SBD/6/Olympics

SOME OLYMPIC ADVERTISERS NOT THRILLED WITH CBS POLICY

          Around 50 advertisers have paid up to $500,000 per 30-
     second prime-time spot during CBS' coverage of the Olympics,
     according to Denise Gellene of the L.A. TIMES.  Ogilvy &
     Mather released a survey that showed 78% of adults "intend
     to watch at least some Olympic events.  Many of those people
     plan to watch Olympics coverage at least four days out of
     each week the Games air."  But "some advertisers balked" at
     the "high cost" of ads and that is "one reason it took CBS
     until last week to sell out the telecast."  McDonald's, a
     TOP Olympic sponsor, opted out of advertising on CBS, which
     allowed Wendy's to buy time.  Gellene adds, "Some Olympic
     sponsors are concerned that the telecast will heighten
     confusion on the part of consumers.  That is because CBS is
     allowing some sponsors of the telecast to use the network's
     Olympic logo in print advertising."  CBS' logo consists of
     the CBS eye and the five Olympic rings.  TOP sponsor John
     Hancock's competitor, Northwestern Mutual Life, is using the
     CBS logo.  Hancock President David D'Alessandro "complained"
     to CBS about the tactic, "to no avail" (L.A. TIMES, 2/6).  
          OTHER PLANS: In Atlanta, Mickey Gramig reports that
     Chrysler and Ford paid $50M each for commercial time.  IBM
     and AT&T paid $30M.  TOP Olympic sponsor Coca-Cola will air
     137 30-second spots and will spend an "estimated" $100M to
     $125M on global marketing linked to the Games.  TOP sponsor
     Home Depot has created two new spots to been seen in the
     U.S. and Canada "just about every night" (ATL. CONSTITUTION,
     2/6)....USA TODAY's Kevin Maney reports how IBM will use the
     Nagano Games to "get it right" after its Atlanta experience. 
     While the "likelihood of another embarrassment is slim ...
     there's plenty to be worried about.  The technological
     demands of these games are more intense than in Atlanta: The
     Web site alone expects 100 million hits a day" (USA TODAY,
     2/6)....In N.Y., Stuart Elliot previews Olympic ads and
     writes that Nike "will concentrate on women."  Among new
     spots: A-B is rolling out an ad which "promotes moderation,"
     Visa debuts a spot on arts sponsorships and new work by
     BellSouth, Toyota and Xerox (N.Y. TIMES, 2/6).
          GAMES MARKETING: USA TODAY's Melanie Wells: "Marketing
     excesses won't be a problem here.  Nagano's remote location
     and its unenviable sandwiching between two hot-spot summer
     sites ... have given these Olympics a stepchild status." 
     Many U.S. marketers are instead "eyeing" the 2002 Salt Lake
     Games (USA TODAY, 2/6).  In N.Y., Roger Thurow writes on
     corporate hospitality.  Despite "wrestling with the harsh
     economic realities of the times," the Olympics "are no place
     to get cheap" for the "key" sponsors of the Games.  While
     having to lay off "thousands of workers," Kodak's Olympic
     Manager Michael Tette said, "The hospitality won't change at
     all. ... It's not something we cut back on."  Nike turned a
     "defunct auto dealership" into a "kind of Nike Nightclub"
     while adidas "has taken over a noodle shop" and "converted
     it into a schmoozing parlor" (WALL STREET JOURNAL, 2/6). 
 
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