Amid the media and marketing frenzy leading up to the Beijing Olympics next year, many marketers are taking a step back to review its potential ROI. The debate is a tough tussle between marketers who are eagerly (and optimistically) looking to leverage the international interest generated by this once every four-year event on one hand, and those who question the return on their ad dollars.
Indeed, there are many questions the industry has to ask itself. Are there too many companies trying to benefit from the Olympics, making it difficult for them to be heard above the din? What strategies should marketers take to leverage the Olympic fever? How can celebrity endorsements be used effectively to enhance marketing efforts?
The dilemma becomes even more pronounced when marketers are considering whether to take Olympics-associated advertising online, where the new media's general standards and metrics of measuring marketing effectiveness are less developed.
The contentious topic was undertaken by four keynote panelists at the recent ad:tech Beijing conference on October 16 and 17. They were Christ Reiterman, president, OgilvyOne China; Peter S Winn, president, EF.com; Sina's EVP Hong Du and moderator Shaun Rein, founder of China Research Group.
On the whole, the panelists thought positively of Olympic advertising, with Rieterman saying that marketing at the international sporting event should not be seen as a means to an end for marketers, but rather as part of their company's long term, brand-building strategy.
The extraordinarily high cost of advertising at the Olympics means it would be out of many marketers' reach, and to that, the panelists discussed other ways in which companies can generate public engagement.
In the case of Sina, China's leading online media company, Hong said that instead of advertising, the portal is shaping up to be a strong service platform for users by providing extensive information and reporting. Backing this claim is the setting up of a 400-strong reporting team during the sporting event.
"It is also our way of differentiating ourselves as more than just another Olympic advertiser," she added.
One of the questions many marketers are concerned about is the future of the ad industry post Olympics. With the hype and excitement winding down after the sporting event, is the industry headed for a deep slump?
Again, the panelists were optimistic about future of the ad industry in China, largely because they felt the country is too big and too strong a market to ignore.
Reiterman noted that many of the marketers involved in Olympic marketing were not allocated an additional budget for the event but are instead channelling a part of their overall budget for the Olympics.
“When the Olympics is over, companies will still have to build and protect their brands and to boost the sale of products,” Rieterman said.
Closely related to the theme of Olympic advertising is the issue of celebrity endorsement in sports marketing. To a great extent, the panel felt that China advertisers have not been as savvy as those in the U.S. in this aspect. Such is evident in its choice of celebrity.
"We are not sure what Yao Ming stands for anymore; he's in so many different advertisements, it's confusing," Rein said.
If these industry leaders' optimism towards the future of advertising in China is a general reflection of how things are shaping up, Beijing Olympics looks set to be China's javelin to anchor its next stage of growth.