Archive for August, 2008

The Business of The Olympics

Wednesday, August 27th, 2008

              frosted-phelps.jpg

I can’t say I watched much of the Olympics—I’m not sure NBC (broadcast, not Internet) gave me much of a chance, though, unless you count swimming, gymnastics, and synchronized diving as the Olympics. Nevertheless lots of people tuned in, at least for a little bit, and NBC seemed to do okay, with an unknown, but perhaps 10% profit on the $900-some million it spent. We noted earlier in the year Fox had a blockbuster performance w/ the Superbowl. Needless to say, this was on a different level.

(Primetime + multiple channels + Phelps + multimedia – Tibet) x 16 days = good

Let’s take a look at why The Games are the way they are (source):

  • Since 1995, sponsorship spend has more than tripled
  • Sponsorships accounted for an average of 17% of total marketing in 2007, compared with just 13% in 2006
  • 11% of companies spend over 30% of their marketing budget on sponsorships
  • 15 companies spend over $100 million per year on sponsorships

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Most regard Coca-Cola as the big winner for this year’s crop of Olympic sponsors—just look at the numbers! But I think the more interesting question is “why”? Is Coke’s Olympic sponsorship directly tied to even more awareness of the world’s already #1 brand? Does it send a clear message that athletes prefer vitamin sugar water to sugar water? Did it help us all forget about Pepsi just a little bit?

Anyway- I am much more interested in what Chinese brands were launched during, and thanks to, the Olympics. After all, what is a coming out party without some party favors?

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