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Sponsorship Spending To Total $14.93 Billion In 2007

January 18, 2007:

Nontraditional partnerships combine with high interest in international properties to boost spending by nearly 12 percent

For More Information Contact:
William Chipps, IEG, LLC, Tel: 312/944-1727

2007 Sponsorship SpendingChicago, Ill. — Sponsorship spending by North American companies is expected to rise 11.7 percent in ’07 to $14.93 billion, according to IEG Sponsorship Report, the world’s leading authority on sponsorship.

That growth comes on the heels of a 10.5 percent spending increase in ’06, slightly lower than the projection of 10.6 percent made a year ago. U.S. and Canadian companies spent $13.37 billion on sponsorship rights fees last year.

Sponsorship expenditures will once again outpace the growth of traditional media. Corporate outlays for traditional advertising in North America are predicted to grow only 2.4 percent in ’07, down from the 2.9 percent growth experienced last year, according to the worldwide media and marketing forecast produced by GroupM, the global media investment management operation of WPP Group plc.

“More and more, companies are moving away from traditional media in favor of nontraditional, emotional marketing platforms,” said William Chipps, IEG Sponsorship Report’s senior editor.

While entertainment tours and attractions, associations and membership organizations, and festivals, fairs and annual events are projected to do slightly better than their counterparts in sports, causes and the arts, all six categories should experience strong overall revenue increases in ’07.

2007 Sponsorship SpendingProjected dollar amounts by category are sports: $9.9 billion, up 10.8 percent from $8.94 billion in ’06; entertainment tours and attractions: $1.6 billion, up 16.2 percent from $1.38 billion; causes: $1.44 billion, up 10.5 percent from $1.3 billion; arts; $820 million, up 10.4 percent from $743 million; festivals, fairs and annual events: $701 million, up 15.1 percent from $609 million; and associations and membership organizations: $466 million, up 15.3 percent from $404 million.

Global Warming To Sponsorship

Led by tremendous interest in and opportunities for sponsorship in Asia, especially China, sponsorship spending by companies based outside North America should grow at rates even higher than for their U.S. and Canadian counterparts.

Overall, including North American spending, ’07 global expenditures on sponsorship should hit $37.7 billion, an 11.9 percent increase over the $33.7 billion spent in ’06. Excluding North American companies, spending should rise 12.3 percent from $20.3 billion to $22.8 billion. Global spending including North America rose 10.5 percent in ’06, just under IEG SR’s projection of 10.8 percent. Taking out North American companies, spending rose 10.3 percent, which was less than the 11 percent prediction.

Specifically, European companies will raise sponsorship spending by 11.6 percent from $9.5 billion in ’06 to $10.6 billion in ’07; Asia Pacific companies will hike budgets 15.6 percent from $6.4 billion to $7.4 billion; Central and South American companies will see an 11.1 percent jump from $2.7 billion to $3 billion; and companies based in all other regions will grow expenditures 5.9 percent from $1.7 billion to $1.8 billion.

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 25th 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 or call 800/834-4850 (outside the U.S. and Canada, 312/944-1727).