(Yicai) May 11 -- Despite stalled negotiations for the FIFA World Cup broadcasting rights in mainland China, Chinese companies remain highly enthusiastic about advertising opportunities for the soccer tournament, according to the business development director for China at The Trade Desk.

"The broadcasting rights dispute will not affect the overseas marketing plans of Chinese brands," Wu Yulin said in a media sharing session on May 8. Their core overseas customers are mostly located in the United States, Europe, Oceania, and Asia-Pacific, so it is essential for them to effectively release targeted advertising campaigns.

FIFA initially requested USD250 million to USD300 million for the World Cup broadcasting rights in the Chinese mainland. However, China Central Television's budget is only USD60 million to USD80 million, so even though FIFA lowered its asking price to USD120 million to USD150 million, a deal has not yet been reached, as media reported.

Chinese internet platforms are generally scaling back investment in Western sports content, mainly because the time difference makes it hard for residents in China to watch, hindering advertising revenue, according to analysts. Despite that, four Chinese companies -- Wanda Group, Hisense Group, China Mengniu Dairy, and Lenovo Group -- will sponsor the World Cup.

The audience for events such as the World Cup extends beyond the matches, as companies also seek to reach individuals following sports news, social media accounts, and other types of related content, Wu explained.

In the face of uncertainties, such as the Middle Eastern crisis and trade wars, the motivation of Chinese firms to expand overseas and strengthen their branding is increasing, Wu noted. "Brand power is the most certain asset for a company," he added. "No matter what it is sold or where, establishing strong brand power can bring more certainty at any stage."

Moreover, Chinese companies are seeking to diversify their overseas expansion strategies beyond the US, increasing their investments in Europe and Oceania, Wu pointed out.

On the supply chain side, sports goods companies in the Chinese city of Yiwu, the world's small commodities capital, have taken the lead in benefiting from the World Cup. In the first quarter, Yiwu's exports of sports goods and equipment surged 12 percent to CNY2.8 billion (USD416 million) from a year earlier, according to data from local customs authorities.

The World Trade Organization predicted that this year's World Cup will generate an economic output of about USD80 billion globally, with Yiwu accounting for about 70 percent of the global World Cup merchandise.

Editor: Futura Costaglione