Has brands’ love for athlete endorsement deals found new flames this Olympics?

New Delhi: India’s love affair with athletes is nothing new and Manu Bhaker’s recent bronze win at the Paris Olympics has rekindled this affinity. As per Dhruv Jha, Co-Head, of Mediabrands Content Studio India, this love isn’t newly found and brands such as Amul have been sponsoring the Indian contingent since the London Olympics in 2012. This year, the Reliance Foundation has set up the India House Pavilion in Paris to celebrate and showcase Indian athletes at the Paris Games.

However, the pandemic led to fewer brands partnering with the Indian Olympic Association (IOA), resulting in limited revenue coming in from sponsorships. 

The clouds of change have started hovering over and brands are lining up in front of the athletes with their wallets wide open, looking forward to signing a deal. From Tokyo to Paris, what has changed in the past four years that big brands such as Aditya Birla Capital and JSW are leaving no room when it comes to partnering with the IOA, sponsoring every single piece of real estate possible?

The short answer to this question is India’s performance at the Olympics.

Looking at the performance of Indian athletes, the ‘brandwagon’ has been seen rolling as athletes see calls pouring in from brands ahead of the Paris Olympics. Brand’s interest in the Olympics as a property has witnessed a major spike over the years.  

Speaking of brand endorsements, Neerav Tomar, Managing Director of IOS Sports & Entertainment, said, “Every brand wants to onboard Mirabai Chanu, Lovlina Borgohain, Neeraj Chopra, Manika Batra, Manu Bhaker, and Harmanpreet Singh, as these athletes have demonstrated exceptional performance and consistency, making them highly sought after by brands looking to leverage their popularity and success.”

The popularity of these athletes is reflected well in the brand deals being signed by them, as the average ticket size of a brand deal has seen substantial growth over the years. “For top-tier athletes, deals can range from Rs 2 crore to Rs 10 crore per year, depending on the scope and duration of the endorsement,” added Tomar.

Suggesting the need to identify the athletes which can only come from fostering a long-term relationship with the athlete, Jha said, “While Neeraj Chopra remains a top favourite for brands. It's crucial to identify athlete potential well in advance, balance them against national and worldwide competition, and bet on them. Before the Tokyo Olympics, we identified seven athletes for brand associations, and four of them which include Neeraj Chopra, Bajrang Punia, Mirabai Chanu, and Vinesh Phogat — won big.”

As per Monika Daga, Head of ITW Influence, the average price of brand deals with Olympic athletes ranges “anywhere between Rs 50 lakh and 1 crore for a year of brand endorsement associations.”
 
“For the top athletes, the endorsement deals are significantly lucrative. Mirabai, for example, commands endorsement deals ranging in mid-seven to low eight figures annually, with brands like Adidas, Limca Sportz, Amway, Amrutanjan, Star Cement, and Mobil,” Tomar added.

Daga also mentioned upcoming athletes who might be a top priority for brands in the years to come. “Upcoming athletes who are gaining traction include Avinash Sable in the steeplechase, Aditi Ashok in golf, and Anshu Malik in wrestling. These athletes have shown exceptional promise and are making significant strides in their respective sports, making them attractive to brands looking to associate with emerging talent.”

Brand deals differ significantly for top-tier and upcoming athletes. Juxtaposing the differences between the two, Daga said, “Brand endorsements for top athletes often involve high-budget, large-scale campaigns that span multiple channels, including TV commercials, digital content, and significant social media engagement.

These deals frequently include long-term contracts and extensive media coverage. 

For athletes who are yet to make a name for themselves, endorsements are usually more targeted and focused, involving shorter-term deals, social media promotions, and regional campaigns. These deals aim to highlight the athlete’s potential and align them with brands looking to grow their visibility alongside emerging talent.” 

When asked about the spike in the number of brands approaching athletes for 2024, Tomar replied by saying, “Certainly! We used to get 3 to 4 inquiries earlier; now we get 50 to 60 inquiries. This surge is driven by the increasing recognition of the value that Olympic athletes bring to brand campaigns and digital growth. The impressive performance at the Tokyo Olympics and other competitions at the global level has fueled this interest, leading to a significant increase in brand endorsements and sponsorship deals.” 

It is important to note that it’s not just male athletes who are witnessing a surge in their brand appeal. According to Daga, “After remarkable performances by the likes of PV Sindhu, brands are increasingly recognising the influence and appeal of female athletes, who bring not only exceptional athletic performance but also powerful personal stories with the ability to connect deeply with audiences. Female athletes like PV Sindhu, Lovlina Borgohain, and Mirabai Chanu are leading examples of this trend, as they embody empowerment, resilience, and authenticity—qualities that resonate strongly with consumers and align well with brand values. This growing interest underscores a broader shift towards inclusivity and diversity in brand marketing strategies in India.”

Inspiring the confidence of brands when it comes to athletes who are females, Jha said, “Female athletes are indeed being approached by brands, although it is still growing. We are expecting some top potential female stars to secure brand associations worth millions in the near future.”
 
However, an FMCG marketer likened sponsoring athletes during the Olympics to gambling. "If the athlete wins a gold medal, it's a jackpot for the brand. Otherwise, people eventually forget the athlete's name." 

Moreover, an industry source who prefers being anonymous mentioned the importance of moment marketing in the Olympics during an interaction with BestMediaInfo.com. “Only specific moments such as Neeraj Chopra winning the gold or two athletes from India and Pakistan competing in the finals bear fruit when it comes to advertising at the Olympics. Most brands are not ready to bet on the entire property and are only willing to spend if Indian athletes perform well,” quoted the source.

Demonstrating what moment marketing is, brands are sharing congratulatory messages from their social media handles to Manu Bhaker, trying to ride the wave momentarily. The downside of moment marketing, however, is legal notices sent to multiple brands over their act, with Manu Bhaker's team suggesting that those not associated with the Indian shooter formally had no right to release congratulatory ads on social media featuring her.

“The enthusiasm among advertisers is fairly average when it comes to the Olympics as the property is fundamentally not as engaging as a Cricket World Cup. Although brand endorsements for athletes have gone up, if you switch on the TV, you can see every third ad featuring Neeraj Chopra,” said an industry expert who closely works with advertisers during an interaction with BestMediaInfo.com.

In conclusion, the Olympics is slowly climbing the ladder, trying to match the popularity of cricket but it has a long way to go before viewers watch it with the same enthusiasm as cricket. It is important to note that while the popularity of cricket has not dropped, other sports are gaining ground and trying to become prominent on sports viewers' watchlists.