World Cup Brazil Will Generate $4 Billion for FIFA, 66% More Than 2010 Tournament

World Cup Brazil will generate $4 billion in total revenue for FIFA, or 66% more than the previous tournament in South Africa in 2010. The vast majority of the money will come from the sale of television and marketing rights. The World Cup generates more revenue for its association than any other sports tournament, save the Olympics (based on revenue per-event-day, the NFL’s Super Bowl reigns supreme). FIFA’s profit for the Brazil World Cup: $2 billion.

Almost all of the revenue FIFA generates comes from television rights ($1.7 billion) and marketing rights ($1.35 billion) from corporate partners like Adidas Emirates, Sony , Visa V+0.87%, Hyundai and Coca-Cola . Blue chip companies love to throw money at the World Cup because it is followed passionately throughout most of the world.

FIFA research, which took a year to produce after the 2010 World Cup in South Africa, said 909 million television viewers tuned in to at least one minute of the 2010 final at home. Some 619.7 million people also watched at least 20 consecutive minutes of Spain’s 1-0 extra-time win over the Netherlands in Johannesburg. More than 3.2 billion people watched live coverage of the 2010 tournament for a minimum of one minute. The average official rating was 188.4 million for each match.

The 2010 Men’s World Cup drew the most US viewers ever for the tournament. ESPN announced that broadcasts averaged a 2.1 rating (2.29 million households and 3.26 million viewers), a 31% increase over 2006. The final between the Netherlands and Spain was the most-watched men’s World Cup game with 15.6 million viewers.

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Global advertising to expand this year helped by World Cup

The world’s largest advertising groups such as Martin Sorrell’s WPP, second-place Omnicom and third-placed Publicis often post growth rates correlated with global gross domestic product. They are set to benefit this year as the United States – the largest ad market followed by Japan and China – is expected to grow steadily.

Zenith said the total amount of media spend will reach up to $524 billion at year end, driven by an improved global economic outlook and the rapid rise of mobile advertising.

The Publicis-owned forecasting unit shaved 0.1 percent off an earlier prediction for the year after political tumult in Ukraine damaged the local economy.

“Growth will continue to improve over the next two years, reaching 5.7 percent in 2015 and 6.1 percent in 2016, driven by continued economic recovery, including, at last, the Eurozone,” said Zenith Optimedia in a statement.

Despite an uptick during the World Cup in June and July, the forecasters also said that television’s share of global advertising spending would peak this year after rising steadily for decades from 29.9 percent in 1980 to 39.6 percent in 2013.

Behind the shift lies the rapid growth of Internet advertising, which is growing 16 percent a year compared to 4 percent for television. Major companies from auto makers to consumer products now see on-line ads as being suitable for brand building much as television once was.

Television’s share of ad spend will erode to 39.4 percent this year and 38.3 percent by 2016, according to Zenith.

Publicis shares are down 5.1 percent this year, while WPP’s and Omnicom’s are both down 5.6 percent.

(Reporting by Leila Abboud; Editing by Stephen Powell)