As one of the most highly publicized sporting events in the world, it should come as no surprise that companies use the Olympics to truly capitalize on advertising and brand awareness. From Visa’s Go World commercials, which grossed over 28 million social media impressions before the 2012 London Games, to P&G’s Thank You, Mom campaign, which earned $500 million in global increment sales during the 2010 Vancouver Olympics, corporations pour millions into multimedia content in efforts to support their country’s athletes while simultaneously promoting their businesses.
After the COVID-19 pandemic postponed the 2020 Tokyo Olympics, however, the international marketing game went through a big change, too. As citizens of the world and Japanese locals continue to boycott the Tokyo Olympics as COVID-19 cases carry on in the host nation, spectators remain torn between whether or not the summer games should be happening at all this year.
Leading up to the Tokyo Games, many voiced their stance on the matter in passing and, naturally, on social media. As a result, these outcries of concern and confliction infiltrated advertising for the 2020 Olympics. Particularly, in the U.S. and Japan, companies are approaching their marketing roll outs in very different manners, sparking a large industry question: Should brands advertise in support of the Tokyo Olympics?
United States: The number’s game
NBCUniversal, the exclusive broadcaster of the Olympics in the U.S., has moved full steam ahead with advertising roll out for the Tokyo Games. In fact, the company is expected to surpass $1.2 billion in national advertisements for this summer’s Olympiad. According to Variety, more than half of the companies taking part in these efforts have never advertised during the Olympics, an example of the push U.S. companies are taking to be involved in the games despite the backlash.
Dan Lovinger, executive vice president of ad sales for NBC Sports, revealed that NBCU sold packages that range in price from $1 million to $100 million, sums that are dependent on the amount of inventory and the scope of the advertiser’s goals. The heavy investments NBCU is making toward the Olympics shouldn’t come as a surprise: Variety further reported that the conglomerate raked in approximately $250 million in profit from the 2016 Rio Games alone.
Japan: A different approach
For the host country, however, things look slightly different. Back in May, the New York Times reported that a staggering 83% of Japan’s population do not want the Olympics to happen as the country continues to grapple with the pandemic.
As the Financial Times reported, Japanese brands and companies are re-evaluating their advertising and marketing strategy for the Tokyo Olympics. In fact, many are turning to advisors for advice on how to best advertise during the summer games amid the controversies.
For the Japanese advertising company Mr + Positive, they are going ahead with advertising for the Olympics. However, they are scaling back their original plans and refocusing the message entirely. In an interview with Reuters, Peter Grasse, founding producer of Mr + Positive, explained that they are shifting their advertising away from triumphant Olympic moments to focus more on Japan and its citizens.
Reuters also reported that top-tier global sponsors who have contracts with the Olympics until 2024, are scaling back their plans. For some, they are deferring their budgets for their Tokyo promotions and advertising for the 2022 Beijing Games and the 2024 Paris Games, anticipating that the outlook on the Olympics will change following the end of the pandemic.
So, what can brands do?
Listen to consumers
As a result of the pandemic and the number of COVID-19 cases in the Olympic Village, Toyota, one of the top sponsors of the Olympics, pulled all of its television advertising efforts in Japan. A spokesperson for Toyota reportedly told the Business Daily that, “Various aspects of this Olympics aren’t accepted by the public.” As a result, the Japanese company felt that advertising its products in the host country would distract from the ongoing pandemic happening there. Toyota also reportedly felt that emphasizing its connection with the Olympics would cause backlash among Japanese citizens.
Switch advertising focus
For some brands, they reframed their advertising efforts to remind the public why the Olympics have gone on for so many years. Rather than focusing on their own products and brand messaging, they put the spotlight on the inspiring stories behind the athletes participating in the games. New Balance has been celebrating Sydney McLaughlin, who broke a world record in the 400m hurdles in June. Meanwhile, Athleta has been covering its social media with Simone Biles, who is set to compete on the U.S. women’s gymnastics team for the second time.
Eliminate the Olympics from the equation
Etsy, which is not an official sponsor of the Olympics, took the Tokyo Games completely out of its advertising efforts. The online retailer unveiled a 30-second advertisement that highlights the parallels between creatives and professional athletes without ever mentioning the Olympics by name. The strategic commercial shows support for craft makers and Olympians alike without directly supporting the controversial games, allowing Etsy to capitalize on the exposure opportunities the Olympics offer while still remaining distant from the event.