VANOC Struggling To Sell Outdoor Ad Inventory For '10 Games

VANOC is "having trouble reselling all the billboard advertising it was forced to buy for sponsors to protect against ambush marketing," noting yesterday that it still has $12M (all figures Canadian) worth of inventory, according to Jeff Lee of the VANCOUVER SUN. The $12M figure, about a third of the $40M VANOC "put out years ago to uphold a demand by the International Olympic Committee to protect its sponsors from being targeted by non-rights-holders," represents a "significant risk to the organizing committee, which continues to scramble to find ways to cut costs" in its $1.7B operating budget. VANOC Exec VP/Revenue, Marketing & Communications Dave Cobb yesterday indicated that the organization is "left with signage in areas in which sponsors have no interest, especially in the current economic climate." Cobb: "We have significant inventory left and this is proving to be one of our most significant challenges. I can say that compared to where we were two years ago, generally (sponsors and government partners) are buying less than we expected." Lee notes VANOC "planned to sell the so-called 'out of home' advertising space back to sponsors at cost, but now is looking [at] selling to non-sponsors as well." Cobb said that VANOC needs to sell $4-6M "more in advertising to break even" (VANCOUVER SUN, 7/16). Cobb said that VANOC was "required to buy the entire inventory for the Lower Mainland for the period between mid-January and late March," and if the inventory "remains unsold," it will use the billboards to advertise the '10 Vancouver Games. Cobb: "We'd rather sell it but we're being realistic in today's marketplace that we will not sell it" (Vancouver PROVINCE, 7/16).

STATESIDE SUPPORT: VANOC yesterday said that talks are "underway with several U.S. states on agreements that would see them pay into the 2010 Olympics in exchange for limited marketing rights." VANOC CEO John Furlong: "It's a big deal for them and I think the idea of creating some kind of association is attractive for that reason because there is going to be a very big glow on this region of the world next February." The CP's Stephanie Levitz noted the program is "modeled on similar agreements in place with almost all of Canada's provinces and territories," though VANOC officials "wouldn't disclose which U.S. governments they are approaching about becoming sponsors." The "hunt south for money comes as organizers admit they'll likely use up their entire" $27M "rainy-day revenue fund." VANOC officials have "downgraded forecasts for sales of lucrative VIP ticket packages" and are "moving forward with plans to slash expenses, including getting local businesses involved in a 'Friends of the Games' program that sees them contribute small amounts of goods to the Games in exchange for tickets and other perks." However, Levitz reported VANOC officials have "reached their target" of $756.8M in domestic sponsorships with the signing of B.C.-based Alda Pharmaceuticals, which has "signed on as official supplier of hand-sanitizer and disinfectant cleaning products." Alda will make an "in-kind and cash donation to the organizing committee valued at between" $3-15M (CP, 7/15).