Sports Business Report: Not Lovin' It
It appears McDonald's is no longer lovin' it. After a 41 year relationship with the Olympic Games, McDonald's has decided to end their partnership with the International Olympic Committee (IOC) effective immediately. It was only a few years ago that McDonald's extended their partnership of both the summer and winter Olympic Games through 2020. However, it appears that the 2018 Pyeongchang Winter Games in South Korea will mark the last for Ronald's favorite burger joint.
While the decision to end the relationship was based upon "different business priorities", it is more likely a result of declining return on investment. Simply comparing the viewership numbers from the most recent games in Rio de Janeiro to the 2012 London summer games paints a pretty somber picture for advertisers.
Simply put, it appears the appeal for the Olympics is waning. NBC's telecast of the games had fewer viewers than two NFL wild card games.
Further complicating matters for the IOC is apparent disinterest among cities for hosting the games. There were a grand total of 2 choices for the 2022 Winter Games, Beijing, China (host of the 2008 Summer Games) or Almaty, Kazakhstan (home to Borat). That is pretty slim pickings for one of the largest international sporting events on planet Earth.
No word yet on a possible replacement for the fast food giant, but hopefully they order a happy meal.
Sources:
http://www.sportsbusinessdaily.com/Daily/Issues/2017/06/16/Marketing-and-Sponsorship/McDonalds.aspx
http://www.sportsbusinessdaily.com/Journal/Issues/2016/08/22/On-The-Ground-in-Rio/Rio-NBC.aspx
Interesting to see old McDonald step out of such a big event. I hadn't heard anything about this.
One thing though. I don't think I would call the Winter Olympics "the largest international sporting event on planet Earth."
Unless you meant it as the largest winter sports even. Regardless though, having only two choices doesn't speak well for it.
Just referring to the Olympics in general as it relates to global involvement....only other event that qualifies as such is the World Cup.
Yeah the olympics have long lost their appeal for me. There are too few exciting events like the 100m.
Maybe if they made soccer open to all ages or if there was more promo around the athletes and events. Right now the marketing is non existent.
It will be interesting to see how the new 3 on 3 basketball works out in the next summer games.
Glad to finally found your page @mktprof