Buyers: Some advertisers wary of Olympics

The Winter Olympics officially kick off tomorrow, and spots for the Games remain available in local markets. Sales are not as brisk as they were for the 2010 event in Vancouver.

While local stations have moved a great deal of their inventory, it’s not sold out and right now it’s not in high demand.

Buyers say advertisers are wary of the political issues surrounding Russia, the host of these Games. They want to avoid get caught up in any potential controversies.

“People don’t seem to be as attracted to the Olympics this time around,” one East Coast buyer tells Media Life.

“There are those advertisers who are in it all the time at the national level, and they’re staying in it, but it doesn’t seem to be attracting as much interest on a local basis.”

Adds another buyer, “There’s too much controversy around Russia — security, gay rights, human rights.”

Controversy tends to turn off advertisers, who don’t want their brands tarnished by association.

They worry that by advertising in the Games, they’ll be seen as supporting the Russian government, and that’s a divisive position right now.

There are concerns about how the country treats its citizens, much as there were regarding the Chinese government during the 2008 Summer Games in Beijing. And there are worries about the safety of athletes, media and attendees of the Games with several Islamist groups threatening terrorist acts.

But the biggest controversy is over Russia’s attitude toward gays.

Last summer Russia passed laws outlawing distribution of information about the lesbian, gay, bisexual or transgender communities to minors and banning gay pride rallies. The country also outlawed the adoption of Russian children by people from countries where same-sex marriage is illegal.

That’s sparked backlash against not only the Russian government but also advertisers supporting the Games being played in Sochi.

This week 20 demonstrations worldwide took place outside the offices of global Olympic sponsors, such as McDonald’s and Coca-Cola.

Though some Olympic advertisers, including AT&T, have denounced Russia’s anti-gay laws, others, like General Electric, have declined to comment.

That’s led to general unease about advertising in the Games, especially for smaller companies without the sophisticated communications operations of an AT&T or Coca-Cola.

“It’s an undesirable location, and generally I’m just not hearing the positive buzz about the Olympics this time,” says a third buyer.

Still, audiences, and advertisers, can be fickle. If the Games get off to a strong start in the ratings and a few standout athletes emerge, driving excitement for the Olympics, expect advertisers to rush in and scoop up the remaining local spots.

“You may see people come back in if it does well on the opening night or two,” says the East Coast buyer. “Americans love their sports, and they love the Olympics. It’ll be interesting to see what sort of reaction people have.”

Tags: advertising olympics, nbc olympics, olympic advertising, olympics, Russia, sochi olympics, winter olympics