It is the first time that Russia is hosting the FIFA World Cup 2018. It has been reported that an estimated cost of over $14.2 billion has been spent on hosting the tournament which makes it the most expensive World Cup in history when compared to $11.6 billion cost of the FIFA World Cup 2014 hosted in Brazil.
An immense impact has been noted on the economic growth with the execution of massive infrastructures and construction projects in the World Cup host cities, dispensing the long-term dynamic gains to sustain improvements to living standards of society.
Over 570,000 foreigners and 700,000 Russians are expected to attend this mega World Cup tournament which will give a short-term economic boost to the tourism sector, ranging from hotels to restaurants. This tournament has expressively put the country in the international spotlight and one can imagine how much money the economy will make hosting such a major event as all hotels are sold out and restaurants are packed.
The organizers of this epic event are going to grab the multiple revenue streams including gate receipts, stock sales, sponsorships and licensing contracts. Among all these revenues, the television rights undeniably generate the major income flow. However, when it comes to making money, there are a number of barriers even for the most efficient local organizers. Most eminent of them are the governing bodies behind sporting events of the match which usually take a considerable share of these swags.
According to The Economist, more than 70% of revenue generated by television from the Games is being taken by the International Olympic Committee (IOC). In 2014 World Cup, almost $5 billion of revenue was produced by Soccer’s governing body FIFA and almost half of which originated from television rights.
Public relations constantly play a vibrant role in the establishment of this splendid event. It is actually all about targeting. Most of the time, PR professionals prefer online media to make their campaigns effective but considering the fan following of the unifying force FIFA tournament across the world, broadcast steps forward and makes it a better station to efficiently convey the campaign message globally to right targets.
A few months before the launching of 2018 FIFA World Cup, different brands already started their publicity, marketing and PR campaigns to target football fans worldwide. For instance, Visa, a multinational financial services corporation, ran the campaign on all possible mediums, from television to wide screens and online. Typically, it acquired store displays to encourage customers to use their Visa card for purchasing with a promotional offer of getting a chance to win a ticket for the FIFA World Cup.
For international brands, this stage offers a cost-effective and homogenous route to market but as far as the real opportunity for brands is concerned, there is bad news for them. Eventually, the situation is much more complex now because the World Cup is no longer a closed shop. One of the major issues is to create the space for brands who are inept to get in because their competitors possess the exclusivity rights. Only those brands will lay the foundation of FIFA which are deliberate, creative and able to spot the opportunity.