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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:
- Premium pricing: Olympic sponsorships and prime-time ad spots command astronomical rates, with a 30-second commercial selling for up to $850,000.
- Reach vs. Cost: While the Olympics offer massive viewership, the high price tag may not justify the incremental reach compared to more targeted campaigns.
- ROI challenges: Measuring the true impact of Olympic sponsorships remains difficult, making it hard to justify the investment for many brands.
- Alternative strategies: Micro-influencer partnerships and year-round campaigns may offer better value and engagement than brief Olympic appearances.
- 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.
"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.
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
