Today’s postponement of the 2020 Olympic Games is the latest casualty of the coronavirus pandemic, with deep social, psychological and economic implications. Not only are the Olympics highly anticipated by the athletes who have trained for years and the fans around the world who cheer them on, but for media rights holders and brand marketers as well.
What does it mean?
Here in the U.S., experts are predicting NBC could lose $1.25 billion in advertising revenue as a result, and once again summer television viewing will be characterized by endless reruns and low broadcast ratings. Likewise, global sponsors like Coca-Cola, Visa and Samsung will be scrambling for alternative ways to connect with consumers.
This cancellation is one of several blows to media companies since the global coronavirus pandemic was announced. First they faced supply issues due to high demand and low ratings from audience fragmentation. Now it’s higher ratings due to unprecedented interest in the breaking news of the day, coupled with high supply due to brands pulling their media dollars in the wake of coronavirus.
What should marketers be doing?
With the Olympics postponed, more inventory will now be available July/August as NBC tries to fill the Olympic advertiser void. This means lower broadcast spot pricing overall and the perfect time for brands who want to be on air to take advantage of an advertising buyer’s marketplace.
With more broadcast inventory available at lower prices, is now the right time to revisit your paid media approach? It just may be.