Sports sponsorship spending is likely to dip in Europe in 2009 after years of growth, according to a survey published by Italy’s sport marketing group StageUp, stating the European sports sponsorship market is expected to fall by 11.3% at 4.7bn euros ($6bn) in 2009.The European sponsorship market, which is second only to the US in terms of investment, predicts Britain will be the most affected, while Germany and Italy will be respectively helped by long-term naming rights deals and soccer sponsorships.  “The market will suffer from the lack of high-visibility events such as the Olympic Games or the World Cup, which are true detonators for communication,” said Giovanni Palazzi, president of StageUp, Sports&Leisure Business.

Hartmut Zastrow, executive director at Sport+Markt sports marketing group, predicts a 5-10% drop in sponsorship income in 2009, but top sports, especially soccer, may even gain 5-10%. “Times will be difficult for trend sports such as kite surfing, skateboarding, etc,” Zastrow added.

In Formula One, one of the world’s most marketable sports, Renault’s title sponsor ING said it would reduce its spending and Credit Suisse will not renew its sponsorship of BMW-Sauber. A more consumer-based approach, along with a case-by-case evaluation, are also leading companies to sign deals. European banking group Unicredit has became an official partner of the UEFA Champions League through 2012. Royal Bank of Scotland (RBS), which also backs the Williams Formula 1 team, renewed its sponsorship of the Six Nations rugby competition last month, only 10 days after reporting the biggest loss in British corporate history!  “Executives are focusing on events whose impact on consumers is clearly measurable,” explained Colin Grannell, executive vice president, partnership and marketing at Visa which backs the Olympic Games.

Spending on sports sponsorships in the United States will also fall this year as companies look to trim costs in a recession that has hurt most sports. “Look, we’d all like to see spending in (sports) sponsorship grow, but that’s not the environment that we’re living in,” said David Abrutyn, a senior vice president with sports, entertainment and media company IMG, whose clients include Coca-Cola Co (KO.N), Kia Motors Corp (000270.KS), Visa Inc (V.N) and Allstate Corp. (ALL.N) – “I would definitely say we’re seeing a belt tightening,” he added. “To say whether it’s 5 or 10 percent, I’m not sure I’d feel comfortable with a blanket characterization. It’s fair to say that companies are definitely looking at spending as little as they can.”

North American companies are expected to increase their spending on sponsorship, including sports, by just 2.2 percent this year to $16.97 billion, according to IEG, a research firm owned by advertising giant WPP Plc(WPP.L). Corporations are looking for ways to get their message out to consumers while reducing spending. “With NASCAR, if you’ve got a car that’s running toward the front of the pack every week, maybe it enables you to spend a little bit less in some other marketing functions,” Abrutyn said. Coke, for instance, has special NASCAR packaging designed exclusive to Kroger Co (KR.N) stores in January and February in celebration of the Daytona 500. Making the sponsorship relevant and engaging with the consumer is key. www.reuters.com