Why CFOs are betting big on Olympic glory
As the Olympic flame illuminates Paris, a different kind of competition is unfolding in boardrooms worldwide. CFOs are weighing the substantial investment required for Olympic marketing against its potential returns. While the price tag may initially seem daunting, forward-thinking financial leaders are recognizing that the Olympic Games offer an unparalleled opportunity to elevate their brands on a global stage.
The Olympic marketing landscape has evolved dramatically, moving far beyond traditional advertising and sponsorships. Today, savvy brands are leveraging a multi-faceted approach that includes digital engagement, influencer partnerships, and innovative storytelling techniques to capture the attention of a global audience.
Consider the strategic moves of financial services giants like Allianz and Visa. These companies are investing an estimated £77.5 million annually to secure their positions as official Olympic partners. For Allianz, this investment represents a “unique way of reaching new audiences” as it expands its presence in the consumer market, according to Carolyn Rich, head of brand at Allianz Holdings. Visa, a long-standing Olympic sponsor since 1986, sees the partnership as an opportunity to align with shared values of diversity, equity, and inclusion, while building a more inclusive world through sports.
The returns on these investments are compelling. Research from brand consultancy BAV Group indicates that official Olympic partners can expect a 117% increase in association with key brand attributes such as “daring,” “prestigious,” and “authentic.” Moreover, these brands see a 49% increase in brand loyalty and a 54% greater differentiation from their competitors. The International Olympic Committee reports that Olympic partners experienced a 39% increase in relevance and a 22% increase in purchase intent among consumers.
But the Olympic marketing playbook is not limited to global giants with deep pockets. Lloyds Banking Group, for instance, has taken a more targeted approach by sponsoring the Great Britain cycling team. This strategic move not only aligns the bank with the prestige of Olympic cycling but also allows it to tap into the sport’s wide-ranging appeal and engage with a diverse audience. Jayne Opperman, Lloyds Bank CEO consumer relationships, emphasized that shared values and the wide reach of the sport are the strategic drivers behind the sponsorship.
The evolving media landscape is creating new opportunities for brands to connect with Olympic audiences. Broadcasters like NBC and Eurosport are flying in social media influencers – YouTubers, TikTokers, and Instagrammers – to create buzz and attract younger viewers. Gary Zenkel, president of NBC Olympics, noted that this strategy emerged in response to shifting audience behaviors observed after the Tokyo 2021 and Beijing 2022 Games. These creators offer new opportunities for both content distribution and marketing the core broadcast product.
For example, NBC has brought in influencers like Sandra Kwon, known as “Jeenie Weenie” to her 10 million followers, to provide behind-the-scenes clips from the Paris Olympic Games. Kwon’s first assignment was to explain fencing to her audience, demonstrating how creators can help bridge the gap for viewers unfamiliar with Olympic sports.
Similarly, Eurosport has engaged creators like British food influencer Underrated Hijabi, who has 1.8 million YouTube followers and 3.5 million on TikTok, to cover equestrian events at the Palace of Versailles. This approach aims to bring a fresh perspective to traditional Olympic coverage and engage audiences who might not typically tune into the Games.
YouTube’s chief executive Neal Mohan describes the scale of creator involvement in Paris as the “first of its kind,” highlighting how these online personalities can invent new sports formats and connect with audiences in innovative ways. This strategy aligns with the IOC’s broader efforts to add urban sports like skateboarding and breakdancing to the Olympic program, aiming to reach younger fans.
For CFOs, the appeal of Olympic marketing extends beyond immediate returns. It offers a unique platform for long-term value creation. The global reach of the Olympics provides a cost-effective way to penetrate new markets and build brand awareness on an international scale. In many industries, a well-executed Olympic campaign can serve as a key differentiator, giving brands a significant edge over competitors who choose to remain on the sidelines.
The financial impact of Olympic marketing is substantial. The Paris 2024 Olympics is expected to amass over €1.24 billion in sponsorship revenue, with 99% of its target already secured, according to chief executive Etienne Thobois. This figure underscores the significant investment brands are willing to make to associate themselves with the Olympic movement.
However, the decision to invest in Olympic marketing should not be taken lightly. It requires careful planning, strategic execution, and a commitment to measuring and analyzing results. CFOs must work closely with their marketing teams to set clear objectives, establish robust measurement frameworks, and ensure that every dollar spent is contributing to broader business goals.
The Olympic Games have always been about pushing boundaries and achieving the extraordinary. For brands willing to embrace this spirit of excellence and innovation, the rewards can be truly Olympic in scale. As Scott Young, who oversees sports production and content at Warner Bros Discovery in Europe, points out, there’s a growing demand for behind-the-scenes content that connects viewers with athletes and teams on a more personal level. This presents an opportunity for brands to fill narrative gaps and create deeper, more meaningful connections with their audience.
As the world’s attention remains fixed on Paris, savvy CFOs are looking beyond the medal counts. They recognize that the true gold in the Olympics lies not just on the podium, but in the unparalleled opportunity to elevate their brand on a global stage. In the high-stakes game of international business, Olympic marketing may well be the winning move that propels a brand from contender to champion.
The Olympic spirit of unity, excellence, and determination resonates far beyond the athletic arena. For financial brands willing to invest in thoughtful, strategic Olympic marketing campaigns, the potential for global recognition, increased brand loyalty, and long-term value creation is immense. As the Games continue to evolve and embrace new technologies and storytelling methods, the opportunities for innovative marketing approaches will only grow. In this Olympic-sized marketplace, the gold medal of brand success awaits those bold enough to compete.