Each time a new Olypmic Games comes around, the sponsorship and advertising cost rise significantly. As of the last two Olympics, the top level of advertising cost up to $200 million dollars, with different tiers of sponsorship levels as you work downward. With this amount of money being spent, these companies should expect a huge return on their investment, but for most for most of them they are not. According to the article, Adidad spent $200 million dollars to be a top sponsor, but polls form after the event revealed that only 24% of people identified Adidas as a sponsor. The article states that the few companies who did generate a return on their investment were those who sought to make an emotional connection with the everyday consumer. For example, Nike was only a third tier sponsor, but fared significantly better than Adidas because they focused on connecting with normal people rather than promote elite athletes and the games like Adidas did. What do you think: Is it worth it to shell out top dollar for these spots when it has been proven to be hard to earn a return, and what are some successful ways to reach consumers in large events such as the Olympics.
https://www.forbes.com/sites/deniselyohn/2016/08/03/olympics-advertisers-are-wasting-their-sponsorship-dollars/#3223c51c2070
Super interesting that Adidas paid so much to find out they were only recognized/supported by 24% of the people! I think that it's absolutely more important to connect with fans on a more emotional and personal level, instead of just showing the best/elite players endorsing their brands. For example, a commercial with a big-name athlete that shows insight to his or her life and gives the fans a sense of common ground that they can relate to seems like it would be much more successful than any old advertisement with Ronaldo just wearing Nike cleats and being "the best".
ReplyDeleteConnecting with the consumer through emotion is one of the strongest drives of advertising! I would definitely agree with the push towards emotional connection over brand and player recognition. Going along with that, people tend to remember how an ad makes them feel. The memory is a strong and useful tool. If companies are able to impact this part of their consumer target market, they will most definitely see more return on their investment, especially when dealing with the Olympics.
ReplyDeleteI agree with Rachel in that the strongest advertisements are the ones that are heartfelt. Looking at the other blogs, the P&G "Thanks Mom" commercial sticks out for its emotional appeal. It was one of the most successful commercials of the games because everyone can relate to loving their parents. For the top sports brands like Addidas, Under Armour, and Nike I think that it is worth it to be a top sponsor. It is difficult to determine ROI from a single commercial, but the brand recognition gained, or more so, the less brand recognition for your competitors, helps these sponsors in the long run.
ReplyDelete-Matt Arnold
I agree with all of you. After doing a little more research on the advertising of large sporting events, it shows that firms have more success reaching the target audience when they connect with them emotionally and on a personal level. This is important for business because it proves that you do not need to pay top dollar for advertising, you just have to be successful in your planning, and execution of the marketing plan.
ReplyDelete-Alex Tomko