Industry Research Reports and Market Analysis at MindBranch.com
  

Broadcast Sponsorship - UK

Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: July 2007
Product Code: R560-2744
Description
This report assesses the size and shape of the UK television and radio sponsorship market and examines consumer attitudes towards it, both in isolation and in comparison to their attitudes towards broadcast advertising.It assesses the factors that are influencing current trends in the market, identifies where these may lead in the short and medium term and considers the position of broadcast sponsorship in both the sponsorship sector as a whole and the wider marketing mix. As well as consumer perspectives, the report also canvasses industry opinion on the main issues it faces today and going forward.
Table of Contents
Issues in the Market

Main issues

Definition

Consumer research

Abbreviations

Market in Brief

A growing share of a shrinking market…

…but still the bridesmaid to spot ads’ bride

Reducing regulation: not too late, but still too little

New technology the key driver of future growth

Reaching the young

Avoiding ads, seeking sponsorships…

…but ads still build sales, while sponsorships build brands

Fragmentation: opportunity rather than threat

Competition: internal, not external

Industry perspectives

Finding the right marketing mix

The creativity question

Measurement and understanding

Internal Market Environment

Key points

TV viewing: quality more important than quantity

Figure 1: Time spent watching TV on an average weekday, 2005 and 2006

Radio penetration rates high and steady

igure 2: Time spent listening to radio during the last seven days, 2005 and 2006

Declining share of listening masks sustained high levels of reach

Viewing and listening habits

Figure 3: Frequency of watching TV programmes, February/March 2007

Figure 4: Viewing habits, February/March 2007

More channels: more planning, more flicking

Tuning in to local commercial radio

Figure 5: Type of radio regularly listened to, February/March 2007

Ad avoidance

Regulation

Television

Channel sponsorship offers biggest boost for niche players

In danger of losing gaming cash?

‘Junk’ food ad ban increases pressure

Radio

Channel sponsorship a slow burner

Product placement

Advertiser-funded programming

Greatest potential in radio

Broader Market Environment

Key points

Economic climate

Positive patterns of overall adspend

Technology

Multichannel television

Figure 6: UK multichannel TV penetration, by platform, 2002-07

Interactive TV

Personal Video Recorders

Up to a third of ads being fast-forwarded, but it’s not all bad news

Radio platforms

Figure 7: Favourite means of listening to the radio, February/March 2007

DAB digital radio

DTV

Internet

MP3

Mobile

The Internet

Figure 8: Computer, Internet and broadband take-up, 2002-06

Competitive Context

Key points

The marketing mix

Figure 9: UK broadcast sponsorship share of total adspend, by medium, 2004 and 2006

The media mix

Figure 10: Total UK adspend, by medium, 2004 and 2006

Sponsorship escapes online onslaught

The sponsorship mix

Figure 11: UK sponsorship market, by sector, 2002-06

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Television Sponsorship

Key points

A strong performance bucks the advertising trend

Figure 12: Estimates and forecast of expenditure on UK television programme sponsorship, 2002-12

ITV still the dominant sponsorship player

Figure 13: Estimated expenditure on UK television programme sponsorship, by broadcaster, 2006

Digital expansion aids Channel 4

Sponsorship most important to BSkyB

Cost gap closes on airtime

The future

More platforms, more channels, better activation

Uncertainty over PVR and interactive effects

Factors incorporated in the forecast

Radio Sponsorship

Key points

Passing the £100 million mark

Figure 14: Trends and forecasts in expenditure on radio programme sponsorship and promotions by UK companies, 2002-12

Sponsorship high on the radio agenda

Increasing competition from new TV channels

Local stations take the lion’s share

Figure 15: Expenditure on UK radio sponsorship, by type of broadcaster, 2006

The future

New platforms offer greatest opportunities

Factors incorporated in the forecast

Trade Perspectives

No sponsorship is an island

Are sponsorship and spot advertising good neighbours?

Frequency versus creativity

How can success be measured?

Future development of broadcast sponsorship

The Consumer - Advertising and Sponsorship Target Groups

Figure 29: Advertising and sponsorship target groups, by demographic sub-group, February/March 2007

Pro-Sponsors (31% of respondents, or 9.5 million Internet users aged 16+)

Who are they?

Captive Audience (29% of respondents, or 8.9 million Internet users aged 16+)

Who are they?

Non-Commercials (41% of respondents, or 12.6 million Internet users aged 16+)

Who are they?

Where to target the target groups

Figure 30: Advertising and sponsorship target groups, by programming regularly watched on terrestrial TV, February/March 2007

Figure 31: Advertising and sponsorship target groups, by programming regularly watched on satellite/cable/Freeview TV, February/March 2007

Interactivity and the call to action

New radio formats also provide opportunities

Figure 32: Advertising and sponsorship target groups, by favourite means of listening to the radio, February/March 2007

APPENDIX: RESEARCH METHODOLOGY

Ordering and More Information
Price and Delivery Options



MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence.