In the lead-up to the FIFA World Cup, brands are searching for ways to connect with fans and drive excitement. While marketers may have different views on how effective sponsoring the World Cup will be as a marketing tactic, there is no doubt that it’s an event with a built-in audience. If you’re keen on joining the band of brands who have signed on as official sponsors, there are some things to consider when you decide which kind of sponsorship package to go for. This article outlines some of the pros and cons of Nike sponsorship at the World Cup, including cost and ROI analysis.
What is Nike’s role as a sponsor?
Nike is a FIFA Partner, which means that they have a high-level sponsorship deal with the football association. In addition to advertising rights, this means they will have input into the business side of the organization. This is an important distinction, as it means that their sponsorship comes with a lot more than just the right to promote their brand.
The value of FIFA sponsorship
If the value of sponsoring the FIFA World Cup isn’t clear from the above, it’s because many factors go into the value of a sponsorship deal. Some of the most important factors that impact the value of a sponsorship deal are reach, duration, and exclusivity. Reach is how many people are exposed to your brand through the sponsorship, duration is how long the sponsorship lasts, and exclusivity means that the sponsorship is exclusive to one brand only. The FIFA World Cup is one of the most popular sporting events in the world, and Nike has an exclusive sponsorship deal with FIFA. This means that Nike has the sole right to sponsor the event. This is a hugely valuable sponsorship opportunity, due to the high number of people who tune in to the event. The 2018 World Cup Final saw more than 1 billion viewers worldwide. With this many people exposed to your logo and brand, you’re likely to see a significant uplift in sales.
Why is the price so high?
The price of a sponsorship deal is often based on the value of the sponsorship. Sponsoring the FIFA World Cup is one of the most expensive sponsorship deals in sports. This year, the annual sponsorship fee is around $25 million. The cost is so high because of the number of people who tune in to watch the event every year. As discussed above, the 2018 World Cup Final saw more than 1 billion viewers worldwide. The high number of viewers who tune in to the event means that sponsoring the event is an incredibly effective marketing strategy.
How much does sponsorship cost?
Sponsoring the FIFA World Cup is one of the most expensive sponsorship deals in sports. The annual sponsorship fee for 2018 is around $25 million. This is a one-off cost that you need to pay to sponsor the event. As you’ll see below, there are many benefits of sponsoring the event, meaning that the cost is likely to be well worth it. Unfortunately, Nike doesn’t make the sponsorship rate public. This means that the only way to find out how much it costs is to talk to Nike about their sponsorship packages. When negotiating a sponsorship deal, there are three key sponsorship terms that you’ll have to consider.
Pros of Sponsoring the FIFA World Cup
- Exposure - As mentioned above, the World Cup is a huge event that attracts a lot of attention. People tune in to watch the event from all over the world, which means that your logo is likely to be seen by millions of people.
- Brand loyalty - Football fans are some of the most brand-loyal consumers out there. They are likely to be loyal to the brands that they associate with the sport. If you’re sponsoring the World Cup, you’re likely to gain the loyalty of many football fans.
- Entry into new markets - If you’re sponsoring the World Cup, you’ll be likely to reach new markets. This is because football is a global sport, and the World Cup attracts fans from all over the world.
Cons of Sponsoring the FIFA World Cup
- It’s costly - Sponsoring the World Cup is one of the most expensive sponsorship deals around. This can be a good thing, as it means that your brand is likely to get a high level of exposure, but it also means that you have to pay a lot of money. - It’s exclusive - This is both a positive and a negative. On the one hand, it means that you’re likely to get a high level of exposure, but on the other hand, it means that you have to pay a lot of money.
Sponsoring the FIFA World Cup is a brilliant way to promote your brand. You’ll likely receive a high level of exposure, and you’ll be able to connect with football fans all over the world. Whether you’re a football fan yourself or not, you’ll be able to appreciate the excitement of the event due to the high number of people who tune in to watch it.