Brand New View

London 2012: Despite Tough Economy, Glimmers of Optimism

The economy continues to struggle in much of the non-Asian world, and the UK's economic austerity program does not appear to be helping. The National Institute for Economic and Social Research (NIESR) said that the UK won't return to 2008 growth levels until at least 2013, a 5 year period of lost opportunity. Unemployment has risen (again) in the UK as well over the past few months. The NIESR states that additional stimulus is needed, or the situation is unlikely to improve. And, of course, the political climate in the UK suggests such a stimulus is unlikely. In the midst of these challenging times, questions about the costs of the forthcoming 2012 Olympics are inevitable. But should the tough economy cause government planners and the London Olympic Committee to scale back plans, or even cancel the Games? According to a BBC blog by Roger Mosey (the BBC's director of London 2012), the answer is no. As he states, the "prospect of a 2012 with the Olympics in London is still a better prospect than one without." As I point out in my forthcoming book The Olympic Games Effect, hosting an Olympic Games is a daunting, complex task with potential benefits that rise above pure economic gain. While not all host cities generate sustained economic benefit (indeed, many of the Economic Impact Studies produced during the host city bidding process often overstate the actual economic gains), there is evidence that suggests a well-coordinated host city strategy comprised of pre, during, and post Olympics phases that actively plans for leveraging the investment for years afterward, can stimulate a sustained and positive outcome. There is also evidence that the Olympics serve to lift the spirits and infuse a collective sense of societal optimism for both the host nation and countries around the world. Does this mean that London 2012 will inspire an economic turnaround in the UK? The Olympics alone cannot accomplish such a Herculean task, despite the Games' reputation for inspiring super human performances. But cutting back London's Olympic investments (effectively creating an 'Olympics lite') would send a far more severe, negative message about the UK, the Olympics and the economy as a whole. Part of what drives market behavior is a sense of confidence, and ensuring the 2012 London Olympics are given every chance to succeed will help build confidence, which is certainly a vital task in stimulating economic activity.

Ambush Marketing

Check out this September 2011 article from Interbrand about Ambush Marketing. I write about ambush marketing, among many sports marketing topics, in my new book The Olympic Games Effect. For Olympic sponsors, especially TOP sponsors (which invest over $80 million for the rights to be an Olympic sponsor, then another 2-3 times that to activate their sponsorship), ambush marketing is a valid, yet hard to manage, concern. For those unfamiliar, ambush marketing occurs when companies try to create an association with the Olympics (or any sports event), even though they are not official sponsors. The effort can undermine the marketing efforts of official sponsors, and serve to confuse consumers as well. We will undoubtedly see an increase in Olympic marketing activity in the months ahead and it will be interesting to discern which are official sponsors versus the ambushers. Stay tuned.

Olympic History...and Inspiration

The Olympics have nearly 3,000 years of stories that have helped shaped this mega-sports event into the global phenomenon it is today. So much of Olympic history is about the athletic excellence of the competitors. One such competitor is Orsippus of Megara who, in 720 BC, was competing in a footrace when his covering came off part way through the race. He went on to win, unwittinginly inspiring subsequent generations of competitors during Ancient times to compete in the nude. While such a spectacle is highly unlikely today, there is little question that Olympic competitors are always looking for an edge, whether psychological, in terms of training methodology, or competitive strategy and, when victory occurs, other competitors and fans try to learn how to adapt the winner's approach to their own needs.  

The Olympic Games Effect, 2012 edition

The 2nd edition of my book, 'The Olympic Games Effect', will be published early in 2012 (John Wiley and Sons). Updated and revised for the London 2012 Olympics, I discuss the pros and cons of Olympic sponsorships. My recent TEDx talk included examples from the book. In the book I review sponsorships in the broader context of Olympic history, as well as host city bids, economic impact, marketing strategy, and the more recent advances in social media. While the book is still a month or two away from release, the support and buzz has already been tremendous, including invaluable endorsements from some truly remarkable people: Glenn Hubbard-Dean, Columbia Business School and former Chairman of the Council of Economic Advisors; Lynn Kahle-the Ehrman Giustina Professor of Marketing and Department Chair at the Lundquist College of Business, University of Oregon (and home of one of the U.S.'s top sports marketing programs, the James H. Warsaw Sports Marketing Center); Dae Ryun Chang-Professor of Marketing, Yonsei University School of Business; Anton Meyer-Professor of Business Administration and CEO of the Institute of Marketing at Ludwig Maximilians University; Richard Burton-the David B. Falk Professor of Sport Management at Syracuse University; and Kimio Kase-Professor of Strategic Management at IESE. I will be teaching a new course in the winter term based on this book, and also giving talks around the world throughout the year. In June, I return to the International Olympic Academy in Olympia, Greece, to teach in their Masters of Olympic Studies program. I will be writing more about the book in the weeks and months ahead as the London 2012 Games get closer and closer. Please contact me at john@brandnewview.com if you want more information about the book and/or speaking opportunities. 

In Olympics-related news, the International Olympic Committee launched a new Integrated Communications program today called 'Show Your Best' that seeks videos entries of people doing their best, whether they are Olympic athletes or not. The idea is to showcase the remarkable range of talent out there in the world. A range of prizes will be given for the best entries, including a trip to see the 2012 London Olympics. Show Your Best is the latest effort by the International Olympic Committee to connect with fans, particularly the youth, extending a dynamic set of new initiatives in recent years that have included the launch of the new Youth Olympic Games (YOG). The first summer YOG was in August 2010 in Singapore, and the first winter YOG will be in Innsbruck January 13-22, 2012 (just a few weeks away!).