September 27, 2006: More interest from wider variety of sponsors; multicultural marketing programs and the need for content fuel increased spend
For More Information Contact:
William Chipps, IEG, LLC, Tel: 312/944-1727
william.chipps@sponsorship.com
www.sponsorship.com
Chicago, Ill. — Positioning themselves as a vehicle for sponsors to associate with the glamour of Hollywood and celebrity lifestyles, film festivals have taken their sponsorship revenues to new heights.
North American-based companies are expected to spend $34 million on film festival sponsorships in ’06, up 12 percent from $30.5 million in ’05, according to IEG Sponsorship Report, the world’s leading authority on sponsorship. The 12 percent rise exceeds IEG SR’s projected 10.6 percent increase in year-over-year spending for the overall sponsorship industry.
"Companies are beginning to realize the marketing power of film festival sponsorships as a platform to reach trendsetters and other influentials," said William Chipps, IEG Sponsorship Report’s senior editor.
The increased sponsorship spend is driven largely by three factors:
Heightened interest from a wider variety of sponsors. While film festivals once courted movie studios and alcoholic beverages as their primary sponsors, they are a mining a much broader prospect field as categories from automakers to retailers and beyond look to enhance their image by rubbing shoulders with trendsetting glitterati and other influentials.
Case in point: Real estate developer The Fifield Cos. signed a first-time sponsorship with June’s CineVegas Film Festival on behalf of Allure Las Vegas, a pair of 41-story luxury high-rise condominium towers overlooking the Strip.
More focus on multicultural markets. The growing number of specialty festivals that showcase ethnic and other niche films and filmmakers have been able to take advantage of corporate multicultural marketing efforts.
For example, Wal-Mart Stores, Inc. is sponsoring three film festivals this year to promote its Voice of Color Film Series on Tour. Similarly, Eastman Kodak Co. sponsors the Film Life & HBO American Black Film Festival as part of its multicultural marketing efforts.
Growing need for content. Just as they are looking to music and sports properties, companies are increasingly aligning with film festivals to gain content.
Take AOL LLC’s Moviefone, which leveraged its Sundance Film Festival tie to offer an insider email update with comprehensive festival coverage that included breaking industry news, schedule information and screening venues.
The most active categories sponsoring film festivals are auto, media and publishing, airline, retail, bank, and beer and spirits, according to IEG Research.
About IEG, LLC
IEG is the world’s leading provider of independent research, consulting, training and analysis on sponsorship. Founded in 1981, IEG provides corporations and properties with the strategies and tools to harness the sales and marketing power of sports, arts, entertainment and cause marketing.
IEG offers services that include sponsorship consulting, competitive intelligence and valuation. IEG also publishes IEG Sponsorship Report, the international biweekly newsletter on sponsorship; the IEG Sponsorship Sourcebook, the definitive guide to sponsors, properties and agencies; and other industry publications and sources.
IEG also is the leader in sponsorship training. Its internationally renowned Sponsorship Conference, now in its 24th year, attracts a capacity crowd of delegates each year. Through its conferences, seminars and webinars, IEG has trained more than 45,000 sponsorship executives worldwide.
For more information about IEG and the sponsorship industry, please visit www.sponsorship.com or call 800/834-4850 (outside the U.S. and Canada, 312/944-1727).