HOW CONSUMER ACTIVISM IS SHAPING THE FUTURE OF SPONSORSHIP

HOW CONSUMER ACTIVISM IS SHAPING THE FUTURE OF SPONSORSHIP

HOW CONSUMER ACTIVISM IS SHAPING THE FUTURE OF SPONSORSHIP

With Barclays forced to suspend its sponsorship of all Live Nation festivals for the rest of the year as a result of activist pressure, the huge questions arising in the sponsorship world are will this trend continue and what effect will it have on both the arts and sporting events?
 
The festivals included Isle of Wight Festival, Latitude & Download following pressure from activists regarding the bank’s role in providing services to companies supplying weapons to the Israeli army as well as their investments in fossil fuels.


Singers and comedians announced they were pulling out of Latitude because of the Barclays ties.
According to the Daily Telegraph several other brands, including Pest Control, Zulu, Speed Scowl and Ithaca, also pulled out of Download.
 
This kind of consumer activism will undoubtedly have an effect on the arts and sport, with rumours already circling that activists will put pressure on Wimbledon to end its sponsorship deal with Barclays as well.
 
The sponsorship industry historically is used to seeing industry sectors banned by regulators  - tobacco and alcohol are prime examples. So similarly this growing trend of consumer activism is continuing to have a major influence on what brands sponsor.
 
Rights holders are starting to second guess public opinion regarding partnerships. For example, oil and gas companies have become increasingly difficult to partner with and there is a growing sentiment against betting sponsorship. In Europe, two major literary festivals – Hay Festival and Edinburgh International Book Festival decided last month they could no longer accept the sponsorship money from the investment management firm Baillie Gifford following a campaign from some authors in the book industry.
 
The campaign for Fossil Free Books, an activist collective of more than 800 authors, focused on billions of pounds of investments that Baillie Gifford holds in companies linked to the fossil fuel industry and Israel.
 
There is a fear in the arts world that millions of pounds over the next decade is just going to be removed from the arts and culture. A big question in sponsorship is could airlines, fashion brands and processed food firms go the same way? Might sportswear giants experience an eco-backlash?
 
At Purple Tangerine we think the shape of the future of sponsorship will include…


Increased Scrutiny on Sponsors: Brands will face heightened scrutiny from both activists and the public regarding their business practices and ethical standards. Sponsorship decisions will need to align more closely with social and environmental values to avoid backlash.

Shift Towards Ethical Partnerships: Companies may increasingly seek out sponsorship opportunities that emphasise sustainability, social justice, and ethical practices. This shift could lead to a realignment of sponsorship portfolios to include more purpose-driven events and causes.

Diversification of Funding Sources: Arts and sports organisations may need to diversify their funding sources to reduce reliance on a few major sponsors. This could involve seeking smaller sponsorships from a wider range of ethically aligned companies or exploring alternative revenue streams.

Adaptation and Innovation: Rights holders will need to become more adaptive and innovative in their sponsorship strategies. This might involve leveraging digital platforms, creating new partnership models, or engaging directly with community-based sponsors.

Potential for Industry-Wide Standards: The sponsorship industry could see the development of new standards and guidelines to ensure ethical practices and mitigate the risk of activism-driven disruptions. Industry bodies might introduce certifications or codes of conduct for sponsors and events to follow.

WATCH THIS SPACE!
 
Nigel Jones
Managing Director, Purple Tangerine – The Sponsorship Experts

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