European sponsorship deals ‘to double by 2010’

Sponsorship spending across Europe is set to double by the end of the decade, according to a prediction from the European Sponsorship Association (ESA).

ESA chairman Nigel Currie says sponsorship makes up eight per cent of total European marketing spend, but predicts this figure will rise to about 15 per cent by 2010.

About E7.5bn (&£5.1bn) is spent on sponsorship each year throughout Europe, with sport accounting for 80 per cent of that figure. But Currie, speaking at the ESA’s 15th annual congress, said the sponsorship industry is becoming more sophisticated.

“There is a growing feeling that marketers are recognising sponsorship as an essential part of the marketing mix and accepting that it can make a substantial difference not only to brand awareness, but more significantly to a company’s bottom line,” he added.

In the past, the sponsorship industry has been criticised for not having a uniform tool to measure sponsorship’s effectiveness. However, the ESA has unveiled plans to develop a research and evaluation model that can be used by all sectors involved in sponsorship.

Last week, Alastair Macdonald, managing director of sponsorship consultancy Connexus, said the industry needs to market itself better to would-be clients to make use of its untapped potential (MW last week).

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