Sponsorship: Drawing in the Irish crowds? - Ireland - April 2008

Table of Contents

• Issues in the Market
• Key themes in the market:
• Definition
• Definition of sponsorship
• Abbreviations
• Useful terminology
• Market in Brief
• Sponsorship spend growing quicker than overall advertising spend
• Forecasted growth to exceed international equivalents
• Sport dominates Irish sponsorship market, but broadcast growing rapidly
• High level of maturity and sophistication
• Changes in regulation aiding broadcast sponsors
• Continued sponsorship by ' junk food' and alcohol brands uncertain
• New media bringing new dimension
• Change in format by GAA
• Financial services dominating major sport-related properties
• Food/beverage brands feature strongly in broadcast sponsorship
• Alcohol brands dominate the arts sector
• TV sponsorship catches consumers' attention
• RoI consumers respond well to sports sponsorship
• Recognition that organisations benefit -- but not consumers
• Support for restrictions on alcohol sponsorship
• Internal Market Environment
• Key points
• New media creating new opportunities
• Irish sponsors more adept at activating sponsorships
• Inadequate attention to activation
• Sponsors risk losing control of the brand
• Sponsor churn
• Legislation and social responsibility
• Broadcast sponsorship
• Sponsorship by junk food brands -- UK ban, RoI to follow?
• Alcohol brand sponsorship: is the end in sight?
• The imprecise science of valuations
• Broader Market Environment
• Key points
• Sponsorship and cultural diversity: an ideal combination
• General economic conditions and impact on sponsorship
  • Figure 1: Health of the economy, RoI and NI, 2006-08
• Success of an event not overly determined by cost
• Tourism growth expands the reach of sponsors
  • Figure 2: Total visits, NI and RoI, 2004-06
• Increasing Internet use likely to draw sponsors to online properties
  • Figure 3: Internet usage, NI and RoI, 2001-07
• Measuring the Market
• Key points
• Enjoying double-digit growth
  • Figure 9: Indexed spend on sponsorship, UK and RoI, 2001-08
  • Figure 10: Trends in sponsorship spend, UK and RoI, 2001-08
• Ireland v rest of the world
• Share and growth: sport
• Huge inflation in cost of premium sporting properties
• Selected sponsorship deals in Sport
• Share and growth: broadcasting
• RoI
• NI
• Sponsorship revenue as a percentage of overall sales: NI and RoI
  • Figure 11: Sponsorship growth as percentage of overall sales, selected broadcasters, 2006*/07
• Selected sponsorship deals in broadcasting
• Share and growth: art, culture and entertainment
• RoI
• NI
  • Figure 12: Private investment* in the arts, by region, UK, 2006/07
• Selected sponsorships in the arts
• Platforms and Properties: Sport
• Key points
• Dominance -- but for how long?
• Young ABC1 men in RoI keen on attending sporting events
  • Figure 13: Percentage of consumers that attend sporting events, by gender, NI and RoI, 2007
• Clutter a gnawing issue for sports sponsors
• Technology enhances value and enables exclusivity
• Low-tier properties as vehicles for corporate community investment
• Top-end properties dominated by finance brands
  • Figure 14: Selected major sporting properties and sponsors*, NI and RoI, 2008
  • Figure 15: Involvement of industries/sectors in sport sponsorship, NI and RoI, 2008
• Rugby the preferred sport for bankers and insurers
  • Figure 16: Sports sponsored by financial services companies in Ireland, 2008
• Selected major sponsorship deals in sport
• Platforms and Properties: Broadcasting
• Key points
• Newcomer grabbing growth and profile
• Irish companies embrace of sponsorship option
• Change in regulation as a catalyst to broadcast sponsorship growth
• Targeting of specific audience
• Meeting ad-avoidance head-on
• ' Fit' between content and brand
• Early involvement enhances benefits
• Building brand personality through association with programme values
• An alternative to event sponsorship
• Often better value than conventional advertising
• Finance/Insurance and food/beverage brands leading broadcast sponsorship in Ireland
  • Figure 17: Sponsors of RTE and UTV content, by industry, February 2008
• Outlook
• Platforms and Properties: Arts, Culture and Entertainment
• Key points
• Arts under financial pressure
• ...particularly so in NI
• Perception of elitism dissuades many would-be sponsors
• Charitable sector offers CSR alternative to cultural-arts events
• Small audiences hamper major sponsorship investment in the arts
• Arts hitting back by emphasising commercial benefits
• Recognition that ' days of benevolence' are over
• Broader spread of sponsors, without a title-sponsor to the fore
• Alcoholic beverages (and media) dominate art-related sponsorship
  • Figure 18: Selected art-related properties and sponsors, NI and RoI, 2008
  • Figure 19: Number of sponsorships of art-related properties, by sector, NI and RoI, 2008
• Focus of alcoholic beverage brands on youth-oriented pop-culture events
  • Figure 20: Types of art-related events sponsored by alcohol brands, NI and RoI, 2008
• Diversity within such events enables specific targeting
• The Consumer: Sponsorship-related Behaviour
• Key points
• Around a third of consumers always notices TV programme sponsorship
  • Figure 21: Agreement with "I always notice if a programme is sponsored", by age, NI and RoI, 2007
• Saturation may be having an adverse affect -- especially in RoI
  • Figure 22: Agreement with "I always notice if a programme is sponsored", NI and RoI, 2001-07
• Does ' noticing' influence purchasing behaviour?
• Noticing TV sponsorship doesn' t necessarily mean sales
  • Figure 23: Percentage agreeing that "I tend to buy products from programmes that sponsor TV programmes", by age, NI and RoI, 2007
• RoI consumers respond well to sports-related sponsorship
  • Figure 24: Agreement with "I tend to buy products from companies that sponsor sports events and teams", by age, NI and RoI, 2007
• A plateau in sports-related sponsorship' s ability to encourage sales
  • Figure 25: Agreement with "I tend to buy products from companies that sponsor sports events and teams", NI and RoI, 2004-07
• Appendix
• Non-national communities in RoI
  • Figure 40: Non-national residents in RoI, by country, 2006
• Contrasting effectiveness of other media
  • Figure 41: Agreement with "I often notice the advertisements on the radio", NI and RoI, 2002-06
  • Figure 42: Agreement with selected outdoor advertising-related statements, NI and RoI, 2006
  • Figure 43: Agreement with "I rarely notice the adverts in newspapers and magazines", NI and RoI, 2002-06
• Market size
  • Figure 44: Total sponsorship spend, RoI, 1998-2008
  • Figure 45: Growth in sponsorship spend, RoI, 1998-2008
• Selected major sponsorship deals
• Sport
• Broadcasting
• Arts, culture and entertainment
• Platforms and properties: Sport
  • Figure 46: Percentage of consumers that attend sporting events, by age, NI and RoI, 2007
  • Figure 47: Percentage of consumers that attend sporting events, by socio-economic background, NI and RoI, 2007
  • Figure 48: Sponsors (current/most recent) of League of Ireland clubs, RoI, 2008
  • Figure 49: Sponsors (current/most recent) of Irish League clubs, NI, 2008
• Platforms and properties: Broadcasting
  • Figure 50: Selected sponsored content on RTE and UTV, February 2008
  • Figure 51: TV content sponsored by finance/insurance sector, RTE and UTV, February 2008
  • Figure 52: TV content sponsored by food/beverage sector, RTE and UTV, February 2008
  • Figure 53: TV content sponsored by betting/gaming sector, RTE and UTV, February 2008
  • Figure 54: TV content sponsored by automotive sector, RTE and UTV, February 2008
  • Figure 55: TV content sponsored by telecommunications sector, RTE and UTV, February 2008Figure 56: Current sponsorship opportunities available on UTV, February 2008
• Platforms and properties: Arts, culture and entertainment
  • Figure 57: Percentage of consumers that go to concerts/festivals, by age, NI and RoI, 2007
  • Figure 58: Percentage of consumers that go to concerts/festivals by socio-economic background, NI and RoI, 2007
  • Figure 59: Percentage of consumers that go to concerts/festivals by gender, NI and RoI, 2007
  • Figure 60: Percentage of consumers that go to the cinema, by age, NI and RoI, 2007
  • Figure 61: Percentage of consumers that go to the cinema, by socio-economic background, NI and RoI, 2007
  • Figure 62: Percentage of consumers that go to the cinema, by gender, NI and RoI, 2007
  • Figure 63: Percentage of consumers that go to museums/art galleries/historical buildings, by age, NI and RoI, 2007
  • Figure 64: Percentage of consumers that go to museums/art galleries/historical buildings, by gender, NI and RoI, 2007
• Example: Bord Bia' s sponsorship of the Ryder Cup 2006
• Example: Naming rights to Lansdowne Road
• Example: New media, new opportunities -- Nimble.ie
• Consumer Behaviour
• TGI data
  • Figure 65: Attitudes to sponsorship and advertising-related statements, NI, 2001-2007
  • Figure 66: Attitudes to sponsorship and advertising-related statements, RoI, 2001-07
  • Figure 67: Attitudes to sponsorship and advertising-related statements, by demographic split, NI, 2007
  • Figure 68: Attitudes to sponsorship and advertising-related statements, by demographic split, NI, 2007
  • Figure 69: Attitudes to sponsorship and advertising-related statements, by demographic split, NI, 2007
  • Figure 70: Attitudes to sponsorship and advertising-related statements, by demographic split, NI, 2007
  • Figure 71: Attitudes to sponsorship and advertising-related statements, by demographic split, RoI, 2007Figure 72: Attitudes to sponsorship and advertising-related statements, by demographic split, RoI, 2007
  • Figure 73: Attitudes to sponsorship and advertising-related statements, by demographic split, RoI, 2007
  • Figure 74: Attitudes to sponsorship and advertising-related statements, by demographic split, RoI, 2007
  • Figure 75: Attitudes to sponsorship and advertising-related statements, by demographic split, RoI, 2007Figure 76: Agreement with "I tend to buy products from companies that sponsor TV programmes", NI and RoI, 2004-07
  • Figure 77: Agreement with "I am more inclined to purchase products from a company that sponsors events than from one that does not", by age, NI, 2007
• The consumer: Attitudes to sponsorship
• MORI demographic data
  • Figure 78: Event sponsorship statements, by demograohic split, NI, November 2007
  • Figure 79: Event sponsorship statements, by demographic split, RoI, November 2007
  • Figure 80: Event sponsorship statements, by demographic split, RoI, November 2007
  • Figure 81: Agreement with selected event sponsorship-related statements (positive), NI and RoI, November 2007
  • Figure 82: Agreement with selected event sponsorship-related statements (positive), NI and RoI, November 2007
• Consumer typologies
  • Figure 83: Consumer typologies, attitudes to sponsorship, NI, November 2007
  • Figure 84: Consumer typologies, attitudes to sponsorship, RoI 2007
  • Figure 85: Consumer typologies, by demographic split, NI 2007
  • Figure 86: Consumer typologies, by demographic split, RoI 2007