Tuesday, 3rd July 2007

HEADLINE NEWS

Asian Sports Marketing Spend to Surge US$18 Billion Next Year

Expenditure on sports marketing in Asia is forecast to surge by 20 per cent from US$15 billion this year to US$18 billion in 2008 with the Olympic Games in Beijing next year acting as a major catalyst in this explosive growth. The research, from Total Sports Asia, shows that the Beijing Games have aroused intense interest and competition between marketers, advertisers, agencies and media - all jostling for a share of the pie.

“But the Olympics is only part of a bigger growth story in Asia,” said Marcus Luer, chief executive officer of Total Sports Asia (TSA). “There is a growing demand for the already established sports marketing properties across the board in Asia and there are many new opportunities on the horizon.”

“Top international properties like the FIFA World Cup, Formula One, Olympics and the English Premier League, although they are already well represented in Asia, still have room for further exploitation.”

He cited the recent FIFA World Cup 2006 which generated over US$100 million in Asia, excluding Japan, in terms of TV rights. The next two World Cups, in 2010 and 2014, were recently sold to a consortium for US$350 million, clearly showing its growing demand and pricing power in Asia. Similarly, the English Premier League recently raised its media rights fees from US$300 million to over US$800 million for the next three seasons.

Luer said that outside of the top level rights such as these, there is also a tier of international rights and local properties that in most cases were not on the radar screens of most marketers. For example, TSA is now working with the Badminton World Federation (BWF) to develop its media rights, re-brand itself, provide exposure to new media and the internet and develop sponsorships - all leading to significantly improved revenue streams for the Federation.

And Copa America 2007 which is now being hosted in between the FIFA World Cup and UEFA EURO Championship years thereby creating additional opportunities in media and sponsorship for football.

“It is only a matter of time before these properties become more valuable with a better appreciation of what certain sports or events can deliver to advertisers, sponsors, broadcasters, governments and other parties involved,” Luer said. “The industry trends that have established themselves so clearly in the US and in Europe are now likewise being replicated in Asia.

“The continuing expansion of content delivery platforms, especially broadband, IPTV and mobile, also gives further impetus to growth.” He said professional sports marketing was still a relatively new discipline in Asia and many sports bodies in the region were still unaware of its full potential and benefits.

The sports rights that these bodies control are intellectual property rights that can translate into hundred of thousands and millions of dollars depending on the level of reach and fan base and the type of sports that is involved. There are intangible values to be put on these rights and professional sports marketing is only now starting to unlock and develop them to their full potential. Source: Sport Business, Sports e-Media, 2nd Jul 2007


RESULTS

Source: Goal.com, 3rd Jul 2007
After keeping it close for much of the match, Paraguay finally imposed themselves on the United States and earned a 3-1 win to go. This second-round Group B Copa America match featured two teams that had different fates on the first matchday. Paraguay rode the back of the resplendent Roque Santa Cruz to a 5-0 victory over Columbia, while a young United States fought hard for 70 minutes before succumbing to Argentina 4-1. After 90 minutes in Maracaibo, the results were the same as the previous day, as Paraguay handed US coach Bob Bradley the second defeat of his tenure.

Source: Astro Supersport, 3rd Jul 2007
Argentina 4 Colombia 2


THIS WEEK

Tue, 3rd Jul 2007
Copa America 2007: Group A - Bolivia v Peru, Merida
Copa America 2007: Group A - Venezuela v Uruguay, Merida

Wed, 4th Jul 2007
Copa America 2007: Group B - Mexico v Chile, Barcelona
Copa America 2007: Group B - Brazil v Ecuador, Barcelona

Thu, 5th Jul 2007
Copa America 2007: Group C - USA v Colombia, Barquisimeto
Copa America 2007: Group C - Argentina v Paraguay, Barquisimeto

Sat, 7th Jul 2007
Masters Football: Central Masters
Copa America 2007: Quarter-final 1, Maracaibo
Copa America 2007: Quarter-final 2, San Cristobal

Sun, 8th Jul 2007
AVP Crocs Tour: Seaside Heights Open, Final Day
Copa America 2007: Quarter-final 3, Maturin
Copa America 2007: Quarter-final 4, Barquisimeto


SPORTS SHORTS

* A doctor who treated wrestler Chris Benoit was arraigned Monday in Atlanta on charges of illegal drug distribution. Dr. Phillippe C. Astin III appeared before a U.S. Magistrate on charges of illegally distributing Percocet, Adderall, Lorcet and Xanax. U.S. Attorney, David E. Nahmias, said Astin is accused of prescribing the drugs "like candy, with little regard for appropriate medical practice or recipients' health." Investigators estimated Astin prescribed 1 million dosage units of controlled substances in the last two years. Source: Earth Times, 2nd Jul 2007

* Indian telco Bharti Airtel, is to target high-end consumers as part of its IPTV strategy. Bharti started IPTV trials 2006 in Gurgaon and will launch before the end of the financial year. The IPTV service will be first rolled out in Delhi, followed by Mumbai, Chennai, Kolkata, Hyderabad, Bangalore, Gurgaon and Jaipur. IPTV will target top-end customers, while customers outside this ambit will be the target of direct-to-home (DTH) satellite services. With IPTV, the company will offer services to customers in areas served by Bharti's fixed line network. Source: Advanced TV, 2nd Jul 2007

* Broadcasting rights for soccer’s 2012 European Championships will be worth €1 billion ($1.36 billion), according to the Polish organising committee for the tournament. Euro 2008 in Austria and Switzerland is expected to raise at least €600 million in broadcasting rights fees in Europe after territory-by-territory sales are completed by Sportfive. Rights outside Europe are being negotiated by Uefa, soccer's European governing body, or Sportfive, depending on the territory in question. Source: Sportcal, 2nd Jul 2007

* Louis Vuitton, could quit the event if Swiss Team Alinghi retains the America’s Cup. A LV spokesman said, “If the game is to take the Cup to new grounds to make it just another sporting event to be commercial, then I think Vuitton would be willing to quit. The Swiss did well by picking Valencia and building up the event but the whole duration of this Cup they've talked about money. We don't like this very much." Vuitton has been a sponsor of the America's Cup since 1983, when the challengers' series became known as the Louis Vuitton Cup. Source: Sport Business, Sportcal, 2nd Jul 2007


MORE NEWS

Olympic Games to Deliver $3 Billion Boost to Global Adspend

Zenith Optimedia expects the 2008 Olympic Games to attract $3 billion in additional advertising expenditure next year, almost $1 billion of which will be in China. The U.S. Presidential election and the Euro 2008 football championship will contribute another US$3 billion between them. Global ad expenditure across all major media in 2008 will hit $489.3 billion, a 6.5% gain on the previous year, above the 5.1% annual growth the market has averaged over the past ten years. Television will account for 37.7 percent ($180.3 billion), and the Internet will have an 8.6 percent share ($41.2 billion).

North America will remain the biggest ad market, with $196.7 billion, a 4.1% gain on 2007. Ad expenditures in Western Europe are set to rise 4.4% to $112.9 billion. The Asia Pacific will see an 8.4% growth in 2008, to $108.3 billion. Central and Eastern Europe, meanwhile, is expected to post a 16.4% year-on-year increase to $31.1 billion. Latin American ad spend will rise 6.9% to $22.8 billion. Africa, the Middle East and the rest of the worldis expected to gain 18% to $17.5 billion.

Zenith Optimedia has reduced its forecasts for the U.S. after continued weakness in the network TV and trade magazines markets. Latin America is also down. Western Europe is expected to outperform North America through 2009, driven in part by recoveries in Germany and the U.K.

The fastest growing ad markets are in the Middle East and Central and Eastern Europe, led by Qatar with a projected 214.7% increase from 2006 to 2009, followed by Egypt (117.7%), the United Arab Emirates (108.9%), Russia (108.3%) and Ukraine (100.5%). Rounding out the top ten are Moldova, Romania, Belarus, the pan-Arab region and Saudi Arabia. Source: Worldscreen, Brand Republic, 2nd Jul 2007