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August 8, 2008
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Olympics

Olympic Sponsors, Ad Buyers Focusing More On Digital Marketing

Speedo Spending All Of Its Olympic Budget
On Digital Marketing, PR For Beijing Games
Companies marketing around the Olympics have started to "add on a multi-pronged digital ad strategy that feeds on megabuzz" from the event, according to Horovitz, Petrecca & Howard in a Money Section cover story for USA TODAY. Resource Interactive Dir of Emerging Media Dan Shust said of the Beijing Games, "By all accounts, this will be the biggest digital event ever." IOC TOP sponsor McDonald's Exec VP & Global CMO Mary Dillon said that the QSR for the '04 Athens Games "spent zero on digital marketing," but new media will make up "about 10% of its ... marketing budget" for the '08 Games. IOC TOP sponsor Coca-Cola's digital spending is up 50% from the '06 Turin Games, while USOC supplier Kleenex "will devote 30% of its Olympic budget to digital marketing." In addition, Speedo VP/Marketing Craig Brommers said that the brand, which "spent virtually nothing on digital Olympic marketing in 2004, will spend 100% of its Olympic budget on digital" and PR for the Beijing Games (USA TODAY, 8/8).

GOLDEN ARCHES: McDonald's, as the official restaurant of the Olympics, is the only Olympic sponsor to have its logo on Olympic signs on the Olympic Green. The Olympic Village and Main Press Center McDonald’s feature McCafes, offering premium coffee and couch seating. All of the McDonald’s menus include traditional items like Egg McMuffins and Big Macs, as well as a local Chinese favorite, Corn Cups (Tripp Mickle, SportsBusiness Journal). McDonald's China CEO Jeffrey Schwartz said of the role of Olympic sponsors, "This is all about sponsoring an Olympic event, not a political arena. We're here to promote the sporting event, to bring countries closer, to elevate our brand. That's where our responsibility begins and ends" ("World News," ABC, 8/6). McDonald's President Don Thompson in a Q&A with SBJ's Mickle, said of the QSR wants to "make sure that we’re satisfying customers and we want to have additional sales and income. But we do the Games because we feel like we should be a corporate sponsor and give back relative to all the great things we have at McDonald’s and the customers we work for." When asked why McDonald's decided to tie its new Southern-style chicken sandwich in to the Olympics promotion, Thompson said, "We originally launched that sandwich back in May. ... We had the Olympic Games, so we thought it was a good time to reintroduce the sandwich" (Mickle).

McDonald's Only Olympic Sponsor To
Have Logo On Signs On Olympic Green
'16 PIECE MCNUGGET? McDonald's has been an official Olympic sponsor since '76, and USOC Chair Peter Ueberroth said that the Chicago-based QSR "having such a prominent force in the Olympic movement" could "very well help the city's 2016 bid." Ueberroth: "I think it identifies for the rest of the world, which is where the (IOC) voters are, that Chicago is really a business center." However, IOC rules prohibit the 12 TOP sponsors from "actively supporting bid cities" (CHICAGO TRIBUNE, 8/8).

HOMETOWN CHARM: In Charlotte, Melissa Caron notes USOC Partner Bank of America (BofA) Friday opens its Hometown Hopefuls Family Center in downtown Beijing, and the bank "expects more than 25,500 guests to visit the center over the 17 days of the Olympics -- from athletes checking e-mail or making phone calls to family and friends meeting up for lunch or celebrating an athlete's medals." BofA Saturday will officially dedicate the center "so as not to compete with" Friday's Opening Ceremony, and former President George H.W. Bush will be in attendance (CHARLOTTE OBSERVER, 8/8).

SEARCH FOR NEW CLIENTS: Q Sports Founder Patrick Quinn, in a Q&A with MEDIA LIFE MAGAZINE's Diego Vasquez, said of his agency's plan to lock up new clients for the Olympics, "I always have an eye on clients, we actually just closed a huge sponsorship deal for a winter Olympian (in 2010). As the Summer Olympics end, the momentum will swing back to the winter. But the thing to keep in mind is that while the perception is the Olympics are two years apart, that's not the reality -- the Winter Games are only 18 months away." Meanwhile, Quinn added, "I don't think the U.S. is ready right now to embrace an international star" (MEDIALIFEMAGAZINE.com, 8/7).

Olympics' Official Motto To Be Visible
Throughout Beijing During Games
MARKETING NOTES: IOC TOP sponsor GE CMO Beth Comstock said of the company's sponsorship efforts around the Olympics, "For us, it was always having Beijing as the crown jewel of why the sponsorship appealed for a couple of reasons. ... We thought this was a sales opportunity, a way to partner with the infrastructure build that was happening around Beijing, and that's proved to be very fruitful for us, as well" ("Squawk Box," CNBC, 8/7)....Trek Bicycle Corp.'s 26 riders that will compete in either the mountain bike or road cycling competitions at the Games will wear Trek logos on their jerseys, "if it's allowed, giving the company even more exposure to millions of Olympics television viewers." Trek Brand Manager Eric Bjorling: "It's a very big deal for us" (MILWAUKEE JOURNAL SENTINEL, 8/7)....Many ads for Nike and adidas in Beijing "have been taken down and replaced with welcome banners." The Games' official motto, "One World, One Dream," is "plastered all over Beijing" (DETROIT FREE PRESS, 8/8).


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