Sponsors balance marketing, idealism

ATHENS, Greece (AP) -- As a logo it is simple. As a marketing symbol it is among the most powerful in the world.

The five interlocking Olympic rings have the kind of universal recognition companies dream about, and are willing to pay millions to have their brand names associated with them.

The Olympics that ended Sunday were the biggest and most expensive, with 11,100 athletes from 202 countries competing in 28 sports. The cost so far has run to at least $8.5 billion. No country, let alone a small one like Greece, could ever afford to host a sports event on such a massive scale were it not for corporate sponsorship.

But Greek officials had promised the games' return to their birthplace would renovate Olympic ideals that they said had been lost in a deluge of commercialism, typified by rampant marketing at the 1996 Atlanta Games.

Striking a balance between marketing and idealism can be difficult.

"They need money from the sponsors, otherwise they cannot operate the Olympic Games," said Il-Hyung Chang, senior vice president of Samsung, one of the 11 international Olympic sponsors. "But at the same time, they restrict the sponsors' marketing activity. So it's a kind of conflict."

In Athens, the corporate sponsorship program yielded $685.6 million, covering 29 percent of the organizers budget, the Athens 2004 organizing committee said.

According to the Olympic charter, "all Olympic events must take place in an environment that is free of commercial, political, religious and ethnic influence, as well as any kind of publicity."

That means all venues are advertisement free, no matter how many millions of dollars sponsors have paid. Still, the amount of recognition a company gains simply by being associated with the games makes it worthwhile.

"We regard these Olympics as a kind of premium marketing platform," Chang told The Associated Press.

Samsung also sponsors other international sports events, such as the Asian Games and soccer's World Cup, where sponsors display their brand names throughout the stadiums and there are no restrictions on direct advertising.

"They allow more marketing, but the value that the (Olympic) Games can give to the general public is a little bit different," Chang said.

Although it costs millions of dollars to be an international sponsor for the Olympics, many companies believe linking their brand name to the games is worth the price.

"The Olympics has a ... prestigious image. We want to take that kind of image from the Olympics to our company corporate image," Chang said. "The Olympic Games are amateurism. So even though they restrict marketing activities, the sponsorship ... gives us a greater chance to elevate our image as global corporate citizens and as a very prestigious company."

Panasonic, which provided video screens and audio equipment for the 2004 games, agrees.

"Once we look at the Olympics, it's not only the exposure. The fact itself that we support the event creates more a social responsibility, recognition as an image," Panasonic marketing team leader Ned Itani said.

For some companies, the ban on direct advertising -- what is known as the "clean venue" policy -- is part of what makes sponsoring the games so attractive.

"The Olympic venues in and of themselves, where there are no signs hung, really helps set the Olympics apart, and that's part of why they're so unique," said Scott McCune, Coca-Cola's vice president of world wide sports, entertainment and licensing.

Although there is no direct advertising in the stadiums, "all the consumers and fans that go to the Olympics have the opportunity to be drinking Coca-Cola while they're watching the Olympics. And that's really the experience that we're looking for," McCune said.

"The Olympics is truly a global property, yet it has local presence in all of the countries through the national Olympic committees. And Coca-Cola is certainly a global brand that is relevant in 200 plus countries around the world. So structurally, it's a very good match," he added. "And then from a branding standpoint, both Coca-Cola and the Olympics share some very important values."