The ninth annual IEG/Performance Research Sponsorship Decision-makers Survey shows how US sponsors are being affected the staggering economy.
Fifty-one percent of the survey’s respondents said their companies’ spend on sponsorship fees will decrease this year from 2008 levels. Only 14 percent of sponsors plan to spend more, while 36 percent said their budgets would stay the same as last year.
Almost half of sponsors –47% –noted they were seeking to get out of some of their current sponsorships even though those deals were not currently up for renewal. One glimmer of hope emerged with the revelation that 60% of sponsors say they would consider signing first-time sponsorships in 2009.
The average percentage of overall marketing budgets claimed by sponsorship fell from a record high 19.5% to 17.6%, while the average amount spent on activation relative to rights fees slipped for the second straight year to US$1.40 for every US$1 spent on rights fees from US$1.50-to-US$1 in the 2008 survey.