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Private firms afraid to hit the pitch just yet with World Cup campaigns
THURSDAY, NOVEMBER 10, 2022
The private sector is wary of investing in the 2022 World Cup as the purchase of broadcast rights has not been completed yet.
The National Broadcasting and Telecommunications Commission (NBTC) had approved a budget of 600 million baht to acquire the broadcasting rights for the matches.
Media Intelligence director Pawat Ruangdejworachai said there was no clarity in the purchase of the World Cup broadcast rights so product and service brands might wait before spending on marketing campaigns.
However, he said, some brands might use the so-called “ambush marketing strategy”, following the trend of brands, including those to do with beer, soft drinks and hair treatment products, to hit the field with campaigns in advance.
Meanwhile, football fans are eagerly waiting to catch what are expected to be thrilling, world-class matches on TV post-Covid.
“There are two dimensions to the 2022 World Cup – the atmosphere and liveliness,” Pawat said.
If the main advertisement spot goes for just millions of baht, it will not be worth the total investment of 1.6 billion baht to procure the broadcasting rights, he maintained.
If the private sector has to invest 1 billion baht for the broadcast rights, big corporations might broadcast the matches on their channels apart from the government channel, he added.
For example, if CP group invests in the broadcast rights, some matches might be broadcast on its True4U channel.
They also might not sell advertisement packages worth just millions of baht to smaller companies for these firms can steal their spotlight, so they might advertise their goods and services directly to consumers instead, Pawat said.
However, if a single company shells out big money for the broadcasting rights, they might sell advertisement spots for big products such as cars or consumer goods to get back their investment, he said.
“Previously, World Cup advertisement packages were sold at least three months in advance to give brands enough time to draw up campaigns,” Pawat noted.
“There were no such campaigns this time around amid a slowing economy, while the 2022 World Cup will be held in the middle of the English Premier League season so some attention might be diverted.
“However, some brands are using ambush marketing strategies to follow the trend of advertising during big sporting events,” he added.
The One Enterprise chief operating officer Deaw Woratangtrakul was of the opinion that if the cost of the broadcasting rights is 1.6 billion baht for 64 matches, this means it would cost 25 million baht per match. If 25 minutes of advertisements are sold during each match, it will cost 1 million baht per minute.
Currently, the Broadcasting and Telecommunications Research and Development Fund for Public Interest (BTFP) has only 2.8 billion baht left, he said, questioning whether using money to purchase the broadcasting rights is in line with the BTFP’s objectives.
Meanwhile, licences for digital televisions have only seven years left so the TV industry might also question if the investment is worthwhile.
However, Pun Paniangvait, manager of Thai President Foods, the maker of Mama noodles, said his company would surely come out with a marketing campaign for Mama even if there was no clarity on the broadcasting rights as fans are in the habit of consuming the noodles during matches.
Coca-Cola has already spent 50 billion baht on a marketing campaign and released limited-edition soft drinks sporting national flags, while shampoo brand Clear has come out with products featuring Portuguese football superstar Cristiano Ronaldo as the presenter.
According to a business source, the government sector is seeking help from private firms to purchase the broadcast rights for the World Cup, but only two companies agreed to pitch in – CP Group and Thai Beverage.
The source added that NBTC is confident Thai fans will be able to watch the competitions because it had already discussed the issue with the private sector but had not reached a decision on how much each company would need to spend.
There are only a few giant companies in Thailand that can help with the purchase of the broadcasting rights. Most are the same firms that helped in the purchase of the 2018 World Cup broadcast rights.
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