The Repucom Sponsorship Australasia Outlook Report has been collated for more than five years and is the only broad sponsorship study in Australasia. It represents a top line view of the sponsorship 'industry' and serves as a useful guide to potential trends, attitudes and intentions.
While it covers the arts sector as part of the sponsorship industry, it does not delve more deeply into any specific sector. AbaF's annual survey of private sector support will deliver more detailed information for the arts.
In the 2010 study, 88% of sponsors had budgets over $1m. The value of their sponsorship across all categories has increased by 5%.
The category of "community and grassroots" experienced the greatest increase (60%) from 11.8% to 19.1%. We don't have a breakdown of what rights-holder organisations are included in 'community and grassroots' but it's possible that there are arts partnerships included in that category. Significantly 46% of sponsors will be seeking to "increase community/grassroots spending in 2011".
Support for sport shrank by 10% and support for the arts decreased from 8% to 6.2% (a 22.5% decrease). At 6.2% of overall sponsorship investment it's a relatively small number of partnerships.
The great news, according to the authors of the report, is that business is viewing sponsorship in a more positive light than before, albeit with an increased focus on value, measurement and efficiency. "The ability to devise new, creative and exclusive methods of leveraging the rights sponsors have will be a key target for rights-holders ..."
In summary, 83% of respondents feel confident about the health of the sponsorship sector over the next 12 months and 42% of companies expect to increase their sponsorship budgets in 2011. In this environment, there is a real opportunity for the arts to be more active in getting to businesses with good fit proposals while the 'mindset' is good.
For those sponsors seeking to drive corporate image and credibility through partnerships with the arts, the most important objectives are entertaining clients/prospects, impacting brand image, improving brand credibility, showcasing social/community responsibility and motivating employees.
Some important indicators from the report:
90% of respondents agree "leverage is critical to getting the best out of your investment"
80% want "more open communication" and a "more collaborative approach"
85% of respondents want to see "more guidelines and case studies on sponsorship best practice"
over 50% of rights-holders claimed "increased sponsorship revenue from 2009 to 2010"
30% of sponsors indicated that they are "on the fence" regarding sponsorship this year and 9% might "pull back".
AbaF will complete its annual survey of private sector support for the arts in the next couple of months. This more in depth piece will allow greater insights into the strategic directions for the sector.
Interestingly the figures from A&B in the UK seem to reveal the arts is still experiencing a struggle to secure support from business - down 11% last year and at its lowest since the recession in 2003-04.
Jane Haley, CEO AbaF
Read the full report here.