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Rings to Revenue: The Power of Olympic Advertising

The 2024 Paris Olympics are already setting records, but not for what many may think. NBCU reports it has sold $1.2 billion in advertising for the Paris games and is on track to achieve a new record in Olympic advertising history. This is, no doubt, driven by the significant increase in viewing options and the expanded reachable audience across platforms. As marketers, this Olympics is a good example of how we must now consider multiple vehicles if we want to reach our audience effectively and not leave potential buyers on the sidelines.


The Rise of Social Media Coverage

According to McNutt & Partners, the 2018 Winter games marked the first time social media platforms really began to have an impact on advertising revenue for the Olympics. Social media spending helped the 2018 Winter Olympics drive over $900 million, surpassing the mid $800 million from the 2014 Sochi Games. Dan Lovinger, current president of Olympic and Paralympic sales at NBCU, mentions ad spending from International Olympic Committee (IOC) sponsors is currently up 18% from the previous summer games in Tokyo. Reuters explained the 2024 games are looking to adapt to their younger audiences by signing agreements with X and Snapchat, allowing them to stream Olympics clips on their social media platforms. The addition of Snapchat and X will expand the numbers of viewers by targeting digital natives who have not yet fully connected with the Olympics.

For advertisers, the cost of digital marketing is significantly lower than its traditional counterparts and is easier to measure. And, its huge – in the past year, Facebook, Instagram, and TikTok generated over 60 billion dollars in revenue. Search Engine Journal estimates that there are currently 4.8 billion social media users, accounting for 59.9% of the global population. Many people across the globe use these platforms as their main source of entertainment, news and community. So, it is no mystery why the Olympic games have continued to expand their social footprint.  


Linear TV and Streaming

Does this mean Linear TV is dead? Of course not. Despite the increasing shift online, TV is still home to many loyal network and cable viewers. According to the IOC, the 2021 Tokyo Games had an audience of 3.05 billion viewers with a 33% increase in the total amount of TV coverage available to fans around the world. Further, digital streaming has been adopted on a massive scale by viewers across the globe. In fact, Forbes Home recently stated that 99% of all U.S. households pay for at least one streaming service. The Olympics are now partnering with Peacock TV to stream the games live this year and all advertising slots for the opening and closing ceremonies across NBC’s Linear TV and Peacock have already been filled.

The Olympics are typically associated with a positive atmosphere and brands are constantly looking to attach their name to events with a positive aura. Major brands like Toyota, Visa, and Procter & Gamble are paying upwards of $100 million for the privilege of this positive connection. These blue-chippers are not alone. According to The Current, out of the $1.2 billion dollars that have been made in ad commitments so far for this year’s games, $350 million dollars were generated from first-time advertisers. This is no doubt driven, in part, to the new media access points and increasing breadth of the audience.  

The Olympics have long been something more than just an athletic competition. As the sporting contests begin this month, the Olympics will have also created a competition for brands and companies to gain exposure through advertising. Let the games begin!

Written by Crystal Arellano - Crystal is an intern at BTP Unite and a rising senior at Texas Christian University.

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