Sometimes, expensive advertising is worth it.
The New York Times & my favorite china energy news source report that Yingli Solar, a unit of a large Chinese energy conglomerate (YGE), saw its market cap grow 42% during the World Cup in South Africa. How? Why? They paid roughly $20 million (according to the New York Times) or RMB540 million (about US$80million according to “an insider”) for prominent on field advertisements during… well, during every game I saw.
In raw numbers, that’s growth from US$540million to US$1.84 billion, in about 7 weeks. They’ve secured US$5.3 billion financing to meet demand (via), so all I can really say is: well played. I have not yet found decent numbers about on field ad prices in this or previous World Cups, but $20 million seems awfully cheap for the exposure.
That’s a 65:1 ROI if the NYTimes and my math is correct. It’s a 15:1 ROI if “the insider” is correct. Either way. well played, Yingli.