World Football by Nielsen Sports

World Football From consumption to sponsorship: How fans are changing the commercial landscape of the beautiful game

contents 03 I Introduction 04 I The Fan Defining the fan Global interest in football 08 I C onsuming World Football TV Viewership and global consumption A digital perspective The rise of multi-screen 12 I T he Marketing and Sponsorship of World Football Battle of the brands: Nike vs adidas Ambush marketing Return on investment in football Changes in sponsorship: by country Changes in sponsorship: by industry Football federations Patriotism and sponsorship 20 I T he Players The Players The value of endorsements How to measure celebrity Top 10 most marketable footballers in the world Identifying the right brand match 30 I H osting World Football Changing stadia How hosting is changing 34 I Conclusion

*All monetary values are in US Dollars. Conversion rates (June 2014): 1â&#x201A;Ź = $1.3668

world footballtoday World Football revolves around one group of people - the fans. It is their passion for the beautiful game that fuels the commercial machine we see today, especially during the FIFA World CupTM, an event that is arguably the most compelling spectacle in sport. In showing how the industry of football is changing, the data and commentary in these pages are ultimately always connected to the fans. Understanding them, not just who they are now but who they could be in the future, is what football sponsorship is all about. The fans are the reason why brands invest in sponsorship. Almost half of the world’s population follow football, which is clearly the most popular sport globally, and the digital revolution and the growth of the internet are allowing more fans to consume more football than ever before. Not only does this affect media rights and the size of viewership, it also impacts the way sponsors target audiences. This increased consumption continues to push up football’s potential as a sponsorship vehicle. The players are another very important group of people. As companies vie for the attention and engagement of their audience, the fans’ perception of them is of paramount importance. It is the world’s best players that command the highest salaries and due to their appeal, also the highest endorsement deals as sponsors look to utilise their image and fame to benefit their brands. Hosting tournaments such as the FIFA World CupTM allows countries and cities to leverage value. As the interest in football and sponsorship of football continue to grow, staging events is becoming an industry of itself. Understanding how hosting major events has changed over time provides an important insight into just how vital football is in the world today, for cities and countries as well as sponsors and fans.

Paul Smith

Paul Smith Founder & CEO Repucom

The fan The fan is the most important ingredient in sport. In the sports business, every dollar spent and every decision made revolves around the fan in some way. Understanding who fans are, where they are and why they are fans, is therefore

essential for any business in order to navigate through the world of sport successfully and achieve its objectives. The fans fuel the industry. They are central to the commercial universe that surrounds them.

5 The Fan

Defining the fan A fan is someone who has a strong interest in or admiration for a person, team or activity. At the simplest level, people ranking their interest at four or five on a five point scale are considered ‘fans’, but this includes a rich variety of people with very different motivations driving different types of fan behaviour. Interest in a major sporting event, such as the FIFA World CupTM, is not just from its sports fans. The “Big Eventers” are drawn from a much wider population to follow their national team at these key points in time, boosting the football audience. But are they fans? The traditional path to becoming a football fan – a father taking his son to the match at the weekend, or boys playing football in the school playground – is less relevant today. A new generation of female fans has emerged, and some

leagues, teams and personalities have become global media properties, accessible and enjoyed across populations which have no historical connection to the game. So what are this new generation really fans of - the game, the league, the club? Interest in a league or competition is often actually higher than the level of interest in football in a given population. A club fan may not see themselves as a fan of the league that the club plays in, even though they follow the matches within the league: there can be more club fans than league fans. However, it will always be the fan that fuels the sports marketing and sponsorship industry and continues to drive it forward.

What does the global fan look like?

Demographics

64%

Although the average global football fan would be a well educated, married, 25-34 year old male, over a third of all fans are now female.

36%

Education SCHOOL QUALIFICATIONS

Football fans outscore the average person in terms of media consumption and intended purchases, meaning they are a more valuable target market to sponsors and marketers.

Low

feMale

Age in Years

20% 18%

35 - 44 45 - 54

Fashion/ clothing services Fast food / quick service restaurants Soft drinks Healthcare/ cosmetics

13%

55 - 69

Relationship status

35%

Single

Domestic holiday

10%

Living with partner

Radio Daily newspapers Internet

55% 52% 50% 49% 49%

interests

Media consumption 33% 76% 32% 45% 49%

53% 51% 49% 49% 45%

Average person globally vs. football fan

54%

Married

purchases Top 5 Intended purchases What they intend to purchase in the next twelve months.

28%

25 - 34

Mobile devices

n Global Football Fa

20%

16 - 24

No answer

39% 46%

Med High No answer

Male

15%

Top 5 Interests Travel

47% 90% 46% 60% 65%

Music in general Film Sports on TV Sports in general

75% 71% 69% 55% 53%

80% 78% 77% 76% 74%

Average person globally vs. football fan

Average person globally vs. football fan Source: Repucom Sports DNA

Insights by Repucom

6 The Fan

Global interest in football

United Arab Emirates, rank among the top 10 in both interest or participation.

Nearly half of the people in the world are interested in football and one fifth of them actually participate in the sport. The countries with the highest levels of interest and participation in football are in Africa, Asia and the Middle East and include those with very large populations. Nigeria, Africa’s biggest economy, is the number one most engaged football market globally. An incredible 83% of people are interested in football and even more remarkable is the Nigerian participation rate of 65%, way ahead of any other nation. Indonesia, the world’s fourth biggest country in terms of population, is second in interest with 77% of people following football, ahead of Thailand and Saudi Arabia. Ranking number two in terms of public participation levels in football is Egypt, the largest Arabic-speaking nation, with 50% of people taking part in the sport. South Africa and Thailand make up the top four. Two other emerging markets, Malaysia and the

China and India, the world’s two most populated countries, show very similar levels of interest at about 30%. However, India has a far higher level of participation at 22%, ranking ahead of perennial World Cup powers such as Germany, Spain and The Netherlands. Spain is the top European market in terms of interest, ranking 10th in the world. The UK is highest ranking European nation in terms of participation and in seventh place globally, while Ireland is the next highest European nation in 12th place. Both these markets alongside Italy are the only European countries with participation levels of 25% or higher.

The percentage of people who are interested in football by region By region, Africa has by far the most engaged fan base with over three quarters of its population said to be interested in football. The Middle East is a region on the rise, 67% saying they too are interested in football.

Africa South & Central America Middle East* Source: Repucom Sports DNA *Middle East figure is an estimation based on Saudi Arabia weighting (500 respondents compared with 1000 for all other nations)

76% 69% 67%

Europe 57% Asia & Oceania 39% North America & Caribbean 28%

7 The Fan

In Latin America, Argentina ranks as the top nation in interest, ranking fifth in the world overall, while Mexico ranks highest in participation, also in fifth place globally. This year’s FIFA World CupTM host nation Brazil ranks in 11th place in both interest and participation worldwide. Among Asia’s developed markets, South Korea is ninth most interested in football and comes in at eighth in terms of participation. By contrast, Japan ranks fairly low in interest and participation with only 6% of people saying they play football.

Interest in football

Participation in football (*based on those who participate in sport a least once a week)

Nigeria tops the list of countries tested with an astonishing 83% of the population saying they are interested in football. This compares to just over a quarter of all Americans.

Nigeria Indonesia Thailand Saudi Arabia Argentina Malaysia Mexico Egypt South Korea Spain Brazil Italy South Africa Poland Germany Qatar United Arab Emirates Ireland Hong Kong Russia Singapore United Kingdom France The Netherlands Sweden Norway Japan Australia Taiwan New Zealand Canada India China USA

Even though the United States rank lowest on the list in terms of football interest, it’s very important to note that this still translates into a very sizeable 27% of the population, highlighting the truly global appeal of the sport.

Nigeria again tops the list of football-loving nations, this time in terms of the proportion of people who play the game at least once a week. In Taiwan, this figure is 1% of the population.

83% 77% 75% 74% 72% 70% 70% 69% 69% 69% 67% 67% 66% 64% 61% 60% 60% 58% 53% 52% 52% 52% 46% 46% 44% 43% 42% 37% 36% 34% 31% 31% 30% 27%

46 % Global interest

Nigeria Egypt South Africa Thailand Mexico Argentina United Kingdom South Korea United Arab Emirates Saudi Arabia Brazil Ireland Malaysia Italy Qatar Norway India Russia Germany Singapore Spain Indonesia Hong Kong Sweden New Zealand Canada France Poland The Netherlands Australia USA China Japan Taiwan

65% 50% 45% 41% 39% 37% 33% 32% 30% 29% 28% 27% 25% 25% 23% 22% 22% 19% 18% 18% 18% 17% 15% 15% 14% 14% 13% 12% 11% 11% 10% 6% 6% 1%

20 % Global

participation*

Source: Repucom Sports DNA

Insights by Repucom

Consuming World Football The way we consume sport is changing profoundly. Today, technology is bringing the fans ever closer to the action, allowing them to immerse themselves in live, streamed content on demand. They can choose not only what sports

content they want to see but the best screen on which to watch it anytime, anywhere. New markets and new fans are able to engage with sports as never before from any corner of the world.

9 Consuming World Football

TV Viewership and global consumption

multi-platform study by ESPN Research+Analytics in the United States. ESPN calculated that out-of-home TV viewing and usage of non-TV platforms (radio, internet, mobile) added 46% to the World Cup TV average audience. This rose to 56% during weekdays.

The 2010 FIFA World CupTM in South Africa had an in-home television audience reach of 3.2 billion* people around the world. That’s 46.4% of the world’s population, up 8% from the 2006 FIFA World CupTM in Germany. But television only tells part of the story of how content is consumed. Of growing importance is the proliferation of devices and connectivity offering access to content across linear television, digital platforms and social networks, as well as traditional live viewing sites. For the 2014 FIFA World CupTM local time zones will be critical in determining how consumption takes place.

A large group of fans (7.2m per day) consumed the FIFA World CupTM on TV plus some other platform. These users represented 26% of ESPN’s daily World Cup reach and nearly half of all daily FIFA World CupTM consumption. Out of the home, 44% of usage was at work, 16% in cars, 15% in bars and restaurants, and 24% in other locations.

Almost all the games in Brazil will kick off in the afternoon or early evening local time. That means they will be shown in prime television viewing time in Europe, but in Japan the action will air early in the morning. The Brazilian kick-off times will be only an hour later than EST in the United States.

That was four years ago, a generation in technology terms. Mobile connectivity and gains made in streaming access in many parts of the world will change how the 2014 FIFA World CupTM will be consumed. No matter how it happens, consumption will continue globally for the foreseeable future.

The golden rule of content consumption is best available screen. The key to determining how people will consume the action is considering where they will be when they want to watch – at home, at the office, out with friends. For the 2010 FIFA World CupTM, Repucom contributed to a groundbreaking

*Source: FIFA

Percentage of people who say football is one of their favourite sports to watch on TV

88% 85% Much like the levels of interest in football, African and South American nations continue to dominate the top 10 countries where football is one of their favourite sports to watch on TV. Qatar and the United Arab Emirates also rank within the top 10 which features only one European nation, Spain.

74% 74%

66% 66% 66%

64% 63%

61% 60%

59% 55%

53% 53%

51% 50% 46% 46% 46% 41% 38% 37% 37%

36% 36% 35%

26%

24% 20% 15%

USA

Taiwan

Canada

9% 9% Australia

New Zealand

China

Japan

Sweden

Hong Kong

Norway

India

Russia

France

Singapore

United Kingdom

Poland

The Netherlands

Ireland

Saudi Arabia

Thailand

South Korea

Germany

Italy

Malaysia

United Arab Emirates

Qatar

Spain

South Africa

Mexico

Argentinia

Brazil

Indonesia

Nigeria

Egypt

17%

Source: Repucom Sports DNA

Insights by Repucom

10 Consuming World Football

A Digital Perspective Traditional broadcasters will show 50% more coverage of the 2014 FIFA World CupTM than in 2010. This additional content will be coming into a market where live streaming and mobile viewing are growing rapidly. In 2013, 1.5% of total viewing was via mobile platforms, 32% of fans use mobile internet to follow sport and live streaming of sports is regularly used by up to 18% of fans. YouTube is now the second largest search engine and video content is 53 times more likely to show up on the first page of search results. Videos can also drive engagement up to 300%. In the 2014 FIFA World CupTM host nation

of Brazil there may well be a perfect storm of engagement given the country’s huge global social media population and their high propensity to share. Brazil is Facebook’s second largest market and also provides YouTube with its second most unique visits. Mobile video will probably be the most competitive marketing battleground during the 2014 World CupTM as a result. One in four people now use social media to follow sport, up 14% in 2013. The Facebook following of English Premier League teams alone grew 68% this season with Manchester United FC up by 40%, even with a huge existing fan base.

Characteristics which make Brazil 2014 a ‘perfect storm’ for fan engagement Brazil’s love for social media and branded content combined with large numbres of active football fans online and the role of video content today as a means of boosting sharability makes the 2014 FIFA World CupTM a ‘perfect storm’ for fan engagement.

4.41%

1.31% Average share rate for branded videos

Average share rate for branded videos in BRAZIL

45 million

AMOUNT Videos can drive up engagement over other content

“Soccer” or “FIFA World CupTM” [ a Facebook segment that contains almost 45 million people ]

Brazil is Facebook’s second-largest market and also provides YouTube with its second-most unique visits

1.28 Billion Users 500 Million Users are football fans

Facebook users worldwide [ 19% use it to keep informed about football ] Source: Unruly Media, Facebook & Twitter information

AMOUNT Videos ARE more likely to show up on the 1st page of search results

THE WORLDS 2nd largest search engine

11 Consuming World Football

THE RISE OF Multi-SCREEN Multi-screen is the new reality of television consumption and it will continue to grow in influence along with the quality of content available. Multi-screen surged during Euro 2012 when 54% of sports fans also used another device while watching televised matches. Taking the English Premier League as one example, multi-screen use by football fans in the UK has surged by 28% this season. If they access another screen while watching a game, 40% of people use a mobile telephone, while 25% use a tablet. Social media is a common activity with 18% of fans using it on the second screen.

As mobile and tablet usage grows generally, multi-screen activity will follow. Mobile usage has increased by 8% during 2013/2014 season in the UK with tablet usage growing by 20% over the same period. Multi-screening poses a real opportunity for marketers both in the home and at the game. It opens up a new vehicle for sponsorship activation, which traditional mediums cannot support as freely or as instantly. Half-time offers and in-play betting are perfectly suited to utilising these new ways of consuming sport.

Multi-screen and the English Premier League

football fans THAT use social media [ if they Multi-screen ]

25% 20%

28%

[ in season ]

18%

[ out of season ]

40% use a tablet to watch a game

use a mobile when watching a game

[ if they Multi-screen ]

[ if they Multi-screen]

tablet usage growth [ 2013/2014 season ]

27% football fans THAT follow football on mobile

mobile usage growth [ 2013/2014 season ]

39% of football fans attending the game follow on mobile 32% of fans use mobile internet to keep informed about sport

Source: Repucom EPL Report

Insights by Repucom

the marketing & sponsorship of world football Commercially, world football is dominated by big brands using the sportâ&#x20AC;&#x2122;s reach and popularity as a springboard for exposure. As such, big tournaments like the FIFA World CupTM provide some of the most important platforms for sponsorship and brand activation on the planet.

As new digital technologies are adopted by fans around the world, the commercial possibilities of football are changing. The rise of online media is generating new and exciting commercial approaches with huge upside potential. At the same time, the proliferation of online options is making ambush marketing one of the biggest challenges facing the rights holders.

13 The Marketing and Sponsorship of World Football

Battle of the brands: Nike vs Adidas As the 2014 FIFA World CupTM kicks off, Nike and adidas are at the centre of a battle to maximise the advertising and sponsorship potential of football’s greatest occasion. Player endorsements and team kit manufacturers have traditionally been where the rivals face off every four years, and that competition continues unabated. This year, adidas can boast stars like Argentina’s Lionel Messi, Germany’s Mesut Özil and Robin van Persie of The Netherlands, while Nike’s list includes Portugal’s Cristiano Ronaldo, Neymar Jr. of Brazil and England’s Wayne Rooney.

In overall fan and followers, currently Nike has the edge with over 36 million Facebook page ‘likes’ and 1.8 million Twitter followers - twice as many engaged fans across those platforms as adidas. Facebook is where both brands find most traction. In early June of this year, Nike had approximately 18 million more Facebook page ‘likes’ than adidas. Back in February, the gap was under five million. In the developed markets of the US and the UK, the two brands’ Facebook fan bases have grown by no more than 10 per cent during 2014. But among the top 10 ‘most engaged’ countries for their Facebook sites are the likes of India, Mexico, Argentina and Colombia. And it is in these emerging markets

The growth in number of Nike Football and adidas Football Facebook Page ‘Likes‘ (1 Jan - 1 June 2014)

Nike Adidas

2010 FIFA World Cup

ADIDAS

Nike

21.4m

PUMA

10 9 8 2014 FIFA World CupTM

36.2m

35.8m

25.7m

PUMA

Nike

ADIDAS

2006 FIFA World CupTM

35.3m

34.9m

PUMA

Nike

ADIDAS

Top three sportswear brands to supply kits during the last three FIFA World CupsTM (number of teams supplied)

In 2010, adidas kitted out 25% more of the teams than Nike, but Nike will predominate in Brazil, outfitting 10 of the 32 teams, one more than adidas. Since 2010, social media has begun to re-define the competition with users of Twitter, Facebook and other platforms soaring from four years ago.

16.9m

16.7m

January

February

17.0m

March

17.1m

April

17.6m

17.2m

May

June

Source: Repucom Digital Services

Top 10 Nike Football Facebook Page ‘Likes’ by country showing growth in percentage of fans (1 Jan - 1 June 2014) (% of fan base growth) Nike’s huge growth in markets such as Mexico, India, Indonesia and Turkey illustrate both how the company has targeted engaged football markets and emerging economic regions within their social media strategy ahead of the 2014 FIFA World CupTM in Brazil

59.66% 8.84% 25.90% 56.22% 69.53%

Mexico US Brazil India Indonesia

72.59% 51.29% 53.25% 7.07% 47.67%

Turkey Argentina France UK Colombia

Source: Repucom Digital Services

Insights by Repucom

14 The Marketing and Sponsorship of World Football

that Nike has enjoyed the greatest success in growing its online fan base. But adidas’ campaign is yet to really begin and as FIFA World CupTM sponsors, their activation will be stronger during the event itself. As such, this gap between the two brands in terms of online follower figures will undoubtedly become smaller. Nike may well have taken the first steps on this battleground but with their official FIFA partnership status, adidas’ commercial strategy will certainly be a strong force throughout the FIFA World CupTM months.

Ambush Marketing Most football properties already undertake extensive policing of their brand and environment through compliance monitoring or commercial auditing across media platforms and around the venue. The key remains how the policing is enforced if any breaches are found. The best principle to follow is that prevention is better than cure.

partnership. More generally, the best defence is a properly executed and sufficiently leveraged official campaign. Given its primacy of position and credibility of authorisation, official activity should always overshadow more loosely connected and less universal ambush activation. When buying an official partnership, a brand is tapping into legacy, tradition and history, three crucial aspects of how football fans view the game. An ambush campaign can, at best, simulate a current association, but we have yet to see a credible campaign that links a non-sponsor with the past. One of the most important keys to a successful marketing campaign is an integrated activation. Multiple platforms and vehicles should transmit a common theme. Official partnerships enjoy a much richer palette of opportunities than outside brands. This is a potentially powerful head start.

Ambush campaigns tend to be national in nature and so their reach is usually quite limited compared to the potential global reach of an official

Ambush via social media in two weeks, nike’s new Risk everything’ Campaign had

52 mILLION Views

98,000 tweets

504,000 facebook interactions

Nike’s Risk Everything campaign certainly got people sharing and engaging, their social media fan base growth illustrates this well. In terms of companies who are not official FIFA World CupTM partners or sponsors, Nike’s activation has proved fruitful. In contrast however, Samsung has not fared so well. It is the official FIFA World CupTM partner adidas who has performed the best, showing themselves to be a company which is doing well to protect against ambush marketing. Their share of voice online could well increase further during and following the 2014 FIFA World CupTM as their exposure increases.

Share of voice globally (Twitter, May 2014)

Adidas

0.55% Nike

0.47%

Coca-Cola

0.14% Visa

0.08%

Sony

0.18% samsung

0.04%

Source: Repucom Digital Services I Twitter (any reference to brand and FIFA World CupTM % versus all conversation including FIFA)

selected official fifa partners Sony 0.18% Visa 0.08% Coca-cola 0.14% Adidas 0.55% selected non-official fifa partners Nike 0.47% Samsung 0.04%

15 The Marketing and Sponsorship of World Football

Return on Investment in football

Marketing rights revenue of FIFA 2003-2014 (in millions)

The FIFA World CupTM continues to be increasingly valuable to football’s world governing body. Marketing rights income of FIFA has skyrocketed over the last three World Cup cycles. The owner of the World Cup’s global marketing rights earned an estimated $1.5bn from those rights during the current Brazil 2014 cycle starting in 2011.

$585*

FIFA World CupTM in Germany (2003-2006)

*figures are converted from CHF into USD: according to rate of 31.12.2006

$1,072

$4.12 Billion THE global advertising equivalency for sponsors on tV GENERATED at The 2010 FIFA World CupTM

$907 million THE global advertising equivalency for sponsors on tV GENERATED at The 2010 FIFA World CupTM FINAL ALONE

FIFA World CupTM in South Africa (2007-2010)

$1,500

FIFA World CupTM in Brazil (2011-2014)

Source: FIFA Finance report

*Estimation based on FIFA Finance reports 2011-2013

That represents an increase of 45% on the South Africa event cycle from 2007-2010, and is an amazing 166% greater than the marketing revenue for the 2003-2006 cycle for the tournament in Germany. When revenue grows like this for any rights owner, so does the need for accountability, with 84% of brands saying they are attaching more importance to return on their sponsorship investment (ROI).

Source: Repucom FIFA World CupTM 2010 TV Media Evaluation and Exposure report

Our FIFA sponsorship is an opportunity to connect with our customers on a global level, while offering a potent marketing tool. As an Official Worldwide Partner, Emirates is involved in all major FIFA tournaments including the FIFA Women’s World CupTM, FIFA Youth World Cups and FIFA Club World CupTM so the marketing platform and the channels to engage with our customers extend far beyond the tournaments every four years. We know that the beautiful game has the power to unite like no other sport – and connecting people and their passions is a very big part of what we do. In terms of measuring a return on investment, we conduct regular media evaluation on our sponsorship assets. This looks at a number of factors, but mostly focuses on the value of television exposure. We would normally expect somewhere in the region of a 6-1 return on our sponsorships – that is $6 worth of TV exposure for every $1 invested. Print coverage adds many more millions of dollars in coverage, but it’s harder to track globally. We also carry out studies in different markets to determine how effective the investment has been from an awareness and engagement point of view and whether we need to do more to produce the right results.

Roger Duthie Global Head of Sponsorship Emirates

However, it’s important to remember that this is about much more than the financials – it’s about the partnerships that we create around the world and about bringing people together to discover, enjoy, and share enriching experiences. We are partners with everything we do. We look for long term partners so that we can establish a connection between the event and fans for that particular event. Following the success in Germany, Emirates cemented its status as an Official FIFA Worldwide Partner in 2007, covering the 2010 and 2014 World CupsTM in South Africa and Brazil.

Insights by Repucom

16 The Marketing and Sponsorship of World Football

Changes in Sponsorship: By Country

Opel signed a lucrative deal with Feyenoord before the 2013/14 season in The Netherlands.

Sponsorship of team football jerseys is one of the main areas of football sponsorship, and it’s no surprise that most of the money pumped into that form of investment comes from the home markets of the top leagues. Four of the top five countries which have invested since 2005 are all European markets with strong domestic leagues. But there is one big, new revenue source from outside Europe.

The current level of German investment in jersey sponsorship is actually lower than in 2006, the year that Germany hosted the 2010 FIFA World CupTM, showing the importance of the biggest global event. After the World Cup, investment dropped off considerably and it has been climbing back up. While German and AE companies continue increasing their investment in jersey sponsorship, the UK’s share is becoming less important and Italy, The Netherlands and France hold steady.

The United Arab Emirates (AE) has emerged as the single biggest sponsorship investor, overtaking Germany this year. In 2014, AE companies, led by national airlines Emirates and Etihad airlines, invested $163m in REPUCOM graphicsclubs | PAGE 18 CHANGING SPONSORSHIP GEOGRAPHY / PAGE 19 CHANGING SPO jersey sponsorship, almost all -ofDocument it in big professional overseas. The AE has jumped into the top five for the period 2005 - 2014 on the basis of its Spain invests far less than any other big European - Document graphics | PAGE 18 CHANGINGmarket SPONSORSHIP GEOGRAPHY / PAGE 19 CHANGING investment in theREPUCOM past few years alone. into football jersey sponsorship. Spanish SPO companies focus on less expensive engagements while German companies have invested about $135m in 2014. Since 2005, foreign companies secure the main assets in Spain’s own Germany has been by far the biggest sponsoring market, pouring in a total of La Liga with its big stars and strong international profile. over $1.25bn. 46% more than the UK in second place and still 169% more than the AE, whose investment was actually non-existent less than 10 years The US remains a largely untapped source of funding. ago. While the high level of German investment rests mainly on the German American engagement mainly focuses on Aon’s jersey Bundesliga, there is also an international dimension. German car manufacturer sponsorship deal with Manchester United FC, which ends

countriesinvestment investment into EURleagues leagues countries’ into EURopean countries investment into EUR leagues

Top investing countries of jerseyof sponsorship in the top six European Football Leagues (2005-2014) Topsixsix investing countries jersey sponsorship in the top six European Football Leagues (2005-2014)

US Dollar millionmillion US Dollar

Top six investing countries of jersey sponsorship in the top six European Football Leagues (2005-2014)

180 160 180 140 160 120 140 100 120 80 100 60 80 40 60 20 400 20 0

GERMANY

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

United Kingdom GERMANY ITALY UK The NETHERLANDS ITALY FRAnce NETHERLANDS United Arab emirates FRA UAE

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

[ TOTAL IN US-DOLLAR ] investment of the ten investing countries of jersey sponsorship in the top six European Football Leagues (2005-20 [Total TOTAL IN US-DOLLAR ] into EURopean leagues total countries’ investment

5.1 9

5m 46

8m 47

9.2 6m

3.9 3m 93

1,1

86 .21 m

58 .04 m

4m 1,4 19 .3

1,5

m .62 1,6 31

total in us-dollar

1,000 700 3500

1,8 1

0.3

2,6 21

.68

3,5

3,000 1,400 2,000 1,050

Source: Repucom Market Intelligence

54 .89 m

4,000

1,2

US Dollar millionmillion US Dollar

Total of theof tenthe investing countries ofcountries jersey sponsorship in the top six European Football (2005-2014) Totalinvestment investment ten investing of jersey sponsorship in the topLeagues six European Football Leagues (2005-20

total in us dollar

17 The Marketing and Sponsorship of World Football

after the 2013/14 season, as well as their other commercial partnerships with the club.

Changes in Sponsorship: By Industry

The landscape of sponsorship has been transformed recently by the explosive growth of the travel, tourism and accommodation sector as a funding source. This sector is by far the most important investor in football jersey sponsorship in 2014. Travel, tourism and accommodation G SPONSORSHIP companies INDUSTRIES have pumped over $235m into new and renewed deals with FC Barcelona, Real Madrid CF, FC G SPONSORSHIP INDUSTRIES Paris Saint-Germain, Arsenal FC, Atlético de Madrid and several more. That total is 1.5 times bigger than last year. Looking at the overall picture since 2005, the largest share of money invested in football jersey sponsorship has come from the money business – the banking, financial services and insurance sector, which was number one until 2013. It has contributed a total of over $1.2bn to

The relative importance of business sectors as sources of the investment has been changing over the decade. Energy suppliers, telecommunications, consumer electronics and automobiles have remained faithful investors with similar levels of total commitment over the last decade. Sponsorship by the FMCG categories of alcoholic beverages and food has kept relatively small in comparison. Investment from the betting and lottery sector, which exploded to become a leading source in 2007, hit a peak in second place in 2011 and has plummeted since then. For the current season, this sector only accounts for the tenth highest sponsorship volume in the top six football leagues after losing Real Madrid CF and Sevilla FC.

Top industries of jerseyofsponsorship top six European Football Leagues (2005-2014) Topsixsixinvesting investing industries jersey sponsorship in the top six European Football Leagues (2005-2014) industries investment intoin the EUR leagues

millionmillion US Dollar US Dollar

Top250 six investing industries of jersey sponsorship in the top six European Football Leagues (2005-2014)

200 250 150 200 150 100 50 100 500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

BANKING/ FINANCIAL/ INSURANCE BANKING/ FINANCIAL/ TRAVEL/ Tourism/ INSURANCE Accommodation TRAVEL/ betting/Tourism/ lottery Accommodateion energy supplier betting/ lottery telecommunications energy supplier Consumer ELECTRONics telecommunications Consumer ELECTRONics

[ TOTAL IN US-DOLLAR ] Total investment of the ten investing industries of jersey sponsorship in the top six European Football Leagues (2005-20 [total TOTAL IN US-DOLLAR ] into EURopean leagues Industries’ investment BA NK ING /F /F INA INS NC IN INAN S C U TR RAN TIRAL/ URA IAL/ N A 1,2 A 2,0 Ac VEL/ ACcE VEL CE 06 89 co T co / T m .70 mm ou mm ou m od rism od ris be atio be / atio m/ 78 1 tt t , n n 35 tin 4m ing 8.9 g/ /l 2m lo ot tt te e r r y en y e 5 9 n 55 er 61 er m gy .89 gy su m su pp p te t pl elelie lec i e r r c om 51 89 om 9m 9.4 mu mu nic 7m nic Co C a a on tio t ns i on su ns um me s 48 84 er rE 6m 2.9 ELE LEC 9m CT T RO R O Nic Nic s s 46 80 3m 3.2 au au 9m to t om mo ob bil ile e 42 73 6m 9.2 au au 7m to to m mo al a o lc tiv t co i v1e oh e ho 33 ol 93 lic 5.4 ic m be be 3m ve v er ra ag ge e s s 13 24 9m 1.7 3m fo f oo od 13d 23 3m 1.4 7m

Total investment of theof tenthe investing industries of jersey sponsorship in the top six European Football (2005-2014) Total investment ten investing industries of jersey sponsorship in the topLeagues six European Football Leagues (2005-20

2,500

2,000 1,400 1,500 1,050

total in us-dollar

500 700

total in us dollar

3500

ING

05-2014)

In general, jersey sponsorship volume has been on the rise since 2005 (except for a dip in 2008/09), and it’s about to grow even more with Manchester United FC’s big new deal with Chevrolet next season. The banking, financial services and insurance sector slightly decreased its engagement in 2014 and is about to lose more key assets such as Manchester United FC, whose jersey will display the Chevrolet brand in the coming season.

industriesinvestment investment into EURleagues leagues industries’ into EURopean

millionmillion US Dollar US Dollar

005-2014)

jersey sponsorship during the past decade – 53% more than travel, tourism and accommodation in second place.

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18 The Marketing and Sponsorship of World Football

Football Federations Sponsorship of the teams taking part in the FIFA World CupTM 2014 generates huge revenues for the national governing bodies, with the total income for the federations in the five biggest West European markets plus host nation Brazil reaching $455m. The Brazilian Football Confederation (CBF) generates the largest sponsorship revenue in international football. The host country’s national team earns $145m from sponsorship of training wear and other marketing rights. That’s 39% more than the total earned by the English Football Association, in second place, from England team sponsorship. The Brazilian team pulls in more than five times as much sponsorship revenue as Argentina’s national squad with $27m.

The CBF’s revenue from this type of sponsorship dwarfs other federations. Income from sponsors of the Brazilian team’s training wear is $54m – more than three times higher than the second-place German Football Association (DFB) receives. However, the Germans’ deal with car manufacturer Mercedes-Benz, worth approximately $18m, is the single biggest training wear sponsorship deal for a national association. Brazil’s training wear sponsorship is shared by four big domestic brands – Guarana Antarctica, Itaú, Vivo and Sadia.

For national football teams, whose team shirts must remain free from advertising, training wear offers a valuable platform for maximising revenue.

Football Federation marketing and sponsorship revenues per year (in millions) The Brazilian CBF is the commercial colossus of federation sponsorship revenue. They have maximised upon their position as hosts of the 2014 FIFA World CupTM with a commercial strategy that includes four training wear partners.

Germa

Englan

$82

$105 Brazil Spain

$145

$68

Ar g e na n ti

$27

Source: Repucom Market Intelligence

» 19

The Marketing and Sponsorship of World Football

Patriotism and Sponsorship The majority of national team sponsorship comes from domestic brands, especially when it comes to training wear. These sponsorships help unite a national mood whilst increasing brand positioning and loyalty for the sponsor. Gaining international exposure is a bonus. With four domestic brands sponsoring Brazil’s training wear, the German DFB’s deal with Mercedes-Benz, the English FA’s deal with Vauxhall, the Spain RFEF’s deal with Iberdrola and the Italian FIGC’s deals with TIM, Compass and Fiat all show federations unlocking the value of domestic engagement. In contrast, the Argentine Football Association (AFA) has enlisted Claro and Coca-Cola, which are not domestic brands, and earns relatively low revenue from them – less than 1/10th of the Brazilian figure.

$27

$55

Chris Hornbuckle Head of Sponsorship Vauxhall

Vauxhall is a UK-only brand of General Motors. Our sponsorship came about just after England’s campaign (reaching the quarter-finals) in the 2010 FIFA World CupTM, for which no other home nation had qualified. Bill Parfitt, the chairman of General Motors UK, tuned in to watch England play a friendly match a few weeks later. There had been a large amount of negative press swirling around the England side, but he was struck by the passion of the 70,000 England fans and the electric atmosphere. We recognized this passion as a value we wanted to share across the Vauxhall brand. We have retail sites across all four home nations, so it would have been inappropriate just to sponsor England. Fortunately, the other home nations were not tied down by existing deals and within four months, we had them all on side and were ‘Proud Sponsors of Home Nations Football’.

Ru ss

Italy

Patriotism is itself a powerful driver of sponsorship commitment to national football teams, even when the brand has no international ambitions. A splendid illustration is our brand Vauxhall’s sponsorship of the England team as part of a bigger deal also including the other ‘Home Nations’ of Scotland, Wales and Northern Ireland.

Value for money was a critical part of our decision to embrace Home Nations sponsorship as the way to tap into football passion. Because Vauxhall is a purely British brand, the Home Nations sponsorship is all about domestic coverage, exposure and engagement, with ‘liking and talking’ as the main objectives. From a brand perspective, we are using their Home Nations sponsorship to re-shape the image of the Vauxhall from a traditional, ‘good value’ brand to one that aligns itself with passion and excitement. We are not trying to take on Aston Martin or Porsche in the image stakes but aiming to ensure that Vauxhall is one of the choices football fans consider when they make the decision on a new car. To be on people’s ‘consideration’ list is our ultimate goal. The FIFA World CupTM is a great platform for Vauxhall, even though our brand is only active in the UK. The Brazilian location adds another level of romance and nostalgia (for the defending world champion England team of 1970) to the greatest tournament in football. Success for England in the tournament would of course be a magical result for us. But no matter what happens, the TV audiences and social media traffic will be huge and fan engagement will be at a peak of passion with our Vauxhall brand at the heart.

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The Players Fans love football players with the same passion they feel for their favorite teams. The commercial winds of competition now blow players from country to country around the world, and as their celebrity status grows beyond domestic borders, their value to the worldâ&#x20AC;&#x2122;s largest brands as the emotional anchors between themselves and the fan increases.

Understanding how people and different markets identify with these stars is a vital consideration for corporate sponsors. Backing the right player can lead to commercial success, but not reacting to shifts in perception can spell disaster.

21 The Players

The Value of Endorsements An estimated $3bn annually is invested globally on endorsements of athletes. Brands align themselves with stars hoping to transfer attributes associated with them to the brand and to drive sales. Recent studies by Harvard Business School show that purchases for some brands rose by up to 20% at the start of a celebrity endorsement. Some companies have even seen their share price jump 25% on the day of announcing a big endorsement deal. Research has also shown that print advertising containing a sports celebrity endorser produces 7.5% higher consumer readership on average than those that don’t. An endorsement of this nature can reinforce brand values

and increase engagement with the market. It can promote a unique, relevant and sustainable product attribute that might be hard to attain otherwise, or challenge a preconceived notion about a brand. A footballer who is recognised by fans has the power to create an emotional connection with a brand. The star can attract attention to the company and raise awareness, enticing consumers to learn more about it.

7.5%

Brand

higher readership

of print advertising is achieved when a celebrity is featured

growth in sales

has been achieved by some brands because of a celebrity endorsement

25%

endorsements of althletes globally every year

has been seen by some companies after taking on a celebrity endorsement

billion

is invested into

Brand

20%

increase in share price

Source: Repucom Sponsorglobe/ Ad Age

A lot of research and evidence indicates that celebrities, including athletes, can help build an emotional connection between a brand and a consumer. Leveraging positive associations consumers have with a celebrity and transferring that association to a brand is a tactic that has been used to build brand awareness and drive sales for both large and small brands, new and established.

Misha Sher Director MediaCom Sport

But you have to ensure you’re selecting the right person for your target audience – one celebrity might be a great match to influence a certain population’s buying behaviour but completely ineffective for a different population. Gut instinct plays a role in that assessment, but as marketers we need to rely on data to support our decisions as well. If you can identify the proper celebrity partner using both qualitative and quantitative evaluation, you will increase your chances for a successful marketing campaign. A celebrity endorser is not a magic bullet, of course, but it can do wonders to drive sales and increase brand engagement with consumers.

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22 The Players

How to measure Celebrity Celebrity Davie Brown Index (DBI) is a tool which can measure the public’s perceptions of over 6,000 personalities across 15 markets around the world, (including Argentina, Australia, Brazil, China, France, Germany, India, Italy, Japan, Mexico, Russia, Spain, Turkey, the UK and the USA), representing the views of over 1.5 billion people.

changes in the perceptions over time, critical considerations for brands unlocking the power of celebrity endorsements. These perceptions are measured against eight key attributes which when combined provide an overview of that person’s marketability. The individual attributes also provide telling strengths and weaknesses of how the personality is seen in different countries around the world.

It can look at specific demographics, including age groups and income groups, to give a clear identification of how audiences consider a personality or sportsperson. It enables users to compare specific markets and show the

1.5

Billion

Celebrity DBI takes views of people in 15 global markets

Celebrity DBI represents the views of 1.5 billion people

Source: Repucom’s Celebrity DBI

What does Celebrity DBI measure?

AWARENESS

I ndicates the percentage of people who are aware of the celebrity either by name or face. Awareness is the baseline. If the target doesn’t know a celebrity, the other attributes are meaningless.

APPEAL

Measures likeability of the celebrity.

BREAKTHRoUGH

Indicates the degree to which people take notice of the celebrity when they appear on TV, film or print.

TRENDSETTER

Reflects opinion on the celebrity’s position with regards to trends in society.

INFLUENCE

Measures the degree to which people believe the celebrity is an influence in today’s world. Does the celebrity impact brand consideration and purchase intent?

Trust

Indicates the level of trust that the people place in the celebrity’s words and image.

ENDORSEMENT

Reflects the degree to which people identify the celebrity as being an effective product spokesperson.

ASPIRATION

Measures the degree to which people feel the celebrity has a life to which they would aspire.

23 The Players

TOP 10 MOST MARKETABLE FOOTBALLERS IN THE WORLD

57.56 Thierry Henry

DBI Score

Henry is the third highest goal scorer in the English Premier League’s history and having enjoyed spells with Monaco, Arsenal and FC Barcelona, he benefits from global appeal and familiarity. His international profile was strengthened in 2010 when he moved to the US, signing for the New York Red Bulls, where he remains as captain. With the French national team, Henry has lifted the FIFA World CupTM and European Championship title and although now retired from international duty, he remains France’s all-time leading goal scorer and is their second most capped player. At 36 he may be nearing the end of his playing career, but his notoriety puts Henry into the top ten rankings. Known by 51.62% of people globally, he is, commercially speaking, still a major contender. Most recently he announced a multi-year partnership with Puma, estimated to be worth over $1m per year, as his performance and lifestyle footwear and apparel sponsor.

59.07 c ovi m i h a r b I n a t a l Z DBI Score

Zlatan Ibrahimovic is the most marketable footballer not to be heading to Brazil for the 2014 FIFA World CupTM, as his native Sweden failed to qualify for the tournament. The charismatic star is one of the most decorated players in the world at club level, having won a total of 10 league titles with six clubs in four countries including FC Barcelona, AC Milan and Paris Saint-Germain. A talisman for club and country, outspoken Ibrahimovic is never far from the limelight and is almost as well known for his one-liners and self-confidence as for his titles. He is the sixth most famous footballer globally and 74.67% of the people who know of him say that he is an influential voice in today’s world. Major deals with Volvo and most recently Nike’s ‘Dare to Zlatan’ ca mpaign certainly prove his marketability. His Nike endorsement is estimated to be worth around $3m per year.

9 Insights by Repucom

24 The Players

59.09 Iker Casillas DBI Score

As captain of both Real Madrid and Spain, goalkeeper Iker Casillas has won everything at international and domestic levels of the game. His playing position in goal is probably a key factor keeping him from ranking more highly. The Spanish captain is the 15th most famous footballer globally, with just over 49% of people knowing of him. However, among those people that do know of him, Casillas ranks within the top three players globally in seven of the eight attributes against which a player’s marketability is measured. Of that figure, over 83% say they find him appealing and more than 84% aspire to be like him. He is the second most trusted footballer globally and third most influential. These traits are reflected in the endorsements he has secured, the biggest of which is his deal with adidas estimated to be worth approximately $1.5m per year.

At 22, Neymar Jr. is one of the rising stars of international football and the most famous current Brazilian player globally. His big money move to FC Barcelona in May 2013 marked a giant leap in terms of his notoriety as a global superstar. Nike had already recognised his marketing clout in 2011 when the brand signed him to an 11-year endorsement deal worth today an estimated $7m per year. Red Bull’s sponsorship of the Brazilian is worth an estimated $2m per year. Neymar Jr.’s flair, skill and technique are matched by his goal scoring ability for 2014 FIFA World CupTM host nation Brazil, one of the world’s best-known teams, for whom he has scored 30 goals in his first 47 matches. He is already a very influential spokesperson with over 81% of the 53.33% of people that know of him globally saying so.

59.36 Neymar jr. DBI Score

25 The Players

59.47 Andrés Iniesta DBI Score

Over 52% of people globally know of Iniesta and of that group, over 80% say the midfielder impacts on their purchasing intent and brand consideration. Having scored the winning goal at the 2010 FIFA World CupTM finals, FC Barcelona’s playmaker went on to help Spain lift the European Championship title in 2012, as he had done in 2008, and has since become one of the most popular Spanish athletes, boasting around 20 million Facebook fans. His fame has been bolstered by winning six La Liga titles, three UEFA Champions League trophies and two FIFA Club World Cups with FC Barcelona, making him one of the most decorated players in the history of a club that he joined at the young age of 12.

Deals with Nike, estimated to be worth approximately $1m per year, EA Sports and Kalise have maintained his high profile internationally. His appearances in Sony commercials most recently have helped to show his sense of humour, a key trait in making him one of the world’s fourth most liked players.

59.47 Wayne Rooney DBI Score

Since signing for Manchester United in 2004, Rooney has become the club’s third highest all-time top goal scorer and one of the English Premier League’s top strikers for over a decade. Manchester United’s global appeal and large international fan base have helped to raise Rooney’s personal profile. Over 55% of people globally know of the 28-year-old striker, keeping his marketability high. He boasts major deals with global brands such as Nike (worth an estimated $4m per year), HarperCollins and Samsung. In his native England, Rooney has appeared on six consecutive covers of the UK version of Electronic Arts’ FIFA series.

Rooney is prolific on social media, with around 20 million Facebook and 8.5 million Twitter followers, and his engagement with fans fuels his appeal.

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26 The Players

62.69 res Fernando Tor

DBI Score

Although he has perhaps not shown the same winning form for his current club, Chelsea, that he did for Liverpool and Atlético Madrid previously, Fernando Torres is still a marketing force to be reckoned with on a global level. Almost 60% of people know of the striker, making him the third most recognised player globally. Torres has won the European Championship twice as well as the FIFA World CupTM and UEFA Champions League, and he has had major deals with adidas, worth an estimated $1.5m per year, and Pepsi. Of those people that do know of him, 79% say he is an aspirational role model and 78% say he is an influential spokesperson. Appearances in music videos as well as cameo roles in films have also helped to show the player’s appeal and commercial diversity.

62.90 GeraRD piquÉ

DBI Score

Having lifted three UEFA Champions League trophies, two of which in consecutive years with two different club (Manchester United and FC Barcelona), Gerard Piqué boasts a large trophy cabinet which also includes the FIFA World CupTM, one Premier League and four La Liga titles.

His relationship with international music star Shakira has meant that the defender enjoys a heightened level of global public awareness. Over 58% of people know of Piqué globally and of them, over three in four people say they like him. In his native Spain, this figure is over 97% of the population. One of the stars of Nike’s new ‘Risk Everything’ campaign, Piqué often projects the image of a cheerful family man and this quality along with his fame boosts his marketability, making him an incredibly aspirational, influential and trusted public figure.

27 The Players

75.87 i s s e M l e n Lio DBI Score

Regarded by many as the best player in the world, four-time Ballon d’Or winner Lionel Messi has won two FIFA Club World Cups, six La Liga titles, three Champions League trophies and Olympic gold with his native Argentina in 2008. Amongst an extensive list of records, the 26 year old has also netted over 350 goals for his club FC Barcelona, making him the club’s all-time record goal scorer. Messi’s latest deal to keep him at the club has made him the world’s best paid player, earning the forward around $27.5m per year.

His off-the-pitch qualities are similarly impressive. As well as making a number of charitable donations, Messi is also an ambassador for UNICEF and the most liked player in football today. He is known of by over 76% of people globally, making him one of the top endorsers not just in football, but in sport. Messi’s commercial activities include deals with Turkish Airlines and adidas (worth an estimated $2m and $9m per year), Dolce & Gabbana and Pepsi as well as numerous domestic deals, such as for a Japanese face wash product and for messaging applications in China. The Argentine’s 57 million Facebook fans highlight just how appealing a commercial entity he is today.

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28 The Players

79.49 o d l a n o R Cristiano DBI Score

Having won his second FIFA Ballon d’Or earlier in 2014, Cristiano Ronaldo has secured his place as the current best player in the world. He is also the most well-known and marketable player today. Globally, 83.87% of people know of the Portuguese star and in markets such as Italy, Spain, Germany, Turkey and Argentina, this figure is above 95%. Ronaldo is also seen as the best trendsetter globally of all the players with 82.45% of people saying he reflects today’s trends in society.

After leaving Manchester United in 2009 where he won three English Premier League titles, one FIFA Club World Cup and one UEFA Champions League trophy, Ronaldo joined Real Madrid for what was then a world record transfer fee (approx. $135m), helping the Spanish giants to lift the La Liga title in 2012 and UFEA Champions League title in 2014. On the pitch, Ronaldo’s emotions are never very far from the surface, an element which helps to humanise the star. Over 72% of people who know of the player globally say that they like him. With his hard work ethic, the Portuguese captain has also become a model footballer. Having played and won major trophies with two of the most famous football clubs in two of the most popular leagues in the world, Ronaldo has become a global superstar and his marketing endorsements reflect his fame. Deals with companies such as Emporio Armani, Herbalife, KFC as well as an estimated $9.5m per year deal with Nike and a $2.5m deal with Fly Emirates have all added to Ronaldo’s global profile as an aspirational and influential product and brand endorser.

As a sign of his marketability, over one million Real Madrid shirts with Ronaldo’s name printed on the back were sold in 2013. Ronaldo’s charity work is also well documented. His attributes both on the field and off it combine to make him the most marketable player in the world today.

29 The Players

Identifying the right brand match Using celebrity talent for marketing can be an expensive but valuable proposition and it’s critical to identify the right talent. The choice should be based on statistics rather than suppositions. Talent identification is more than a financial consideration. Celebrity-led campaigns can have major, long-term implications for how a brand is perceived in the marketplace. When working to match the ideal celebrity with a company, the first step is to understand what the brand stands for. What are the product attributes? What are the key consumer insights? And, most important, what is the brand trying to achieve with the campaign? Awareness is the baseline. If the target consumer doesn’t know a personality, other attributes are meaningless. Cristiano Ronaldo is currently the world’s top footballing personality in terms of awareness with Lionel Messi

in second place. Breakthrough is also crucial. If the celebrity doesn’t capture the attention of the consumer, the brand’s message is less likely to be received. Influence is an equally significant attribute. How does this celebrity impact brand consideration and purchase intent? The importance of other attributes varies depending on the brand. A bank, for example, might be more interested in celebrities who score high in trust, while a fashion brand or an energy drink may value celebrities who are regarded as trendsetters. The best-known stars are not necessarily the ones who lead in particular areas. The footballer rated most highly in terms of trust is Iker Casillas, just fractionally ahead of Messi, while Ronaldo is not among the top five. Ronaldo is, however, rated as the leading trendsetter with Messi again in second place.

Top trendsetters and top most trusted players in World Football

DBI DATA 55 DBI DATA TOP TOP Celebrity DBI DATA

Taking the two contrasting DBI attributes of ‘Trendsetter’ and ‘Trust’ the rankings begin to alter, illustrating how different [[ TOP ]] play in determining the perfect endorsement TOP 55 trend trend setters setterscharacteristics match. Xavi Hernández and Iker Casillas join Lionel Messi as the most trusted footballers in the world today, suited more to Cristiano Cristiano Ronaldo Ronaldo conservative brands and products such as airlines and finance.

Top 5AWARENESS most known [[[ TOP ]] footballers ] TOP 55 AWARENESS Cristiano Cristiano Ronaldo Ronaldo

83.87% 83.87% 76.07% 76.07%

Lionel Lionel Messi Messi Fernando Fernando Torres Torres Gerard Gerard Piqué Piqué Wayne Wayne Rooney Rooney

20 20

40 40

Lionel Lionel Messi Messi

Neymar Neymar Jr. Jr.

100

DBI60 DATA80TOP 5100

20 20

[[[ TOP Top555TRUST most]] trusted [ TOPfootballers 5 AWARENESS ] ] TOP TRUST Iker Iker Casillas Casillas

Source: Repucom’s Celebrity DBI

r keting consul tants r keting consul tants

40 40

60 60

20 80 80

40 100 100

80 80

100 100

Cristiano Ronaldo

82.45%

Lionel Messi

81.50%

Iker Casillas

100

78.71%

Gerard Piqué

75.25%

Neymar Jr.

73.34%

100

[ TOP 5 TRUST ] Iker Casillas

May 2014 May 2014

76.07%

75.23% 59.64% Gerard 72.31% Piqué 72.31% 58.08% Wayne 69.76% Rooney 69.76% 55.82%

Cristiano Cristiano Ronaldo Ronaldo

20 20

60 60

Fernando75.23% Torres

Andrés Andrés Iniesta Iniesta

40 40

83.87%

77.79% Lionel Messi 77.25% 77.25%

Xavi Xavi Hernández Hernández

73.34% 73.34%

[[ TOP Top55trend Mostsetters TrendSetTing players ] ]

Cristiano 77.79% Ronaldo

Lionel Lionel Messi Messi

78.71% 78.71% 75.25% 75.25%

Gerard Gerard Piqué Piqué

55.82% 55.82% 60

be more suited to endorsing fast moving consumer goods and fashion brands.

Iker Iker Casillas Casillas

59.64% 59.64% 58.08% 58.08%

| PAGE 31 DBI DATA

82.45% 82.45% In terms of trendsetters, Ronaldo is top of the list with Neymar Jr. 81.50% joining him in the top five. These brand ambassadors would 81.50%

77.79%

Insights by Repucom

Hosting World football In todayâ&#x20AC;&#x2122;s world, the hosting of major football tournaments can be vital for cities and nations commercially, socially and politically. Whether an event is used to promote social mobility in a country or

put it on the map as a tourist destination or business partner, the right to host the worldâ&#x20AC;&#x2122;s most beloved game for a global audience is becoming an increasingly prized investment and asset.

31 Hosting World Football

Changing stadia The hosting of live sporting events is evolving to accommodate changing spectator appetites and new revenue opportunities. With fans consuming sport via multiple media platforms, stadia and indoor facilities are trying to keep pace. Decision-makers in the stadium and arena business around the world are increasingly attaching huge importance to improving communication within stadia as a result. Their main focus over the next five years is developing communication potential with target groups through new media channels, which implies incorporating wireless connectivity in the stadium. Indeed, growing infrastructure and equipment in the facility generally is cited by 83% of decision-makers, ranking equally with improving access by public transportation. This focus is reflected in the developments and investments into IT infrastructure and ‘connected stadium’ solutions that are already underway at many venues. The decision-makers also attach growing importance to secondary and complementary usage as central sources of revenues for stadia. These are income streams beyond the primary usage revenue a venue generates from

the main events and rental fees from the anchor tenant or club. The integration of complementary facilities highlights the importance of positioning a venue as an attractive daily destination and generating revenues also on non-event days. Multi-functionality of stadia is also gaining in importance. Facility operators want venues that can be tailored to the individual needs of potential clients such as flexible hospitality capacities. They see adaptability and multi-functionality as very important in the next five years (cited by 77%) along with being able to use various configurations of the venue for different occasions (73%). In the concrete context of complementary usage, most stadia now offer a business centre and business events spaces. The importance of B2B target groups as revenue drivers for modern venues is highlighted by the significance of rented office space available within stadia today. From a B2C perspective, fan shops are often an integral part of the stadium landscape. The same applies to gastronomy facilities such as restaurants, bars or cafés.

The importance of selected trends over the next five years

84%

According to the responses of 70 stadium managers from 22 countries worldwide, improving communications is the most important topic facing stadia and facility development over the next five years.

agree that communication with target group

Via new media channels

will become more important

83%

Agree that investment in

83%

agree that access by

public transport

will become more important

77%

agree that

multi-functionality

infrastucture & equipement in the stadium will become more important

73%

Agree that various

configurations

of venues for different occasions will become more important

of the stadium will become more important

Source: Repucom’s Stadia Operators Survey

Insights by Repucom

32 Hosting World Football

How Hosting is Changing There has been enormous growth in the capacity to host major sporting events around the world. In the last 50 years the number of stadium seats worldwide has soared from 36m to 109m. The increase of capacity has been due in large part to a geographical expansion as well. The biggest growth region has been Asia, which before 1964 accounted for only 6% of seats and now has 20%. Africa, with a negligible share of the world total 50 years back, now boasts 8% of seats globally. In the meantime, Europe’s proportion has slipped from 41% to 27% and North America’s from 33% to 24%. To date, football is the key driver of value for a host. Football was already the sport with most seats 50 years ago at 40% of the total seating capacity.

It has actually increased its dominance over the decades to 51% and has been the biggest single growth sport by far. All major events today require significant amounts of public funding, not only to be staged, but to be won in the first place. With increasing scrutiny being placed on government spending the world over, there is a growing appetite amongst the public sector to understand precisely what these events deliver. Governments are looking to estimate the value that previous investments have returned, and review the investment decision process to ensure that funds are being spent in a way that maximises the return to the taxpayer.

Shifts in the proportion of seating by region and by sport Asia dominates as the biggest growth region in the last 50 years with now almost as many stadium seats as the likes of Europe and North America. Football is a driving force in the increase of seats worldwide.

109

1964 2014

6 %

[ Asia ]

Million

Seats

30 2.7 %

globally 2014

Million

Seats globally 1964

Source: Repucom Stadium Data 2014, Repucom analysis 2014 and www.worldstadiums.com Note: The cumulative stadium seat capacity analysis is based on detailed research by Repucom on +11,500 stadiums around the world built between 1800’s-2013.

20 %

1 %

+14

8 % +7

[ Africa ]

2 % [ Middle east ]

6 % +4

33 Hosting World Football

Under growing scrutiny, major events need to demonstrate the clear and long-term benefits they provide and rights holders and hosts are increasingly using data to measure the success of events - not just the economic impact but also the holistic effect on a community and the media and marketing effect around the world. This assessment can cover areas such as the ability for a major event to promote that host city or destination to key tourism markets, or the capacity to increase levels of civic pride or even how an event makes a host city a better place to live and work. One really important area is attendee satisfaction – everything from parking to toilets to venue facilities and the quality of the people who have attended. Another is sponsorship impact, taking it beyond just prompted and unprompted awareness to changes in perceptions around the brand supporting a major event and propensity to consider or purchase that product as a result of their involvement in that event.

1964 2014

41 % 27 % [ Europe ]

-14

There are some very sophisticated and proactive host destinations around the world that are cleverly using major events as a driver of key impacts. They share some common traits and one of those is a clear awareness that events of this nature can provide far more than just economic impact. They actively pursue strategies to ensure that all the available benefits are clearly understood and maximised, and often have a focused written strategy as to the genre of events they wish to attract and why. More so than ever before, hosting major tournaments is also being seen and used as vehicle for social change and mobility. Russia’s successful 2018 FIFA World CupTM bid is one example of how football is being used in such a way, beyond an event staged to simply generate short-term revenue opportunities but to the long-term development potential it offers a nation.

1964

40 % of Seats out of 36 Million

are in football Stadiums

33 % 24 % [ north america ]

+11

2014

-9

12 % 11 % [ South America ]

-1

51 % of Seats out of 109 Million are in football Stadiums

*percentage points

Insights by Repucom

world footballtomorrow Sport does not get bigger than the FIFA World CupTM, which is a global event in the truest sense, showing just how wide and deep the passion for football runs worldwide. Football brings people together everywhere and it is therefore only fitting that the concept of â&#x20AC;&#x2DC;connectivityâ&#x20AC;&#x2122; should have become so critically important today. Fans want to be connected to the teams they support, the players they avidly follow as well as other fans. The technology and platforms, particularly social media, enabling interaction are growing in significance and fast becoming indispensable. The geography of where football fans are based and therefore the balance of sponsorship investment is changing. The sport is growing rapidly in Africa, the Middle East and Asia, engaging new fans and companies that are in turn playing prominent roles in sponsorship. This evolution brings us back to yet again focus on the fan, with growing attention on those in these emerging markets. As the dispensable incomes of increasingly engaged fan bases grow, so too will their value to sponsors. As the game grows within these markets, the attentions of major broadcasters will change and leagues could well grow in popularity with foreign players joining the local talent pools. This would continue the shift in footballâ&#x20AC;&#x2122;s commercial balance from Europe to the markets of Asia, the Middle East and Africa. Although it can be difficult to predict these changes one thing is for sure, from consumption to sponsorship, fans are changing the commercial landscape of the beautiful game.

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Repucom is a leading global marketing research company providing data, insights and intelligence to clients in every area of sports marketing, sports media and sponsorship. We understand the DNA of sports fans - what they hear and see, how they react and how their behaviour changes over time. This knowledge is at the heart of making great marketing and sponsorship decisions in a crowded and increasingly costly market. Repucom has 1,400 employees in over 20 officies around the world.

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