ESA: Sponsorship confidence up among agencies, but down at rights holders
There has been a slight increase in confidence within the European sponsorship industry over the past month with brands and sponsors maintaining a positive outlook despite the ongoing coronavirus pandemic, according to a new survey.
The fourth wave of the European Sponsorship Association’s Sponsorship Sentiment Tracker, conducted in September and early October, found that overall confidence has risen slightly to an average of 6.2 out of 10, up from 6.1 in wave four in August and September.
Agency confidence increased markedly in wave five, from 5.7 to 6.4, while rights holders’ positivity dipped slightly, down 0.3 points to 5.8.
With an average confidence score remaining steady at 6.6, brands continue to be the most optimistic about the overall health of the sponsorship industry.
The pandemic has encouraged a large proportion of the sponsorship industry to do more to measure and evaluate sponsorships, with 53 per cent of rights holders and 50 per cent of agencies reporting this has been a consequence, while just just 12 per cent and 6 per cent respectively are doing less evaluation.
For brands, 32 per cent are measuring more and 50 per cent are doing the same amount as before.
Among the 800-plus senior industry leaders across Europe surveyed, 27 per cent of organisations said they had successfully completed negotiations for sponsorship deals affected by Covid-19.
A further 38 per cent have agreed partial or short-term compromises, while 35 per cent are either still waiting for the full financial impact to become clear or yet to start negotiations.
ESA chairman Andy Westlake said: “ESA’s Sponsorship Sentiment Tracker demonstrates that brand-side marketers are consistently the most confident constituent in our community. That positivity can only have positive trickle down impact on the rest of our industry.
“ESA members and the wider sponsorship community continue to find innovative ways of overcoming the challenges the sport and entertainment sector faces and we’ll see the fruits of those labours in the ESA Awards.
“While we certainly see a difficult recovery process in the short term, these results reassuringly demonstrate there is much to be positive about and plenty of green shoots for those in the industry.”