Economics of Olympic Advertising

The Olympics, while a global event, are advertised differently in different countries. When examining this advertising, it is important to remember what parties benefit the most from advertising the Olympic games. With the Olympics being one of the most-watched televised events of the year, broadcasting stations are the first to come to mind in terms of benefitting from advertising. In the United States, NBC entered into a $4.38 billion contract for broadcasting rights, but in Russia, host country of next year's Winter Games, a triumvirate of government-owned television stations hold these rights. The differences between these entities can clearly be seen in their advertising efforts for the upcoming event.

The above image is one most commonly used in Russian advertising for the Sochi Olympic Games. It features the official logo of the games, and is also used by the networks that will be broadcasting the games. However, this image has no outside advertising material on it whatsoever and reflects only the official graphics designed to promote Russia's image in the games. 

This image, while similar visually to the Russian logo, is an example of NBC's marketing approach to the 2014 Olympic Games. Because NBC not a government entity, they are concerned with the profitability of their broadcast as a return on their immense initial investment. 

Primarily, the difference in advertising and marketing between these organizations stems from economics. As explained here, NBC's race to ensure that advertising during the broadcasts of the Olympics is indicative of a dire need to ensure profitability of their contract. The Russian broadcasting stations, on the other hand, have no such incentive. Because they are government-owned, there is no need to guarantee separate funding for these news stations, thus no need to include a logo or broadcasting information in the image for the games. Money from Olympic sponsors will still ultimately be used by the government to promote Russia's image in this event.

In order for NBC's investment to be a success, not only do they have to gain the backing of many advertisers, but they also need to guarantee those advertisers a large viewing audience. Because the initial contract ensured NBC primary coverage for the next 4 Olympic Games, the audience during Sochi will determine whether or not advertisers decide to continue their support of NBC's coverage. Russian broadcasting companies have no such concerns. The main three stations did not make any investments to broadcast the games, and their advertising will not be determined by the viewers of the games. On the contrary, it is the Russian government that has invested the most in both hosting and broadcasting the Olympic games, thus their marketing materials seek to reflect the Olympic spirit of the games while promoting Russia's image worldwide.

Coca-Col-ization: How Coca-Cola Advertising Embodies Glocalization

Yes, you read it right.

Glocalization is a more precise term for the its well-known counterpart, globalization. Before discussing its use in Coca-Cola's advertising, there's a distinction to understand:

  
   

• GloBALization:
• Connection of many cultures that forces homogenization of all cultures.
• Culture 2 transforms to mimic Culture 1.

• GloCALization:
• Products and ideas intended for a global market, but customized to suit local cultures. 
• Culture 2 is affected by Culture 1, but retains some original qualities.

A perfect example of a company harnessing glocalization to advertise to a huge, diverse audience is The Coca-Cola Company.

Check out this Coca-Cola advertisement from their Happiness Without Borders campaign:

Coca-Cola Small World Machines - Bringing India and Pakistan Together 

by The Coca-Cola Company

The video exemplifies both specific trends of effective mass communication and the social process glocalization.

Mass Communication Trends & Effects:                                                               

• Political controversy
• Audiences like conflict. It’s interesting.
• Here, the ad portrays Coca-Cola as a global product that may solve tension between India and Pakistan. 

• Agenda-setting
• The media’s ability to influence what publics think about
• In this case, shedding light on the conflict.

• CNN Effect
• The ability, through emotional video, to elevate distant issues on the domestic public agenda
• Because of the footage in the ad, viewers worldwide feel sympathetic and action-minded toward the situation.

Glocalization:

• By placing the "Small World Machine" in a rural environment, the technology is exciting and novel. So, Coke extends that global image in a local setting. 

• The theme of the video also corresponds with Coca-Cola's ad campaign: "Open Happiness."

Final five seconds of "Coca-Cola Small World Machines"

While Coca-Cola narrowed the content to fit local groups, their "happy" brand remains potent. From individuals drinking Cokes and laughing to the final slogan, neither the American brand nor the locals completely conformed to the other's culture. 

Instead, Coca-Cola combined the local culture with its global trademark and created a perfect example of glocalization in mass communication. 

Check out the full sources for more info.

• Sources used in this article:
• "Defining Glocalization" by The Global Policy Forum
• "Global Modernities" (Chapter 2: Glocalization: Time-Space and Homogeneity-Heterogenity) by Roland Robertson
• "Glocalization as Globalization: Evolution of a Sociological Concept" by Habibul Khondker
• "Happiness without Borders" by Jay Moye
• "The Media of Mass Communication" by John Vivian
• "Transnationalism, Cosmopolitanism and Glocalization" by Victor Roudometof