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Coca-Cola’s Ronaldo fiasco highlights risk to brands in social media age | Advertising

by All News Admin
June 18, 2021
in Marketing & Advertising
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Cristiano Ronaldo’s choice to take away two Coca-Cola bottles from view at a press convention, and dent the worth of the fizzy drink maker’s sponsorship of the European Championship, has highlighted the dangers manufacturers face associating with sports activities stars made highly effective by the social media period.

The Portugal captain, a famend well being fanatic who eschews carbonated drinks and alcohol, underlined his level by holding a bottle of water whereas saying “agua”, Portuguese and Spanish for water. The water model in query occurred to be owned by Coca-Cola too, however the injury – by a significant sports activities star with 550 million social media followers – was finished.

“It’s clearly an enormous second for any model when the world’s most adopted footballer on social media does one thing like that,” says Tim Crow, a sports activities advertising and marketing marketing consultant who suggested Coca-Cola on soccer sponsorship for twenty years. “Coke pays tens of thousands and thousands to be a Uefa sponsor and as a part of that there are contractual obligations for federations and groups, together with collaborating in press conferences with logos and merchandise. However there are at all times dangers.”

Main manufacturers have by no means been in a position to management the actions of their star signings. Nike determined, stoically, to face by Tiger Woods as {the golfing} prodigy misplaced sponsors together with Gillette and Gatorade after a 2009 intercourse scandal. Nonetheless, Ronaldo’s public snub signifies a special form of menace to the as soon as cosy business stability of energy between stars and types, one born of the social media period.

“Ronaldo is correct on the high of social media earners,” says PR skilled Mark Borkowski. “It’s concerning the rise of the non-public model, the non-public channel, it provides a lot bloody energy. That’s what has allowed Ronaldo to make a degree [about a healthy lifestyle].”

Now 36, the world’s most well-known footballer has constructed an empire that has seen him make greater than $1bn (£720m) in soccer salaries, bonuses and business actions corresponding to sponsorships. What’s essential is the worldwide platform social media has given him – half a billion followers on Instagram, Twitter and Fb – which has freed him from following the business guidelines of golf equipment, tournaments and their sponsors. He’s the very best earner on Instagram, commanding $1m per paid publish, and with greater than $40m in earnings from the social media platform yearly he makes greater than his wage at Juventus.

“Persons are saying that is about athlete activism and there may be some reality to that,” says Crow. “Athletes are taking a extra activist view, we’re seeing that, most lately in press conferences. And we’ll see it once more.”

On Tuesday, the France midfielder Paul Pogba, a practising Muslim, eliminated a bottle of Euro 2020 sponsor Heineken’s non-alcoholic 0.0 model from the press convention desk when he sat down to talk to the media after his crew’s 1-0 win over Germany. Three years in the past, he was one in all a bunch of Manchester United stars who boycotted a contractual occasion for sponsors to protest on the membership’s poor journey preparations that had affected Champions League video games.

Crow says a very powerful instance of athlete activism got here final month when Naomi Osaka, the No 2-ranked feminine tennis participant, pulled out of the French Open after being fined $15,000 and threatened with expulsion by organisers for saying she would skip contractual media obligations due to the impact on her psychological well being.

Osaka, who has greater than 4 million social media followers, used Twitter to elucidate her “large waves of hysteria” and the “outdated guidelines” governing gamers and media conferences, and announce she was pulling out of Roland Garros.

“Activism is now on each sponsor’s radar,” says Crow, who believes Ronaldo’s transfer may mark the start of the tip of product placement-laden press conferences.

“My view is that for a very long time now having sponsors’ merchandise on the desk in entrance of athletes in press conferences appears to be like outdated and inauthentic and it’s time to retire it,” he says. “This incident highlights that reality. Lots of my sponsor shoppers have talked about this prior to now, notably these focusing on youthful customers. It’s not as if sponsors don’t have sufficient branding all through tournaments and occasions anyway.”



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