Sponsorship Spending On Causes To Total $1.55 Billion In 2009

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North American companies are expected to spend a total of $1.55 billion on cause partnerships in '09, a 2.2 percent increase from the $1.52 billion invested in those programs in '08, according to IEG, LLC, the world's leading authority on sponsorship.

North American companies are expected to spend a total of $1.55 billion on cause partnerships in '09, a 2.2 percent increase from the $1.52 billion invested in those programs in '08, according to IEG, LLC, the world's leading authority on sponsorship.

While the increase is down significantly from previous years, cause related programs still remain popular among corporate marketers due to their ability to support worthwhile organizations while also driving sales.

In fact, some nonprofits that deal with poverty, hunger and other issues directly impacted by the economy have found increased corporate interest.

"Recent research has shown that consumers expect corporations to increase their support of causes in this economy," said Dan Kowitz, vice president of IEG Sponsorship Consulting.

For example, anti-hunger organization Share Our Strength has posted a roughly 15 percent increase in revenue from cause marketing programs over the past year, signing new deals with AT&T, Inc.; Hickory Farms, Inc. and others.

Among other recent deals, juice and apple sauce marketer Mott's LLP this year partnered with Susan G. Komen for the Cure and Feeding America to launch national cause marketing programs.

The company is leveraging the Komen partnership with the Pink to the Core campaign, which features limited edition packaging, and Feeding America with the Wake Up with Mott's and Marcia Cross program, around which consumers can make a donation by sending a pre-recorded telephone message about the need to fight hunger from the actress to family and friends.

For each call, Mott's donates $1 to the nonprofit, with a cap of $134,000--the cost of feeding one million people.

Companies also are increasingly leveraging sports and other types of sponsorships to promote their nonprofit partners. For example, Farmers Group, Inc. is using its new tie to the WNBA Los Angeles Sparks to promote its longstanding partnership with March of Dimes. The insurer is activating the tie with the We Assist You Assist promotion that asks consumers to pledge a donation tied to the number of assists the team makes throughout the season. Farmers will match the total raised from fans.

Further demonstrating the popularity of cause sponsorship, causes trail only sports properties and entertainment tours and attractions when it comes to spending by property type.

About IEG, LLC
IEG is the world's leading provider of independent research, consulting, training and analysis on sponsorship. Founded in 1981, IEG provides corporations and properties with the strategies and tools to harness the sales and marketing power of sports, arts, entertainment and cause marketing.

IEG offers services that include sponsorship consulting, competitive intelligence and valuation. IEG also publishes IEG Sponsorship Report, the international biweekly newsletter on sponsorship; the IEG Sponsorship Sourcebook, the definitive guide to sponsors, properties and agencies; and other industry publications and sources.

IEG also is the leader in sponsorship training. Its internationally renowned Sponsorship Conference, now in its 27th year, attracts a capacity crowd of delegates each year. Through its conferences, seminars and webinars, IEG has trained more than 45,000 sponsorship executives worldwide.

For more information about IEG and the sponsorship industry, please visit http://www.sponsorship.com or call 800/834-4850 (outside the U.S. and Canada, 312/944-1727).

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William Chipps
IEG, LLC
312-944-1727 ext. 237
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