FIFA World Cup should boost Korea and Japan.

The 2002 FIFA World Cup, jointly hosted by Japan and Korea from the end of May, offers agencies in both countries prizes to win against a background of economic gloom and uncertainty. The Dentsu Institute of Human Studies, a private think tank, reckons investment and consumer spending in Japan associated with the World Cup will hit ¥1,418.8 billion. This, in turn should generate another ¥3,304.9 billion in economic activity. Airlines, and sports goods makers will be obvious beneficiaries, so to will makers of flat screen televisions and the brewers, according to HSBC Securities Ltd.

Competition for the soccer purse will naturally benefit agencies. Dentsu alone should see ¥70 billion in additional revenue as a direct result of the World Cup say HSBC.

Five of FIFA’s ‘ official partners’ are Japanese companies: NTT, Fuji Film, Fuji Xerox, JVC, and Toshiba all of whom are expected to exploit their marketing rights to the full.

Among Dentsu’s clients, 24 major companies are involved in World Cup sponsorship. World Cup-related campaigns from Toshiba, Asahi Newspaper, NTT Docomo, Fuji Film, MacDonald, Nomura Security, Nisshin Food and Sony Music Entertainment have already started.

The marketing efforts of Japanese companies should spill over to Korea where many are expected to start advertising for the first time. Both Dentsu and Hakuhodo have built strong presences in Korea to be ready for this opportunity. Sony and Matsushita are both promoting their AV products heavily in major Korean department stores and expected to take the World Cup as the occasion to launch their first advertising in Korea.

Korea’s GDP could gain 1% thanks to the World Cup. FIFA’s Korean partners, Hyundai and Korea Telecom will both be big spenders. Analysts at Daishin Securities in Seoul reckon Korea’s two largest and publicly quoted agencies, Cheil Communications and LG Ad will be among the stocks that will benefit most from the World Cup.

International marketers have also caught soccer fever. Through McCann Erickson, MasterCard were one of the first advertisers in Japan to exploit the World Cup via their Sweepstakes promotion last year. Meanwhile in Korea, Philips Korea aim to build their reputation as a good corporate citizen. Both MasterCard and Philips are also FIFA partners.

by David Kilburn

Published in Media January, 2002