Jul 19, 2016

Advertise During Rio 2016 Olympics

Sports fans are in for a very special treat this summer -- the breath-taking, coastal city of Rio de Janeiro will play host to the XXXI Olympiad over the course of seventeen days in August (the 5th through the 21st.) And there is sure to be something for everyone as over 200 countries and territories will send 10,000+ athletes to the Rio Games. In all, 28 Olympic sports will be on display across 33 different venues – that comes to a total of over 300 separate events. And crowing it all will be the opening and closing Olympic ceremonies, as well as all the other ceremonies in which 900+ medals will be awarded to the greatest athletes in the world.

Source: Wikipedia (https://en.wikipedia.org/wiki/2016_Summer_Olympics)

And how does the NBC Network and its affiliated cable networks bring all this into the American home? Well… they turn on the cameras and just let ‘em roll morning, noon and night! Four years ago, NBC broadcast 270 hours from the London Games of 2012. Add to that another 560+ hours from NBC Sports Network, CNBC, MSNBC and Bravo and you’ve got an avalanche of television content – something like 35 days of “TV time” compressed into a 17-day window.

(Source: Viamedia analysis of Rentrak data.)
Four years ago, NBC Network allocated half of all cable programming hours to NBC Sports Network (51%), followed by MSNBC (28%), CNBC (11%) and Bravo (10%). Collectively, over 17 Days of programming, their Total Day Live U.S. household rating was .37 – good for a .98 share:

olympicschart1

Source: Viamedia analysis of comScore TV Essentials ® Program / Network Average data for the 2012 Summer Olympics from London, England (July 25th – August 12th, 2012.) U.S. Household ratings and are Viamedia time-duration weighted estimates for new and re-telecasted Olympic content. Ratings & Shares are Live-only, excluding all DVR activity.

As of this writing, the 2016 scheduled events for each cable network have not yet been set, but the chart below (from the 2012 London Games) will give you a sense of the sporting events most likely to appear on cable. Four years ago, Soccer, Boxing, Tennis, Volleyball and Basketball comprised nearly 70% of total Olympic cable programming hours:

olympicschart2

Source: Viamedia analysis of comScore TV Essentials ® Program / Network Average data for the 2012 Summer Olympics from London, England (July 25th – August 12th, 2012.) Hours are based on new and re-telecasted Olympic content. Hours are for Live-only, excluding all DVR activity.

Upscale Homes

Viewership to the Olympics is upscale, due in part to the fact that the quadrennial games tend to attract light tuning households, which by definition are homes with higher than average annual incomes. Below are the ratings by household classification for the Games four years ago. You can see that the ratings peak at homes with an annual income of $200,000 - $249,999 (140.6 Index.) In fact, Olympic viewing is even slightly more upscale on cable than it is on the NBC network, whose index is 15 points lower for the highest two classifications:

olympicschart3

Source: Viamedia analysis of comScore TV Essentials ® Program / Network Average data for the 2012 Summer Olympics from London, England (July 25th – August 12th, 2012.) U.S. Household Income Classification ratings and Total U.S. Household ratings are Viamedia time-duration weighted estimates for new and re-telecasted Olympic content. Ratings represent a weight-averaging of HH tuning to NBCSN, CNBC, MSNBC and Bravo. Total tuning minutes are 33,870. Ratings are Live-only, excluding all DVR activity.)

Local Cable Advertising

Four years ago, the 2012 London Games attracted over 130 clients across 31 Viamedia markets. In all, they ran a remarkable 9,300+ 30-second units, which comes to almost 70 spots per client.

(Source: B.I.G.SM   database -- Copyright © 2016 by Viamedia, Inc. All Rights Reserved)

The clearest pattern that emerges from our review of internal sales records is that our local clients maintained consistent advertising pressure throughout the 2012 Summer Olympics with many of them on air multiple times a day for practically the entire 17-Day Olympic period. In other words, our clients attained maximum reach with their Olympic Schedules:

olympics1

Source: Viamedia analysis of B.I.G.SM   internal database (“Sports & High Profile Tracker”) for any and all local cable advertisers who invested in the 2012 London Olympics across any and all markets. Copyright © 2016 by Viamedia, Inc. All Rights Reserved.

In terms of local product categories, Automotive leads the way with a 31% share of cable spending – a figure that is more or less in line with company-wide Automotive advertising at Viamedia, but on the low end when it comes to sporting events. On the high end is Hardware & Home Improvement and Food & Grocery which together captured 22% of all Olympic local cable investments. That figure is more than double what we normally see for these two categories:

olympics2

Source: Viamedia analysis of B.I.G.SM   internal database (“Sports & High Profile Tracker”) for any and all local cable advertisers who invested in the 2012 London Olympics across any and all markets. Copyright © 2016 by Viamedia, Inc. All Rights Reserved.

Let the Games Begin

As is the case with past Olympics, there’s always a backstory to the Games long before the Games begin, and the XXXI Olympiad in Rio de Janeiro is certainly no exception. Indeed, the drama begins at the very top with the impeachment of Brazil’s President, Dilma Rousseff, who has been accused of manipulating government accounts to cover up massive federal deficits. (I think that means fraud.)There are also charges of rampant government kick-backs and bribes, not to mention a nasty bout of inflation accompanied by rising crime. Add to that the innumerable construction delays at several sporting venues, and a very serious health threat in the form of the mosquito-borne Zika virus which may keep certain athletes from participating in the Games. Oh, and did I mention the suspension of Rio’s anti-doping lab, and the barring of Russia’s entire track and field team due to a wide-spread doping conspiracy?

But when all is said and done, the Games will go on. And all of the negative stories filtering out of Brazil will only serve to heighten the drama of the Olympic Games – a 17-day sporting extravaganza in which the greatest athletes from around the globe will descend upon one of the most beautiful cities in the entire world. Let the Games begin.

-- Written by Jonathan Sims, VP Market Research, Viamedia

Topics: Olympics

Martin Young

Written by Martin Young

Marketing guru

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