Marketing The Olympics

Summary

Under the Influence with Terry O'Reilly: Summary of "Marketing The Olympics"

Episode Release Date: August 10, 2024
Hosted by: Apostrophe Podcast Network

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Introduction: The Intricate Dance of Olympic Marketing

In the episode titled "Marketing The Olympics," Terry O'Reilly delves deep into the evolution of marketing strategies surrounding the Olympic Games. From its inception in 1896 to the colossal, multi-billion-dollar events of the 21st century, the episode unpacks how marketing has both shaped and been shaped by the Olympics, highlighting the perpetual tension between commercial interests and the original Olympic ideals.

The Genesis of Modern Olympics and Early Sponsorships

Terry begins by tracing the roots of the modern Olympics back to 1896, founded by Pierre de Coubertin with the vision of uniting the world through sport. The first Games in Athens were modest, featuring 241 male athletes from 14 nations [02:31]. Sponsorship was minimal but present; companies like Kodak capitalized early by purchasing ads in official souvenir programs, signifying the nascent relationship between commerce and the Olympics.

“The first Olympic advertising was as well. Several companies bought ads in the first official souvenir program, including Kodak, who would continue to be a sponsor for many years to come.” [07:16]

Stockholm 1912: Commercial Expansion and Brand Utilization

By the 1912 Stockholm Games, the commercialization of the Olympics had begun to take shape. Ten companies sponsored the Games, funding advertisements and even integrating commercial products like weight scales for spectator use. This period saw the first use of Olympic symbols on merchandise, laying the groundwork for future brand affiliations.

“Companies were eager to get their logos in front of large sporting audiences. One other important marketing opportunity became highly prized during the Stockholm Games: the right to use Olympic symbols on commercial merchandise.” [08:17]

The Advent of Television and Its Impact on Olympic Marketing

A pivotal moment in Olympic marketing history was the introduction of television during the 1936 Berlin Games. For the first time, the Games were broadcast live, reaching over 162,000 viewers [08:46]. This technological leap transformed the Olympics into a spectacle for mass consumption, exponentially increasing the potential for advertising revenue.

“Television turned sports into spectacle for mass consumption and the Olympic Games would never again be solely a sporting event.” [13:47]

World War II and the Post-War Olympic Revival

The interruption of the Olympic Games by World War II from 1940 to 1948 underscored their symbolic significance. The 1948 London Games marked not only a return to international competition but also the end of art competitions as Olympic events due to the shift towards amateurism. The broadcast of these Games by the BBC, albeit limited, set new precedents for marketing and media partnerships.

“These Games were the first to set a price for television broadcast rights. It's reported that the BBC paid the equivalent of $3,000 for those rights, airing over 60 hours of programming watched by over 500,000 viewers.” [14:41]

The 1960s: Increased Sponsorship and the Rise of Brand Wars

The 1960 Rome Olympics introduced significant marketing milestones, including Coca-Cola's sponsorship, which became the longest continuous relationship in Olympic history [10:17]. However, this era also witnessed the beginning of intense brand rivalries, as exemplified by the 1968 Mexico City Games where Adidas and Puma engaged in fierce competition to secure athlete endorsements, leading to public scandals over bribery and corruption.

“Brand wars at the Olympics escalated, and sport apparel sponsorships would expand exponentially into the 1980s.” [21:52]

Montreal 1976 and the Financial Pitfalls of Commercialization

The 1976 Montreal Games exemplified both the potential and pitfalls of Olympic commercialization. With 628 advertisers and a global television audience, the Games generated substantial revenue but also left Montreal with a debt that took three decades to amortize. This highlighted the precarious balance between commercial success and financial sustainability.

“The Games left Montreal with such a big debt, it took three decades to pay it off. It was a lesson not lost on the 1984 Los Angeles Games, as it would turn the marketing of the Olympics upside down.” [22:30]

Los Angeles 1984: Revolutionizing Olympic Sponsorship

The Los Angeles Olympics marked a turning point in Olympic marketing. Organizers shifted strategy from attracting numerous advertisers to securing exclusive, high-paying sponsors. By limiting the number of sponsors to 35 but increasing individual contributions, the Games achieved unprecedented profitability. This success led to the establishment of the Olympic Partners (TOP) program, a global sponsorship initiative that remains a cornerstone of Olympic marketing today.

“They reduced the number of advertisers from Hundreds down to 35, but greatly increased the amount each paid for that steep price. The strategy was so successful, the LA Games posted a huge profit.” [24:03]

Atlanta 1996: The High Stakes of Mega-Sponsorships

Atlanta's Centennial Olympic Games showcased the zenith of commercial sponsorships, with top sponsors paying $40 million each [25:07]. However, the sheer scale of sponsorship integration sometimes clashed with Olympic values, leading to controversies over product licensing and the ethical implications of corporate influence. Despite these challenges, Atlanta underscored the indispensable role of sponsorship in financing the Games.

“The Atlanta Organizing Committee looked to more and more sponsors for more revenue. That led to some interesting sponsorships...Eventually, the requirements for branding led to the IOC stepping in to protect the Olympic image.” [25:25]

Rebranding and Modern Challenges: London 2012 and Beyond

By the time of the London 2012 Olympics, the cost of hosting the Games had skyrocketed to £14.5 billion, necessitating even greater sponsorship contributions. Major brands like Adidas and Samsung leveraged their partnerships to maximize visibility, integrating their products seamlessly into the event’s fabric. However, the necessity for massive sponsorship revenues also led to heightened scrutiny over corporate influence and the sustainability of Olympic financing.

“With the help of Montreal advertising agency Sid Lee, Adidas arguably became the most visible sponsor at the Games.” [28:30]

The Ongoing Tension: Olympic Ideals vs. Commercial Interests

Throughout the episode, Terry emphasizes the inherent tension between the Olympic ethos of fostering international unity and the commercial imperative to generate revenue. This dichotomy is a recurring theme, as the need for sponsorship funds often conflicts with maintaining the purity and integrity of the Olympic spirit. The escalating costs of the Games and the increasing reliance on corporate sponsorship suggest that this tension will persist, shaping the future trajectory of Olympic marketing.

“The Olympic Games were founded on the principle of uniting the world peacefully through sport...the need for sponsorship money competes against the Olympic ideal.” [28:52]

Conclusion: The Unstoppable Momentum of Olympic Sponsorship

Terry concludes by forecasting that Olympic sponsorship will continue to dominate the financial structure of the Games. As hosting costs climb, the reliance on high-value sponsors is poised to surpass traditional revenue streams like ticket sales and broadcasting rights. This trend underscores the inevitability of commercial influence shaping the future of the Olympics, ensuring that marketing remains a pivotal element in the grand spectacle of the Games.

“Olympics demand spectacle, spectacle demands sponsors, and sponsors demand international audiences. And one thing is for certain. The cost of the Sochi Olympics will set a new world record.” [33:27]

Key Takeaways

• Evolution of Sponsorship: From modest beginnings in 1896, Olympic sponsorship has evolved into a multi-billion-dollar industry, with exclusive global partnerships becoming the norm.

• Impact of Technology: Television transformed the Olympics into a global spectacle, exponentially increasing opportunities for advertisers to reach wide audiences.

• Tension Between Ideals and Commerce: The continual need for sponsorship revenue often conflicts with the Olympic ideals of unity and amateurism, creating an ongoing tension within the Games’ framework.

• Future Trajectory: As hosting costs escalate, the reliance on high-paying sponsors is expected to increase, further entrenching commercial interests in the Olympic narrative.

Notable Quotes

• “Television turned sports into spectacle for mass consumption and the Olympic Games would never again be solely a sporting event.” — Terry O'Reilly [13:47]

• “They reduced the number of advertisers from Hundreds down to 35, but greatly increased the amount each paid for that steep price. The strategy was so successful, the LA Games posted a huge profit.” — Terry O'Reilly [24:03]

• “The Olympic Games were founded on the principle of uniting the world peacefully through sport...the need for sponsorship money competes against the Olympic ideal.” — Terry O'Reilly [28:52]

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This comprehensive exploration by Terry O'Reilly illuminates the intricate and often contentious relationship between the Olympics and marketing. For listeners interested in the intersection of sports, culture, and commerce, "Marketing The Olympics" offers a captivating narrative underscored by historical insights and critical analysis.

Transcript

[Terry O'Reilly]

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[Unnamed Son]

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[Terry O'Reilly]

From the under the Influence digital box set. This episode is from season three, 2014. You're soaking in it.

[Progressive Insurance Advertiser]

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[Unnamed Commentator]

When you're hungry.

[Olympic Announcer]

You'Re in good hands with Austin.

[Terry O'Reilly]

You're under the influence with Terry O'Reilly. At the 1948 Olympics in London, England, John Copley stood at the winners podium. He had competed for Great Britain and had won a silver medal. These Olympics weren't just prestigious, they were symbolic as these were the first games since 1936. The conflict and destruction of World War II had interrupted the international event for 12 years. So as John Copley waited for his medal, it was an extra special moment. Not only was he winning a medal in his home country, John Copley was also 73 years old, making him the oldest Olympic medalist in history at that time. He won his medal competing in the mixed paintings, engravings and etchings category. Yes, John Copley had Won a silver medal for a piece of art he created titled Polo Players. Starting with the 1912 Olympics, Art was a competitive category. The founder of the modern Olympics, Pierre du Coubertin, wanted participants to compete in sport rather than war. He also wanted Olympic competitors to participate with both mind and body, and therefore wanted to combine both art and sport. At the Games. The art competitions were divided into five. Literature, music, painting, sculpture, and architecture.

[Unnamed Commentator]

How does one compete in architecture?

[Terry O'Reilly]

I think you have to run with a drafting table. Anyway, there were rules. Every piece of art had to have a sport theme, which probably put a crimp in the architecture category.

[Unnamed Commentator]

Whoa, whoa, whoa. Nothing. Not so fast. It says here that Dutch architect Jan Wills won a gold medal in 1928 for designing the Olympic stadium that was used in the 1928Amsterdam Games.

[Terry O'Reilly]

Hmm. Well, that's one way to do it. There was also stiff competition. By 1928, judges had to adjudicate over 1,000 entries in the painting and sculpture categories alone. The competitors didn't have to create the works on the spot. They just had to submit them, providing they were new, previously unseen works. But all good things must come to an end. The 1948 games were the last to have art competitions. The reason? Most of the artists were professionals, meaning they sold art to make a living. And the Olympic Charter now mandated that only amateurs could compete. So art was. No, no more. The Olympics have come a long way. So has Olympic marketing. From the first ad at the first Olympics in 1896 to the $100 million advertising contracts of the 2014 Games, sponsorship money has always been a contentious issue. On one hand, the Olympics are one of the most expensive events to stage in the world. On the other hand, sponsorship money makes it possible. But there's a price to pay when there's a price to pay. And how marketing has evolved at the Olympics is a fascinating story.

[Progressive Insurance Advertiser]

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[Terry O'Reilly]

The modern Olympics as we know it began in 1896. The aforementioned Pierre de Coubertin had a plan to unite the world and founded the ioc, which stood for the International Olympic Committee, inspired by the ancient Olympic games in Greece 1500 years before. De Coubertin and the IOC decided to hold the first modern Games in Athens on April 6, 1896. 241 male athletes from 14 nations. There were no women participated in 43 events. Since the Games were brand new and not well publicized, contestants were not chosen by their countries. Instead, they came individually and at their own expense. Some of the contestants were even tourists who happened to be in the area and representing Canada in the long jump, Terry O'Reilly, who was in town for a marketing conference, and in the shot put, Keith Oman, visiting from the Danforth area of Toronto. While the first modern Olympics was getting off the ground, the first Olympic advertising was as well. Several companies bought ads in the first official souvenir program, including Kodak, who would continue to be a sponsor for many years to come. Four Olympics later, the 1912 Games were held in Stockholm, Sweden. Stockholm won the Olympic bid primarily because, well, they were the only city to make a bid.

[Unnamed Commentator]

Yay, Sweden.

[Terry O'Reilly]

2,408 athletes, including 48 women, competed in 102 events at the Stockholm Olympics. Ten different companies paid for the right to advertise at the Games. The Granberg Industrial Art Company, for example, paid $3,600 for the right to use photographs of the competitions for commercial purposes. Another company paid to install their weight scales for the recreational use of the spectators. This early sponsorship money contributed to almost 5% of the total revenue at the Games. Clearly, the concept of sports sponsorship was emerging as companies were eager to get their logos in front of large sporting audiences. One other important marketing opportunity became highly prized during the Stockholm Games. It was the first time companies were given the right to use Olympic symbols on commercial merchandise. The 1924 Summer Olympics were held in Paris. They were the first to be broadcast live on the newfangled medium called radio. The Olympic Village was also created for these Games, and the motto of Faster, Higher, Stronger was used for the first time, a phrase that was coined by a Dominican priest. The 1928 Olympics were held in Amsterdam and are important in the history of the Games for several reasons. The Olympic flame was lit here for the first time ever, and the parade of nations began, starting with Greece and ending with the host nation, a tradition that continues to this day. There were important marketing firsts as well. Balance sheets from these games indicate revenue from advertisements on access routes and kiosks close to the stadium. It was also the year Coke came on board as a sponsor. This would mark the beginning of the longest continuous relationship between an advertiser and the Olympic Games in history, a relationship that is contracted to the year 2020. In 1928, Coke not only provided soft drinks, it sold them through restaurants and kiosks. They were allowed to operate during the Olympics. That was a significant development in the parameters of Olympic sponsorship. Advertisers were now allowed to make money on the Olympic grounds.

[Olympic Announcer]

In the name of the President of the United States, I proclaim open the Olympic Games of Los angeles, celebrating the 10th Olympiad of the modern era.

[Terry O'Reilly]

The effect of growing US sponsorship revenues is evident. During the 1932 Olympics in Los Angeles, a local company called the Helms Bakery paid for the right to produce an Olympic themed product called Helms Olympic Bread. The success of this product convinced the IOC to investigate further commercial possibilities. These Games were also the first to ever post a profit. But it was the next Olympics, held in Berlin in 1936, that would see the introduction of a technology that would not only transform Olympic audiences, but also impact Olympic marketing revenue for all time. The IOC chose Berlin to host two years before Adolf Hitler came to power. As a result, with the Nazis now in place, the 1936 Olympics became very controversial, with many Jewish athletes eventually boycotting. The Olympic torch was first introduced during these Games. But the 1936 Olympics offered an even bigger technological milestone. They were the first to ever be televised. The opening ceremony of the Games was shown live on closed circuit television in halls and cinemas in and around Berlin. Over 100 hours of competition was watched by 162,000 viewers. That seminal moment would impact the Olympics for all time. As we'll soon see, it would also transform the world of sports from that moment forward. The very next year, the BBC began televising the Oxford Cambridge Boat Race. In 1939, NBC televised a Columbia Princeton basketball game. Suddenly, advertisers had the ability to reach thousands of people that went far beyond the stadium. As author Joseph Puig stated in his analysis of Olympic marketing, television turned sports into spectacle for mass consumption and the Olympic Games would never again be solely a sporting event. But the momentum the Olympics was now enjoying would soon come to a complete and utter stop.

[Olympic Announcer]

This morning, the British ambassador in Berlin handed the German government a final note stating that unless we heard from them by 11 o'clock that they were prepared at once to withdraw their troops from Poland, a state of war would exist between us.

[Terry O'Reilly]

As British Prime Minister Neville Chamberlain declared war on Germany in 1939, the Olympic Games, that international gathering of peaceful nations, were canceled and would not resume again until 1948.

[Olympic Announcer]

I proclaim open the Olympic Games of London, celebrating at the 14th Olympiad of the modern era.

[Terry O'Reilly]

A record 49 nations competed at the 1948 London Games. The Olympic competitions were televised by the BBC. And these Games were the first to set a price for television broadcast rights. It's reported that the BBC paid the equivalent of $3,000 for those rights, airing over 60 hours of programming watched by over 500,000 viewers. And we'll be right back.

[Unnamed Son]

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[LinkedIn Advertiser]

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[Progressive Insurance Advertiser]

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[Terry O'Reilly]

If you're enjoying this episode, why not dip into our archives available wherever you download your pods? Go to terryoriley ca for a master episode list. Throughout the 1950s, the Olympic Games picked up momentum and Advertisers. At the 1952 Helsinki Games, 25 companies advertised. At the 1956 Melbourne Games, 112 companies sponsored the event. The Rome Olympics of 1960 saw a young Cassius Clay win a gold medal in boxing, the future King of Greece won a gold in sailing, and it was the last time South Africa would be invited until they abolished apartheid in 1992. These were the first Summer Games to be broadcast live via satellite to 18 European countries, with the tapes being shipped to North America a few hours later. The cost of TV broadcasting rights was starting to make its climb as CBS paid the equivalent of almost $400,000 to secure them. It also marked the first time the Games were broadcast in Canada on CBC tv. The Rome Games were also the first to offer sponsorship by modern day definitions, as companies were now permitted to use such designations as official suppliers and official sponsor. Those two words would become very lucrative for the Olympics in years to come.

[Olympic Announcer]

Tokyo is dressed in her holiday best for the opening of the 18th modern Olympics. The first to be held in the Far East.

[Terry O'Reilly]

The 1964 Games in Tokyo were the first to be broadcast internationally without the need for tapes to be flown overseas, as they were in the 1960 Olympics. At this point in Olympic sponsorship, there was no exclusivity, so competing brands were allowed to advertise at the same event. But even with more and more advertisers coming on board, the local Olympic committee still needed more revenue. That led to a decision to actually license a brand of cigarettes called Olympias. The cigarettes ended up being one of the most successful Olympic products ever, generating over $1 million in revenue. And that was big money in 1964. Four years later, at the Winter Games at Grenoble, the organizers again licensed two brands of cigarettes to use the Olympic logo. That decision prompted then IOC president Avery Brundage to write IOC members to complain about the quote, rampant commercialism beginning to encompass the Olympics. His stand would be a line in the sand that emphasized the inherent tension within the Olympics, the tension that existed between needing revenue to stage the games and inviting corporate sponsorship that didn't undermine the overall Olympic ideal. IOC president Brundage used his influence to try and keep commercialism at bay for the next 12 years. During the 1968 Summer Games in Mexico City, another marketing controversy revealed itself. The Adidas and Puma shoe companies were owned by feuding brothers Adolf and Rudolph Dassler. Their sibling rivalry exploded into a full fledged war. During these games, the shoe companies furiously tried to outbid each other to induce track athletes to wear their brands. As author Joseph Turini details in his book titled the End of Amateurism in American Track and Field, the competing footwear companies offered cold hard cash to athletes to switch brands, Usually in the form of thousands of dollars stuffed into their shoes. The shoe companies blatantly ignored Olympic amateur regulations and distributed over $100,000 in cash and over $350,000 in shoes and equipment. The bribes created a public scandal, yet most athletes were unrepentant. They felt they were providing publicity for the shoe companies and should be rewarded. The Olympic committee realized it would be impossible to police the situation, so they mandated that only all white, non branded shoes could be worn in competition. Athletes immediately protested, stating they wanted to wear the shoes they had trained in. Black athletes protested at having to wear all white shoes. The shoe company simply ignored the mandate. Brand wars at the Olympics escalated, and sport apparel sponsorships would expand exponentially into the 1980s.

[Olympic Announcer]

I declare open the Olympic Games of 1976, celebrating the 21st Olympiad of the modern era.

[Terry O'Reilly]

By the time The Queen opened the 1976 Olympics in Montreal. IOC president Avery Brundage had retired his stand against commercialism, now a thing of the past. The Games looked to maximize television broadcast rights and explore lucrative advertising opportunities. 628 advertisers participated in the 1976 Games, and an estimated half billion people watched on TV. Yet the Games left Montreal with such a big debt, it took three decades to pay it off. It was a lesson not lost on the 1984 Los Angeles Games, as it would turn the marketing of the Olympics upside down.

[Olympic Announcer]

Ladies and gentlemen, welcome to the opening ceremonies of the Games of the 23rd Olympiad at Los Angeles.

[Terry O'Reilly]

It was in the city of marketing dreams that the IOC realized the full potential of marketing a mega event like the Olympics. The Los Angeles Organizing Committee realized that real revenue success didn't lie in attracting ever larger numbers of advertisers, but that the exact opposite strategy was the key. So they reduced the number of advertisers from Hundreds down to 35, but greatly increased the amount each paid for that steep price. They offered one more important, exclusivity. Even though advertisers were paying more than they had ever paid before, category exclusivity and the massive international television audiences the New Deal provided made it a bargain. The strategy was so successful, the LA Games posted a huge profit. That success led the IOC to create a global sponsorship program known as top, which stood for the Olympic Partners. It gave a small select group of advertisers the rights to use Olympic symbols worldwide in return for lucrative fees.

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[Progressive Insurance Advertiser]

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[Unnamed Son]

My dad works in B2B marketing. He came by my school for Career day and said he was a big Roas man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laugh at me to this day.

[LinkedIn Advertiser]

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[Terry O'Reilly]

The first time the top program was successfully implemented was at the Calgary Winter Games in 1988. By then, over 80% of Olympic sponsorship support was coming from North American advertisers. Tonight, a record 197 countries have come to Atlanta for the Centennial Olympic Games. At the Atlanta Olympics, 10 companies signed up as top sponsors, spending $40 million each for the privilege. While many of the sponsorships were a good fit with the Olympics, the cost of staging the game soared to $1.8 billion. Using the 1984 Los Angeles corporate model, Atlanta organizers looked to more and more sponsors for more revenue. That led to some interesting sponsorships. For example, Jeopardy. Became the official Olympic game show. There was an official Olympic onion sauce and an official toilet seat cover. When the Atlanta Organizing Committee announced it was granting a license to the official feminine hygiene product, the IOC stepped in and said enough. The image of the Games was being tainted. Not long after, it was discovered that some IOC members had accepted bribes to vote for Salt Lake City in 2002, and the problem of doping was never far from the headlines. The Olympics desperately needed to rebrand itself. One of the ways it did that was to look to advertising. So the IOC hired top creative advertising agency Chia Day to create a series of messages to help promote Olympic values. The resulting commercials featured very moving and memorable images from past Olympics. Robin Williams supplied the voiceover to be a giant.

[Olympic Announcer]

This has forever been our passion, this desire to be a giant. Not to stand on one's shoulders or to have one for a friend. Though these may be fortunate things, but to be one.

[Terry O'Reilly]

The commercial ended with the line Celebrate humanity. Media company companies around the world embraced the message. CNN ran it 30 times a day for eight months leading up to the Games. Thirty airlines showed it as part of their in flight programming. It appeared in cinemas across three continents, all at no charge, generating an estimated $120 million in free advertising. But changing a perception is a process, not an event. So the IOC restructured their sponsorship strategies, put stricter guidelines in place, overhauled many of their practices, and the advertising campaign did its bit to help resuscitate The.

[Olympic Announcer]

Olympic image I declare open the Games of London, celebrating the 30th Olympiad of the modern era.

[Terry O'Reilly]

In 2004, the BBC estimated that it now cost $10 billion to host the Olympic Games. By the time the Olympics arrived in London, England, in 2012, that figure had risen to 14.5 billion. NBC paid 1.2 billion for the broadcast rights to the London Olympics. But even with those enormous windfalls, the London Olympics needed billions more in sponsorship money. Adidas paid over $172 million to be one of the lead sponsors. With the help of Montreal advertising agency Sid Lee, Adidas arguably became the most visible sponsor at the Games. Britain's most successful athletes in over 104 years sported Adidas uniforms. TV commercials blitzed screens and posters adorned buses and billboards. Viral videos attracted millions of views on YouTube. Samsung, the official and exclusive worldwide partner for wireless communications equipment, gave out 2,500 free phones to the athletes, who then used them in the opening and closing ceremonies to take pictures and videos in front of millions of viewers worldwide. In one of the funniest moments, the the London Symphony Orchestra started playing Chariots of Fire. As the familiar repetitive organ note began, we see that it's comedian rowan Atkinson. Allah. Mr. Bean sitting in with the orchestra, playing the note with one finger. In true Mr. Bean fashion, he becomes bored and pulls out his Samsung phone. He checks emails, becomes completely distracted and starts taking selfies. It was a virtuoso performance starring Samsung. BMW supplied the cars, coked the sodas. McDonald's was the only restaurant allowed to sell French fries on the grounds. All ATM machines were changed to Visa, and Omega provided all official timing. And even though the worldwide sponsorship partners paid over $100 million each to participate, with the next tiers paying $40 million each, all this sponsorship revenue still only covered 40% of the cost of staging the Olympic Games. While it is one of the great honors to host the world for the Olympics, it comes with a great price tag. And faster, higher, stronger, has no option but to become pricier, steeper, costlier. The Olympic Games were founded on the principle of uniting the world peacefully through sport. And one underlying and perhaps ironic aspect of that principle is tension. The tension as nations compete against nations, as athlete competes against athlete. And the tension as the need for sponsorship money competes against the Olympic ideal. The cost of mounting an Olympic event is staggering. The 1928 Games cost $25,000. The 2012 London Games cost 14.5 billion. Every host country feels the pressure to put on a world stopping show and to pull it off. They need massive revenue intake. And that is why advertisers will have a larger and greater presence in the Olympics. As time marches on, governments can no longer foot the bill. Ticket sales provide only a small portion of the revenue. And even though comcast just bid $4.4 billion for the broadcast rights to the next four Olympics, it's still not enough to pay the bill. I predict we'll see sponsorship money tip over the 50% mark by 2018. There's no other way to pay for the Olympics unless we all agree to scale down our expectations. But that won't happen. The Olympics demand spectacle, spectacle demands sponsors, and sponsors demand international audiences. And one thing is for certain. The cost of the Sochi Olympics will set a new world record. When you're under the influence, I'm Terry O'Reilly.

[Unnamed Commentator]

Hello, Mr. O'Reilly. This is the Olympic Sponsorship Committee calling. We're proud to offer under the Influence the title of official marketing radio show of the Sochi Olympics. Congratulations. The invoice for $40 million will be forwarded to your attention shortly. Again, a hearty congratulations.

[Terry O'Reilly]

Under the Influence was produced at Pirate Toronto sound engineer Keith Oman. Theme music by Ari Posner and Ian Lafever. Series coordinator Debbie O'Reilly. Llama Balogi. By the way, I know you've been dreaming of wearing an under the Influence T shirt. Or maybe I was dreaming that. But anyway, we have them for sale on our shop page. And if you listen to the show while sipping a tea or a coffee, have we got the mug for you? Go to terryoriley Ca shop. See you next week.

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[Unnamed Son]

My dad works in B2B marketing. He came by my school for career day and said he was a big roas man. Then he told everyone how much he loved calculating his return on ad spend. My friends still laugh at me to this day.

[LinkedIn Advertiser]

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