have shown promise, IEG last month reported that global spending contracted last year by .6% to $16.51 billion, marking the first year over year decline since IEG started tracking sponsorship spending.
The study's results could also be a function of a more fragmented marketplace as some sponsors transitioned away from larger mega deals and into a greater number of deals, but at lower fees.