The Rio de Janeiro Olympic Games benefited greatly from two new sources of money in the sports advertising sponsorship market.
According to estimates of French L’Expansion Economic Magazine, the Olympic Games will break the record of revenue. It was estimated that the money this Olympics earned from television rights is 4.1 billion euros, almost double that of the previous Olympics in London. Video images were generating a lot of money, because the Internet infrastructure is now strong enough for Facebook and YouTube to start competing directly with broadcasters.
Facebook has been pouring money into sports tournaments since offering live television services. The Facebook logo has appeared on the athlete’s shirt in many sport tournaments including the Rio 2016 Olympics.
“Traditional television pays money to transmit a whole game or transmit a competition, and YouTube, Facebook and Twitter websites focus on buying outstanding excerpts from that ball or contest.”
The second largest source of money comes from countries that are in need of improving their position and image in the world, namely “China, Brazil, Russia, Kazakhstan, Azerbaijan, Malaysia, South Korea, Singapore, etc. Since recent years, these countries have poured money to advertise and sponsor, making sports revenues and the Olympic Games skyrocketing, but the amount of sponsorship and advertising from Western countries has increased but not mutated. Countries from Asia are also seeking to build “soft power”, by “hosting sporting events, increasing sponsorship, acquiring European clubs and increasing investment in top-notch sports in water”.
Daily Mail said that the Rio de Janeiro Olympic Organizing Committee is lucky, benefiting from these two new sources of money. Adding money from websites and from emerging countries, while traditional revenues from television and developed countries remain unabated, the proceeds are hopefully enough to cover the cost of more than 12 billion USD spent on this Olympics.