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The changing sponsorship, advertising and marketing model
Published March 27, 2006
A look at the trends in terms of where sports dollars flow reveals that the market as a whole is healthy but faces some challenges. The sports industry continues to drive sponsorship spending in the United States, commanding more than two-thirds of overall corporate commitments last year. But entertainment and cause-related sponsorships are both growing faster than the sports segment.
In terms of media and advertising, sports has grown at about the same rate as the U.S. advertising market as a whole and represents about 13 percent of the U.S. ad market. But cable television and the Internet are taking up a larger piece of that pie, with radio and print growing at a much slower rate both for sports and the market as a whole.
Source: SportsBusiness Journal analysis of "IEG Sponsorship Reports"
Source: SportsBusiness Journal research; Pricewaterhouse Coopers
* Includes banks, credit cards and financial advisors
** Includes sit-down and fast food
Source: SportsBusiness Journal analysis of Nielsen Media Research data
Projected growth in total ad spending by category, 2006 vs. 2004
Projected growth in sports spending by category, 2006 vs. 2004