The stunning exits of Pakistan and India from cricket’s World Cup has left one of the game’s biggest sponsors reviewing its future in the sport and sent the advertising world into a tailspin.
Giants such as Pepsi have had to rethink marketing campaigns centred around the teams, Indian advertisers are demanding cut-price television spots and in Pakistan the ad industry reckons losses will run into millions of dollars.
South Korea’s LG Electronics said it was unsure if it would remain a global partner of the International Cricket Council (ICC) when sponsorship contracts are renegotiated later this year.
LG, which jumped on the cricket bandwagon seven years ago to boost sales in the lucrative Indian market, said its priorities had changed.
“Our requirements were different when we signed up with cricket seven years ago,” said LG’s Indian spokesman Girish Rao.
“Today, we have lot of visibility being the number two brand in the Indian market. But a final decision will be taken by our parent company,” he added.
Five ICC sponsors — LG, Pepsi, Hutch, Hero Honda and Indian Oil — focus their cricket advertising on India, where passion for the sport is a sponsors’ dream.
The ICC has not revealed its new partners after selling global media rights for the next eight years to the Singapore-based ESPN-Star television network for an estimated 1.1 billion dollars.
The deal takes effect after this World Cup and covers 18 ICC tournaments, including the World Cup in 2011 in South Asia and in 2015 in Australia and New Zealand.
Cricket business insiders say that ESPN-Star would struggle to recover the investment if sponsors such as LG withdrew.
Sony Entertainment Television, which paid a reported 300 million dollars to beam the 2007 World Cup and other ICC tournaments to India over the past seven years, did not even bid for the new rights.
The Indian Broadcasting Foundation, which protects the interests of the TV networks, had to step in when advertisers asked Sony Entertainment Television to renegotiate rates because of falling viewing figures as India and Pakistan returned home.
US soft drinks giant Pepsi, like many other companies, has withdrawn costly World Cup-specific advertisements targeting the Indian team.
The head of the Pakistan Advertising Association, Masood Hashmi, estimated losses there at “billions of Pakistani rupees, maybe two to three billion” (33 million to 50 million dollars).
However, Yousuf Baig Mirza, head of the private Pakistani sports channel GEO Super, said it had not lost as many viewers as feared.
Source:The NewsMore on:advertising, Australia, Cricket, India, marketing, New Zealand, Pakistan, South Asia, Sponsers
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Post InfoThis entry was posted on Friday, March 30th, 2007 and is filed under World Cup 2007.
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