Marketing Deals May Reap $1-Billion

North American corporations plan to spend more than $1-billion on joint marketing deals with charities this year, according to a new survey by IEG Inc., a research and consulting firm in Chicago.

A report on the survey’s results said companies plan to spend $460-million on arts groups. The survey found that companies expect spending for marketing arrangements with arts groups to rise by 6 per cent above last year’s levels.

The survey found that spending on all other kinds of marketing deals with charities would rise to $630-million, an 8-per-cent increase over last year.

The report projects how much companies will spend for sponsorships of all kinds of organizations, including for-profit groups. Over all, sponsorships by North American companies are expected to increase 12 per cent from last year, to $7.6-billion, the report says.

Arts organizations have seen a 6-per-cent rise in corporate sponsorships in each of the past four years, according to IEG. Corporate spending on marketing arrangements for other kinds of charities grew by 9 per cent in 1996 and 1997, and 8 per cent in 1998.

Some non-profit organizations are getting more sponsorship dollars by banding together to sell package sponsorships, which allow companies to reach a larger audience with less time and effort than if they granted individual sponsorships, says Lance Helgeson, managing editor of the newsletter IEG Sponsorship Report. For example, seven aquariums collaborated in developing a request for joint sponsorships and have signed a deal with Yahoo, the Internet search service, that is expected to provide $1-million annually for the next three years.

Free copies of the report are available from IEG, 640 North LaSalle, Suite 600, Chicago 60610-3777; (800) 834-4850; e-mail: ieg@sponsorship.com.