There are voices saying the long-held pattern of rising ad demand around major sports events may not work this time. The buzz around the "2026 Milan-Cortina d'Ampezzo Winter Olympics" is seen as weaker than past editions. The advertising industry is looking to the FIFA World Cup and the Asian Games to turn the tide.
On the 15th, according to the advertising industry, with terrestrial networks not carrying this Winter Olympics, there are growing expectations that the special Olympic ad inventory could shrink. Typically, major sports events such as the World Cup or the Olympics have boosted corporations' ad spending on the back of ratings and exposure. Momentum also picked up as athletes who delivered strong results at the event were selected as models and appeared in ads.
With terrestrial broadcasters out and an exclusive broadcast structure in place for this Winter Olympics, the ad exposure landscape has changed significantly. JTBC placed a sole bid with the International Olympic Committee (IOC) and secured the rights for a higher price than in the past. It later proposed reselling the rights to the three terrestrial networks, but, failing to bridge differences over price and terms, is carrying the event exclusively.
Live broadcasts and replay services are available on Naver's internet streaming platform "CHZZK," but the frequency of game exposure is inevitably lower than before. Follow-up content such as interviews with medalists' families or friends and features that look at preparations for the event has also decreased.
International sports events, driven by games that capture national interest and the emergence of star athletes, expanded exposure across multiple channels and fueled corporations' ad demand. Major domestic ad agencies such as Cheil Worldwide and INNOCEAN delivered strong earnings in years when international sports events were held.
Cheil Worldwide's operating profit on a consolidation basis in 2018, when the Pyeongchang Winter Olympics and the Russia World Cup were held, rose 15% from a year earlier. INNOCEAN also enjoyed the international event boom, with operating profit on a consolidation basis up 22% year over year.
In 2022, the Qatar World Cup and the Beijing Winter Olympics, combined with the end of COVID-19, drove a rebound in results. Daehong Communications posted 300 billion won in revenue on a consolidation basis in 2022, up 10% from a year earlier. Operating profit also rose 8%. Cheil Worldwide likewise saw revenue on a consolidation basis, which had been in the 3 trillion won range, surpass 4 trillion won. Operating profit jumped 25%.
With a subdued Winter Olympics in the rearview, the industry's attention is turning to the North and Central America World Cup in Jun. and the Aichi-Nagoya Asian Games in Sep. JTBC has also secured exclusive broadcast rights for the North and Central America World Cup in Jun. Interest in the World Cup is higher than in the Winter Olympics, and the possibility of reselling broadcast rights remains. The Asian Games are also expected to be carried by multiple channels.
An advertising industry official said, "International sports events have maximized ad effectiveness through repeated exposure across multiple broadcasters and platforms," and noted, "If coverage is concentrated on a specific channel, frequency and reach are constrained, making it difficult to scale ad spending to past levels."
The person added, "Advertisers sometimes increase budgets not so much for the games themselves, but for the atmosphere and amplification that the event creates," and said, "If viewing touchpoints broaden and buzz recovers at the World Cup and Asian Games, the market could gain momentum as campaign scale grows."