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Opinion: Grist for the marketing mill

Is world cup sponsorship worth it?

23 Jun 2010 13:1714 commentsBizLike
While the really big global consumer brands such as Coca-Cola, Visa and Sony may well benefit from sponsoring the 2010 FIFA World Cup, I am not convinced that any of the regional or lesser sponsors actually get a reasonable return on investment. Because far too many competitors to official sponsors are able to market themselves with vigour in the world cup environment without breaking any rules. [poll]
This is despite FIFA's almost draconian ambush marketing regulations that are made even more stringent by being backed up by the laws of the land.

Hardly exclusive

Take MTN, for example. It's an official sponsor that paid a fortune for the exclusivity and privilege of being seen to be the sole cellular network of the 2010 World Cup.

Trouble is, its biggest competitor Vodacom just happens to be a long-time sponsor of Bafana Bafana and was perfectly entitled to run an aggressive advertising campaign, based on support for the national team.

Vodacom did not have to every mention "2010" or "World Cup" or any of those restricted words and phrases, with the result that I'll bet that if ordinary South Africans were polled right now on the official 2010 World Cup cellular sponsor, the result would not be anything like overwhelmingly in favour of MTN.

In fact, even the most cursory look at marketing activity in the media and on the streets, these past few weeks, has shown a massive amount of advertising that on face value has nothing to do with the world cup but, given the environment in which it is appearing and the massive public hype around the world cup, most would overwhelmingly be associated with the competition.

Just having the now globally familiar colours of the South African flag as a background to an ad would do the trick and get you on the bandwagon.

Bavaria stuffed it up

In terms of ambush marketing from a PR point of view, Netherlands brewer Bavaria got it wrong because its strategy was so painfully obvious. It also backfired when Dutch and European consumers, who make up the primary target market, saw a couple of innocent Dutch women being arrested while the company skulked out of sight in Holland. On top of which it has now has to agree not to try any stunts like that until at least 2022.

In spite of a lot of South Africans, for example, being delighted to see someone stand up to what they view as an overbearing FIFA, Bavaria really didn't achieve anything much.

South African low-cost air carrier Kulula.com has done a lot better and in my opinion has won the battle against FIFA by ending up as the good guys having outsmarted the bad guys.

Brand association

This also brings up another important point of all this sponsorship. The issue of brand association. There is no doubt that, particularly in South Africa and certainly in many other countries, FIFA has become to be seen as a money-grubbing bully rather than the purveyors of sportsmanship and professionalism. And by association, those seen to be part of the FIFA family, such as the major sponsors, must surely have been caught in the crossfire of negative public opinion.

FIFA has made a complete muck of the ticketing process and have come down extremely hard on anyone, mostly little people such as restaurants, shops and street vendors, who stepped out of line in terms of the ambush marketing issue.

One wonders how, for example, the FNB bank brand has been affected? First of all, by the ticketing chaos where FNB branches were the scenes of frustrated queues of people. And then due to the fact that, like Vodacom, Absa Bank was able to get in on the act due to its long-term domestic soccer sponsorships?

Even Standard Bank has been able to conjure up ads without getting on the wrong wide of the FIFA regulations.

Impunity

Frankly, the 2010 World Cup has demonstrated without doubt that, with few exceptions, it is possible for non-sponsors to get in on the act with relative impunity.

All of which would make me wonder, if I were a potential sponsor for the 2014 World Cup, whether I would actually bother to pay the massive premium rather than take my chances playing on the clearly lucrative sidelines?

Marketing today is all about return on investment and efficiency of funds employed. When the final calculations are done, it is going to be interesting to see just who the really clever marketers were.

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About Chris Moerdyk: @chrismoerdyk

Chris Moerdyk was head of strategic planning and public affairs for BMW South Africa and spent 16 years in the creative and client service departments of ad agencies, ending up as resident director of Lindsay Smithers-FCB in KwaZulu-Natal. Chris was recently listed in a Markinor survey as one of South Africa's top 10 marketing thought leaders. Apart from currently being a corporate marketing analyst, advisor and media commentator, he is non-executive chairman of Bizcommunity. Email Chris on and follow him on Twitter at @chrismoerdyk.View profile and articles...
Justin
Great Article!-
So much rubbish is written about 2010, nice to see someone making sense and giving some useful insights from their perspective! Will send you a copy of the research pre and post the WC. Posted on 23 Jun 2010 15:51
nalz
mY THOUGHTS EXACTLY!-
It is certainly not worth the millions they spend.

FNB was not visible at all, Mcdonalds being the 'official restaurant' - did not convince me or anyone to consume junk (sorry food) , from Mcdonalds.
It certainly a waste of money, unfortunately alot of Marketing Directors have big ego's and want their brands to be seen - playing big in a very small town Posted on 23 Jun 2010 19:40
Dan pinch
Big budgets make you lazy-
My impression is that many brands that can afford to be a sponsor of the world cup think throwing money at the problem will make them stand out. Also having committed so much budget they plan marketing by a huge committee and lack the nimbleness of smaller players. Brands that can't afford the world cup sponsorship have to be cleverer and more resourceful - and everyone loves the underdog so if they get it right then there are big rewards. Posted on 24 Jun 2010 09:07
Yes it is but.....-
The world cup is not about football in general, but about great national teams, superstar players, reputable referees, top cIass football games, world class entertainment and global social interaction. World cup owns influencial resources and carries unique experience and opportunity. Associated sponsors who fail to exploite the power of the world cup to develop exclusive and powerful marketing messages will of cause fail to generate commercial benefits. Posted on 24 Jun 2010 11:12
Michelle
Bavaria-
I think Bavaria did well considering the amount of free coverage they got in the media, especially TV. All channels all over the world were covering the story, showing the actual product, Bavaria's headoffice, an interview with their Chairman - you can't pay for such wonderful publicity! Posted on 28 Jun 2010 16:59
allistair
Interesting-
Interesting article, makes you realise that you do not needs loads of money all the time, creativity is important.
Mtn is an African brand, whilst Vodacom may only be in SA. This may have justified their decision to buy into the world cup Posted on 29 Jun 2010 10:07
FIFA are bullies-
Well done to those clever companies who got around the draconian activities of FIFA. Are we all aware that on the 12th July, FIFA takes $3.7 billion out of South Africa? Watch what happens to the rand! And what have FIFA given South Africa? The right to host the World Cup and nothing more. If I were MTN, I would be really questioning what I got out of the World Cup sponsorship.Bavaria showed FIFA up for being the bullies that they are. FIFA actually did them a huge favour. The publicity that generated is inestimable. I have no love for FIFA. It is just a money making machine. With crooks running it. Posted on 29 Jun 2010 11:08
Do it...
How can you not mention Nike in this article?-
Nike has really been the star of the show in this world cup. Survey's show that 50% of people think Nike is an official sponsor (thanks to W+K's brilliant Write the Future campaign), while most players on the pitch are wearing Nike boots (whose colour is made to be noticed on TV). If you're talking ROI, it's just poor form not to mention how well Nike has done. Posted on 30 Jun 2010 14:45
TK
I berg to differ-
I argue that indeed MTN involvement has thus far been succesful hence the local rhetoric created by Vodacom. MTN main goal is to break into international market and they could not ask for a better platform'''. I think we have to join them in saying aligning yourself with the World Cup is Ayoba!! Posted on 1 Jul 2010 09:00
Susan James
Sony Group - Shame!-
Did the Sony group of companies really take advantage of this World Cup. The Japanese paid a premium to be the headline sponsors, but as a SABC watcher I felt the presence of Samsung much more strongly. Sony / Sony Ericsson / PlayStation had no adverts on between the games - as a watcher I was aware of the inane Sony Make Believe 3D, but that tells me nothing. There was no 3D Tv advert screened at halftime to tell me what 3D TV is. Samsung mobile dominated with Samsung 3D TV the more memorable advert. Absolutely nothing about one of the biggest gaming systems in the world. I would have thought that Sony being an expensive / aspirational product - advertising to the SABC 1 viewer would be vital in extending their appeal and market. Posted on 5 Jul 2010 11:00
Dan
SA market doesn't matter to Sony-
I don't think the SABC has enough viewers to merit Sony's attention. I'm sure you'll find a cohesive campaign across markets such as Asia and Europe. SA is just to small... Posted on 5 Jul 2010 16:26
Lana-Jane Pike
SA Market Doesn't Matter to Sony-
I used to work as part of the Sony Group and SA is very important to them as an emerging market - I agree with the sentiment that perhaps they didn't take advantage of the sponsorship to make better / further inroads into the SA market. PlayStation outsells XBox currently, but Nokia outsells Sony Ericsson - there's still sooo much work to do. Posted on 8 Jul 2010 11:46
Dan
SABC - not SA doesn't matter-
I'm not saying SA doesn't matter - simply that the SABC doesn't matter much to them. Posted on 13 Jul 2010 13:03
Zach
adidas vs nike!-
Even though Nike are not sponsors of the world cup their adverts are more memorable as they are associated with big brands i.e. C. Ronaldo, Rooney and a couple of other players.

Their ads stood out for me, more than any addidas ads, I even remember their slogan "write the future"!

I don't see the benefits of the world cup sponsorship! Posted on 5 Jul 2010 13:36
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