Koreans climb aboard sports marketing train
Left: LG Electronics sponsord an extreme sports event in Dallas, Texas in October, targeting young consumers. Right: Samsung Electronics recently sponsored an equestrian event at La Baule, a resort city in France, aimed at high-end consumers. Provided by the companies
In the United States, Americans put down serious money at football tailgate parties every weekend in the fall.
Sports marketing is becoming one of the biggest promotional tools for Korean companies, especially for overseas business exposure.
Traditionally, Korean companies have focused on manufacturing and quality products.
And even though local professional sports started in the early 1980s, the sports marketing concept didn’t generate that much interest.
Of course some companies paid for corporate sponsorship during the 1988 Seoul Olympic Games and at other domestic events, but relatively little sports marketing was done overseas.
But trends have been changing.
Today, it is common to see the blue Samsung logo on the jersey of the Chelsea Football Club players or the round LG mark on the German national football team.
Samsung has experienced great exposure when it comes to sports marketing.
Se Ri Pak, one of the early Korean superstars in women’s professional golf, was sponsored by Samsung, which invested more than $4 million in the young athlete. When Pak went on a winning spree on the LPGA tour, the Samsung brand received strong recognition.
Today, Samsung Electronics is aiming its sports marketing toward a premium market, trying to raise its brand image. With its $50 million sponsorship of Chelsea in the English Premier League, signed about a year ago, Samsung received $65 million worth of media exposure, it claims.
Talk about a smart deal.
The Premier League is one of the world’s top soccer leagues and Koreans are mad for soccer, evidenced by the nation’s heart-stopping semifinal performance in the 2002 World Cup. The Cinderella performance by the Korean co-hosts captivated the entire nation.
Last week in La Baule, France, the Samsung Super League 2007 was held. The equestrian event sponsored by Samsung will tour eight countries, including Italy, Germany and the Netherlands through September. The company has been the official sponsor since 2003.
Samsung also splashed its name across Nascar, the second most popular professional sport in terms of TV ratings in the United States. The company estimates that ad exposure on the car race circuit is worth at least $25 million.
In March LG signed a three-year sponsorship deal with the Fulham Football Club in the English Premier League. LG wants what Samsung got from Chelsea ― high brand recognition.
LG has been the uniform sponsor of Olympique Lyonnais in the French soccer league since 2004, which LG claims has generated more than $28 million in media exposure. Sponsorships with Arsenal and Liverpool FC were also successful. The Sao Paulo Football Club has extended its sponsorship contract with LG until 2008. LG also has its own Amsterdam Tournament, where major teams, including world famous Manchester United of England and InterMilan of Italy compete.
Regarding soccer, Hyundai Motor Co. is most active among Korean businesses. Hyundai is the sole sponsor for all FIFA matches and events until 2014. The automobile company plans to pay for Euro 2008, a pan-European tournament.
Smaller tournaments for youth and women will also be sponsored by Hyundai. The car maker has experience sponsoring Euro 2000 and 2004. The Australian national team is also under contract for Hyundai sponsorship until 2008.
In the United States, Korean car firms pay major dollars for ads on lucrative TV broadcasts, including professional basketball.
By Hwang Young-jin Staff Writer [yhwang@joongang.co.kr]
with the Korea JoongAng Daily
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