What Tokyo's Decision to Keep Foreign Spectators Away from Summer Olympics Means for Brand Partners

In an historic move, organizers of the Tokyo Olympics games have decided to keep foreign spectators away from the summer games. During a meeting today, the Tokyo 2020 committee informed the IOC that overseas spectators for the Olympic and Paralympic Games will not be allowed in the country because of the continuing Covid-19 pandemic. "Based on the present situation of the pandemic, it is highly unlikely that entry into Japan will be guaranteed this summer for people from overseas," Tokyo organizers said in a statement. "In order to give clarity to ticket holders living overseas and to enable them to adjust their travel plans, the parties on the Japanese side have come to the conclusion that they will not be able to enter into Japan at the time of the Olympic and Paralympic Games." “We share the disappointment of all enthusiastic Olympic fans from around the world, and of course the families and friends of the athletes, who were planning to come to the Games,” said IOC President Thomas Bach. “We know that this is a great sacrifice for everybody. We have said from the very beginning of this pandemic that it will require sacrifices." Clarity for brand partners Today's decision does give more clarity that the games will go on, from July 23 to August 8, having been postponed a year already. But that still presents an uncertain degree of challenges and opportunities for brands that have already been proceeding cautiously with their plans. Global partners of the Olympics include Toyota, Visa, Coca-Cola, General Electric, Airbnb and Samsung, who collectively have paid an estimated $1 billion to the IOC to be part of the Games. A four-year official Olympic partnership can cost a brand upwards of $100 million. Through all the hopes and disappointments of whether the Games would happen in some form or not all, NBCUniversal maintained a sense of confidence, which was largely supported by what it was hearing from its advertisers. At the start of the year, NBCUniversal CEO Jeff Shell told investors that the company has more advertisers for the upcoming games than it did in January 2020, when the coronavirus was still emerging out of China and the threat of a pandemic was less felt. But the question remains: what's the value of another broadcast-only event? A made-for-TV event Super Bowl 55 was seen by 96.4 million people—a 14-year low, Adweek reported. That number represented total viewers across all platforms, including CBS, CBS Sports and NFL digital properties, Verizon Media mobile properties, and ESPN Deportes TV and digital properties. That’s a 15% drop from last year’s 113.4 million audience for Super Bowl 54 on Fox, according to Nielsen. The measurement company released the viewer data Tuesday morning, an unprecedented delay following a Super Bowl. Unlike the Super Bowl, when social distancing was still in full force and much of the U.S. was inside for the winter anyway, the late July early August Summer Olympics broadcast will be occurring when stay-at-home orders are expected to fade as most of the U.S. is expected to be vaccinated. After more than a year under lockdowns with nothing but video stream bingeing to keep them from thinking about dining out and traveling, how many viewers will be endlessly riveted to their TV? Tokyo's bottom line As for Tokyo, the loss of foreign tourist spending will be immense. During July and August, leading up to and following the London Summer Games, visitors spent about 760 million pounds sterling ($1 billion) in the U.K.—almost double the normal amount. Overseas visitors brought in 4.5 billion pounds ($6.3 billion), including Games ticket sales, Even with lowered viewership expectations and the continued unpredictability of a pandemic whose end is not yet completely in sight, the announcement by Olympic organizers that there will not be a second cancellation is welcome news for brands and broadcasters alike. “Together with our Rights-Holding Broadcasters, we will make every effort so that the fans from around the world will be able to experience the Olympic spirit," Bach added. "In this way, the Olympic and Paralympic Games Tokyo 2020 will be the light at the end of the tunnel and a safe manifestation of peace, solidarity and the resilience of humankind in overcoming the pandemic.”