The Irish market “defied gravity” in 2009, growing 2-per-cent to €133 million, said the Dublin-based consultants. A survey of sponsors in Ireland revealed that 70 per cent expected to reduce the fees they pay on sponsorship deals this year.
Last year’s continued growth was fuelled by several major deals, including insurance provider Aviva’s sponsorships of Irish rugby and football and Puma’s new Irish Rugby Football Union partnership.
“The nature of sponsorship’s multi-year deals in most cases certainly insulated this area from dramatic cut backs, although large scale reductions in spend were more so evidenced on activation spend around sponsorships,” said John Trainor, Managing Director at Onside. “Our research into the Irish sponsorship industry reveals that while 1 in 2 Irish sponsors will curtail their spend on sponsorship generally in 2010, 1 in 5 will be increasing their investment in this tool.”
Trainor said it was too early to predict any recovery beyond 2010.
“Major sponsor categories like Auto brands, banks and other sectors are still at the planning stages of recovery,” he said. “New money will come in from some companies ready to fill the void while these established sponsor sectors get back on their feet. Rugby World Cup 2011, The Solheim Cup in Ireland and the new cycle of GAA Football Championships deals will be just some of the prospects for a possible return to slow growth in the industry beyond the down-year ahead.”
