Special Report: London 2012 Olympics
June 2008
Pearlfinders exclusively reports on marketing services new business opportunities with the five official partners of London 2012.
Welcome to the June 2008 Pearlfinders special research on the 2012 Olympic sponsors. This is the third in a series of special reports we're publishing throughout 2008, which have previously included interviews with marketing decision-makers at the 50 fastest growing companies in the UK, and the marketing plans of all 20 of the Premiership football clubs.
On 6th July 2005 in Singapore, the IOC announced that London had fended off competition from Paris, Moscow, New York and Madrid, to host the Olympic games for the third time in its history. Amid the celebration, marketers at UK companies were busy deciding whether to invest millions of pounds tying up with the games.
According to the IOC, sponsorship spending amounts to more than 40 per cent of Olympic marketing revenue. Given that the event captures the attention of worldwide audience for a two-week period - over 4 billion people tuned in for some part of the 2004 games in Athens - the Olympic games are considered by some to be one of the world's most effective international marketing platforms. However, with cost estimated at between £40m and £100m per partner, all sponsors are anxious to fully leverage this spend - how will they maintain a buzz over the next four years? How will they generate ROI?
As an official partner you're entitled to a host of benefits: -
• Use of London Organising Committee of the Olympic Games (LOCOG) marks, designations for the purposes of advertising and marketing
• Product/service exclusivity
• Hospitality
• Preferred option to purchase TV advertising and billboards
• Preferred option to purchase sponsoring of events
• Sponsor workshops
• Sponsor recognition and acknowledgements
• Protection of sponsorship rights
adidas, British Airways, EDF Energy, BT and Lloyds TSB are the 2012 'tier-one' partners announced to date and we've been investigating their plans. The need for external support is huge, so we've brought you this report to ensure you're prepared to grab your 'piece of the pie'. Bear in mind there are sponsor categories yet to be filled - the automotive and oil & gas industries aren't yet represented for example - so keep an eye on Pearlfinders in coming months as new brands will be formulating their plans.
adidas
adidas has an 80-year association with the Olympic games. The company’s spent approximately £100m to become the official sportswear partner for London 2012, the largest marketing investment it's made in the UK. As part of the company’s quest to become the UK’s most recognised sports brand, adidas launched its sponsorship programme by flying in two world champions, a five-times Olympic gold medallist and "hologramming" David Beckham onto London’s Millennium Bridge. Pearlfinders has spoken to adidas Marketing Manager - Olympics about the company's plans, and how they will differ from those surrounding Beijing 2008, for which it's also a partner. Click here to read this interview in full.
British Airways
Having announced their sponsorship of London 2012 at Terminal 5, shortly before the opening fiasco was about to hit, BA will be hoping for some - recently scarce - positive PR from the tie-up. They've spent approximately £40m on becoming the official airline partner of the games. As part of the deal, the airline is creating a travel bursary for athletes, and is heavily involved with the 2012 volunteer programme. It's also extending community projects throughout London. Pearlfinders has discussed plans with BA's Sponsorship Manager, who's overseeing the project. Click here to see her insights.
BT
BT reportedly spent around £80m to become the official telecoms partner of the 2012 Olympics. Involved in London’s bid for the games, BT had already committed to a fibre optic network installation in the Olympic Village. Lord Coe has expressed his desire to make these the most digital games to date, and BT plans to play a major role in this. Pearlfinders spoke to the Director of Marketing at BT's consumer division. Click here to find out his views.
EDF Energy
Owned by the French government, EDF Energy spent a reported £50m to become an official partner of London 2012. The company is now its official sustainability partner. Promotional activity includes the "carbon challenge" campaign, aimed at encouraging people across the UK and Europe to cut their carbon footprint by 15 per cent before 2012. We spoke to the company's Senior Advertising Executive about agency support and the decision-makers to be engaging. Click here to read the interview.
Lloyds TSB
Lloyds TSB was the first official partner of the London Olympics, spending a reported £80m on becoming the games' financial services partner. Lloyds TSB will work with London 2012 on the sale and distribution of tickets for events when on sale in 2011, and will provide big screens for public viewing during the games. Lloyds TSB recently launched its 'Local Heroes' scheme, which donates £1m+ through grants of up to £1,000 to young sportspeople across Britain. We've spoken to the organisation's Marketing Operations Manager and Senior Category Manager, Marketing Procurement about the company's plans. Click here to access this exclusive content.
BP
BP's £50m sponsorship deal was announced in July this year, with the company becomming the third sustainability partner. Its key challenges will be to ensure a return on investment, with a need identified for global agency partners. We spoke to the Marketing Services Procurement Manager about BTL, consultancy andmerchandising opportunities in the run-up to the Games. Click here for these insights.