CVM Communications Group, the local television rights holders for the 2010 FIFA World Cup, says it’s expecting to profit from the broadcast of the mega sporting event which begins next month in South Africa.

David McBean, the group’s chief executive officer, said this will be realised against the background of a broadcast package that allowed the firm to execute a sustainable promotion over a number of years. The network also held the rights to exclusively broadcast the FIFA Men’s Under 17 and Under 20 World Cups, the FIFA Confederations Cup and the CONCACAF Gold Cup in the years leading up to the FIFA World Cup.

“We made this a multi-year event with the package of events that we had, so we were able to partner with our advertisers over a longer period of time and so it became a win-win situation where we were able to recoup our investment while allowing sponsors enough brand exposure to justify (their spend),” said McBean.

The major sponsors of CVM’s World Cup coverage are Coca-Cola, Digicel and Red Stripe, while associate sponsors are Scotiabank and Supreme Ventures.

In addition to securing exclusive television rights, which likely represents a substantial investment, CVM appears to have invested a lot of money on promoting the World Cup — a combination that has not bode well for a number of networks in the past. US television network NBC, for instance, lost US$223 million on the Winter Olympics. The network giant had a lot of production and other expenses, including US$820 million just to acquire the rights to carry the Vancouver Games on television and online, and that expense was cited as the main culprit for the red ink, according to the Associated Press.

However, McBean told Sunday Finance that the company did not over spend on the venture and declared that the network will make a profit.

“It will be profitable because we can’t afford to absorb those kind of losses,” said McBean.

“The World Cup is what we describe as our top-tier event and we give it the same kind of treatment as we do the Olympics or World Cup Cricket,” he said, adding “In terms of the build-up to the World Cup, it would seem more significant than alot of the other events simply because the package that we acquired for the FIFA events was over a longer period of time.”

McBean also noted that the network is expecting solid advertisement revenues over the course of the tournament, which will take place between June 11 to July 11.

“We have been getting a fairly good response,” said the CVM boss.

Indeed, some local firms are planning to invest big on marketing during the event in an effort to boost brand recognition and lure customers. Digicel, a major sponsor of CVM’s coverage of the event, among its numerous promotions, has one that will send 18 customers from across the region to journey on an all-expenses paid trip to South Africa to see the final game.

“Digicel Group is delighted to be able to bring live coverage of the world’s most exciting football event to millions of viewers across the region,” said Donovan White, head of marketing at Digicel Jamaica.

“Our customers are so passionate about this tournament and so we have developed a number of promotions that started in April and will run right throughout the FIFA World Cup,” he said.

Gaming company Supreme Ventures, another sponsor of CVM’s coverage, will also up its marketing spend particularly in an effort to raise the level of awareness needed in the Jamaican market for its new sports betting product JUSTBET, said the company’s senior corporate communications officer Carlene Edwards.

“The World Cup is a viable marketing opportunity. It represents the greatest showcase in sports and as a promoter of betting on international sporting events it is a must that we market and carry betting on this event,” noted Edwards.

The gaming company’s marketing initiatives will include major sponsorship of the television broadcast of the matches and in-store promotions at its betting locations and places where the public will congregate to watch the matches, added Edwards.

Financial sector companies are also getting in on the action.

National Commercial Bank (NCB) said it has made “adequate provision” towards marketing during the tournament. NCB marketing manager Kerine Hamilton told Sunday Finance that the event will give the firm an opportunity to market to a wide target audience. It will be primarily be pushing its NCB Visa credit card during the event.

“NCB has used another significant calendar event to reward its card holders,” said Hamilton. “The bank recently launched the Visa credit card promotion, ‘Experience your own 2010 FIFA World Cup Excitement’ which will reward 10 lucky Visa card holders.”

She said that the promotion, which runs from May 5 – June 9, encourages NCB Visa card holders to use their card for everyday purchases to be one of 10 “lucky” winners of a 42” Panasonic Plasma TV plus a $50,000 voucher to host their own FIFA World Cup Party. NCB Visa card holders are automatically entered in the promotion when they make a purchase of $2,500 or more.

Mayberry Investment said it also has big plans but for competitive reasons, won’t disclose them before launch.

“It is a big marketing opportunity, the eyes of the nation’s sporting fans will be glued to the television screens,” said Dennise Williams, Mayberry vice president of marketing.

Indeed, against the background of the global excitement for the World Cup, the biggest winner is the organiser. FIFA reportedly will earn a total of more than US$3 billion from the 2010 tournament’s broadcast and marketing rights — Surely, every other organisation involved will gladly accept a return of a mere fraction of that.

FIFA reportedly will earn a total of more than US$3 billion from the 2010 tournament’s broadcast and marketing rights.