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Super Bowl vs. Olympics
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January 12, 1998: 11:31 a.m. ET
Do Winter Games sack part of Super Bowl's ad revenues?
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NEW YORK (CNNfn) - When Nissan Motor Corp. USA worked out 1998 marketing plans with ad agency TBWA/Chiat Day, the perennial Super Bowl advertiser decided to forgo NBC's broadcast of this year's game.
That's because Nissan, which has advertised in the previous two Super Bowls, opted instead to buy air-time for the XVIII Olympic Winter Games, scheduled to air Feb. 6-22 on CBS.
From the advertiser's perspective, the Olympic Winter Games will arguably reach the same audience as the Super Bowl -- only more efficiently, according to Nissan and TBWA/Chiat Day officials.
The Super Bowl "has a large viewership, but (the Winter Olympics) have a larger potential for expansion of viewership because (the Games) are over a two-week period," said Deborah Sanchez Fair, a corporate manager at Nissan's consumer division.
Clash of the titans
This winter's two marquee sporting events must go head to head for ad revenues because there are only so many advertising dollars to go around, ad-industry officials say.
But Bob Igiel, director of the U.S. broadcasting at ad agency Young & Rubicam noted that because the Winter Games only occur quadrennially, "it only means that the Super Bowl is impacted every four years."
TV executives expect the Super Bowl XXXII, scheduled to air Jan. 25, to draw about 130 million viewers. Despite a hefty price tag of $1.3 million for a 30-second spot, General Electric-owned NBC sold out advertising time for the event back in November.
Similarly, CBS has sold nearly all available ad time for the Winter Olympics, garnering an estimated $550 million in revenue, according to people familiar with the situation.
Ad executives point out that the two sporting events' audience demographics aren't exactly identical.
Both deliver upscale adults, but the Winter Olympics attract younger households, and particularly draw female viewers.
"The female audience may have a greater interest in the Olympics because of the competitors and the type of sports involved," said Bruce Blair, sports-media director at ad agency Leo Burnett.
While many of Madison Avenue's clients, such as AT&T and KFC, take advantage of both events, Nissan and others with lesser ad budgets often choose between the two.
Even the cola wars face budgetary constraints.
Industry watchers expect PepsiCo Inc. to use the Super Bowl to roll out the company's newest beverage logo, known as "Globe," although the soft-drink giant does not plan to buy any Olympic air time.
By contrast, arch-rival Coca-Cola Co. is planning a marketing blitz for both events, but is giving the Olympics Games a starter position, planning a reported $60 million campaign to promote the company's Minute Maid brand.
Which event offers the best 'image'?
Choosing which event to advertise with involves several factors.
Ad executives say official sponsorship may play a determining role in deciding which event gets a company's advertising dollars.
"You must remember, in the Olympics there is exclusivity involved," Y&R's Igiel said, noting the Olympic organizers declare many wares "official" products of the Games.
As well, experts say that because the Olympics occur only once every four years, advertising with the Games can boost a corporation's image.
"I ... suspect there is a little bit of prestige in all of this," said advertising and marketing consultant Peter Tannen.
-- by staff writer Robert Liu
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