Written by: Vickie Sullivan | June 09, 2020
Decline of Sponsorships Affects All Markets
As expected, the COVID-19 pandemic and the economic fallout from it has affected sponsorships. Events and speaking engagements have been cancelled or are in wait-and-see mode. According to a recent report by industry giant IEG (registration required), U.S. sponsorship value nosedived 38% due to cancellations, and 120,000 agreements are in limbo. Yeah, it’s that ugly.
Let’s move past the focus on sports in the report and focus on the impact of association/sponsor dynamics. Two things here:
• Nothing happens until the fight over refunds gets settled. So, watch for associations to come to speakers asking for deposit refunds. Right now, there’s no industry standard for reconciliation between groups and sponsors, so this will be a case-by-case reckoning.
• Both sides do agree on some things: 1) the need to re-evaluate everything and 2) more reliance on social, digital, and branded “integration.” This right here is where our biggest opportunities lie.
Listen: How to Move Forward When Everything Is Up for Grabs
Will sponsorship dollars decrease? Absolutely. But that doesn’t mean all is lost. Expect a lot of chaos for the rest of the year. Lay the groundwork now for new partnerships in 2021.
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