It’s nearly time for the Summer Olympics again, and this year’s event is set to see fierce competition not only among athletes but also among major brands. According to Ad Age magazine, advertising spend for the games is projected to increase by nearly 8% this year, which is about double the growth of last year. Nike is one of the top spenders, investing more in this Olympics than in any previous ones. Reuters reports that Nike’s marketing expenditure reached $1 billion in the last quarter, marking a 10% increase from the same period last year. Heidi O’Neal, Nike’s President of Consumer Product and Brand, emphasized that marketing is the company’s top investment priority this year.
Nike has recruited notable athletes for its campaign, including U.S. sprinter Sha’Carri Richardson and the U.S. women’s gymnastics team. On the other hand, Adidas is adopting a different strategy by focusing on niche, emerging sports like breakdancing, climbing, BMX biking, and skateboarding. This shift comes as Adidas recovers from its highly publicized split with the artist formerly known as Kanye West and the discontinuation of their successful Yeezy shoe line.
The Olympic Committee hopes that including these emerging sports will attract younger audiences, a demographic Adidas aims to captivate. While the direct impact of Olympic sportswear on sales is difficult to quantify, the association with elite athletes generally boosts brand credibility.
However, the journey isn’t always smooth. Controversy arose when Nike introduced the women’s track and field uniforms for Team USA, leading to criticism over the inclusion of skimpy bikini briefs as part of the uniform options. Despite backlash on social media, Nike responded by stating that the uniforms were developed in consultation with the athletes and included various options. This incident highlights some of the challenges that sportswear brands face, even during the Olympics, from branding mishaps to public relations headaches.
