Sponsorship spending on awards shows is expected to rise 4.3% to $139.2 million in 2016, according to new figures from IEG research.
L’Oreal is now the biggest spender on awards shows, topping the former leader Procter & Gamble, which has fallen out of the top 10.
At a time when on-demand viewing is rising, advertisers are flocking to live programming and many awards shows, headed by the Oscars, still command compelling ratings. Ad spending on awards shows has been rising since 2012, when it totaled $115.8 million
“While spending remains robust, the tendency among corporate marketers to view awards shows as pure-play media buys rather than integrated consumer engagement programs continues to hamper spending growth,” said William Chipps, IEG Sponsorship Report senior editor.
IEG says awards show spending is growing faster than the 4.2% increase in entertainment spending but is below the 3.5% increase in sponsorship spending in North America.
Personal care marketers are among the biggest awards shows spenders. Other significant categories include autos, non-alcoholic beverage, financial services, food and retail.
The top companies after L’Oreal are Mars, Time Warner, Diageo, Coca Cola and PepsiCo.
IEG is part of ESPN Properties, a WPP company.