For marketers, how big is the World Cup?

Its power can't be overstated. Some 3 billion people will watch the tournament, and marketers will spend hundreds of millions of dollars to engage their attention. FIFA, the governing body of international soccer, already has six "Partner" companies that pay upwards of eight figures on an ongoing basis. For the World Cup, FIFA adds eight "Sponsors" and eight "National Supporters." The opportunities are so valuable that, once secured, a company rarely gives up its rights.
These sponsorships are category exclusive, so Visa is a sponsor to the exclusion of MasterCard and American Express. Likewise Coca-Cola is in, as always, but Pepsi's out. That's one big reason why Pepsi has had trouble gaining brand traction in international markets.

What about all the other companies that can't land Cup sponsorships?

Companies are free to do a range of traditional marketing and advertising activities in conjunction with the Cup, as long as they don't impinge on the rights of the sponsors. But over the years, even as FIFA goes to great lengths to keep the Cup free of unauthorized promotion,
there's been quite a tradition of parallel, guerrilla marketing by non-sponsor companies.

For example, at the 2006 Cup in Germany, a Dutch brewery distributed to Dutch fans thousands of pairs of lederhosen of the same orange color worn by their team. Because Budweiser was an official Cup partner, and because the lederhosen bore the Dutch beer company's name, the fans were forced by FIFA to remove their pants before entering the stadium. As a result, hundreds of fans watched the game in their underwear. Needless to say, the Dutch brewery reaped a marketing bonanza.

For the big athletic equipment and apparel companies, how do they decide how much to pay for the right to outfit and sponsor individual teams? Sophisticated sports marketing outfits, often subsidiaries of the top marketing services firms, conduct detailed assessments to help companies like Nike and Samsung determine what value to assign to a contract. The sports marketers try to figure out how deep into the tournament a team will go, because that will affect the number of over-the-air impressions that are generated for the brand. They must consider many other factors such as the global appeal of an opponent or of a particular match; signage on the field; related and supporting campaigns; and so forth. The ever-intensifying social media buzz around the Cup can heighten interest and exposure, but it also can create a lot of distracting "noise" that marketers can't control.

What's in it for Brazil?

If there's logistical chaos, or problems with the facilities, or anything less than a smooth experience, Brazil's brand will take a hit. To claim success, Brazil must put on a great party, demonstrate efficient economic management of the Cup, keep financial corruption to a minimum, and re-purpose Cup investment and infrastructure to the public's post-event benefit. Another reflection on the country's brand will be how it handles any civil demonstrations. If it passes those tests, Brazil, as it has long been on the soccer pitch, will be a more formidable player on the global stage.

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