The budget allocated to marketing initiatives increases during the years when the premier international soccer tournament is held, and intensity, creativity, and opportunism become key factors for success during a period when all brands are vying to gain an edge.
Javier Martínez, who teaches Brand and Product Management, Marketing 1, and Marketing Planning at the School of Business and Social Sciences at Universidad ORT Uruguay, discusses the global phenomenon that brands are facing and shares some statistics on what is expected for Russia 2018.
Javier Martínez
Professor of Brand and Product Management, Marketing 1, and Marketing Planning at the School of Business and Social Sciences at Universidad ORT Uruguay.
“An estimated 3.5 billion people will watch the World Cup in Russia.”
“It’s the perfect setting for brands to get noticed. In South American countries, where soccer is part of everyday life, it’s only natural that brands want to be seen at that moment.”
“Different strategies emerge between brands that are always associated with sports and those that are not.”
“A brand that isn’t typically associated with soccer can make a temporary impact through a promotion. It’s almost a transactional relationship. The public pays attention to the brand because it’s offering them something. But when a brand consistently communicates in connection with soccer, it begins to build longer-term associations. That’s much more beneficial compared to brands that come and go from the topic.”
“In a World Cup year, corporate advertising budgets grow by 22%.”
“The budget increase is driven by two factors: the frequency of advertising and the cost per minute, because there is greater demand for airtime, but the total airtime remains the same—so it’s a matter of supply and demand.”
“About 30% of the audience that watched the 2014 World Cup in Brazil did so on mobile devices. In Russia, that figure will rise to 70%.”
“People in the West will be watching most of the games during work hours, so mobile devices will become much more important. That means advertising spending on digital platforms will increase significantly.”
“Sales of state-of-the-art televisions are expected to grow by around 20%.”
“The World Cup is the perfect excuse for everyone to upgrade their TV. This year, sales are expected to rise for models larger than 49 inches and those featuring the new Ultra HD 4K technology. All brands in this category want to capitalize on this growth, which is why they’re all running their own promotions.”
Originality, consistency, credibility, and visibility.
“Consumers filter messages and retain those that are most timely, consistent, credible, and have a high impact. They tend to dismiss opportunists—that is, those who only show up during the World Cup.”
“With each World Cup, brands improve their communication efforts thanks to advances in technology.”
“There are brands that always take advantage of the World Cup to launch their products. Nike is a great example: in 2014, it introduced a soccer cleat designed to enhance players’ performance, and it used Cristiano Ronaldo and Neymar as brand ambassadors. They’ll surely do something in Russia, because when a brand operates in a mature market, it needs to constantly innovate.”
Between the brand's message and its strategic identity: what students should look for.
“Above all, the student must focus on the message tied to the brand’s strategic identity. We need to see if the proposals align with the strategic identity the brand aims to build. While originality is part of the process, it must be accompanied by message content and a tone that supports the identity the brand is seeking. Students should analyze that intersection between the message and the brand strategy. Those who do this well will build long-term value.”