How Much Money Are Companies Spending On The Olympics? | The Odyssey Online
Start writing a post
Sports

How Much Money Are Companies Spending On The Olympics?

Companies are shelling out millions for advertising and sponsoring.

271
How Much Money Are Companies Spending On The Olympics?
Olympic.org

How much money are companies spending on the Olympics? You might not be surprised to see that it's a crazy amount.

One of the Olympics' big spenders is NBC. You'll notice that NBC and channels owned by NBC are the only networks carrying the Olympics. This is because NBC paid a steep price to be able to be the only network to show the Olympics, and they'll be the only network to do so until 2032. In 2011, they paid $4.4 billion for rights until 2018. But, other networks won't get the chance to steal this coverage from NBC. NBC paid $7.65 billion to be able to broadcast the Olympics from 2022-2032.

NBC isn't the only one spending money, though. They're also raking it in. They had $1.2 billion in ad sales this year, which is a new record. Viewers could definitely tell that NBC was really pushing it with the ads during the opening ceremony.

One ad buyer reported that NBC asked $1 million for space for a single 30 second ad during primetime. Yeah, you saw it right: one million. This is a crazy amount for just 30 seconds, and it's just for TV. Advertisers who want to air ads online will have to cough up even more money. They have to spend $7 to $10 million in TV ads before they can even think about buying digital space.

But for some companies, advertising just isn't enough. There are many companies that are sponsoring the games this year.

McDonald's is probably the biggest sponsor of the Olympics and has been a sponsor since 1976, and the athletes are lovin' it. While it's a smarter move to just buy ad space than to sponsor for some companies, like Nike, sponsoring is a win-win situation for McDonald's. Is there really a better way to advertise than to say that they fuel Olympians? They've signed an agreement to sponsor the Olympics until 2020.

McDonald's is just one of the games' sponsors. Visa is another sponsor. They're such a big sponsor that spectators of the games can only pay in the forms of cash or Visa card. Some of the other sponsors include Omega (who is in charge of all the timekeeping at the games), Coca Cola, Samsung (official means of communication), Bridgestone (provides all tires), Panasonic (provides all TV's, audio/video, and camera equipment), and GE (helps with infrastructure in the hosting city).

The guidelines for Olympic sponsors and non-sponsors are extremely strict. There is a list of words that non-sponsors cannot say, like "Olympian" or even "Team USA."

These restrictions are thanks to Nike in the 1996 Olympics. They ended up getting a bunch of publicity because Michael Johnson, a sprinter, wore a pair of Nikes that they gave him to wear during the race. He then wore the golden Nikes around his neck to compliment his gold medals on the cover of Time Magazine.

Nike got so much promotion from all of this, but they weren't an Olympic sponsor that year. Competing brand Reebok, however, was a sponsor. As you can imagine, they were pretty pissed. They spent $50 million to become a sponsor just to have Nike take the cake.

But, of course, all of the money that these companies spent on advertising and sponsoring means nothing if people aren't watching.

Before the Rio Olympics began this summer, people predicted that ratings would be better than the London Olympics. The slight time difference between Rio and the East Coast was expected to give ratings a boost.

But, the ratings for the Rio Olympics are less than what NBC saw for the London Olympics in 2012. The opening ceremony had a rating of 16.5, the lowest rating since 1992. But, to be fair, this year's opening ceremony had to follow the highest rated opening ceremony ever.

This may not mean that less people are watching the Olympics. It could just mean that less people are watching the Olympics live on TV.

NBC has been streaming most of the events online this summer. In London, NBC streamed 818 million minutes of live events, but Rio had already passed that number by day five of the Olympics.

On the August 9th primetime broadcast, a total of 36.1 million people tuned in (via streaming and cable). But the next night, there was a significant drop: only 28.6 million people watched.

NBC is giving viewers many more options now than it has in the past. But could they be giving viewers too many options? Viewers can tune in to the regular NBC channel, any of the subchannels, or online to see their event of choice.

Of course, we won't know for sure until the games are over and all the data is collected. But for now, it seems like the number of people streaming the games is increasing.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
friends
Photo by Elizeu Dias on Unsplash

If I have learned one thing in my lifetime, it is that friends are a privilege. No one is required to give you their company and yet there is some sort of shared connection that keeps you together. And from that friendship, you may even find yourself lucky enough to have a few more friends, thus forming a group. Here are just a few signs that prove your current friend group is the ultimate friend group.

Keep Reading...Show less
ross and monica
FanPop

When it comes to television, there’s very few sets of on-screen siblings that a lot of us can relate to. Only those who have grown up with siblings knows what it feels like to fight, prank, and love a sibling. Ross and Monica Geller were definitely overbearing and overshared some things through the series of "Friends," but they captured perfectly what real siblings feel in real life. Some of their antics were funny, some were a little weird but all of them are completely relatable to brothers and sisters everywhere.

Keep Reading...Show less
Lifestyle

11 Types Of Sorority Girls

Who really makes up your chapter...

1750
Sorority Girls
Owl Eyes Magazine

College is a great place to meet people, especially through Greek life. If you look closely at sororities, you'll quickly see there are many different types of girls you will meet.

1. The Legacy.

Her sister was a member, her mom was a member, all of her aunts were members, and her grandma was a member. She has been waiting her whole life to wear these letters and cried hysterically on bid day. Although she can act entitled at times, you can bet she is one of the most enthusiastic sisters.

Keep Reading...Show less
Lifestyle

10 Reasons Why Life Is Better In The Summertime

Winter blues got you down? Summer is just around the corner!

1501
coconut tree near shore within mountain range
Photo by Elizeu Dias on Unsplash

Every kid in college and/or high school dreams of summer the moment they walk through the door on the first day back in September. It becomes harder and harder to focus in classes and while doing assignments as the days get closer. The winter has been lagging, the days are short and dark, and no one is quite themselves due to lack of energy and sunlight. Let's face it: life is ten times better in the summertime.

Keep Reading...Show less
Relationships

10 Things That Describe You and Your College Friends

The craziest, funniest, and most unforgettable college memories are impossible to create without an amazing group of friends.

1174
College Friends
Marina Lombardi

1. You'll never run out of clothes when you have at least four closets to choose from.

2. You embrace and encourage each other’s horrible, yet remarkable dance moves.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments