What return on investment is expected for sponsors?

63 national sponsors of the event have expressed their commitment to the Paris 2024 Olympic Games. The amounts invested to be part of the sporting adventure are remarkable: an average investment of 20 million euros per sponsorand sums amounting to up to 90 million euros on average for the 7 national premium partners (Accor, Groupe BPCE, Carrefour, EDF, LVMH, Orange and Sanofi). What are the expected returns from these investments? Circle Strategy, a strategy consulting firm, shares these estimates.

Exceptional media reach

With the increasing media reach of the Olympic Games, the return on investment is measured first and foremost by the visibility offered to sponsors. Circle Strategy estimates that a total of 464,000 hours of broadcastingcompared to 367,000 for the Tokyo Olympics (2020) and 181,000 hours for those in London (2012).

Sponsoring companies, main beneficiaries of the image of the Olympic Games

The 63 sponsors are expected to benefit significantly from their association with the Olympic Games, notably through increased visibility and the alignment of their brands with the strong values ​​conveyed by the event. Thus, 90% of French people consider Olympic sponsorship effective in increasing a company’s goodwill. The latter’s presence alongside Olympic and Paralympic athletes allows it to unveil its products, services and societal commitment to the general public. It also strengthens its internal cohesion, since The resulting feeling of pride is shared by 84% of its employees.

“The events convey strong and inspiring values: courage, competition, surpassing oneself. 71% of French people have a very positive image of the Olympic Games. The sponsors are the big winners of this exceptional notoriety. Alongside the athletes, it is their brands that climb the steps of the podium!” says Jean-Marc Liduena, Managing Director of Circle Strategy.

Long-term business opportunities

Even before the Games begin, the partnership already provides rare benefits. Sponsoring companies now benefit from an exclusive right to use the JO 2024 brand. They will also have access to select spaces, privileged contacts with the athletes of the French Olympic and Paralympic Team and the players in the Paris 2024 ecosystem.

A 25% tax exemption also applies to investments. Of the 1,225 million euros invested by national sponsors for the Paris 2024 edition, the French State is therefore indirectly financing a significant portion of the Olympic Games, since The tax exemption will result in a total reduction in tax revenue for France amounting to 306 million euros in 2024.

And as Jean-Marc Liduena concludes: “With an average investment of 20 million euros per sponsor, these 63 companies have put in the work to be at the forefront of the Seine! The return on investment will be measured over time. The Olympic Games will trigger new, sustainable and profitable revenues and the conquest of new customers. Of course, the sponsors are also strengthening their relations with the public authorities.”

National sponsors should ultimately be rather visibility winners on the investment made and this will prove itself more in timeaccording to the Circle Strategy study.