Radio managers know when large crowds gather, they want their call letters and vans and hosts and mascots anywhere and everywhere in those crowds. Craft beer festivals, concerts, and sports are just a few major event categories that radio has jumped on to stand before the people.
From iHeart’s music festivals to Townsquare’s Inflatable Obstacle races to Entercom and CBS’s dominance with sports franchises, radio understands the importance of being part of major community events. And that sector is only expected to grow, according to a new report.
IEG is predicting that global sponsorship spending will hit nearly $63 Billion in 2017. In North America IEG is predicting growth in sponsorship spending to increase 4.1 percent to $23.2 Billion; $22.3 Billion was spent on sponsorships in North American in 2016. IEG says in North America, sponsorship growth should outpace the other forms of marketing, with ad spending expected to grow just 2.6 percent and other marketing spending up 3.2 percent.
So what are those dollars going toward? Sports is the biggest category, according to IEG with sponsorship spending expected to hit $16.4 Billion, that’s seven out of every 10 dollars spent on sponsorships in North America. Entertainment was a distant second with a projection in 2017 of $2.3 Billion.