Whoever said rolling stones gather no moss should consider what Sprint pulled off with its Rolling Stones half-time show at Super Bowl XL in Detroit in February. Pre-show buzz and more than 1 billion viewers worldwide is more than what Sprint could ask for to wrap up its blockbuster NFL sponsorship deal inked last year.
As the league’s “official wireless telecommunications sponsor”, Sprint developed exclusive content during the season, including text updates on scores, stats, player highlights, ringtones, screensavers and wallpaper downloads. Consumers also voted for their favorite Rolling Stones song and Sprint ads.
Sponsorship spending is on the rise. U.S. marketers spent $12.1 billion in 2005, up 8.9% from 2004, according to Chicago-based sponsorship analysis group IEG. Further growth is expected this year with spending up 10.6% to $13.9 billion. Global spending is projected to grow by $3.4 billion to $33.8 billion this year, IEG says.
Last year, Anheuser-Busch led the pack in sponsorship spending forking out $310 million. Rounding out the top eight big spenders for the category are: PepsiCo, Inc. ($295 million), General Motors Corp. ($220 million), The Coca-Cola Co. ($215 million), Nike, Inc. ($205 million), Miller Brewing Co. ($170 million), Daimler Chrysler Corp. ($145 million) and Ford Motor Co. ($135 million). Combined, these companies spent close to $2 billion, the IEG report found.
Financial institutions, airlines, food manufacturers and telecommunication companies also earmarked plenty for sponsorships, and aggressive spending will continue to meet the insatiable appetites brands have for large audiences, experts say.
“Sponsorships will continue to grow,” says Wally Hayward, chairman and CEO, Relay Sponsorship and Event Marketing, Chicago, IL. “This year is a big year with two big events: the Olympics, which was just completed, and the FIFA World Cup this summer.”
In 2006, 66% of sponsorship spending will go toward sports events like NASCAR, down from 69% last year, IEG says.
Brands including AOL, Exxon/Mobil, Visa, Coca-Cola and XM/Satellite Radio all had and continue to have ties to NASCAR.
Also for 2006, entertainment tours and attractions are expected to receive 11% of sponsorship dollars, cause-related sponsorships 10% and festivals, fairs and annual events 5% (an increase of a percentage point for each category). The remaining 8% will be split between arts and associations and organizations.
Spending on causes is projected to jump the most this year by 20.5% to $1.11 billion, and for entertainment tours and attractions to $1.17 billion, a 20.2% rise, IEG says.
Extending the value of sponsorships before and after an event is critical for getting the best bang for the buck, says Kevin McNulty, CMO of Momentum Worldwide.
Last year, for its American Express client, Momentum created alternative viewing locations at Sydney Harbor for the Australian Open Tennis Championships. Giant branded screens televised the action to spectators
This year, watch for a shift away from numerous sponsors as properties hike prices and offer fewer sponsors to help with overcrowding.
“The general idea is, instead of having 10 sponsors for $1 million a piece, you can have five at $2 million a piece so you can do a better job for those five, says Jim Andrews, editorial director at IEG.
SNAPSHOT 2005
Anheuser-Busch led the pack in sponsorship spending at $310 million
66% of spending earmarked for sports
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