June 29, 2010
by juliavbennett
Two weeks into the FIFA World Cup, we are seeing substantial growth in all sponsors except for Visa. We have tracked Visa’s social media sites – including its Facebook Go World site, which was created to complement its Olympic sponsorship, and Facebook Go Fans site, the comparable site for the World Cup – to see how soccer fans react to the two. What makes them so interesting is that Visa typically sees a big bump in the use of its credit cards during the world’s ”other” big sporting event, Olympic Games. No doubt this is why they choose to invest in the Olympics cycle after cycle – the bump is a tangible return on investment in the otherwise hard-to-calibrate industry of sports sponsorship. Visa sponsors the World Cup in the hopes of further aligning their brand with its market leadership, global ubiquity, and excellence, and seeing a hefty financial reward during and after the tournament.
Just prior to the start of the World Cup, “Go World” had 100,854 fans and “Go Fans” had 2,180 “likes” on Facebook. Currently, Go World has 100,054 fans and Go Fans has 3,136. A somewhat steady number for Go World, which is associated with the Vancouver Olympics and no longer top of mind, is to be expected. While Go World remains steady, we would expect to see a rise in popularity of Visa’s activation around the World Cup (arguably the planet’s biggest sporting event). But almost three weeks into the World Cup the total growth in Visa’s social media community is less than one percent, despite heavy promotion of the Go Fans Facebook match scheduler and the official Go Fans YouTube page where soccer fans all over the world can upload their best Andres Cantor impersonations.
So has Visa maxed itself out? Perhaps the audience is already tapped into, and tapped out on, Visa’s values and how those parallel the values of winning sports teams. Visa could be trying to extend that attachment by sponsoring the World Cup, but from the mismatch in numbers of fans of both activations, it’s not clear that the plan worked. There is no word on how much Visa invested in sponsoring and activating around the World Cup specifically, but according to their most recent 10-Q they spent about $238,000,000 on marketing and advertising in Q1. This amount was up 22% from first quarter 2009 and is primarily attributed to activations around the Winter Olympics and the World Cup. If Visa does not see a bump in card usage at the end of the current quarter, it might mean that Visa’s marketing dollars would have been better spent elsewhere. Should Visa and other sponsors of multiple big sporting events spot this trend and pull back financially, sports organizations beware – we may see greater competition between sporting events for even more limited sponsorship dollars.