Retail Marketing News South Africa

Non-FIFA firms biggest advertisers

The biggest spenders on advertising in SA leading up to and including the World Cup were companies that did not have links with FIFA, according to research by Nielsen.
Non-FIFA firms biggest advertisers

It found that many competitors outdid official tournament sponsors on local advertising.

KFC spent R180 million from January to July, against official sponsor McDonald's R50 million.

Ken McArthur, MD of Nielsen Media SA, said: "With over R450 million spent ... Shoprite Holdings took the adspend lead, followed by Unilever with R450m and SABMiller with R300 million, more than double the brewery's spend at the same time the previous year."

Nielsen had predicted that the tournament would see an increase in advertising spend, and the figures it gathered show it did have an effect, particularly on TV and online.

How well did SA's advertising, marketing sectors do?

"How well did the marketing and advertising industries do in SA compared to other soccer spectacles?" asked McArthur.

"Adspend during the World Cup rose in Korea and Japan by 20%, in Germany by 15% and in SA by 17%."

Of the sponsors, Coca-Cola SA led the pack with an advertising spend of about R175 million, while Telkom led the national supporters list with R150 million.

McArthur said cellphone company MTN increased its advertising spend from R175 million last year to R275 million over the same period.

Adidas, a sponsor, spent R20 million, as much as its competitor Nike.

A repeated pattern?

It is not clear if this pattern was repeated worldwide. However, a survey by Nielsen in June examining online references to the World Cup found that most people believed Nike was an official sponsor.

"Overall, World Cup sponsors saw a 50% rise in their spending on advertising from the previous year, with partners throwing an extra 32% in the pot.

National supporters' spend rose, while FIFA's own spend rose 244%," McArthur said.

The bulk of the advertising went to television, with a 31% increase. The internet showed the next-highest growth in advertising spend.

"Though off a lower base, internet advertising rose some 27%," said McArthur.

"Cinema advertising improved by 16%, radio by 14% and outdoor by 13%. Direct mail dropped by 6% off a base already lower than other media.

"Total spend in July across the mix was R2.2 billion, excluding self- promotion.

Source: Business Day

Source: I-Net Bridge

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