The Irish sponsorship industry grew by 6 per cent to reach €180m in 2021, and while the sector’s size has yet to return to pre-pandemic levels, the 16th annual ONSIDE Irish Sponsorship Industry Survey estimates there will be further growth of 8 per cent in 2022 to €195m, a step closer to the €200m threshold first reached in 2018.
54 per cent of sponsors will be increasing their sponsorship investment levels in 2022, up from 41 per cent in 2021, and 70 per cent expect sponsorship spending across the industry to increase, compared to only one in five last year.
“The pandemic affected all marketing activity, but after the initial shock in 2020, sponsorship has once again proved its worth to brands seeking to build new and better connections,” said Onside CEO John Trainor.
“The immediate decline was less steep than advertising and other parts of the marketing mix and its recovery has been steady and sustainable – much as we saw during the financial crisis earlier this century.”
Business case
“The most interesting part of this recovery story to date is a noticeable shift in the business case for investment in sponsorship.”
“Sponsor objectives are shifting to revolve around brand image (42 per cent) and showcasing community and social responsibility (39 per cent), overtaking brand awareness goals (34 per cent) for the first time in 2022.”
“This year, we have seen a significant increase in brands using sponsorship to connect to the diversity and inclusion aspects of their businesses and environmental sustainability platforms have surfaced in our research as the strongest growth opportunity in sponsorship in the minds of 42 per cent of budget holders.”
Sponsorship accounts for 20 per cent of Ireland’s marketing and communications investment in 2021, and ONSIDE expects that two out of every three deals brought to life in 2022 will be 3–4-year terms. This is a result of the longer-term return on this investment standing the boardroom tests of Covid scrutiny.
Opportunity
2021 was a breakthrough year for women’s sport in Ireland and 9 out of 10 sponsors see women’s sport as a significant opportunity this year, up from 8 out of 10 last year.
63 per cent of industry professionals surveyed selected a female as their most marketable personality for 2022, up 28 per cent on 2021, with Kellie Harrington, Katie Taylor, Ellen Keane, and Rachael Blackmore leading the way.
After several years in the shadows, there were green shoots of optimism for soccer, with both women’s captain Katie McCabe and men’s goalkeeper Gavin Bazunu also making the industry’s 2022 top prospects list for the first time.
Reflecting on the standard of activity produced by the collective Irish sponsorship industry last year, over a quarter of industry experts think sponsorship campaigns in Ireland were more effective in 2021 than 2020, a six per cent lift year on year.
Recognition
According to the industry professionals surveyed, GAA and Rugby partnerships were most worthy of recognition, as Lidl and SuperValu’s ties with Gaelic games stood alongside Vodafone and Guinness’s rugby partnerships as perceived best in the class of ‘21.
Sky’s new partnership with the Ireland women’s soccer team was also a notable new entry to this year’s list.
Sport dominates the survey list of the most effective rights holder partners in the eyes of sponsors, with the IRFU leading the line alongside the GAA, the Olympic Federation of Ireland and Horse Racing Ireland.
They are joined on that list this year by the Guinness Cork Jazz Festival, which made a triumphant return in 2021, and which Trainor flags “is an important reminder of the opportunities that will be available as more festivals and the wider entertainment sector rejuvenate throughout 2022.”
Hospitality
39 per cent of sponsors expect to use sponsorship-related hospitality more in 2022, up 24 per cent on last year. Experiential marketing is also showing significant growing appeal, with 51 per cent of sponsors indicating they will use it more to leverage their sponsorship programs this year, up 28 per cent year on year.
Building on some notable new Irish venue naming rights deals in 2021 including The 3Olympia and provincial stadia like the NUIG Air Dome, pitch and club ground naming rights for rugby and GAA looks set to continue, with 3 in 10 rights holders actively exploring options around selling venue naming rights in 2022, a level higher than was the case pre-pandemic in 2019.
Challenges to the industry uncovered by the ONSIDE research include the range of sectors that will come under increased scrutiny by the government and other interest groups. In terms of self-governance, an increasing number of rights holders are likely to employ self-imposed bans across sectors including betting (up 17 per cent), foods that are high in fat, sugar and salt (up 15 per cent) and electronic cigarettes (up 6 per cent).
“A few eye-catching new mega sports deals are ready to be announced this quarter in rugby and golf, while established sectors including retail/supermarkets and banking/insurance will be key drivers of solid year-long 2022 growth,” added Trainor.
“Any unforeseen spike in spend may come from the pace at which sectors we are tracking investing in sponsorship in other parts of the world in 2021 start to impact the Irish market in 2022, particularly in relation to cryptocurrency trading, other blockchain-backed technologies and the more general momentum towards the metaverse and Web3.”
Sport for Business Perspective
To be back within touching distance of pre-pandemic sponsorship, as we head towards the third year of havoc wreaked by Covid, is a major statement on the power of sponsorship and the positive influence of Irish sport. Confidence can be a sensitive thing to nurture and hold but hearing from peers within the sector that they are positive is a powerful statement on our bouncing back.
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