The Olympics are not only a sporting event, but also a carnival of advertising
As athletes struggle to reach the Olympic podium, another battle is raging on the edge of the venue.
Over the next dozen days, companies from around the world will gather in Rio to grab attention. Brands such as Coca-Cola, Visa and Samsung are already embarking on advertising, athlete sponsorship and company logos in Brazil's apparel and venues.
Most companies will use the Olympic Games to make consumers more aware of their brands. Other companies have taken the opportunity to launch exciting new products on the global stage of the Rio Olympics.
So which company's stock will stand out? During the Olympics, of course, the stock market's performance will be even more exciting. Data from market research firm Faceset shows the Dow Jones Industrial Average rose an average of 6.9 percent during the two-week Summer Olympics.
Some of the following companies have seen their share prices rise during previous Olympic Games, and this time, they may do it again.
McDonald's
As the official sponsor of the Olympic Games, McDonald's has the right to use the Olympics' brand in its marketing. The company has performed well in the last four Summer Olympic Games. During previous Summer Olympics, McDonald's stock price surpassed the MSCI index by more than 1.5 percent. In the year after the Olympics, McDonald's stock price will often exceed the benchmark value by nearly 6%.
Earlier this year, though, McDonald's shares slipped as mcDonald's earnings report showed a slowdown in its same-store sales. CEO Steven Eastbrook also warned that the Olympics would not have a real impact on the company, although it was expected to help McDonald's strengthen its brand influence.
nike
Sports kits issued by the United States Olympic Committee to male athletes.
As a well-known brand in the sportswear industry, Nike's stock price has not performed well in the past two Summer Olympic Games. During the two weeks of the 2008 and 2012 Olympics, the company's stock price fell by about 2.77 percent. Tom Nikic, a senior researcher at Wells Fargo, believes that this may be due to the disappointing financial report released by Nike on the eve of the Olympic Games.
However, we at least have reason to pay attention to the performance of Nike stock at this Olympic Games. Nikic writes that the sports brand tries to use the Olympics as a "springboard for innovative products." For example, they introduced flywire and lunar cushioning technology in 2008, and successfully launched the flyknit upper style in 2012.
In addition, According to data compiled by Factset analyst Andrew Justin, Nike's stock price performance exceeded the S&P 500 during the Summer Olympics from 1984 to 2004.
"So while we believe the Olympics are a headwind in the short term, the success of the company's innovative products later this year is key, and it's about the company's ability to develop front-line products and cope with intense competitive pressures (from fast-growing peers like Adidas and under armour)," he wrote. ”
Justin noted that in the year after the Olympics, Nike's stock price will rise by an average of 15.27%, higher than the 9.3% increase of the S&P 500.
Comcast
Another potential big winner for the Olympics is Comcast, the parent company of NBC. They spent $4.38 billion in 2011 to buy broadcast rights to the four Olympic Games before 2020. The Company agreed to broadcast and broadcast all projects, i.e. about 24 hours a day for 250 consecutive days. These include auditions.
About 217 million Americans watched the 2012 London Olympics through NBC's global network. Comcast said in March that the company's advertising sales through the Olympics had exceeded $1 billion, which gave the company hopes to continue to maintain the record of the highest domestic advertising revenue for a single Olympic Games.
Comcast also came up with a solution for the surging entertainment products: x1. This voice-activated black box allows consumers to search for programs using keywords for on-demand viewing. For Comcast, x1 gives them the opportunity to maintain subscribers in the era of "TV pinching.".
In the two weeks of the past eight Summer Olympics, Comcast's stock price has risen an average of 3.7 percent, outpacing the S&P 500 average of 2.32 percent. In the year after the Olympics, Comcast's stock price will rise by an average of 30.3 percent in the year after the Olympics, far exceeding the 9.3 percent gain of the S&P 500.
Comcast recently struck another $7.65 billion deal to become the exclusive broadcaster and broadcaster of the Olympics until 2032.
Credit card company Visa, which is also an official sponsor of the Olympic Games, uses this identity to sell itself widely to consumers.
Visa is also the exclusive provider of payment services for this year's Olympic Games, which means the company will manage the entire payment system for Olympic venues, press centres, Olympic Village and Olympic supermarkets.
On the marketing side, Visa presented the company's advanced technology with visa payment rings to 45 sponsored athletes, including four-time Olympic gold medalist Missy Franklin. The ring wearer pays with just a touch, it doesn't require batteries or charges, and it works up to 50 meters underwater.
However, Visa also lowered its revenue forecast for 2016 earlier this year due to weak oil prices leading to lower payments in the United States and weak growth in commodity-based economies such as Brazil.
But who knows? Perhaps Visa's strong presence during the Rio Olympics will promote the use of visa cards in Brazil.
Under Armour
Although under Armour is not an official sponsor of the Games, they are doing their best to connect with the Games on a global scale – after all, the brand has a relatively weak global presence. On the company's last revenue call, Under Armour stressed that the company already had four times as many endorsers as it did at the London Olympics.
Under Armour provided uniforms for the U.S. women's and men's gymnastics teams and a pair of shoes tailored for Olympic gold medalist Michael Phelps.
According to Reuters, Under Armour also rented several open-air gyms along the beach in Rio to provide daily fitness programs for Fans of the Olympics. The sports goods maker will also host a top-floor party for VIP customers who can network with Athletes sponsored by Under Armour.
But beware, Under Armour will face Nike in Rio.
Author: Luncinda Shen
Translator: Yan Kuangzheng