– General Motors (GM), Procter & Gamble (P&G), AT&T and other major American companies have reduced the costs of television advertising during the Olympic games in 2018, the portal writes MarketWatch citing sources in the companies.
Among the motives this solution is called a shift towards targeted advertising and digital, changing consumer behavior and the lesser popularity of the winter Olympics compared to summer.
Sources in the P&G and AT&T reported that the two companies have cut advertising expenses to winter Games in Pyeongchang at least 30% compared to expenditure in the period of the Sochi Olympics. Previously, both the advertiser reported a significant increase in advertising costs during the previous two winter Olympics.
The representative of P&G stated that the company has managed to find a “more effective” ways of contact with the consumer during the Games. P&G is leading sponsor of the Olympics in 2012, its spending on television advertising in the United States during the 2014 Olympics reached $51 million.
General Motors, spent in the course of the Sochi Games $148 million, will reduce advertising costs by only 10%, reports close to the company source.
According to the monitoring service Kantar Media, GM, P&G and AT&T were the largest advertisers on American television during the Olympic games in 2014.
Sources MarketWatch reported that even Coca-Cola intends to follow the example and reduce advertising costs in the period of the Games in Pyeongchang.
Jefferies analyst John Gandys believes that overall “demand for the Olympics were less than expected at the beginning.”
In the US the Olympics is one of the few events that can bring to advertisers a global audience. However, this year the situation has changed: the attention of fans attracted to a number of other sporting events including the football world Cup in Russia, and the General trend of consumption is in the transition from traditional to digital television services.
NBC Sports, the main channel of the US with broadcasts of the Olympics, expects revenue from advertising on TV and in digital during the Games in Pyeongchang will exceed $900 million, with about 60% will bring in new advertisers.