NEWS: Cadbury secures pounds 10m sponsorship deal with Coronation Street

The ITV companies are expected to net around pounds 8 million from Cadbury’s decision to sponsor Coronation Street, confirmed this week, in the biggest sponsorship deal ever seen in the UK.

The ITV companies are expected to net around pounds 8 million from

Cadbury’s decision to sponsor Coronation Street, confirmed this week, in

the biggest sponsorship deal ever seen in the UK.



Cadbury is committing pounds 10 million, about 80 per cent of which is

accounted for by the rights to link itself with the programme through

on-screen sponsorship credits.



The remaining pounds 2 million will be spent on exploiting the

association off-screen through merchandising and promotional tie-ins.



Other channels are bracing themselves for a cut in adspend by the

confectionery giant, whose advertising budget was about pounds 20

million in 1995.



Simon Rees, the deputy managing director of Cadbury’s media buying

company, TMD Carat, said that, because the sponsorship will initially

concentrate on promoting the Cadbury brand rather than specific

products, the pounds 10 million spend will not result in a dramatic cut

in Cadbury’s spot advertising.



‘Cadbury will still be spending money to advertise existing brands, and

to launch brands. This is just a re-evaluation of the overall marketing

budget,’ Rees commented.



Rees, who engineered the deal with ITV’s sponsorship chiefs, began

looking for sponsorship vehicles as a way of coping with rising TV

airtime inflation and the pressure on budgets following increases in the

price of cocoa.



He added: ‘They are both established brands, with a real heritage, which

will feed off each other’s virtues.’



Mick Desmond, the chief executive of Granada’s sales house, Laser Sales,

hailed the deal as a major watershed for ITV: ‘This will change the way

people see sponsorship,’ he claimed.



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