Sponsors Ready To Let The Hype Begin

Sydney Morning Herald

Thursday May 29, 2008

Julian Lee Marketing Reporter

THE Australian sports sponsorship market is expected to get a boost of cash in the next six months as marketers use the Beijing Olympics to ramp up their activity, in particular around individual sports stars, an analyst says.

IBIS World predicts the amount companies tip into sponsoring sports stars, events and sports from July to December 2008 will reach $535.5 million - a rise of 73 per cent on the corresponding period in 2007.

Although the figure represents a sizeable leap, IBIS World says it is nowhere near the zenith achieved during the Sydney Games, when the amount climbed to $1.24 billion only to come crashing back down to earth in succeeding years.

IBIS World notes that the trend for companies to focus their marketing efforts on individual athletes rather than on the sport is likely to increase.

Its senior analyst Toon Van Beck said: "They have realised they can get far more publicity and exposure for their brand, as well as build up their image, by putting their efforts behind them.

"The media follows the star, so they can get huge coverage for their brands.

"Currently, the Olympic hype isn't here in Australia, compared to what's being seen in China. However, we'll see the build-up and excitement as many more businesses try to use sports as a medium to gain exposure," Mr Van Beck added.

He predicted local sponsors such as Speedo, Telstra, Westpac, Qantas and Uncle Tobys would increase their marketing within weeks, and that individuals such as Grant Hackett, Liesel Jones, John Steffensen and Stephanie Rice would be taking centre stage.

But Mike Bushell, the principal of Sports Marketing and Management, the Australian Olympic movement's sponsorship agency, questioned IBIS World's figures, and said all but a small portion of sponsorship money would have been paid up front and spread over four years. "Also, none of these deals have been made public, so I question how they can arrive at this figure," he added.

David Malina, the client manager of IMG's sports and entertainment division, said the trend of focusing on individuals was not necessarily across the board. While Mr Malina acknowledged that companies that sponsored teams as well as individuals "got more traction", he added: "The public responds better to a company if they are backing the sport as they are seen to be in it for the long haul."

© 2008 Sydney Morning Herald

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