Internet Dispute in China Olympics
Thursday, September 6th, 2007A major issue for Olympic sponsors has been brewing for months as the Beijing Olympic Committee for the Olympic Games, BOCOG, has publicly supported Sohu.com in a disagreement over the right for Olympic sponsors to advertise in China via the Internet. Apparently, BOCOG sponsors are only allowed to use the BOCOG “running man logo” on Sohu.com and not on other Web sites for use in the China market in support of the 2008 Olympic Games.
Sohu.com reportedly paid $30,000,000 in 2005 for the right to become a BOCOG sponsor and host the official BOCOG Web site. Sohu.com is reportedly the ninth largest Internet enterprise with a 2.5% market share in China.
Geoffrey Fowler and Juliet Ye of the Wall Street Journal have written two articles regarding the issue: “An Olympian Web War in China” and “Olympics Organizers Back Sohu in Ad Dispute”.
Limitations on sponsor activation hinder the effectiveness of achieving a successful ROI for corporations. Stakeholders need to review their offering to sponsors and increase the ability for sponsors to engage and immerse their brands into the experience while decreasing sponsor clutter.
The impact of the Sohu.com exclusivity could cause substantial harm. Hopefully, future Olympic organizers and other major events will consider the ramifications of limiting the potential marketing value for sponsors.
Please email me with any thoughts on this post or ideas you want to share.
Terry Cecil
ISC