With an expected 3 billion people expected to watch the World Cup tournament in Russia, it is unsurprising that international companies are looking to score commercial slots. However, one question companies face is whether their investment pays off.
As Lars Voedisch, MD of PRecious Communications notes, one sure indicator of return on investment is whether the company has seen a direct spikes in sales. He cites Adidas, the largest sportswear company in Europe, as an example, stating that “Adidas shares dropped after Germany lost its opener against Mexico.”
With many multinational companies withdrawing their ads in response to the controversies surrounding both FIFA and Russia, it has opened sponsorship opportunities for a range of otherwise unheard-of brands, especially from China. Lars summed it up in two words: Mongolian milk. These brands may not even offer a globally-available product, but they can use this opportunity for a domestic play to build goodwill from the viewers back home.
However, brands are not the only ones who stand to benefit from the grand stage of the World Cup, as countries can also use the tournament to boost their public profile Russia’s image, which has been largely negative for the past years, can expect an uptick, at least for the time being, as a result of hosting the thus far smoothly-run Cup.
To read the full article, click on the following link: The Business of Branding at the World Cup
You can also listen to Lars’ Podcast at Channel News Asia here