Marketing World Cup 2014

Jun 12, 2014

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How is marketing executed in the world’s biggest sporting event

Today is the first day of the 2014 World Cup, being held in Brazil this year. For those unaware this year’s world cup, the 20th world cup in history, is an event that occurs every 4 years, and is the culmination of national pride with the world’s most popular sport. With 32 teams, games one, nation taking the victory, and a massive viewership, the World Cup is going to be one of the most exciting events of the summer.

Now I personally love watching the World Cup. Me and my little brother will sit on a couch and watch the various countries play their hearts out. However, for our spotlight on the World Cup we wanted to highlight how marketing works within the context of the world’s biggest sporting event.

Money?

The very interesting fact of the World Cup is that of the estimated $4 billion dollar income that FIFA makes about 60-65% comes from broadcasting rights while 30-35% comes from marketing, with a very minimal amount coming from ticket sales (according to FIFA secretary general Jerome Valcke).

FIFA’s Marketing Strategy

The focus is that to increase revenue FIFA employs a three tier sponsorship system to increase revenue. They have a partnership sponsorship, world cup sponsors, and then national supporters. The six partners have the highest level of association as they play a vital role in supporting the development of FIFA all over the world, from basic projects to the ever important World Cup. Then the World Cup sponsors have rights to sponsoring the World Cup on a global basis, but not the grassroots structure of the partners. Finally the National Supporters, the final level, allow companies within the host company to play a role in each FIFA event on a domestic level.

This fascinating structure from FIFA allows for them to ally themselves with the greatest amount of companies possible, while maximizing revenue and exposure.

While watching and enjoying the 2014 World Cup this year watch for how FIFA utilizes their three sponsorship levels and their incredibly big $4 billion dollar revenue to put on a fantastic sporting event.

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