media channels; sports marketing: Going for Gold - Olympics coverage marketing

American Demographics,  July, 2000  

• E-mail
• Print
• Link

Today's Olympic fans and the advertisers who lust after them.

Summer 2000 is here: The sun is shining, the air conditioner's blaring, the ice cream truck's making the rounds. And yet, something's missing.

Ah, yes, the Olympics. In case you missed the memo, the first Summer Games of the new millennium were postponed until September 15, thanks to host city Sydney, Australia's equatorial position down under, where summer and winter are flip-flopped. The late start isn't the only twist that's turning media and marketing plans topsy-turvy this year. Expanded cable TV coverage, the Internet, a 15-to-18-hour time difference, and a general declining interest in televised sports will all play roles in how well NBC's coverage of this year's event will be received by viewers. With the Sydney Games just over two months away, we decided to examine the current state of Olympic fandom and the new routes and barriers that will facilitate or block marketers' ability to make an impact with consumers this year.

At press time, about 80 percent of NBC's commercial Olympic inventory had been gobbled up by long-time super sponsors such as Coca-Cola, McDonald's, and Eastman Kodak. Local cable operators also reported that spots on MSNBC and CNBC, which will broadcast long-format coverage, were at or near sellout in several markets. Still, if you look really hard - and have money to burn - there are always local sponsorships to be had and last-minute deals to be made, say media buyers.

Of course, those who can get in the Games, should. The Olympics is hands down the most popular sporting event among every demographic. That's part of its charm. The 1996 Atlanta Centennial Olympic Games were the most-watched TV sports event in history, broadcast in 214 countries and territories with a cumulative audience of 19.6 billion. In the U.S., those Games reached 87 percent of television households and about 193.5 million unduplicated viewers. Eighty-one percent of women, 78 percent of men, 72 percent of teens (12 to 17) and 78 percent of children watched some portion of the Olympics. The average viewer saw about 31 percent of NBC's 171.5 hours of coverage.

"The Olympics is the only event where you can really hit all target audiences in one shot," says Manny Rivera, director of corporate partnerships at Eastman Kodak Co. "Each of our ads are designed to send a different message about our brand and products that meet the needs of different consumers. The Olympics, like no other event, spans all our demos."

And big advertisers see big results from their involvement. Eighty-five percent of viewers say they consider Olympic sponsors to be industry leaders and 80 percent feel they have a commitment to excellence and quality, according to a study commissioned by NBC. Since Visa became a sponsor in 1986, for example, its market share has risen from 40 percent to 53 percent, and the company's preference rating as the "best overall card" has increased from 40 percent to 61 percent, according to a Visa spokesperson.

This time around, the Games will be even bigger. For the first time, NBC will cover the 17-day event on its cable channels MSNBC and CNBC in addition to the broadcast network, for a grand total of 437.5 hours of coverage. The expanded time also means more advertising inventory: Revenues are expected to far exceed the $720 million spent during the Atlanta Games, says David Peeler, CEO of Competitive Media Reporting (CMR).

But who'll be watching all this TV? While the quick and true answer is "everybody," the core Olympic audience skews upscale, female and older. In fact, 95 percent of households with incomes of $60,000 or more watched at least some part of the Summer Games in 1996, each household averaging 38 percent of all events. And unlike most televised sports, more women watch the Olympics than do men: Women comprised 47 percent of Atlanta's TV audience, compared with 34 percent of all 1995-96 network sports viewers, according to Nielsen Media Research. Olympic fans also tend to be more mature. In 1996, 82 percent of women aged 50 and older and 81 percent of men in that age group watched at least some of the Games.

When it comes to specific competitions, there are the obvious trends - women aged 18 to 24 were 32 percent more likely to watch gymnastics during the 1996 Olympics than the average viewer, while men aged 45 to 54 were 37 percent more likely to watch basketball, according to Mediamark Research, Inc. (MRI).

But what about a sport like boxing? All men, right? While about 51 percent of those who watched Olympic boxing in Atlanta were male, the sport's diehard fans were middle-aged women. In fact, women aged 45 to 54 were 79 percent more likely than the average viewer to tune in to boxing while men of that age were only 46 percent more likely, according to MRI. Interesting, especially since this year NBC decided to move boxing from the network schedule to CNBC, which has a predominantly male audience.

Newer events like mountain biking and beach volleyball, both making their second appearance in Olympic competition, give advertisers an opportunity to reach the younger demographic, who are traditionally among the lightest viewers. In fact, men aged 25 to 34 are 74 times more likely than the average TV viewer to watch professional beach volleyball on a monthly basis, according to MRI. The sport was a huge hit last time around, and there's a good chance its popularity will remain strong this year: Women athletes are now required to wear bikinis during play.