In our fragmented sporting environment, events such as the Olympics should be a unifying cultural event that knocks footy off the back pages and down the pecking order in retail. But strict licensing arrangements make it difficult for retailers and brands to play a meaningful role.
Thinking about tapping into Olympic fever? Make sure you know the rules. Use of the ‘Olympic properties’ is strictly forbidden and could land you in court.
Words and phrases like ‘Olympic games’, ‘Olympic torch’ and ‘Paris 2024’, logos and emblems, including the Olympic rings as well as certain footage and images, are all off-limits for brands unless they have a licensing agreement with the International Olympic Committee.
Of course, there are some brands that have paid top dollar to get involved. To help cover the exorbitant cost of the Australian broadcast rights, Nine has partnered with Toyota, Woolworths, Harvey Norman and NRMA Insurance.
Nine CEO Mike Sneesby pitched it as a “10-month marketing platform” for brands starting with the Road to Paris, the Gangwon Winter Youth Olympic Games in January, running all the way through to the Paris Olympic Games and culminating with the Paris Paralympic Games in September.
And the cost for that marketing platform isn’t cheap. According to reports, brands were looking at $12.5 million for a top tier ‘Torch’ package and $10.5 million for a ‘Flame’ package.
If you’ve been into your local Woolies in the last couple of weeks, you would have seen Olympic fever in action with supermarkets decked out in green and gold. The brand is back for another Games, building on its sponsorship of the Rio 2016 and Tokyo 2020 teams. This suggests there’s value to be had in forking out those big sponsorship dollars.
Woolworths has a variety of promotions running in-store in addition to making donations to grassroots sporting organisations. The brand has even teamed up with the Royal Australian Mint to surprise some lucky shoppers with commemorative $2 coins.
Meanwhile, Harvey Norman is celebrating athletes in its advertising campaigns.
And the brand is getting the bang for its buck, asking viewers to vote for the Harvey Norman Play of the Day on the Australian Olympic Committee’s official website.
But perhaps the biggest piece of the Olympic retail pie (yes, even bigger than that $12 million buy-in for the broadcast partners) is merchandise.
During the 2020 Tokyo Olympics, it was estimated brands would earn more than US$100 million through sales of licensed products.
It’s certainly a boost Nike could use with the brand making a major splash with its Willem Dafoe-voiced Olympics campaign.
Nike also unveiled an immersive experience at Paris’ Centre Pompidou, a big bet since earlier this year the brand reported its biggest share price fall in more than 20 years.
Still on the ground in Paris, fans and athletes alike are set to snap up Olympic memorabilia with pin badges available for each sport as well as iconic locations.
Can’t make it there? No worries. You can still pick up a Ralph Lauren Team USA closing ceremony jacket for a cool US$998.00 or Lululemon’s Team Canada women’s jacket for US$248.
With audience viewing numbers expected to be at an all-time high, the Olympics provide a unique opportunity for brands and retailers to engage with a wide audience. However, the stringent licensing requirements and high costs can be significant barriers to participation.
Brands like Woolworths and Nike demonstrate that with substantial investment and strategic partnerships, there is a substantial return on investment to be gained. But you’re probably going to need deep pockets in the first place to make the most of it.
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