The financial services sector has leapt into a clear lead in terms of both the number of sponsorship deals and the value of sponsorship expenditure in the UK, according to a new report published this week.
In 2000, the sector was third behind the motor and alcohol industries but a series of major deals has put banking and insurance firmly into first place, the report says. Financial services now accounts for 15 per cent of all deals, but in terms of value, it represents 22 per cent of the entire sponsorship cake.
Part one of a three-part report, ‘Driving Business Through Sport 2007’, is published by International Marketing Reports and values the UK sports sponsorship industry at £839 million. Report author, Simon Rines, says that the findings suggest a pan-European pattern is now emerging.
“The report demonstrates that in most sports and in most markets, financial services is the biggest spender. The motor industry has certainly concentrated on Formula One, MotoGP, World Rally etc but across the continent its investment outside of motor sports has fallen considerably.
“With tobacco now out of the equation, there are some surprises regarding the industries that have replaced it. The big growth has come from the energy, gambling and airline sectors. In the UK, for example, E.On has taken the FA Cup, EDF is now very strong in rugby union and airlines include Emirates’ backing of Arsenal and an expected deal between British Airways and London 2012. Four Premiership clubs now have online gambling companies as primary shirt sponsors.”
Rines adds that there is still plenty of room for growth in other sectors.
“If you follow advertising spend, two of the biggest sectors, retail and fast moving consumer goods (FMCG) spend very little on sponsorship. FMCG sponsors in the UK tend to be soft drinks and mineral water brands. In Italy and France, food brands spend a lot more on sport although their marketing culture is different. In Germany there is a growing trend among retailers to invest in sports properties and as advertisers find traditional media more difficult to exploit, this pattern is could spread to the UK.”
The report features a listing and analysis of more than 2,000 of Europe’s top sports sponsorship deals. The United Kingdom accounts for 17 per cent of Europe’s total expenditure and is second behind Germany on 33 per cent. Italy is in third place on 13 per cent with France in fourth on 12 per cent.
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