The forecasted sponsorship spending for the year 2017 reported by IEG in its 32nd annual forecast of sponsorship growth, provides a clear picture of the situation. Spending on sponsorship globally is forecasted to increase to $62.8 billion in 2017 recording a jump of 4.2% on the $60.1 billion spent in the previous year 2016.
Sports make almost $44 billion on sponsorship even if IEG also highlighted that the actual political uncertainty given by the U.K.’s imminent exit from the European Union and the recent election of the new president of the United States of America Donald Trump, could represent a variable to these figures. Also, economic factors of energy prices (these companies spend several million on sponsorship globally) and any cap or restriction on the outward growth of Chinese trade could impact the market. Their spending, both locally and abroad, will be a key aspect of the Asia Pacific region’s strong sponsorship growth that is forecasted to reach 5.8 percent in 2017 with a 0.1% growth from the result obtained in 2016.
It is also interesting to know how the market for sponsorship has changed over the years. IEG provided a comparison of the annual growth of Advertising, Marketing/Promotions, and Sponsorship globally. While the Marketing/Promotion sector was the driving force in 2014 with a whopping 5.5% it collapsed to 3% in the forecast report for the year 2017. On the other side, the sponsorship kept a steady performance with a growth of 0.5% from 2014 to 2016 and a projected 4.6% in 2017.
The Global Sponsorship Spending by Region highlights that Asia will be the fastest continent in spending growth. Its sponsorship spending will reach a projected $15.7 billion, a 5.8% increase. Europe’s sponsorship spending is projected at $16.7 billion well ahead of the forecasted figures reported for Central/South America and All Other Countries. The Chinese expansion in the world of football has certainly driven Asia’s growth in sponsorship spending that recorded a 5.7% increase from 2015.
