Technological Changes Complicate IOC Sponsorship Program

Technological Advances Complicating IOC's Sponsorship Program

The "dizzying pace of technological change is creating sticky issues" for the IOC, which "relies heavily on big money sponsors, who are willing to shell out tens of millions of dollars because each is the only company making a certain type of product allowed to wrap itself in the Olympic rings," according to Rachel Cohen of the AP. But when companies "sell devices that fit into" multiple categories, "which one gets to advertise?" The uncertainty "could make it harder for the IOC to continue to forge massive contracts in the future." IOC TOP sponsors Panasonic and Samsung "have deals through 2016, so the IOC has some stability in technological categories for now," and it is "hard to imagine sponsors such as Coca-Cola and McDonald's being affected by the evolution of electronic devices." But companies "must consider whether they'll be able to market all their key products under their Olympic contract." Acer VP/Marketing & Branding Gianpiero Morbello: "It's not an easy task. The world is changing." IOC Marketing Commission Chair Gerhard Heiberg said that the IOC "has been able to work out sponsors' questions, at least so far, through frequent negotiations." Panasonic GM for Worldwide Olympic Marketing Alex Nunoya said in an e-mail, "If new types of products are developed by Panasonic and or other electronics sponsors, we discuss with IOC about where the product fits within the pre-established categories. The discussions always take place in a collegial atmosphere." Cohen noted companies "have always been limited in advertising certain products under their Olympic deals." Samsung "accepts it can't promote its television business because that would clearly infringe on Panasonic's category," but as "new devices with multiple functions become lucrative sellers, each company wants to maximize the power of its IOC contract." Heiberg "won't rule out major changes to the IOC's sponsorship program, but doesn't anticipate any soon" (AP, 8/11).

GOLDEN ARCH GAMES: The FINANCIAL TIMES' Bob Sherwood reports McDonald's is "in talks to become the official branded food outlet" for the '12 London Olympics. LOCOG officials "would not say whether other food brands would be allowed in the Olympic Park." Meanwhile, Sherwood notes the news "comes after the government launched its food strategy, promising action to encourage restaurants to highlight calorie counts, and pledged to launch a Healthier Food Mark this year." British Heart Foundation Dir of Policy Betty McBride: "If McDonald's gets this gold medal status, just when the rest of the country is waking up to the obesity timebomb, it doesn't feel right" (FINANCIAL TIMES, 8/12).