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Olympics

Rio Seeing Lack Of Activation From Major Sponsors, More Focus On Social & Digital

The Rio Games have been highlighted by a "subdued presence of major Olympic sponsors," as there has been a "sharp swing toward digital and social-media marketing, which tends to be less visible," according to Rebecca Davis O'Brien of the WALL STREET JOURNAL. Rio streets "aren’t packed with buses wrapped in brand names," and sponsors’ billboards and promotions "seem lost." 21 Sports & Entertainment Marketing Group Founder & CEO Rob Prazmark, who serves as an adviser to the IOC, said, "I have not seen a lot of overt commercialization of Olympic sponsorship. It's a very conservative games." Davis O'Brien notes sponsors have faced "several challenges ... including a failing economy, broader shifts in marketing strategies, and the fact that the events spread across a sprawling metropolis, rather than concentrated in a single Olympic Park." Ketchum Sports & Entertainment Exec VP/Sports Shawn McBride, whose agency reps IOC TOP sponsor P&G, said, "It does feel diminished because things are so spread out. ... You get outside these Olympic clusters and you feel like you’re in a big city, not swept up in the Olympics." Former IOC Dir of Marketing Michael Payne added, "There’s no question that more marketing dollars are going into the social media experience, as opposed to spending several million on a showcase in Olympic Park." Davis O'Brien notes several major sponsors claim their presence in Rio is "on par with previous Summer Olympics, and dismissed suggestions that concerns about security and public health might have led them to scale back their plans." A Coca-Cola spokesperson said that "marketing efforts in Rio have been 'typical' compared with previous Summer Games" (WALL STREET JOURNAL, 8/16).

HOUSE HUNTERS: CNBC's Aaron Ross Sorkin notes there are "many big brands, along with countries,” establishing “hospitality houses” around Rio. Heineken beer is “flowing at the Holland House” in Rio, where "thousands of visitors pour into soak in the sun and the suds each day during the Olympics.” Heineken Sponsorship Dir Hans Erik Tuijt said, “We have Brazilians, we have Americans, we have Australians. It’s almost part of the Olympic culture.” Hershey VP/Confection Mary-Ann Somers said athletes and visitors at USA House “can feel a bit of home,” with s'mores being served. Somers: “For a lot of these athletes, they’ve been working and training so hard, it’s a great way to unwind and have a treat for themselves.” Sorkin notes athletes also can "unwind at Nike House, where the company’s latest products are on display, or at P&G Family House, where athletes can get their nails done or have a hot shave." Sorkin: "It's all a way for countries to promote tourism and companies to sell products." Companies already are working on their plans for the '20 Tokyo Games. Tuijt said, “We’ve already been to Tokyo. ... For a great house, you need to do a lot of preparations” ("Squawk Box,” CNBC, 8/16).

PASS ON THIS ONE
: In Philadelphia, Jane Von Bergen notes after catering 16 Olympic Games since '68, Aramark "is sitting on the sidelines, not because it had to, but because it didn't bid for the huge and important job of feeding the athletes in the Olympic Village." Aramark VP/Corporate Communications Karen Cutler called the move a "business decision." Cutler wrote in an email, "We are restricted by the IOC from discussing our involvement publicly, past or present." Cutler was also "quiet about whether Aramark will bid" on the '18 PyeongChang Games (PHILLY.com, 8/16). 

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