Riding summer sports in key year for global influence

With two of the world's premier quadrennial events, the summer of 2024 is an exhilarating time for sports enthusiasts like me as the UEFA Euro 2024 is in full swing and the Paris Olympics is on the horizon in late July.

Beyond the stadiums, Chinese companies have already kicked off their sports marketing campaigns, leveraging the massive exposure opportunities presented by this "big sports year "to burnish their brand image and tell cultural stories globally.

A recent study by The Trade Desk, a leading global advertising technology company, highlights the significant impact of this sports-centric year on international branding. According to the research report, nearly half of global TV and online audiences will be focused on Paris this summer, with the internet becoming the primary channel for sports fans to access content.

For Chinese companies aiming to expand internationally, adopting a comprehensive advertising strategy centered around the internet is crucial to harnessing the opportunities presented by 2024's sports calendar.

As "creating more internationally influential Chinese brands" was highlighted in China's 2024 Government Work Report, the discussion around building global brand power has gained momentum.

Wu Yulin, the director of business development for China at The Trade Desk, emphasized the unprecedented marketing opportunities available to Chinese companies during this summer.

Wu said that nearly three-quarters of online time is spent on the internet, indicating that Chinese companies must strategically invest in channels like internet-connected TV and online streaming sites to fully capitalize on the "big sports year "and drive long-term growth.

In fact, sports marketing is far from being niche, and Chinese companies have been active participants in top-tier sports events for years. However, recent years have seen a marked increase in their sponsorship levels, integration depth and alignment with business operations.

As noted in the cover story, five of the 13 global sponsors of UEFA at Euro 2024 are Chinese companies, a record. Paris 2024, this year's Summer Olympics, as the world's largest multi-sport event, is also a focus area for Chinese companies.

The high penetration and exposure of the Olympics naturally draw numerous corporate sponsors. Chinese companies often sponsor the Chinese delegation or game-specific squads (taking part in, say, swimming, boxing, athletics, equestrian, so forth); yet, their presence among the top-tier Olympic sponsors is also notable. According to the official Paris 2024 Olympics website, two of the 15 global partners are Chinese companies: Alibaba and Mengniu.

As Chinese companies amplify their global presence, they share a common goal: to succeed globally. A prime example is Alibaba Group, a sponsor of both Euro 2024 and the Paris Olympics. Despite a slowdown in overall revenue growth in recent years, Alibaba's international business has surged, becoming the fastest-growing segment within the group. In the first quarter, Alibaba's international digital commerce revenue grew by 45 percent year-on-year to 27.4 billion yuan ($3.7 billion), exceeding market expectations for seven consecutive quarters.

Prior to this, Chinese e-commerce startup Temu aired two 30-second commercials during the Super Bowl in February 2023, featuring the catchy slogan "Shop like a Billionaire". This campaign led to a significant spike in Temu's download numbers in the North American market.

Similarly, companies like Vivo and Oppo have successfully leveraged sports sponsorships to penetrate local markets, such as sponsoring Indian cricket events and the French Open tennis tournament.

However, visibility alone doesn't translate into consumer support or sales revenue. Effective sports marketing requires sustained efforts. Just as Nike signed a lucrative seven-year contract with NBA basketball player LeBron James as early as in 2003, witnessing his rise to stardom, brands seeking global success through sports sponsorship must commit to long-term and consistent operations. Such an approach will test a company's ability to endure market cycles and create lasting value.

From a marketing perspective, involvement with sport is often associated with "long-term" goals, challenging companies to maintain steady growth. Sponsorship of top-tier sports events demands a stable cash flow. Beyond this financial challenge, Chinese companies face hurdles like compliance, intellectual property rights and market access abroad.

If not handled well, such areas could jeopardize initial investments. Overcoming any obstacles thereof, therefore, is essential for Chinese brands to thrive globally, especially in a landmark sports year like 2024.