The boom will be fuelled by the London Olympic Games, with 2007 seeing the first tranche of Olympic money. The London Games are hoping to raise £750m between now and 2012, and £400m is due to be booked next year alone.
Group M predicts a further £200m in 2008, when it expects sponsorship to remain above the £1bn mark and, according to report author Adam Smith, head of futures at the company, "never come back below".
TV sponsorship is likely to be the biggest benefactor, with a £130m injection in 2007, also including the "all ITV no-BBC Rugby World Cup", with sponsorship as a whole rising by nearly 50% in the year.
This article was first published on Media Week