Are Olympic Sponsorships Worth the Gold?

This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts!

 

This week, we're diving into sports marketing. With the Summer Olympics kicking off, we're exploring whether big-budget sponsorships and ad spots deliver gold-medal results for brands. 

—Elena  

 

Approximately 30% of total TV ad spend goes to sports marketing.         

Despite its cultural prominence, sports marketing makes up a smaller slice of overall TV ad spend than many assume. This figure includes advertising during NFL games, which accounted for 93 of the top 100 most-watched U.S. programs in 2023.             

 

Going for Gold or Going for Broke?      

As the Olympics captivate global audiences, brands face tough choices about how to allocate their marketing budgets: 

1. Premium pricing: Olympic sponsorships and prime-time ad spots command astronomical rates, with a 30-second commercial selling for up to $850,000.
   
2. Reach vs. Cost: While the Olympics offer massive viewership, the high price tag may not justify the incremental reach compared to more targeted campaigns.
   
3. ROI challenges: Measuring the true impact of Olympic sponsorships remains difficult, making it hard to justify the investment for many brands. 
4. Alternative strategies: Micro-influencer partnerships and year-round campaigns may offer better value and engagement than brief Olympic appearances.
   
5. Brand legitimacy: TV advertising during major events like the Olympics can boost a brand’s perceived credibility and help build trust with your audience.

For most brands, a balanced approach including both high-profile events and consistent, everyday marketing efforts will likely yield the best results. 

Listen in on our discussion.

 

"2024 Summer Olympics: Everything Brands Need to Know"    

This Ad Age article by John Springer provides a comprehensive overview of marketing opportunities and challenges surrounding the Paris Olympics. It's a valuable read for marketers weighing their options for major event sponsorships. 

Read the article.

 

 

Is your marketing worth the cost?                    

“Dreams are free. Goals have a cost. While you can daydream for free, goals don’t come without a price.” 

—Usain Bolt, Olympic Gold Medalist