Olympic Marketing

Ana ADI

• Offer a review of Olympic Marketing focusing especially on Olympic Broadcasting and Olympic Sponsorship

• Present and discuss the attributes of the Olympic brand

• Analyze and discuss the Olympic brand equity

This lecture aims to:

““The emotional link the consumer feels with [the] athletes, their The emotional link the consumer feels with [the] athletes, their

commitment to the Olympic values, combined with the commitment to the Olympic values, combined with the pageantry and glory that are the Olympics” pageantry and glory that are the Olympics” (Kane 1999) (Kane 1999)

Olympic Brand

Source: freshpeel.com

• Excellence• Respect • Friendship

Olympic Brand Dimensions

• Olympic Rings • Olympic Flag• Olympic Anthem• Olympic Flame (and Torch)

Olympic Symbols

• Hope• Dreams and Inspiration• Friendship and Fair-play• Joy in Effort

Olympic Brand Attributes

• Positive valuesPositive values• Community-centered experienceCommunity-centered experience• Striving for success Striving for success

Olympic Brand Mix

Watch Chicago 2016 Bid logo video: http://www.youtube.com/watch?

v=nBX9AqfBFDc&feature=channel_page

• Revenue generating programs including broadcasting, sponsorship, ticket sales and licensing.

• Marketing of organizations involved in the Olympic Games (IOC, NOCs, OCOGs)

Olympic Marketing

Sources of revenues

Source: olympic.org, 2009

Source: olympic.org, 2009

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1993-1996 1997-2000 2001-2004

Licensing

TOP Sponsorship

Ticketing

DomesticSponsors

Broadcasting

US$

Overall Olympic Revenues

Source: Seguin, IOA, 2008

Broadcasting Revenues

Source: Adi, IOA, 2008

• 1960: mainly OCOG• 1970s: OCOG negotiates (IOC gets share of revenue)• 1980s: OCOG + IOC negotiate• 1990s: IOC negotiates in contact with OCOG• 2000s: IOC negotiates alone (other rights come into play)

Olympic Broadcasting Evolution

• Currently the IOC negotiates media rights – Include broadcasting and new media– For Beijing 2008, a separate deal was signed with YouTube – Efforts are made to negotiate with media-conglomerates

Olympic Broadcasting Evolution

What are in your opinion the challenges with which Olympic Broadcasting is

confronted?

• Cost of Olympic advertising • Cost of activate sponsorship schemes• Emergenece of new-media • New approach to broadcasting rights

• 70s-80s- the Games were confronted with bankruptcy, disunity and political challenges

• Additional source of revenue • Brand endorsement/ Image transfer

Olympic Sponsorship

• use the Olympic logo, trademark, name• exclusively associate with the Olympic brand• conduct special promotions

Olympic Sponsors have the right to:

• TOP ProgramTOP Program– IOC /OCOG/ NOC PartnersIOC /OCOG/ NOC Partners– World-wide and exclusivity based– Launched in 1985Launched in 1985

• OCOG MarketingOCOG Marketing– Host country offers exclusivityHost country offers exclusivity– OCOG and partners, sponsors, licensees, etc. and host NOCOCOG and partners, sponsors, licensees, etc. and host NOC

• NOC Marketing NOC Marketing – National exclusivity is offered to all sponsors of a NOCNational exclusivity is offered to all sponsors of a NOC

0

100

200

300

400

500

600

700

800

900

1985-88 1989-92 1993-96 1997-00 2001-04 2005-08US $

12 TOP Partners(7 from USA)

Calg

ary

&

Seoul

Alb

ert

vill

e

&

Barc

elo

na

Lille

ham

mer

&

Atl

an

ta

Nagano

&

Sydney

Salt

Lake

&

A

thens

Tu

rin

&

Beiji

ng

TOP Program Rights

Source: Seguin, IOA, 2008

Central guidelines of Olympic sponsorshipCentral guidelines of Olympic sponsorship1.1. ExclusivityExclusivity2.2. Low number of sponsors (avoid clutter)Low number of sponsors (avoid clutter)3.3. Long-term relationshipsLong-term relationships4.4. Clean venues Clean venues

Olympic Sponsorship

Photo credit: Flickr -BSR-12

Photo credit: Flickr Sheep“R”US

What are the challenges and issues that you believe Olympic Sponsorship is

facing?

• Consumer interest • Consumer awareness• Campaign activation • Ambush marketing• Ethical, business and legal (depending on each country)

ORGANIZATION ROLES AND RESPONSIBILITIES

INTERNATIONAL OLYMPIC COMMITEE

• Olympic brand management & protection

• Worldwide public relations programs- full integration of all marketing programs• Develop sponsor recognition program

• Olympic brand protection

• Development of a program, in collaboration with sponsors, to protect exclusivity

• Educate NSOs and OGOCs

• Integrate television into sponsorship programs

• Establish the structure of sponsorships and sponsorship contracts

Source: Seguin, IOA, 2008

ORGANIZATION ROLES AND RESPONSIBILITIES

NATIONAL OLYMPIC COMMITEE

• Develop and implement public relations programs that adhere to those of the IOC

• Develop a promotional mix, including sponsorship that adheres to that of the IOC

• Protect the Olympic Brand

• Develop and administer education programs for specific target markets

• Work with sponsors on business strategy• Sponsor recognition program

•Establish the structure of national sponsorship programs

Source: Seguin, IOA, 2008

ORGANIZATION ROLES AND RESPONSIBILITIES

SPONSORS

• Activate their sponsorship to ‘claim their space’

•Establish specific objectives of sponsorship

•Work with managers in the Olympic family and co-sponsors in order to establish common communications strategies and plans to prevent ambush marketing

•Develop a leveraging program that utilizes the Olympic brand and its associated values

•Include athletes in communications and messaging

Source: Seguin, IOA, 2008

• Why would the Olympic Brand need protection?Why would the Olympic Brand need protection?• Whom should the IOC protect? Whom should the IOC protect?

Olympic Brand Protection

• What does it involve? What does it involve?

– Broadcast and Internet MonitoringBroadcast and Internet Monitoring– Athlete Image UseAthlete Image Use– Clean VenuesClean Venues– On-site Sponsor RightsOn-site Sponsor Rights– Host CityHost City– Ambush AdvertisingAmbush Advertising– Counterfeit Merchandise Counterfeit Merchandise

Olympic Brand Protection

On-screen infringementOn-screen infringement

On-screen infringement and ambush

Photo credit: BusinessWeek

Video: Nike Courage Ad

“No kind of demonstration or political, religious or racial propaganda is permitted in the Olympic areas. No form of

publicity shall be allowed in and above the stadia….commercial installations shall not be allowed in the stadia…”

Olympic Charter, 2007, Rule 61

“…no competitor who participates in the Olympic Games may allow his person, name, picture or sports performance to be

used for advertising purposes during the Olympic Games.”

Olympic Charter, 2007, Rule 45

Let’s discuss:

- the case of athletes entering the Olympic arena wearing commercial symbols

- the case of athletes entering the Olympic arena wearing non-commercial, political symbols

1.1. How should the IOC address Olympic marketing online?How should the IOC address Olympic marketing online?2.2. Should sponsorship and broadcasting rights merge?Should sponsorship and broadcasting rights merge?3.3. How to maintain the attention and interest of people How to maintain the attention and interest of people

(especially youth) in the Olympics? (especially youth) in the Olympics? 4.4. How to monetize the Olympics online?How to monetize the Olympics online?

Questions