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Onside Outlook

In: Business and Management

Submitted By Onside
Words 1513
Pages 7
S P O N S O R S H I P

BACK to the

sponsorship

< future
15 15 5 2 M 20 152-M-20 1

2015
Onside OutlOOk

Back To THE FUTURE oF DoUBLE-DigiT iRisH sponsoRsHip gRowTH the irish sponsorship market is set to return back to a future of double digit growth reminiscent of the momentum last evidenced in the mid-noughties. onside estimates an uplift in investment in the area of 12% in 2015 in ireland, reaching a new high of €152 million.

12%
10 8 6 4 2 0

Onside estimates an upli in investment in the area of 12% in 2015 in Ireland.

€152
Reaching a new high of €152 million.

M

Looking Back
2014 delivered significantly better than expected results for the irish sponsorship industry, with 47% of sponsors increasing their spend last year, and 61% of rights holders in the market reporting an increase in their sponsorship revenues (7% more than had planned). onside estimates sponsorship spend rose by 9% to €136 million last year, with the annual onside sponsorship industry survey 2015 showing that 73% of sponsors in ireland are now spending more than 10% of their overall marketing and communication budget on sponsorship. events such as the FiFA World Cup, breakthrough new initiatives such as the Coke Zero dublin bikes partnership, major deals such as the iRFu’s new kit deal with Canterbury and strong performances from certain rights holders in Rugby, GAA and Broadcast sponsorship, all helped fuel the largest annual growth so far this decade. the Question was asked of sponsors & Rights Holders: How do you think 2014 sponsorship spend / income within your organisation compared to 2013 overall? SPONSORSHIP SPEND / INCOME
SPONSORS inCReAsed RemAined tHe sAme deCReAsed RIgHtS HOlDERS inCReAsed RemAined tHe sAme deCReAsed PlaNS 37% 34% 29% PlaNS 54% 30% 14%

2014 aCtUal 47% 40% 13% aCtUal 61% 31% 8%

onside outlook 2 0 15

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INtO tHE FUtURE inTo THE FUTURE
Building on this momentum, the future sponsorship outlook for 2015 is also strong, driven by the Rugby World Cup in england, wider macro economic growth, and a rise in sponsorship rights fees paid, as anticipated by 3 in 4 sponsors surveyed. While 2014 was for many rights holders across europe a year of transition in their sponsorship portfolios, 2015 will see greater attention invested by rights holders and sponsors on defining winning sponsorship deals for the next 5 years. the Question was asked of sponsors: Is your company considering new sponsorships in 2015? Beyond this year, onside estimates expect that by 2016, sponsorship investment in ireland could reach a high of €164 million, with 2016 ueFA euros and olympics, as well as a more bedded in european Rugby landscape, stimulating greater use of sponsorship rights in post-recession ireland. Banks are tipped by participants in the onside industry survey to play a major part in this growth surge, along with healthcare and insurance sectors, while rugby, music, concerts & festivals and GAA emerged as the platforms believed to hold greatest potential, with the latter seen to offer best ‘value for money’ for sponsors. evolving new categories to watch for beyond

NO 40% YES 60%

‘the usual suspects’ include building / construction related sponsors, professional services firms and retail. lifestyle sports major 2014 deal with Connacht Rugby and munster Rugby’s new community based initiative with m&s were new deals in 2014 that exemplify this growing sector in sponsorship.

onside outlook 2 0 15

2

sponsoRsHip MoTivaTions the motivations behind the new surge in irish sponsorship show that the primary driver for irish sponsors in the next 3 years is very clearly about increasing loyalty to their brands. A record high 8 in 10 single this out as a most important criteria in writing their sponsorship business case – with the traditional brand awareness goal now next highest, but some way back at 1 in 2. the Question was asked of sponsors : Please indicate the 3 sponsorship objectives that will be most important for your company in the future.

tOP 5 FOR 2015 inCReAse ‘15 BRAnd loyAlty

80%

‘14

inCReAse BRAnd AWAReness

‘15 ‘14

50%

stimulAte ‘15 sAles /tRiAl / usAGe ‘14

43%

dRive RetAil / ‘15 deAleR tRAFFiC

23%

‘14

CHAnGe / ‘15 ReinFoRCe BRAnd imAGe

20%

‘14

While 9 in 10 sponsors will do more with social media based activation, Hospitality and internal Communications will also show noticeably heightened appeal in terms of 2015 activation plans.

37%

HOSPITALITY
SPONSORS PLAN TO DO MORE

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inDUsTRy viEw oF BEsT pRacTicE
AiB received the highest recognition from sponsorship professionals for its revitalised GAA sponsorship in 2014, while live nation were recognised as stand-out rights holders for their work on sponsorships that include the 3 Arena, Bord Gáis energy theatre and festivals including electric Picnic. Guinness, new sponsors of Pro12 Rugby, musgrave (GAA), Heineken (music and Rugby), and ey (Awards) were also highly esteemed for their best in class practice overall in 2014.

turning time further back, the survey found o2’s sponsorship of irish Rugby and Guinness’s sponsorship of GAA recognised as best practice over the past 10 years, with Aviva (stadium), electric ireland and Heineken also mentioned on this longer term measure.

tOp 5 spOnsORs since 2005
1. o2 2. Guinness 3. AvivA 4. eleCtRiC iRelAnd 5. Heineken eiRCom OtHeRs MentiOned suPeR vAlu FloRA RABodiReCt oPel toyotA tAyto eneRGise elveRys BAnk oF iRelAnd sPeCsAveRs

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S P O N S O R S H I P

S:track

Irish Public Opinion iReland’s MOst appealing spOnsORs Of 2014
Run annually in parallel with our industry practitioners’ survey, onside takes the pulse of the nation in terms of their favourite sponsorship of the year just past. And sport is growing on this metric, with 76% of the public naming a sports sponsorship as their favourite of 2014 (up 5% year on year), while Broadcast sponsorships also had a stand-out year in terms of appeal in 2014 – reaching highs last picked up for this category in 2006. guinness – driven by their Rugby sponsorships in particular - came out on top in the public vote for 2014.

onside outlook 2 0 15

5

Jonathan sexton was voted the most marketable personality in terms of his appeal to a brand for personal endorsement deals.

MosT MaRkETaBLE in 2015
Jonathan sexton was identified by the industry as being the most marketable personality for brands in 2015, with 22% voting for the rugby star, piping Brian o’driscoll to the post (19%). Rory mcilroy at 10 per cent (+3%), and katie taylor at 9% (-3%) ranked 3rd and 4th, while Amy Huberman’s star continues to rise (+3%) as she again made up the remaining spot in the industry’s top five most marketable personalities. interesting new contenders also surfaced in the poll including Joe schmidt, Hozier and Conor mcGregor, personalities that brands will want to align with in the near future.

53% mentioned a rugby personality

1 in5 mentioned a female personality
6

onside outlook 2 0 15

2015 – RUgBy woRLD cUp & nEw pRioRiTiEs
2 in 3 irish sponsors see the Rugby World Cup 2015 as an opportunity to engage with their consumers, compared with 44% that saw the FiFA World Cup 2014 in this light last year. Perhaps in part paralleling this, leverage of sponsorship programmes via Hospitality is also set to see noticeable growth, with 37% of sponsors expecting to do more with this channel in 2015. sponsor priorities in 2015 will include smarter ways of unlocking the full power of content with digital and social distribution at the fore, more micro targeting and personalisation against bulls-eye fan groups and local communities, and heightened attention on sponsors’ positions around the rights and wrongs of who or what they sponsor.

Future concerns for the industry revealed by the research include how to gain real stand-out within tight budget realities, developing metrics to prove sponsorships’ share of sales outcomes and a limited supply of premier rights opportunities. the degree of rift between sponsors and rights holders expectations and understanding of each others roles and priorities, with Roi a particular sticking point, is also a challenge that requires some remedy in 2015. For more detailed analysis of Onside’s Industry and Consumer Research Reports, request a meeting with our team using the details overleaf.

onside outlook 2 0 15

7

onside

onside sponsorship is a leading specialist in sponsorship consulting and research services. With a proven track record and strong industry experience in a cross section of sectors, onside is currently feeding into the sponsorship decision making of circa €50m+ of irish sponsorship spend, working on many of ireland’s premier sponsorships, on sporting, music, cause-related, broadcast and other platforms.

onside’s sPonsoRsHiP seRviCes inClude:

stRategY insigHt & ideas deVelOp & deplOYMent eValuatiOn, educatiOn & eXit

t: +353 1 479 0520 e: info@onside.ie

w: www.onside.ie

@onside_spons

©2015 Onside Marketing Ltd All Rights Reserved. All information and methodologies contained in this document are ©Onside Sponsorship, 2015 and may not be shared without prior consent from Onside Sponsorship. Source attribution should read: Onside Sponsorship, 2015

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