The Irish sponsorship market grew by 10% to €224m in 2019 but growth is set to slow to 8% through 2020, according to the latest industry survey from Onside.

Onside’s research shows that one in two sponsors increased their investment in sponsorship during the last year, contributing to an overall 80% increase in spend on sponsorship in Ireland over the past decade.

In terms of spending plans for 2020, 46% of Irish sponsors will hold the line on spend, while 38%of sponsors are considering increasing spend and 16% will be decreasing spend. Onside founder and CEO John Trainor (pictured) said that this level of fluctuating spend was last seen in 2015.

“As we enter a new decade, it is clear the sponsorship marketplace is in a state of flux, due mostly to social, technological and economic changes impacting all forms of business and marketing and, in particular, causing dramatic upheaval in the sports sector, which accounts for more than two-thirds of all sponsorship euros,” Trainor added.

According to Onside’s report, hot sectors of growth in 2020 include IT/technology, healthcare and energy, with banking and telcos also expected to be key drivers in of increasing spend.

In Association with

“The motivations of sponsors are also expected to be reset this year,” said Trainor. “[There are] higher expectations on sponsorship to deliver increased brand loyalty for two in three sponsors, but also increasingly to help businesses stimulate sales and usage of the sponsors solutions, with a record high of one in four setting this as a goal for 2020.”

As in previous years, seven in 10 sponsors that are looking for a new sponsorship in 2020 will be looking for a sports play. Trainor added that a stand-out finding from Onside’s latest report is the growth in brands seeking sponsorship opportunities in the area of sustainability and the environment.

GAA retained its lead position in offering the strongest potential in terms of ‘value for money’. Beyond sustainability/environment, GAA and community-focused sponsorship, e-sports rose most significantly in terms of being seen to offer strongest areas of opportunity this year.

More than one-third (38%) of industry practitioners surveyed by Onside felt that sponsorship campaigns in Ireland in 2019 were ‘more effective’ than previous years – a drop of 19% year on year.

Vodafone’s partnership with the IRFU was again voted by the industry as the best sponsorship of the past year, followed by Aldi’s sponsorship of Irish Rugby and Lidl/Ladies Gaelic Football.

Marketable Personalities

Boxer Katie Taylor topped the ranking of the most marketable personality list for 2020, joined by golfer Shane Lowry and rowers the O’Donovan Brothers.

“Other 2020 stars in the eyes of sponsors include Olympic and Paralympic prospects Rhys McClenaghan, Rory McIlroy and Ellen Keane, and rugby stars including James Ryan, Rory Best and Johnny Sexton,” said Trainor.

Other findings in the Onside report showed that:

• One in three sponsors see the 2020 Olympic Games and three in 10 sponsors see the 2020 Paralympics in Tokyo as opportunities for their businesses to engage with consumers in Ireland.
• 43% see the UEFA Euro 2020 Championships, which will include games at Aviva Stadium in Dublin, as an opportunity for consumer engagement.
• Seven in 10 Irish sponsorship practitioners are now concerned by the impact of ethical issues in sport and a lack of trust in sports governing bodies.
• Content marketing and PR activation will continue to rise in their importance in sponsorship activation plans this year, while live streaming is set to grow fastest as the area of innovative marketing that Irish rights holders believe will provide the best opportunity to activate sponsorships in 2020.

“Looking past the 2020 horizon, this year will set the foundations for a future where sports and entertainment consumption is increasingly on mobile, gamers will take the journey into franchised competition in their tens of millions, private equity funds will get a greater taste for sport and entertainment investments, and solutions to good governance and intellectual property theft as a result of sports content piracy will reset the industry for a new generation,” Trainor concluded.