The FIFA World Cup 2014 has almost arrived and the world is
waiting with bated breath for the kickoff of the month-long
sporting extravaganza in Brazil. As the stage is set to get the
ball rolling, 32 participating teams along with 22 corporate
sponsors are fine-tuning their plans to make this mega event a
The quadrennial soccer tournament arguably has the biggest
television audience compared to any other sporting events in the
world. Conservative estimates by FIFA reveal that the in-home
television coverage of the 2010 edition reached to over 3.2 billion
people around the world or nearly half of the global population.
The data is based on the viewership of at least a minute of the
live coverage. Considering all the audio-visual media platforms,
the global viewership reached a cumulative tally of 55 billion
people in the last edition.
The global viewership is expected to increase manifold this year
with broad proliferation of digital and social media channels. As
such, sponsors are likely to pull every possible trick in the game
to showcase their products for maximum brand exposure and
top-of-the-mind recall to persuade football lovers to spend cash on
World Cup Football: The Money-Minter
According to a Forbes estimate, FIFA is expected to generate $4
billion revenues from this World Cup, which is around 66% more
compared with the 2010 edition held in South Africa. About $1.7
billion is expected to come from the sale of TV broadcasting rights
to media companies like
The Walt Disney Company
Rogers Communications Inc.
FIFA is expected to rake in an additional $1.4 billion marketing
revenues from its three-tier sponsorship strategy (See:
Goals Galore for FIFA World Cup Sponsors
) that includes
The Coca-Cola Company
Anheuser-Busch InBev SA/NV
) among others. While the FIFA Partners are likely to spend $730
million, the FIFA World Cup Sponsors and the FIFA National
Supporters are expected to shell out $500 million and $170 million,
respectively, for the event.
Furthermore, approximately $900 million is anticipated to come in
from the sale of other rights such as tickets, merchandise and
video games from software providers like
Electronic Arts Inc.
Integrated Marketing Campaign
In order to capitalize on this huge opportunity, marketers are
developing an integrated campaign to engage more people across
social media platforms like
)-owned YouTube. These platforms offer an emotive and interactive
platform for fans to interact and share experiences. That Brazil is
the second largest market for Facebook and provides YouTube with
its second highest number of unique visitors make it more
attractive for the sponsors.
Even non-official partners are trying to cash in on the FIFA World
Cup through subtle ambush marketing strategies. Coca-Cola's rival
) has launched its biggest integrated marketing campaign with its
own "superstar 2014 football squad". Soccer players including
Argentines Lionel Messi and Sergio Agüero, Englishman Jack Wilshere
and Brazilian David Luiz will be part of its 'Live for Now'
campaign. In addition to Pepsi's global television commercials,
selected players will also be featured on a limited-edition
attractive packaging and point-of-sale merchandise across the
) is also expected to generate high sales on the back of the event.
Nike has manufactured team jerseys for 10 soccer teams this year -
the most from all suppliers, while Adidas has made jerseys for nine
teams. Nike's latest commercial featuring soccer superstar
Cristiano Ronaldo is already a huge hit in digital media. In
addition, Nike has further improved its supply chain network to
enhance its retail presence in the host nation.
Twin Sponsors in Focus
Amid the entire melee, the investors' gain here is a couple of
sponsors carrying a decent Zacks Rank. Let's take a closer look at
these companies that appear to be well positioned to benefit from
this sporting event.
Yingli Green Energy Holding Co. Ltd.
Headquartered in Baoding, the People's Republic of China, Yingli
develops photovoltaic products across the globe. The company aims
to use the World Cup platform to increase the awareness toward the
functionality of solar energy in day-to-day use. Yingli has
installed solar panels on at least two main stadiums, including the
Maracana Staduim in Rio de Janeiro, where the final is slated to
This Zacks Rank #3 (Hold) company has also installed solar panels
on the parking structure in the Pernambuco stadium. Analysts have
been moving their quarterly and full year estimates higher of late,
further suggesting a solid earnings momentum for Yingli in the
Johnson & Johnson
Based in New Brunswick, New Jersey, Johnson & Johnson is
engaged in the research and development, manufacture, and sale of
various products in the health care field worldwide. As the
exclusive Official Healthcare Sponsor, the company anticipates to
utilize the FIFA World Cup to reach a worldwide audience in order
to spread its global movement of caring.
This healthcare company has developed a global platform titled CARE
INSPIRES CARE to encourage selfless acts of care and engage more
people with the goal of making the world a more caring place.
Earnings estimates for this Zacks Rank #3 (Hold) stock have mostly
moved up for the current year, implying bullish sentiments for the
long-term growth of the company.
It remains to be seen whether such hefty investments translate into
healthy ROI. However, regardless of the chances of sponsors
achieving a strong ROI, sponsorship from big-ticket events like the
FIFA World Cup generates engagement and online interaction that
improves brand recall and extends the shelf life. For the time
being, let us all join together to celebrate the Brazilian spirit
with the official slogan "
All in One Rhythm
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