Olympics: More than just games

With Paris 2024 just around the corner, athletes from all over the world are gearing up to compete in the world’s greatest sporting event where Brands, Businesses, Countries and Athletes (Ofcourse) compete with each other. This event, which costs billions to any organizing country, is a grand festival of 32 sports featuring numerous icons. Since the first Olympics in Athens, Greece, this event has held a significant place in the history of sports.

In this article, we will discuss why the Olympics are a goldmine for brands, delve into the marketing frenzy surrounding the event, and take a look at how some major companies have leveraged the Olympics for revenue growth.

Why Do Brands Love the Olympic Games So Much?

There are three major reasons why brands go gaga over the Olympics:

1. Target Market: Sports-focused brands find the Olympics ideal because the viewers are sports enthusiasts—clearly their target group. Brands like Nike and Adidas use this opportunity to showcase their products in various sports. For instance, Eliud Kipchoge sports Nike’s Vaporfly (their top-of-the-line marathon running shoe), and Rafa Nadal uses Babolat tennis racquets while wearing Nike’s clay court shoes. They target audiences who are passionate about these sports and eager to buy the gear their idols use and companies like Nike often try to make the most out of this by partnering with numerous Athletes form every sport. (Nike also plans to spend the most at Paris 2024) The Olympics are the perfect place to launch new products or roll out new ads campaigns featuring their stars.
2. Media Attention: This is a no-brainer. The world’s biggest sporting event attracts immense media attention, and brands flock to where they can get free publicity. The Olympics provide unparalleled media exposure, making it a prime opportunity for brands to shine.
3. Audience: Nearly half of the world watches the Olympics, with even more following the event’s developments through news channels and newspapers. This massive viewership makes the Olympics the most sought-after platform for all brands, regardless of size. Every brand tries to capitalize on the Olympics' popularity. Heck, even I’m doing the exact same thing, lol.

Why Non-Sport Brands Also Want a Piece of the Pie

Paris 2024 is poised to be one of the most memorable Olympic Games, and French brands like Danone, Carrefour, Decathlon and LVMH are extremely bullish. As a tsunami of tourists descends upon Paris, these brands see an opportunity to make a lasting impression on consumers from all over the world, creating a brand image that could lead to a significant revenue boost. Brands like Coca-Cola and Samsung, with their long-standing relationships with the Olympics, benefit enormously from associating with the event’s prestige, enhancing their brand image.

Comparing the Big Players: Revenue Trends and Olympic Marketing Impact

Now, let’s look at how some major companies have leveraged the Olympics for revenue growth from 2020 to 2022.

1. Adidas vs. Nike

• Adidas: Revenue increased by 13.6% from €19.8 billion in 2020 to €22.5 billion in 2022. The Tokyo Olympics helped boost their brand visibility and consumer interest but not to the extend it helped Nike.
• Nike: Revenue grew by 25%, from $37.4 billion in 2020 to $46.7 billion in 2022. Nike’s aggressive marketing around the Tokyo Olympics, including large-scale campaigns, significantly drove this higher revenue increase compared to Adidas.

2. Samsung vs. Apple

• Samsung: Revenue rose by 20%, from $200 billion in 2020 to $240 billion in 2022. Their sponsorship and marketing during the Tokyo Olympics played a crucial role in enhancing brand visibility and driving sales.
• Apple: Revenue surged by 43.6%, from $274.5 billion in 2020 to $394.3 billion in 2022. Although not directly tied to Olympic marketing, Apple’s strong brand and consistent marketing strategies to capitalize on the growing market of electronics during the pandemic helped Apple sky rocket their revenu and stock market prices.

3. PepsiCo vs. Coca-Cola

• PepsiCo: Revenue grew by 18.8%, from $70.4 billion in 2020 to $83.6 billion in 2022. The Tokyo Olympics helped boost brand engagement and sales through targeted marketing campaigns.
• Coca-Cola: Revenue increased by 30.3%, from $33 billion in 2020 to $43 billion in 2022. Coca-Cola’s extensive association with the Tokyo Olympics significantly enhanced brand visibility and sales.

Conclusion

The Olympics are more than just a sports event; they’re a massive marketing platform that offers brands unparalleled visibility and engagement opportunities. Whether it’s through sponsoring athletes, launching new products, or creating impactful campaigns, brands leverage the Olympics to drive significant revenue growth.

As we gear up for Paris 2024, keep an eye out for your favorite brands and how they harness the power of the Olympics. And if you’re a brand looking to make an impact, consider the immense benefits of associating with this global event. Ready to see your favorite athletes and brands shine on the world stage? Stay tuned, and let the games begin!

Sources:

https://www.macrotrends.net/stocks/charts/NKE/nike/revenue#:~:text=NIKE

https://www.sportspromedia.com/insights/opinions/samsung-paris-2024-olympics-galaxy-ai-smartphone-sponsorship/

https://www.statista.com/statistics/236607/global-revenue-of-samsung-electronics-since-2005/

https://www.macrotrends.net/stocks/charts/KO/cocacola/revenue#:~:text=CocaCola

https://www.macrotrends.net/stocks/charts/PEP/pepsico/revenue

https://www.politico.eu/article/olympic-athletes-tell-coca-cola-pepsi-to-end-plastic-pollution/

https://www.adsoftheworld.com/campaigns/pepsi-flags