Why Sponsor the Arts?

The world is awash with sponsorship, and this is unlikely to reduce in the short term. In fact, the latest research by Ipsos MORI among the top tier of executives at Britain's largest businesses has found that nine in ten companies and organisations are involved in some form of sponsorship.

The most likely recipients of this sponsorship are community groups and charities. There is also significant sponsorship of the arts, with over a third of Captains of Industry saying their companies support the arts.

So why do these businesses choose to invest in the arts - and what puts other businesses off? We looked at both of these issues in more detail.

Inevitably, the cost involved is cited as a significant barrier. However, of greater concern, is the perceived difficulty in measuring return on investment, and a belief that the impact is intangible. This, of course, is not specific to sponsorship of the arts sector alone - although there is a belief among some that brand recognition is limited in comparison to other types of sponsorship. Related to this, some feel there is no clear link with the arts and their product or service offer.

Advocates of arts sponsorship say this represents an ideal opportunity both to raise a brand's profile, and to associate it with creativity. And at the same time, this can strengthen the company's reputation for good corporate citizenship.

Indeed some argue that the costs involved need to be weighed against the importance of community interaction through the arts and the wider social purpose which this serves. Having said this, perhaps the greatest hurdle for the arts is a belief among many that there are more deserving causes to which company funds ought to be channelled. As we have seen, communities and charity groups are more popular recipients of corporate sponsorship.

One of the great pros - but also cons - of arts sponsorship is the audiences it allowscompanies to reach. While accepted as being very attractive to a certain type of stakeholder, arts sponsorship is accused of being elitist. It is argued that the arts attract a very narrow, usually wealthy and educated audience. However, those involved in sponsoring the arts see this as deliberately setting out to achieve visibility amongst opinion forming people who are at the top of business.

As one of our Captains said: "A great opportunity to have a much more diverse access to talented people"

Critics of arts sponsorship have argued that the decision to sponsor the arts is more about personal preferences and the interests of the board, than sound business reasons. However, our research shows that, for some businesses at least, sponsorship of the arts can help strengthen the business and the brand.

For more information on sponsorship research please contact: simon.sketchley@ipsos-mori.com / keith.glasspoole@ipsos-mori.com / jenny.mcneill@ipsos-mori.com