Tokyo Olympics set to hit $2.25 billion in ad spend
Advertising spend for the 2020 Tokyo Olympic Games is set to hit a record as Kantar predicts a whopping $2.25 billion in TV ad sales.
This is up 20% from the 2016 Rio de Janeiro games, which reached $1.85 billion.
Despite being rescheduled for 2021, the event retained the Tokyo 2020 name for marketing and branding purposes. The Tokyo Olympics 2021 which kicked off on 23 July at the newly built National Stadium in the Japanese capital, will as well hold its closing ceremony on 8 August 2021 at the same venue.
The Olympics 2021 will see the introduction of new competitions including 3×3 basketball, freestyle BMXA and Madison Cycling, as well as further mixed events. These sports would include karate, sports climbing, surfing and skateboarding, as well as the Olympic debut since 2008, as well as the return of baseball and softball.
A total of around 11,000 athletes from 206 countries are expected to compete in 33 sports at the 2021 Tokyo Olympics.
As at March 2020, NBC which has broadcast the event since 1988 disclosed that the company had already sold $1.25 billion in advertising. The Olympics has been a unique advertising opportunity, with big event sponsors like Coca Cola, P&G, Visa and more constantly supporting the games.
These broad ranges of advertisers spanning industries such as FMCG, automotive, communications, financial, fashion, and electronics amongst others, have helped the Olympics remain the single most valuable sporting event for broadcast networks.
Statistics from Kantar reveals that while ad rates are much higher for the Super Bowl, far less inventory is available for the one-night event, which reached $485 million in ad revenue this year. In the two weeks from Opening to Closing Ceremony, the Olympics generate 10% to 15% of total annual Sports revenue across all broadcast networks.
This includes Baseball, Basketball, Football, Hockey, Tennis and all of other major broadcast events. The sheer size and importance of the Olympics is unmatched in the sports genre. Kantar also expects overall US TV ad spend to hit $65.90 billion this year, even as growth continues to slow.
Although it was announced that most events in the 2020 Tokyo Olympics will be played without any spectators as Japan is currently in a state of emergency due to the worsening COVID-19 conditions, citizens are worried that a huge event like the Olympics will cause more cases, despite the International Olympic Committee’s promises to keep attendance at 50% capacity and bar attendance by non-Japan residents.
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