Tag Archives: Olympics

Olympic Advertising Costs

The Olympic Games is arguably one of the world’s largest promotional platform; there are more than 10,500 athletes, from 204 countries, competing in 47 events. The television and press coverage worldwide is extensive for the 10 day length of the Games.  Top-level athletes get coverage not only from their home news outlets, but from additional media worldwide.

Americans view Olympic Games the most when the event is held on their own land. According to Nielsen Company, of the non-U.S.-based Games, the 2008 Beijing Games’ opening ceremonies had the top number of U.S. views with 18/8 percent of TV households, and 34.9 million viewers. This compares to the 40 million viewers for the 1996 Atlanta Games. The results are not yet in on the viewer counts for the 2012 London Games, but it should be a good result for advertisers.

 

Advertising costs are not cheap, but they are not necessarily as expensive as other sports events (consider the roughly $2 million price tag for 30 seconds of advertising for the Super Bowl) or popular entertainment (Sunday Night Football at $500,000).

Group Activities and Discussion Questions:

  1. Discuss the advertising advantages and disadvantages for the Olympics.
  2. View the statistics on Nielsen’s Web site: http://blog.nielsen.com/nielsenwire/media_entertainment/summer-olympics-openers-draw-big-crowds-and-advertising-dollars/
  3. Divide students into teams. Have the teams develop a list of potential target markets for Olympic events. Consider sports, countries, cultures, spending, etc.
  4. For each different target market, what companies would most benefit from advertising?
  5. Have students visit Nielsen’s Web site www.nielsen.com.
  6. What are their findings for viewership and advertising costs?
  7. How does Olympic viewership compare with other events?

Source:  Nielsen Company, 7/25/12

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Sponsorships on the Rise

Quick – can you name the top U.S. companies that use sponsorship as a critical part of their marketing programs? If you chose soft drinks, beer, and automobiles you hit it out of the park. In 2011, PepsiCo has the largest sponsor in the U.S., spending an estimated $340 – $345 million on event sponsorships. Pepsi is flowed by Coca-Cola at $265 – $270 million, making the soft drink industry the largest user of sponsorships in marketing campaigns.

Not far behind is Anheuser-Busch in a mega deal as the official beer sponsor for the NFL, a deal costing an estimated $50 million per year for the next six years. AB’s current spending is estimated between $255 – $260 million.

According to IEG, a sponsorship research and consulting firm, the number of companies spending at least $15 million on sponsorships stands at a count of 86 firms, an increase from last year’s 77 firms. There were 44 companies that increased their sponsorship spending, and only seven companies that decreased spending.

With the Summer Olympics starting soon, look for large corporate sponsors to own the different venues. Among the official sponsors are Coca-Cola, McDonald’s, Panasonic, Proctor & Gamble, and more.

 

Group Activities and Discussion Questions:

  1. Discuss how sponsorships fit into the promotional mix.
  2. When are sponsorships effective, and not effective?
  3. Divide students into teams. Have them develop a list of the 10 top sponsorship companies.
  4. Have students come up with a list of the top events these companies might sponsor.
  5. Compare the student list with the article list. Discuss what makes sponsorship a good fit for these companies.
  6. In teams, have students choose a product that is not commonly thought of as an event sponsor (ex: toilet paper or baggies). Next, have students develop a sponsorship opportunity for this company.
  7. What is the target market for this product? Why does the event fit?

Source:  Ad Age Daily, 5/1/12

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