Chinese companies have emerged as dominant players in the advertising space of the European football championships, leveraging stadium advertising and strategic marketing deals. This surge in presence underscores football’s unparalleled ability to draw global audiences, positioning itself as a potent tool for companies seeking to enhance their sales and profits.
According to UEFA, the governing body of European football, five out of the thirteen official sponsors of the tournament are Chinese companies. These sponsors include Ant Group’s payments app Alipay, Alibaba’s online marketplace AliExpress, smartphone manufacturer Vivo, consumer electronics giant Hisense, and electric vehicle maker BYD. UEFA’s marketing director, Guy-Laurent Epstein, pointed out that these Chinese brands, having solidified their market dominance in China, are now eyeing international expansion to tap into new consumer bases.
The financial contributions from these Chinese sponsors are pivotal to UEFA’s commercial strategy. Their investments have helped Euro 2024, culminating in a grand finale between England and Spain in Berlin, to forecast a record-breaking revenue of over €600 million from commercial rights alone. This marks a substantial increase of at least 15 percent from the €520 million generated during Euro 2020, and a 24 percent rise from the €483 million at Euro 2016. Overall, UEFA anticipates that the tournament will amass more than €2.4 billion from various streams, including broadcast deals, sponsorships, hospitality, and ticketing. These funds are vital for reinvesting in the sport and sustaining its growth.
Alongside these Chinese corporations, other global brands such as Coca-Cola and German sportswear manufacturer Adidas also play significant roles in driving the commercial success of the tournament. Additional notable sponsors include French IT services firm Atos, Greek betting company Betano, Amsterdam-based travel website Booking.com, tourism promoter Visit Qatar, and German retail giants Lidl and clothing brand Engelbert Strauss.
The tournament is expected to captivate a cumulative live audience of over 5 billion people across approximately 200 territories. Beyond traditional television broadcasts, a significant portion of the audience engages with sports content via social media, where bite-sized clips attract millions of viewers. Despite China’s lacklustre performance in football, the sport, and particularly the Euros, enjoys immense popularity in the country. According to CSM Media Research, ratings for CCTV’s sports channel surged by 45 percent from June 14, the start of the tournament, to 3 July. Despite the time difference with host nation Germany, more than 187 million viewers in China have tuned in to watch the matches since the opening game.
Technological advancements have further refined advertising techniques, enabling sponsors to customize pitch-side billboards for different audiences. This technology ensures that Chinese viewers see different advertisements on their screens compared to those visible in the stadium or on other broadcast feeds. Chinese fans residing abroad or traveling to watch Euro 2024 matches are also prime targets for these brands, which also aim to capture the attention of European audiences.
Mark Tanner, managing director of Shanghai-based branding agency China Skinny, remarked that Chinese brands have traditionally sponsored major international sporting events to gain credibility with domestic consumers. However, as these brands extend their reach globally, sponsorship now also serves to increase brand awareness and preference in international markets, while reinforcing their reputation at home. Given the geopolitical landscape and the perception of lower quality, Chinese brands often face an uphill battle in Western countries, necessitating a robust effort to build brand loyalty and preference.
The strategic investments are already paying off. Hisense’s German division reported a 53 percent increase in first-half revenue compared to the previous year, according to Louis Hou, general manager at Hisense & Gorenje Germany. AliExpress saw an 80 percent year-on-year rise in sales of football-related merchandise on its cross-border marketplace in May. BYD, the official e-mobility partner of Euro 2024, views its partnership with UEFA as a critical avenue for introducing its technology to European consumers. BYD’s expansion strategy in Europe includes a recent $1 billion investment in an electric vehicle plant in Turkey, complementing plans for a production facility in Hungary.
This concerted advertising drive by Chinese companies at Euro 2024 illustrates the vast reach and influence of football, providing an exceptional platform for brands to amplify their market presence and drive sales growth on a global scale.
SiGMA East Europe Summit powered by Soft2Bet will take place in Budapest from 2-4 September.
