At the conclusion of every Olympics, there are reflections on the importance and relevance of the Games. There are always a wide range of opinions, from those who praise the movement as a global humanitarian platform to others who criticize the Games due to sustainability, environmental and human rights concerns.

International Olympic Committee president Thomas Bach called the Tokyo Games the “most challenging Olympic journey” during his speech at the closing ceremonies. The Games were postponed a year, held during a pandemic emergency that barred fans from the stands and had reluctant support from the host country. And there are other challenges ahead for the Olympic movement.

Given all of the problems facing the Olympic movement, what is the relevance of the modern Olympic Games from a consumer, marketing, media and economic perspective?

Eyeballs matter

Olympic viewership dropped significantly this year, with some estimates noting close to a 50-per-cent decline from the 2016 Rio Games — including for the lead television partner NBC Universal, which paid over US$7 billion to extend its U.S. broadcast rights for the Olympics through 2032.

Despite parallel streaming arrangements with all major Olympic network partners, viewers in North America and Europe were considerably fragmented, if not frustrated, with being many time zones away while major events were taking place live. The Canadian rights holder to the Games, the CBC, said it had a record number of views via its digital platforms after initial reports of a decline in ratings on traditional broadcast channels.

More troubling for the International Olympic Committee is growing evidence of a general decline in interest in the Olympics from young people, including Generation Z.

Support from key sponsors is also declining. Toyota announced on the eve of the Games that it wouldn’t air any Olympic-themed TV ads in Japan, even though it signed a US$1 billion sponsorship in 2015. Other sponsors are minimizing their Olympic commitments, raising questions about the perceived value of the hefty partnership deals.

Olympic economics

The Olympic Games are a massive social and financial undertaking. It’s estimated the Tokyo Games will cost over US$20 billion.

Read more:
https://theconversation.com/fewer-viewers-nervous-sponsors-the-olympics-must-rethink-efforts-to-stay-relevant-165580