Olympic Marketing Structure Before focusing on the Beijing 2008 Olympic Games marketing programme, this section provides a brief overview of the Olympic marketing structure. The Olympic marketing programme has become the driving force behind the promotion, financial security and stability of the Olympic Movement. The Olympic Movement receives most of its funding through the sale of broadcast rights to the Olympic Games. It also benefits from The Olympic Partnership ( TOP) worldwide sponsorship programme, comprising many of the world's most well known multinational companies. Objectives The Olympic Movement revenue generation programme is designed to meet the following objectives: To ensure the independent financial stability of the Olympic Movement To create and maintain long- term marketing partnerships To ensure equitable revenue distribution throughout the entire Olympic Movement To ensure that the Olympic Games can be experienced by the maximum number of people throughout the world, principally via broadcast to TV and digital media platforms To protect the equity that is inherent in the Olympic image and ideal Revenue Generation The Olympic Movement generates revenue through six major programmes. The IOC manages broadcast partnerships, the TOP worldwide sponsorship programme and the IOC official supplier and licensing programme. The Organising Committees for the Olympic Games ( OCOGs) manage domestic sponsorship, ticket sales and licensing programmes within the host country, under the direction of the IOC. 20IOC Marketing Report – Beijing 2008 Chapter TwoOlympic Marketing Overview
IOC Marketing Report – Beijing 200821 Olympic Marketing OverviewChapter Two Revenue Distribution The IOC distributes approximately 92% of Olympic marketing revenue to organisations throughout the Olympic Movement – including 205 National Olympic Committees ( NOCs), their Olympic teams, athletes and sports around the world – in order to support the staging of the Olympic Games and to promote the worldwide development of sport. The IOC retains approximately 8% of Olympic marketing revenue for the operational and administrative costs of governing the Olympic Movement. Broadcast Partnerships The IOC is the owner of the global broadcast rights for the Olympic Games – including broadcasts on television, radio, mobile and internet platforms – and is responsible for allocating Olympic broadcast rights to media companies throughout the world through the negotiation of rights agreements. The fundamental IOC broadcast policy, as set forth in the Olympic Charter, is to ensure the widest possible audience for the Olympic Games. Olympic broadcast partnerships have been the greatest source of revenue for the Olympic Movement for more than three decades, and television coverage has been the single largest factor in the growth of the Olympic Games worldwide, ever since the London Olympic Games became the first to be broadcast into homes in 1948. TOP Sponsorship Programme The Olympic Partnership ( TOP) programme is the worldwide sponsorship programme managed by the IOC. Created in 1985, TOP provides each Worldwide Olympic Partner with exclusive global marketing rights to the Olympic Games within a designated product or service category, generating revenue and support to benefit the Olympic Movement. Operating on a four- year term in line with the Olympic quadrennium, TOP VI ( covering the Turin 2006 and the Beijing 2008 Olympic Games) included 12 official Worldwide Partners, generating USD 866 million in financial support and goods and services for the Olympic Movement.