SPONSORSHIP SPEND on mass participation sports in 2012 is set to surpass the $100m mark in North America, according to data published by IEG’s Sponsorship Report earlier this month.
The projection of commercial spend in the endurance sports market represents a 6.7 per cent increase from 2011, which saw $95.7m spent on events in the US.
The report highlights three main factors for the continued sponsorship growth: expanding participation figures, an increased interest in health and wellbeing and an affluent spectator base.
James Robinson, managing director of Challenger World – IMG’s mass participation events arm – agrees with the opinion that endurance sports have become a more attractive sponsorship option not only in the US but worldwide, largely due to a significant rise in those wanting to take part.
“There’s unprecedented demand for our events from a participant point of view,” Robinson told Frontloaded.
“The timeline between the launch [of an event] and sell out is rapidly declining, capacities for events are increasing and new events are popping up off the back of the Olympics – there’s no real better time to be associated with mass participation sports.”
While brands are able to tap into a large and increasing participant consumer base, there is also significant value in a spectator demographic which is typically more affluent than average.
“One of our core properties is triathlon and that definitely attracts a ‘higher end’ demographic – senior management figures, predominantly male, good to high earners,” says Robinson.
“And that kind of person, who also has an interest in health and wellbeing, does attract high end brands which want to engage with them.”
While there are many business sectors active in mass participation sports sponsorship; energy, leisure, sports apparel and FMCG to name but a few, Robinson expects increased activity from other industries as a result of the growing calendar of events in the space.
“Car brands in the States are very heavily involved, but not so much in the UK so that’s an avenue we’re exploring,” he says.
“Financial brands have been big supporters in the past but have been through a pretty torrid time in the last few years. I suspect they will come back into play in the next 12 to 24 months.
“Generally it’s a healthy market at this point in time and there are a lot of companies out there looking to grow their existing portfolios or launch new events to try and capitalise on it.”
By Luke Harman
Follow Luke on Twitter: @lukeharmanSBG