Olympics ads are worth the money — and the criticism — for companies, experts say

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This article was published 09/08/2024 (639 days ago), so information in it may no longer be current.

Olympics ads and sponsorships can offer big rewards for companies that choose to spend on them — even if those ads spark criticism from some viewers, experts say.

There’s a lot at stake for companies advertising during the Olympics, whether they’re official partners or sponsors, or just referencing the Olympics in their marketing, said Michael Naraine, an associate professor of sport management at Brock University.

“It’s a big swing, but it can be fairly rewarding if done appropriately and done with a measured, strategic approach,” he said.

One sponsorship garnering some criticism online comes from Ozempic, one of CBC’s sponsors for its Olympics coverage.

Ozempic is primarily used to treat diabetes, but it has recently been catapulted to notoriety for its ability to help users lose weight.

“It’s an opportunity to increase their visibility,” said Benoit Séguin, a professor of sport management at HEC Montréal.

He said the strategy to try to link Ozempic with athletics makes sense even if the company knows not all viewers will agree.

“I’m sure they knew what they were doing,” he said.

Some doctors and medical ethics experts have previously expressed concern over Ozempic’s marketing, worrying its saturation in advertising could lead to more widespread use than is appropriate.

Ozempic is very limited in how it can advertise, said Naraine, and so by sponsoring CBC’s Olympics coverage it’s likely hoping to maximize visibility.

Negative feedback from viewers is something Ozempic maker Novo Nordisk would’ve likely anticipated, added Naraine, but “any publicity is good publicity.”

Kate Hanna, a spokeswoman for Novo Nordisk, said the company’s advertising “undergoes rigorous internal and external reviews, including evaluation for compliance with the Canadian Code of Advertising Standards and preclearance by Advertising Standards.”

“As an organization dedicated to investing in chronic disease prevention and promoting physical activity and healthy living across Canada, we are proud to support Olympics broadcast coverage in 2024,” she said in an email.

She also noted Ozempic was approved by Health Canada for type 2 diabetes and is not approved for chronic weight management.

Betting app BetRivers is another company whose Olympics-related marketing has garnered a few critics, with ads featuring jokes about “solo synchronized swimming,” seeming to imply it’s an outdated sport, with former sports broadcaster Dan O’Toole saying, “Thankfully, games have evolved.”

Solo synchronized swimming has not been an Olympics event since the early 1990s. According to the Olympics website, synchronized swimming is now called artistic swimming, and the Games feature team and duet events, but no solo competitions.

For BetRivers, the objective is similar to Ozempic’s: to raise awareness in a very competitive space, said Naraine.

“We’ve seen that strategy for sports betting companies, not just here in Canada, but really globally, is that they really try to create that sort of edgy … kind of dark humour,” he said.

Sports betting companies also have restrictions on how they can advertise, he said. To stand out, “you’ve got to try something different.”

BetRivers spokeswoman Sheri Papps said the company is proud to partner with CBC as the exclusive online casino advertiser for the Games.

“Our new ads take viewers through the evolution of sport, showcasing past sports and reflecting our fun and celebratory brand voice,” she said in an email.

Non-rights holding sponsors like Ozempic and BetRivers“help mitigate the costs associated with broadcast rights and production. Without the support of advertising, coverage of the Games simply would not be possible,” CBC spokesman Leon Mar said in an email.

He added that all of the Ozempic ads have been reviewed and approved by independent self-regulatory body ThinkTV and by Ad Standards Canada.

Though the Olympics offer a much bigger audience for companies, they still need to consider their target audience, said Kenneth Wong, a faculty member at the Smith School of Business.

Some people might not like BetRivers’ Olympics ads, but its target audience is likely not in that group, he said.

Wong noted Ozempic is under heavy restrictions for what it can say in its ads, and is essentially just trying to keep its name and logo out there via the sponsorship.

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“Ozempic has every right to buy a segment and to be considered a partner,” he said.

If a viewer already has a bad opinion of a company, they’re not likely to react positively to their ads, said Wong.

“If you don’t like gambling, you probably object to these ads,” he said.

“If you object to the idea of a weight loss drug, you’re going to object to Ozempic being just about anywhere.”

This report by The Canadian Press was first published Aug. 9, 2024.