The 2024 Summer Olympic Games in Paris are on track to achieve their $1.34 billion sponsorship revenue target, according to a new research from Ampere Analysis examining the performance of sponsorship sales in the run-up to the Paris Olympics, which starts at the end of the week. This amount would signify a 60% increase compared to the Tokyo Olympic Games of 2020. Furthermore, the broadcast and streaming media rights for the 2024 Olympics are anticipated to reach $3.3 billion, marking a 6% increase over the previous event.
A significant portion of this revenue is concentrated in a few key markets. The USA, China, Japan, and the big five European markets (France, Germany, Italy, Spain, and the UK) collectively account for over 80% of the combined media rights and sponsorship value. Specifically, these eight countries contribute 75% of the media rights value ($2.5 billion) and 98% of the $1.34 billion sponsorship income.
Media rights currently represent the more substantial revenue stream, comprising 71% of the total revenue generated from sponsorship and TV deals. However, the gap between media rights and sponsorship income is narrowing. In 2020, the International Olympic Committee (IOC) earned nearly four times more from media rights than from sponsorship. By 2024, this ratio is expected to decrease to 2.5 times, thanks to significant sponsorship deals with companies like Airbnb, Alibaba, and Mengniu Dairy.
Notably, two-thirds of the sponsorship income for the Paris Olympics comes from companies based in the US, France, and Japan, with Chinese brands also contributing significantly. Chinese companies are the third-largest source of sponsorship income for the Paris Olympics. This trend mirrors the recent UEFA European Championship in Germany, where Chinese sponsorship dominated, securing five of the 13 top-tier sponsor positions, up from three in 2020 and one in 2016.
Chloe Ng-Triquet, Sponsorship Researcher at Ampere Analysis said: “Although media rights is still a bigger contributor to income, sponsorship revenue from eight major markets (USA, China, Japan, France, Germany, Italy, Spain, and UK) is driving growth for the IOC. We are seeing more global entities leveraging major sporting events to support their brand-building objectives, with the aim of reaching consumers in new markets and strengthening their presence in existing territories. Historically, the Olympics has always successfully attracted global sponsorship investment, especially for sponsors looking to drive brand awareness in foreign markets. It is clear from the scale of investments this year that brands are hoping that the Paris event will provide the visibility and prestige that they can capitalize on.”
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