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17.1.2011 Sponsorship spending to rise

Sponsorship expenditure should rise by over 5% worldwide in 2011, as the industry continues to rebound from the economic downturn. According to specialist consultancy IEG, part of WPP Group, global spending through this channelclimbed 5.2% in 2010, reaching $46.3bn.

This constituted an impressive recovery after the sector posted declining revenues for the first time in 2009, as the recession impacted marketing budgets. It also beat the projected increase of 4.5% which was outlined by IEG in a similar study published last year. Such a positive trend is likely to extend into 2011 following another 5.2% expansion to $48.7bn, as demand strengthens across the globe.

"Based on the slightly accelerated pace of deal-making experienced in 2010 and our conversations with sponsors and properties about prospects for the coming year, we're confident the industry has rebounded from the historic low point of 2009," said Jim Andrews, IEG's editorial director.

B.L. 17.1.2011