Are Olympic Sponsorships Worth It Amid Declining Identity?
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Writer Questions Effectiveness Of adidas'
Reported $100M Deal With BOCOG |
Some marketing experts have said that Olympic sponsorships "may not be worth it," according to Joe Nocera of the N.Y. TIMES' PLAY magazine. Chinese athletic shoe and apparel company Li Ning for the Beijing Games has "cut a deal with [China state television net] CCTV-5 to dress its sportscasters for the Games." Nike is an official USOC sponsor and has deals with 22 of China's 28 teams and adidas inked a four-year deal, reportedly worth $100M, for the right to use the BOCOG logo within China and Hong Kong and to outfit Games officials and staff. But Nocera writes it is "hard to see what Adidas gets for its $100[M]," as Nike and Li Ning will "be every bit as ubiquitous" at the Games. One problem with Olympic sponsorships is organizers have "sliced and diced them to a fare-thee-well to maximize revenue." China Market Research Group Managing Dir Shaun Rein "conducted a poll in which 60[%] of the Chinese respondents thought Coke's arch-rival, Pepsi, was the official [beverage] sponsor" for the Games." Rein said the "vast majority of consumers we interviewed failed to identify the official sponsor when given several choices in nearly all product sponsorship categories." Former John Hancock Chair & CEO David D'Alessandro said that the Olympics "create a sense of national pride, and sponsors get to bask, profitably, in that nationalistic glow." But Nocera writes "when you're in China, you quickly see that nonsponsors can appeal to national pride every bit as easily as actual ones." In China, sponsorship's "real benefit ... is that it provides a way to curry favor with the government," as the Chinese government still has "enormous power over foreign companies that want to expand to a new province ... or get into a business dominated by local companies" (PLAY, 6/ '08 issue).
OLYMPIC BOOST? The AP's Joe McDonald wrote under the header "Despite Strains, Sponsors Look For Olympic Boost." Companies are "eager to target Chinese consumers in a market where retail spending is growing at more than 20[%] per year." GE is "supplying water and power systems for Olympic venues and plans to showcase its technology by inviting hundreds of Chinese officials and potential consumers." Hong Kong-based media strategy consultant Damien Ryan said of the Olympics' popularity in China, "I think a lot of sponsors are now realizing they are partnering with success" (AP, 6/1).
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