Our news MEC shows Coca-Cola and Adidas as Beijing 2008 sponsorship winners

Friday 19 September 2008

Latest research from Mediaedge:cia, a leading media agency, reveals the value of the Beijing 2008 Olympics for its official Global Partners.

The Beijing 2008 Olympic Games have been heralded as a resounding success for China, the organisers and athletes alike. But for the 12 brands that were the official Global Partners of the Beijing 2008, spending a total of $866m on their sponsorship, did it really deliver on their aims?

Overall, the 12 official Global Partners collectively increased awareness of their brands amongst Chinese consumers by 84%, an average 7% increase per brand. But amongst these Global Partner brands there were considerable differences in the success they had in raising consumer awareness.

Of all the Global Partners, Coca-Cola was by far the most successful brand in leveraging its sponsorship. Chinese consumers reported a 19% increase in their awareness of the brand after the Olympics in comparison to before, with nearly 60% of all Chinese consumers in September being aware that it was an Olympic sponsor. This is in part attributed to Coca-Cola's long-standing sponsorship of the Olympic Games having been continually affiliated with the Olympic Games since 1986. The crucial difference for Coca-Cola was its investment in activation of its sponsorship.

Coca-Cola trebled its monthly spend in the six weeks leading up to the opening ceremony and continued its investment throughout the period, with the brand spending 1.4m RMB on above-the-line advertising, nearly 20% more than any of the other of the 12 Global Partners. Crucially this investment paid off for Coca-Cola with 50% of Chinese consumers confirming they thought more positively about the brand and 37% claiming they would be more likely to buy Coca-Cola.

Yet where Coca-Cola succeeded, other Global Partners failed to achieve similar levels of uplift in consumer awareness. The two brands which truly captured the attention of Chinese consumers were a Tier Two Partner and a brand that was not an official sponsor of the Olympic Games at all; Adidas and Li Ning.

Adidas was the brand that by-far achieved the greatest uplift in comparison to its original awareness, with a significant 24% increase in consumer awareness. This was achieved not only by successfully capitalising on its sponsorship with above-the-line advertising but also through its kit deal which saw all Chinese medalists wearing Adidas sportwear during the medal collection. This was reflected in the amount of consumers that were likely to think more positively and more likely to purchase the brand following the Olympics, with both figures showing an increase of more than 30%.

However, the unexpected brand success story of Beijing 2008 was local sportswear retailer Li Ning. MEC research revealed that consumers’ brand awareness soared from 8% in April 2008 to 21% after the Games. While Li Ning had no official Games sponsor status, the company sponsored the Chinese gymnastics team, while the founder was chosen to light the torch at the opening ceremony. This jump in brand awareness saw Li Ning’s share price rise 6% overnight.

Commenting on the research, Jon Wright, director of MEC MediaLab APAC, said: "Beijing 2008 was the biggest and most significant opportunity to date for brands to capture the interest of Chinese consumers. Our research clearly shows that it’s not just about how much money you have. If brands want to maximize the return of their sponsorship they need consistent, integrated advertising strategies. But it’s not just what you do with an event that is as vast as the Olympics, it is also how you do it. There are six months from the torch relay to the end of the Games, and our research has shown that the brands that succeed are the ones that continually keep their advertising and sponsorship fresh and engaging for consumers."