Marketing Report: Sponsorship - The vital statistics

Sponsorship is a vibrant, fast-growing industry, the expansion of which is being driven by brands' discovery that careful investment in the right property can reap impressive results.

Here you will find data on the highest-spending sponsor brands and industries, the sports they invest in most, and the biggest deals of 2006 both in the UK and globally, as well as profiles of two key specialist agencies.

SPONSORSHIP AGENCY OF THE YEAR - M&C SAATCHI

M&C Saatchi Sport & Entertainment saw a very profitable year in 2006, with a 57% rise in turnover and a 31% leap in fee income. Central to its work was the FIFA World Cup; the agency organised the UK leg of the trophy's tour. It also maximised media coverage of Carlsberg's 'dream pub team' ad via coverage on TV shows including Soccer AM, boosting sales of the lager by up to 300% during the World Cup. M&C also aided Reebok's successful return to football, helping increase traffic to its website by 500%. During the campaign, its football products outsold those of Nike and Adidas for the first time. Other business wins included a brief from Tourism Australia to exploit the Ashes series and Holsten Pils' Premier Darts League sponsorship.

THE ONE TO WATCH - 23RED

While being an integrated agency, 23red's sports marketing deals mean it is its sponsorship work that is making news. A 94% rise in income fees for 2006 has led to expansion, with the agency opening a Midlands office to complement its London base. The firm has benefited from its PlayStation and World Rally Championship (WRC) campaigns, with the WRC push driving a 58% increase in viewing. Following Betfair's deal to sponsor next month's Poker World Series tournament, 23red is looking to leverage the sponsorship internationally and will take advantage of new gambling laws that, from September, will allow casinos to advertise on TV. It is also working with Sidhu & Simon Communications on Spanish bank Santander's five-year sponsorship of Formula One team McLaren Mercedes.

TOP 10 SPENDING SPONSOR INDUSTRIES BY TOTAL REPORTED VALUES, 2006
(pounds m)

1 Banking 503.7
2 Sports clothing 443.6
3 Telecoms 420.5
4 Airlines 315.0
5 Beer 194.0
6 Soft drinks 188.6
7 Automotive 187.6
8 Insurance 159.0
9 IT 156.1
10 Credit cards 127.5

Source: TWSM published by Sports Marketing Surveys


TOP 10 SPONSORED SPORTS BY TOTAL REPORTED VALUES, 2006 (pounds m)

1 Football 1290.0
2 Venues 728.7
3 Formula One 405.7
4 American Football 179.2
5 Other motorsport 141.8
6 Cricket 130.0
7 Baseball 99.0
8 Golf 97.5
9 Tennis 97.0
10 Motorcycle racing 82.7

Source: TWSM published by Sports Marketing Surveys


TOP FIVE INTERNATIONAL DEALS IN 2006
Pounds

1 Visa FIFA Partner 2007-2014 Football 98.4m
2 Emirates FIFA Partner 2007-2014 Football 96.0m
3 Red Bull Red Bull Racing F1 74.0m
4 Vodafone McLaren Mercedes F1 59.1m
5 Marlboro Ducati 2007-2011 Motorcycle racing 44.3m

Source: TWSM published by Sports Marketing Surveys


TOP FIVE UK DEALS IN 2006
Pounds

1 Barclays Premier League Football 48.6m
2 AIG Manchester United Football 48.2m
3 Norwich Union UK Athletics Athletics 36.9m
4 Mansion Tottenham Hotspur Football 31.5m
5 Carlsberg FA Partners scheme Football 28.9m

Source: TWSM published by Sports Marketing Surveys

All TWSM figures based on dollars/pounds exchange rate of 6 August 2007.
For further reading, contact the European Sponsorship Association on 020
8390 3311 or visit www.europeansponsorship.org

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