Irish businesses invested €15 million in arts sponsorships last year, with banks and financial institutions leading the way, according to a new report.

Spending in this area continues to rise, with a growth in the proportion of sponsorship spend by business from 14 per cent in 2002 to 18 per cent in 2004.

However, the Business2Arts National Sponsorship Survey also showed that despite a positive public response towards companies that invested in the arts, there was still a tendency within business to underestimate its impact.

Over half of all Irish adults believe that sponsoring the arts is a better way for companies to reach them than through advertising, and only 12 per cent feel there is enough sponsorships of the arts, but six out of 10 businesses claimed they still had difficulty persuading their colleagues of the value of arts sponsorship.

After financial institutions, which were the top business sponsors with 27 per cent, came the media and publishing sector with 25, and manufacturing, alcoholic drinks, hotels and restaurants and professional services, all with 21.

The top five brands most frequently cited by business as the best sponsors of the arts in Ireland were AIB, Diageo, Bank of Ireland, RTÉ and Allianz, while consumers picked Guinness as the best sponsor. Nearly half of all arts sponsorships came after a direct approach to business by an arts body.

Within the arts, opinions were divided. Almost 60 per cent of groups felt that sponsors' expectations were realistic, but over half found that meeting those expectations had become more difficult, while 49 per cent felt the general climate for arts sponsorship was improving.