"Emotionally rich marketing platform"
Sponsoring VII In terms of marketing, the world football association Fifa is the clear number one worldwide with the staging of the World Cup. Paul Ruschetti, Head of Marketing Communication of the Fifa Business Division, on the future of the billion-euro event.
Sponsoring VII In terms of marketing, the world football association Fifa is the clear number one worldwide with the staging of the World Cup. Paul Ruschetti, Head of Marketing Communication of the Fifa Business Division, on the future of the billion-euro event.
WW: Some marketing experts believe that the last World Cup in Korea and Japan reached the upper limit in terms of marketing. Paul Ruschetti: The concrete figures published by Fifa this spring prove that such speculation is based neither on facts nor on expertise. Based on the existing contracts, marketing revenue totaling just over CHF 800 million is budgeted for the 2006 FIFA World Cup. This exceeds the marketing income from the 2002 FIFA World Cup by a good CHF 150 million. Income from the sale of TV rights is also significantly higher than in 2002. A guaranteed sum of CHF 1.3 billion was paid for the World Cup tournament in Korea and Japan, and CHF 1.5 billion for the 2006 FIFA World Cup. There are also signs of higher income in the licensing and hospitality areas for 2006.
Such results are astonishing. Other events are struggling to find sponsors in the face of the economic crisis.
This is easy to explain: Companies only make higher investments if this is associated with corresponding added value. If this cannot be offered, new or higher-paying sponsorship contracts will not be signed.
But the World Cup doesn't seem to have such problems.
Our figures speak for themselves: twelve of the 15 Fifa partners of the Fifa World Cup Korea/Japan will be back at the Fifa World Cup 2006 in Germany. This is a remarkable success when you consider that the three Asian partners who dropped out were not planning to renew their contracts due to their continental business policy. By spring 2003, the three open main sponsor packages had already been filled again. Never before had the sponsorship program of a FIFA World Cup been completed at such an early stage.
Is it possible to make any more money from the World Cup?
get a profit?
The fact is that the days when successful sports marketing was primarily understood as the acquisition of sponsors with the highest possible returns are definitely over. What is needed is the ongoing development and effective implementation of innovative marketing platforms that are as individualized and emotive as possible and can be used to address a wide variety of target groups in a tailored manner.
Many sponsors currently see the title rights to an event as a tailor-made solution. Have you ever had any requests to sell the title rights to the FIFA World Cup to a sponsor?
Title sponsorship in this sense is out of the question for the FIFA World Cup and has never been up for discussion. An event brand as strong and extremely popular worldwide as the Fifa World Cup would lose a great deal of its value through such commercial use. Less prestigious events, such as the Fifa Women's World Cup, which will be held in the USA this fall, have a presenting sponsor (presented by MasterCard).
How can you satisfy the interest of sponsors without the World Cup losing value?
A certain degree of innovative spirit and creative freedom is always necessary for the development and implementation of new, individualized platforms and profiling options. On the other hand, clear standards and rules must also be established and adhered to in order to protect and maintain the integrity of football and the exclusivity of valuable marketing rights. Striking the right balance between these requirements is one of the major challenges in modern sponsorship. Ensuring this is a top priority for FIFA.
Clearly visible in front of the stadiums at the 2002 World Cup: Fifa's main sponsors.
Interview: Annelies Friedli
WW: Some marketing experts believe that the last World Cup in Korea and Japan reached the upper limit in terms of marketing. Paul Ruschetti: The concrete figures published by Fifa this spring prove that such speculation is based neither on facts nor on expertise. Based on the existing contracts, marketing revenue totaling just over CHF 800 million is budgeted for the 2006 FIFA World Cup. This exceeds the marketing income from the 2002 FIFA World Cup by a good CHF 150 million. Income from the sale of TV rights is also significantly higher than in 2002. A guaranteed sum of CHF 1.3 billion was paid for the World Cup tournament in Korea and Japan, and CHF 1.5 billion for the 2006 FIFA World Cup. There are also signs of higher income in the licensing and hospitality areas for 2006.
Such results are astonishing. Other events are struggling to find sponsors in the face of the economic crisis.
This is easy to explain: Companies only make higher investments if this is associated with corresponding added value. If this cannot be offered, new or higher-paying sponsorship contracts will not be signed.
But the World Cup doesn't seem to have such problems.
Our figures speak for themselves: twelve of the 15 Fifa partners of the Fifa World Cup Korea/Japan will be back at the Fifa World Cup 2006 in Germany. This is a remarkable success when you consider that the three Asian partners who dropped out were not planning to renew their contracts due to their continental business policy. By spring 2003, the three open main sponsor packages had already been filled again. Never before had the sponsorship program of a FIFA World Cup been completed at such an early stage.
Is it possible to make any more money from the World Cup?
get a profit?
The fact is that the days when successful sports marketing was primarily understood as the acquisition of sponsors with the highest possible returns are definitely over. What is needed is the ongoing development and effective implementation of innovative marketing platforms that are as individualized and emotive as possible and can be used to address a wide variety of target groups in a tailored manner.
Many sponsors currently see the title rights to an event as a tailor-made solution. Have you ever had any requests to sell the title rights to the FIFA World Cup to a sponsor?
Title sponsorship in this sense is out of the question for the FIFA World Cup and has never been up for discussion. An event brand as strong and extremely popular worldwide as the Fifa World Cup would lose a great deal of its value through such commercial use. Less prestigious events, such as the Fifa Women's World Cup, which will be held in the USA this fall, have a presenting sponsor (presented by MasterCard).
How can you satisfy the interest of sponsors without the World Cup losing value?
A certain degree of innovative spirit and creative freedom is always necessary for the development and implementation of new, individualized platforms and profiling options. On the other hand, clear standards and rules must also be established and adhered to in order to protect and maintain the integrity of football and the exclusivity of valuable marketing rights. Striking the right balance between these requirements is one of the major challenges in modern sponsorship. Ensuring this is a top priority for FIFA.
Clearly visible in front of the stadiums at the 2002 World Cup: Fifa's main sponsors.
Interview: Annelies Friedli
