The value of Irish sponsorships is expected to surpass €200m for the first time since 2018 this year, according to the annual Irish sponsorship industry survey from Onside.
After growing 9% to reach €196m in value in 2022, the consultancy has forecast the industry will grow a further 8% in 2023 to an estimated €212m.
More than half (53%) of sponsors intend to increase their sponsorship investment levels this year, broadly in line with 2022 expectations, and seven in 10 expect sponsorship spending across the wider industry to increase, up from one in five in 2021.
“Despite strong concerns amongst three in 10 sponsorship industry practitioners that feel that the cost-of-living crisis will have a significant negative impact on the sports industry in Ireland, we know brands that maintain their investment in sponsorship during tough times reap the rewards in the long-run," said John Trainor, CEO of Onside.
"While the instinct may be to cut back on sponsorship and activation, astute CMOs and marketers will dive into the right data, adapt their approach, and ensure their CEO and CFO colleagues are well-informed of the real return-on-investment they are delivering.
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“There will still be significant competition for available sponsorship assets in 2023, with demand for premium properties continuing to outstrip supply, although this has softened slightly compared to last year."
Six in 10 sponsors will consider new sponsorships this year, down 7% from 2022, and 68% of industry professionals selected a female athlete as their most marketable personality, with Katie Taylor, Katie McCabe and Kellie Harrington leading the way.
Some 47% of sponsors are looking to drop out of existing partnerships, up 12% year on year. Furthermore, 76% expect to use video sharing platforms to leverage their sponsorships, up 22% year-on-year.
Seven in 10 see the Rugby World Cup as an opportunity to engage with consumers, while 43% see opportunity for their businesses with Ireland participating in the Fifa Women's World Cup in Australia and New Zealand.
Otherwise, sustainability/environment, cause, community, and diversity & inclusion are believed to be the broad areas with the strongest growth opportunities. Banking and airline brands are tipped as the sectors to watch for growth in 2023.
A third of respondents think sponsorship campaigns in Ireland were more effective in 2022 than 2021, an improvement of 5% year-on-year.
Sky Ireland's partnership with the Ireland women's team was deemed the sponsorship campaign deemed most worthy of recognition, ahead of Lidl and AIG's ties to gaelic games, and Vodafone and Bank of Ireland's rugby deals. KPMG's partnership with the Women's Irish Open golf was a notable new entry on the list.
In terms of the most effective rights holders, the IRFU leads in the minds of sponsors, alongside the GAA, FAI and Aviva Stadium, with Live Nation joining the list after reopening a portfolio of venues and festival properties in 2022.
Elsewhere, recent research published by Onside showed that two-thirds of the Irish public believed that sponsors of the 2022 Fifa World Cup would be right to turn down or turn off their sponsorship of the tournament over human rights and LGBTQ+ issues in host nation Qatar.
“As controversy and resultant public opinion and backlash around sponsorships linked to Russian and Qatar-based events remained a consistent theme throughout 2022, it is no surprise that eight in 10 rights holders in Ireland agreed that public opinion impacts the brands they will consider partnering with in 2023," Trainor said.
"The importance of public approval for sponsorships has increased significantly in the last 12 months, highlighting the tightrope that sponsors and rights holders will walk when developing partnerships in the year ahead."
Photo: John Trainor. (Pic: Onside)
