News & Press / June 17, 2010

Business Takes a Little Breather at World Cup Time: ICOM Survey

As the World Cup international football finals get underway, much of the world has its eyes on the host country of South Africa. Even in the U.S. where there is little interest in professional soccer, the Hispanic community is in sync with other Latin countries, and World Cup-focused programming dominates U.S. Spanish-language television from June 11 through July 12.

According to a survey of ad agency members in 40 countries and territories of the ICOM independent global network, while daily business doesn’t stop, it’s not business as usual. Some countries encourage companies to allow employees time off to watch the games at home or public places or to set up viewing areas on the premises so that they can watch together.

In Brazil, which holds a record five World Cup wins, banks and other companies are releasing employees one hour before the start of the games, and many events take place, including parties at pubs featuring artists; barbecues; and groups renting big screens, according to ICOM President Rino Ferrari, also president, Rino Com/ICOM, São Paulo. Ethnic groups, especially Italians, Portuguese, Spaniards, Germans and Japanese, organize within their communities to watch the games of their countries of birth, he said. “Nothing compares to the fever, insanity, madness and passion here provoked by the World Cup.”

The ICOM survey asked member agencies to rank the degree of public engagement with the World Cup in their markets on a scale of 1 to 5, with 1 being no engagement and 5 being great engagement. ICOM member agencies are experts on their respective markets because they are owned and run by local advertising and marketing communications entrepreneurs who are deeply involved with their communities and have an in-depth understanding of their marketplaces.

Excluding the U.S., agencies ranked engagement in 29 countries either 4 or 5, while only 10 agencies ranked engagement at 1 to 3. In the U.S., of the eight agencies responding representing markets across the country, engagement was ranked very low, either 0 or 1, except for two agencies reporting a 2 level.

However, among Hispanics of all ethnicities in the U.S., except for perhaps Cubans, the World Cup is huge, said, Linda Gonzalez, president, Miami-based Hispanic agency ViVA Partnership/ICOM. Many people will simply not go to work during their home country games or may bring small televisions from home to watch during breaks, she said. “90% of sponsorships have been sold out on Spanish-language TV and radio. We wanted to add a special promotion at the last minute for one of our clients, but Univision, which is airing the cup, was sold out.”

Agencies in other countries report that 300 hours of coverage during the month is not uncommon, and much of the available commercial time sold out. From Ghana and Zambia to Bulgaria and Finland to Argentina and Peru to China and Japan, coverage includes not only the games themselves but extensive commentary and soccer-related feature shows.

“The public is literally agog with the first-ever FIFA World Cup happening on African soil and so close to us,” said Norman C. Muntemba, CEO, Goman Advertising/ICOM, Lusaka, Zambia.

In Asia, where the games take place just after midnight, Tunku Johanez, client service director, Krakatua/ICOM, Kuala Lumpur, Malaysia, said he expects people will come to work later or will sleep less.

In San Juan, Puerto Rico, Arteaga & Arteaga Advertising/ICOM, is hosting "World Cup" breakfast and lunch gatherings. “Our agency will shut down for a couple of hours so employees can watch the games together. Other companies are doing the same as a morale boost to employees, a way to relax and reward them for their efforts in these tough times,” said Juan A. Arteaga, director – account planning & new business.

Daniel Reynoso, chief creative officer, Diálogo/ICOM, Buenos Aires, said some companies are inviting employees to gather around large-screen TVs sharing breakfast or snacks. “In Argentina, which won the World Cup in 1978 and 1986, it is very common that when the local football team plays in a World Cup, the streets are deserted,” he said.

Not surprisingly, in the countries with high interest, there is great involvement by advertisers and marketers. The survey found that outside the U.S., agencies in 23 countries ranked involvement of advertisers and marketers at a 4 or 5 level. For instance, in Brazil, some 70 brands are directly involved with the Brazilian soccer team.  In the U.S. advertiser involvement is high only among marketing to the Hispanic community.  

“Our goal in South Africa is to make World Cup 2010 a huge success,” said Michael Gullan, managing director, Gullan&Gullan/ICOM, Johannesburg. “The feeling of our citizens is one of unity, pride and extreme excitement.”

About ICOM: Rollinsville, Colorado (USA)-based ICOM is the most geographically balanced of international independent advertising and marketing communications networks with more than 70 member agencies in 50-plus countries. Founded in 1950 as the National Federation of Advertising Agencies, ICOM offers clients an alternative to the huge and increasingly similar agency groups. Today, the network has billings of US$2.4 billion and gross income exceeding US $390 million.

Contacts:                                                         

Nancy Giges                                                               

nancy@icomagencies.com                                       

1-914-683-5108                                                          

Gary Burandt

burandt@icomagencies.com

1-720-261-4829