Skipping the Olympics is “not an option” for many advertisers

The Olympics have long been a nearly ideal forum for companies looking to promote, with the opportunity for brands to place ads on their pages and have a pleasant talk about athletes who have overcome adversity. We have a lot.

But now, about 11,000 athletes from more than 200 countries gather in Tokyo. Coronavirus With a protracted pandemic, Olympic advertisers are worried about the more than $ 1 billion they spent running ads. NBC And its peacock streaming platform.

Call for cancellation that’s all $ 15.4 billion Luxury is intensifying as more athletes test positive for Covid-19.Events too Not very popular With Japanese and many people Public health expert, Those who are afraid of superspreading events. And audience At the stand.

“The Olympics are already a damaged product,” said Jules Boykov, a former Olympic soccer player and sports politics expert at the University of the Pacific. “If this situation in Japan moves south rapidly, there may be changes in the way transactions are closed and the willingness of multinational corporations to engage.”

Top sponsor Panasonic will not send a CEO to the opening ceremony scheduled for Friday.Also, Toyota, one of the most influential companies in Japan Blow At the tournament on Monday, when it was announced that it had abandoned plans to broadcast an Olympic-themed TV commercial in Japan.

In the United States, marketing plans are mostly advanced.

For paid NBC Universal Billions of dollars This event is an important source of income for the exclusive right to broadcast the Olympics in the United States until 2032. NBC’s coverage on television has more than 140 sponsors. Peacock, a streaming platform a year ago And online, there are over 100 sign-ons for the 2016 Summer Olympics in Rio de Janeiro.

Jeremy Carey, Managing Director of Sports Marketing Agency Optimum Sports, said:

and Michelob Ultra In commercials, sprint star Usain Bolt directs jogging to the bar. Procter & GambleThe campaign focuses on good deeds by athletes and their parents. Sue Bird, Basketball star advertises fitness equipment maker Tonal At the spot Debuted on Friday.

Chipotle Chief Marketing Officer Chris Brandt said the situation was “not ideal”, but the company is still motion Features profiles of Olympic athletes.

“As with any kind of sport, I think people continue to pay attention to it, even without fans,” says Brandt. “It will be a declining factor in terms of excitement, but I also hope that the Olympics will be a little united at a time when the country seems to be very divided every day.”

NBCUniversal said it earned more than $ 1.2 billion in U.S. advertising revenue from games in Rio de Janeiro in 2016 and sold all inventory at the opening ceremony on Friday, providing space for the rest of the game. I added. Buyers estimate that a 30-second golden-time commercial will cost more than $ 1 million.

According to Kantar, television attracts most of the advertising costs, but the amount of money that digital and streaming advertising brings is increasing.Some predict that Olympic TV ratings will lag behind games in Rio and London, while streaming viewers Growing rapidly..

NBCUniversal said during this year’s so-called pre-negotiation session, Peacock received a $ 500 million commitment next year when ad buyers booked a spot with a media company.

“No legacy media company hasn’t pushed streaming capabilities to the biggest events,” said Carey, executive at Optimum Sports. “That is the future of this business.”

United Airlines, a sponsor of Team USA, has abolished the original advertising campaign to promote flights from the United States to Tokyo. The new initiative, featuring gymnast Simone Biles and surfer Kolohe Andino, facilitates a wider return to air travel.

“It didn’t make much sense to focus on a particular destination that Americans might not be able to travel to,” said Maggie Schmelin, managing director of airline advertising and social media.

United campaigns appear on streaming platforms, including airports, social media, and peacocks, but not on TV. Schmerin said airlines want to “match where their customers are based on viewing habits.”

Advertising agency executives said companies regularly check for updates on the outbreak of Covid in Japan and may fine-tune their marketing messages accordingly.

David Droga, founder of the Droga 5 advertising agency that worked on Facebook’s Olympic campaign, said: Introducing skateboarders.. “Currently, people are very vulnerable. Advertisers don’t want to be too saccharin or too smart, but they’re trying to find the right tone.”

Many companies advertising during the Olympics are running campaigns that had to be redesigned from scratch after the postponement of last year’s Olympics.

“We planned it twice,” said Carey of Optimum Sports. “Think about how the world has changed over the past year, and how much each brand has changed what they want to say, what they want to do, and what they want to sponsor. So we crumple it and start I started over. “

The sponsor, Visa, will not hold promotional meetings or customer meetings in Tokyo and will not send senior management, said Lin Bigger, the company’s chief global marketing officer. The company’s commercial, which airs on the opening ceremony, begins with a football match and shows that Visa is being used in transactions around the world.

The NBCUniversal sports calendar also includes the February Super Bowl, which the company said is discussing whether 85% of its advertising slots are already on sale. Also in the lineup: FIFA World Cup In Qatar in late 2022 Beijing Winter Olympics In February, insufficient human rights records in China and Qatar both put the advertising industry in a difficult position.

But first, advertising executives want the Tokyo Olympics to go smoothly.

“We’ve been working on these Covid updates every day since March last year,” said Kevin Collins, executive of ad purchasing and media intelligence company Magna. “I’m looking forward to them starting.”

Skipping the Olympics is “not an option” for many advertisers

Source link Skipping the Olympics is “not an option” for many advertisers

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