• January 12, 2012

U.S. marketers did not spend as much as projected on sponsorships in 2011 due to unsettled economy and a yet-to-stabilize recovery.

The 27th annual year-end industry review and forecast from IEG reveals that sponsorship spending by North American companies increased just 5.5% in 2011, below the projected rise of 5.9%. Outlays for sponsorships of all types grew to $18.11 billion.

Looking ahead, IEG projects that North American sponsorship spending will grow by just 4.1% in 2012, to $18.87 billion. Corporate marketers appear to be holding off on bigger votes of confidence pending the outcome of solutions to national debt problems and the U.S. presidential election.

Corporate partners will still find resources to align with sports, entertainment, nonprofit and other opportunities that help them achieve bottom-line objectives. The global spending picture is slightly brighter than the North American outlook, with spending in emerging markets such as Brazil and India offsetting tighter markets in Europe. Global spending, including North America, grew 5.1 percent to $48.6 billion in 2011, just below IEG’s projection of 5.2 percent growth.

Spending on sponsorship in North America will grow just slightly more than spending on traditional advertising. Media spending, which rose four percent in 2011, is projected to increase by the same percentage in 2012, according to the worldwide media and marketing forecast produced by GroupM, the global media investment management operation of WPP Group plc.--Tanya Irwin