After increasing its TOP program from a $96M entity in ‘88 to “just shy of $1bn in the lead-up to London 2012, the International Olympic Committee has decided to ‘take a step back’ as it figures out how to modernise the programme,” according to Vanessa Kortekaas of the FINANCIAL TIMES. IOC Dir of TV & Marketing Services Timo Lumme said, “We will do a very deep dive in terms of a grassroots review of the programme.” New technologies, the rise of social media and “a dramatic increase in the value of domestic sponsorship deals are some of the factors driving the IOC’s rethink.” The organization has 11 global sponsors that each pays "about $100M for a four-year Olympic cycle -- seven of which are signed up as far as the 2020 games.” The IOC is “not penning any deals beyond 2020 and is aiming to reshape the programme before the Rio 2016 Olympics.” Coca-Cola VP/Global Partnerships Scott McCune said technology conversions have “broken” the Olympics’ content supply chain. He said new technologies mean “intellectual property and content is going to be hard for (the IOC) to divide up” (FINANCIAL TIMES, 5/21). The FINANCIAL TIMES’ Rod Newing writes Olympism is “an attractive idea that big brands are keen to be identified with.” London-based branding agency The Brand Union Chair Terry Tyrrell said, “Global sporting and other events are ideal platforms for businesses to move from national to global brand identities and become familiar around the world. These platforms are good value when you compare them with standalone global corporate advertising campaigns.” Deloitte Managing Partner for Innovation & Brand Heather Hancock, whose firm is a tier-two sponsor of LOCOG, believes that Olympic sponsorship “has reached a turning point.” Hancock said, “Big, heavy overt marketing-style brand activity and ‘splash’ advertising is giving way to more subtle values-led activity.” Newing: "One problem for the TOP sponsors is that they have to commit several games ahead, without knowing which cities and national markets they will be supporting” (FINANCIAL TIMES, 5/22).
