€60m to be spent on sports sponsorship this year

OVER €60m will be spent on sports sponsorship in Ireland this year according to new research.

Figures released by Dublin consultancy firm, Onside Sponsorship, predicts an increase in total sponsorship deals of 12% to a record high of €103m. Over half of the monies spent will be on sports such as the Rugby World Cup, the Irish leg of the World Rally Championships, the Seve Trophy and the GAA.

According to the report, almost €6 in every €10 in Ireland spent on sponsorship is invested by businesses in sports related sponsorships, with GAA, rugby and soccer commanding up to 60% of the overall major sports sponsorship spend.

John Trainor, managing director of Onside Sponsorship admits Ireland has come late to the sports sponsorship era — but is making up ground on market leaders like Britain and the USA.

Said Trainor: “Big events like the Special Olympics and the Ryder Cup raised a lot of attention with regards to the link between sponsorship and sports events in this country.

“Bank of Ireland did very well out of the Special Olympics while AIB did well out of the Ryder Cup. Companies now realise that being involved in these type of events is hugely beneficial especially at a time when traditional advertising like television is facing growing challenges as people are channel hopping more and more.”

The Onside Sponsorship outlook also points to venue naming rights and innovative next generation activation opportunities as areas that will be high on the agenda for Irish sponsors.

“Naming rights is a huge part of the market in the United States. We nearly got there a few years back with the plans to build eircom park. But with Lansdowne Road and Thomond Park being redeveloped you might find that some companies will want to come on board now with the stadia. I also think that a lot of GAA venues that are being moved out of town to greenfield sites might also entertain this option. Naming rights are very powerful in delivering brand awareness with premier level awareness around seven or nine out of 10 people equating the stadium with the company. What still remains unclear is the kind of impact that the brand is making.”

GAA President Nickey Brennan has indicated that the Association will be examining all sponsorship options at the end of the year with a possibility of a number of sponsors coming on board for the All-Ireland championships.

“From the multi sponsor perspective the pot is likely to be greater for the sporting organisation,” explained Trainor. “However a sponsor coming on board will have to share space with other brands and argue that fact.”