Morning Brew - ☕️ Sponsorship blues

Tough year for Olympics sponsors.
Morning Brew July 26, 2021

Marketing Brew

Morning Consult

Good afternoon. We promise you’re not the only one having a hard time finding Olympic handball across three different streaming apps.

In today’s edition: 

  • No good, very bad year for Olympics sponsors
  • What’s up with Clubhouse?
  • Earnings, one year later

— Phoebe Bain, Minda Smiley, and Ryan Barwick

SPONSORSHIPS

Not up to par

image from an Etsy campaign that shows a boy holding up a quilt

Etsy

There are two types of people in this world Olympics ads: ones from sponsors, and ones from non-sponsors.

Commercials from sponsors like Airbnb, Bridgestone, and Toyota are free to mention the Games and splash the five rings across their messaging. But as we wrote about recently, brands that aren’t sponsors have to be pretty careful when it comes to what they can (and can’t) show + say.

  • That’s why many of the ads running over the next couple of weeks will only allude to the Games. Like Etsy, which recently debuted a campaign, with help from creative agency 72andSunny, that celebrates individuals who follow their dreams. 
  • “Our creative makes parallels to athletes and makers,” Carlo Cavallone, 72andSunny’s global co-chief creative officer and partner, told Marketing Brew. “Etsy was keen to come out with a meaningful message at this time of the year.”
  • Etsy can continue running the campaign post-Olympics. “For Etsy, the message aligns beyond the games and leaves the opportunity to activate on a campaign like this going into 2022 or beyond,” Athelo Group CEO and founder Andrew Stallings told us.

But for sponsors, being able to explicitly mention the Games in their ads is one of few perks they can enjoy in a year where no one can actually go to the Olympics due to Covid-19. “A lot of the sponsors are going to be hugely disappointed,” Rick Burton, professor of sports management at Syracuse University, told us. “They’re not going to get the bang for the buck that they expected. But there’s almost no one they can blame.”

Pretty penny

Brands pay lots of $$ to sponsor the Olympics (around $200 million for a four-year deal, per Bloomberg), but the wining, dining, and sightseeing that typically come with said sponsorships have all but disappeared this year. 

“Companies that are big sponsors were hoping to entertain all their VIP guests in Tokyo. They would have had signage all over Tokyo,” Burton said, adding that their “presence” at the Olympics is now restricted to what they can do online and through TV advertising. 

Burton expects the International Olympic Committee (IOC) to provide some type of make-good to sponsors as a result.

on the Games

Dipanjan Chatterjee, vice president and principal analyst at Forrester, told Marketing Brew that “an audience-free event will not materially affect the brands in terms of viewership. What is more important is what the remote viewership number will end up looking like.”

  • So far, the numbers aren’t...great. Around 17 million Americans watched Friday’s opening ceremony, a 36% fall from the 2016 Games, according to figures NBC shared with The Wall Street Journal.
  • To be fair, that’s in line with other pandemic-era broadcasts. The 2021 Super Bowl hit a 15-year ratings low, per MarketWatch.

Regardless, “the official sponsors will feel the sting of not participating in the many networking and similar events that are typical at these Games,” Chatterjee said.—MS and PB

        

SOCIAL MEDIA

Do marketers still care about Clubhouse?

Clubhouse app on phone with Elon and Kanye as speakers

Francis Scialabba

As Regina George’s mom once (probably) said, “What’s the 411 on Clubhouse? What has everybody been up to? What's the hot gossip?”

  • Last week, the app said it’s officially exiting beta. That means Clubhouse is no longer a VIP section—you don’t have to know an insider to get in.
  • The news comes as Clubhouse users in many parts of the US are returning to live events—you know, places where you hear people speak IRL rather than listen to them through your iPhone (or Android—Clubhouse is finally available there, too).

Why it matters: In the early months of 2021, marketers were starting to wonder if Clubhouse would be the next hot marketing platform (companies such as cognac brand Martell and Cash App tried it out). So we caught up with a few to see how they’re feeling about the app’s longevity in light of its latest update.

Some marketers think in-person events pose a challenge: “They have way higher tailwinds with IRL experiences returning,” House of Wise founder Amanda Goetz told Marketing Brew, adding that “listenership will come from the talent they can secure (similar to how Spotify got Call Her Daddy and Joe Rogan).”

But others think the beta exit = a silver lining. Click here for other hot takes.—PB

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AGENCIES

The ads are all right

investing

Ian McKinnon

In 2020, advertising’s holding companies had a pretty rough Q2. WPP, Omnicom, and Publicis Groupe all saw double-digital revenue declines, while IPG’s fell nearly 10%. This year, they’re singing a different tune. 

  • Last week, IPG reported organic revenue growth of 19.8% for Q2 2021. The holding company, which owns agencies like R/GA and McCann, said it expects organic revenue to grow 9-10% this year.
  • Meanwhile, Publicis Groupe posted 17.1% organic growth, while Omnicom—whose agencies include BBDO and TBWA—increased 24.4%.

But they’re not out of the woods just yet. Despite its “very strong second quarter,” IPG acknowledged that the “pandemic continues to pose a risk to the macro environment in many parts of the world” in its earnings statement. Similarly, Omnicom said “global economic conditions will continue to be volatile as long as the COVID-19 pandemic remains a public health threat.”

Zoom out: The earnings flow in as holding companies contend with a competitive labor market. Last month, Simon Fenwick, EVP of talent equity and inclusion at the 4A’s, told Ad Age that younger workers are opting to join independent agencies over holding company ones.—MS

        

WHAT ELSE IS BREWING

  • Crocs is suing Walmart, Hobby Lobby, and several other companies for copying the brand’s clogs.
  • Caesars Entertainment and the New Orleans Saints have announced a 20-year deal to name the team’s iconic stadium the Caesars Superdome, which will cost ~$6.9 million annually.
  • McDonald’s has released a campaign for its new loyalty program. 
  • Disney is getting a $580-million tax break for transferring 2,000 jobs from California to Florida.
  • Bumble’s NYC cafe opening is delayed because of “unexpected construction elements.” I guess that’s something you could bring up on a first date?

SPONSORED BY DOTDIGITAL

dotdigital

Once you go multichannel, you never go back. Dotdigital transforms your customer insight into personalized marketing campaigns across SMS, push notifications, live chat, and social ads. So whether you work in B2C, B2B, or NFP, dotdigital is the single platform you need to reach new multichannel peaks. Book a demo today

FRENCH PRESS

French press

Francis Scialabba

There are a lot of bad marketing tips out there. These aren't those.

SEO: Did you know YouTube is actually the second largest search engine on the web? Its parent company Google must be so proud. Retaining some knowledge from a quick guide on YouTube SEO could make your boss proud, too. 

Email: We’re biased, but email marketing doesn’t get enough love…but this infographic detailing the email marketing funnel is an exception to that rule. 

Instagram: Whether you’re all in on Instagram or are team TikTok through and through, here’s everything you need to know about Reels ads. 

Red alert: There’s an easy way to reach podcast listeners. RedCircle lets you target the right demographics and measure the right metrics across thousands of independent shows, all with just a few clicks. Learn how to plug and play your brand here.*

*This is sponsored advertising content

AD ANTIQUES

vintage United ad

Vintage Ad Browser

CEO: “All right, team, we’ve got these new flights to Australia: a country rich in iconic imagery, sweeping landscapes, and eye-watering natural beauty. We need something that’ll capture it all.”

Marketer: “I’ve got just the photograph.”

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Written by Minda Smiley and Phoebe Bain

Illustrations & graphics by Francis Scialabba

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