376 days to go The billboard advertisements for some of the flashier apartment buildings and villa complexes in Beijing are being torn down, as the government seeks to present a more sober image ahead of the Olympics just over one year from now. In the Central Business District and along the airport expressway, the big brash billboards are being given a total makeover. This is to be the sovereign terrain of the Olympic sponsors from now on. There will be nearly a 50 per cent increase in the number of commercial partners at the Beijing games from past Olympics, and next year's Olympics are tipped to be the most commercially successful ever. Commercial factors such as sponsorship are important, but so too is presenting the right image of China. Beijing's city fathers are keen to present a metropolis that is still a Communist city, despite the recent economic boom. The form of socialism that Beijing represents is one with Chinese characteristics. 'Many use exaggerated terms that encourage luxury and self-indulgence which are beyond the reach of low-income groups, and are therefore not conducive to harmony in the capital,' Mayor Wang Qishan told Xinhua. The operation is also about clearing the hoardings for what the International Olympic Committee described at a recent meeting in Guatemala as an 'unprecedented' sponsorship programme. The Beijing games will have 55 official sponsors and suppliers, including Coca-Cola, Adidas, Visa International and Lenovo, a big increase on the 38 at the 2004 games in Athens. The media group ZenithOptimedia reckons the Beijing games will generate an additional HK$23 billion in global spending on advertising next year, with almost a third of that in China. Spending on advertising is expected to grow by 25 per cent to HK$29 billion next year, second only to the US, with 20 per cent of that outlay Olympics-related. If it feels like the Olympic logo is already plastered over every square inch of the city, you ain't seen nothing yet. There are around 800 Olympic franchise shops in China - which is expected to rise to 10,000 by the time the games roll around. Franchising is expected to bring in some HK$550 million. Ticket revenues should bring in twice that, by some estimates. Global events do not come much bigger than the Olympics and sponsorship has become an integral part of what is still essentially an amateur event. Central to Olympic sponsorship is the TOP programme, which was introduced after the financial woes that nearly bankrupted the IOC in the 1980s. It was created before the Seoul summer games in 1988 and revenues from these elite partners has rocketed since then, although the actual number of worldwide sponsors has remained more or less the same. The IOC keeps a tight rein on who gets to use the famous five rings symbol and sponsorship works on various levels, from national to global. The IOC is fairly confident it's going to make a profit on the Beijing games, with sponsorship accounting for a hefty slice. There are only 11 TOP global players who will pay HK$470 million for exclusive global rights to the Games. As well as Lenovo, Visa and Coca-Cola, they include McDonald's, Kodak, General Electric, John Hancock, Panasonic, Samsung, Swatch and Schlumberger. For Lenovo, the games offer a major opportunity to get the brand known to a global audience, to turn it into China's first genuine world brand. 'As the first TOP sponsor company with roots in China, the 2008 Games are of special importance to us: it is the first time the Olympic Games have taken place here, so we are going all out to use the Games in China to create an emotional bond between our customers and Lenovo,' said Alice Li, vice-president of Olympic marketing at the company. Lenovo bought IBM's former PC business unit, transforming the company from a primarily Chinese company to one of the world's leading international computer manufacturers. 'The real return on investment with the Olympic Games sponsorship will be improved awareness as an international computer company. Our research includes regular tracking of how our sponsorship of the Olympic Games builds brand awareness and changes the perception of the company,' said Li. McDonald's restaurants are growing rapidly in China, so Olympic sponsorship makes sense for the restaurant chain. 'I think the world is curious to know and understand more about China and its people. This natural curiosity will intensify as China opens its doors to the world during the 2008 Beijing Olympic Games,' said Gary Rosen, chief marketing and corporate affairs officer at McDonald's China. 'We see the 2008 Beijing Olympic Games as yet another way to connect with our customers in China in a relevant and meaningful way. 'The Olympics provide a unique platform for us to bring the spirit of the Games alive through our restaurants to the local communities across China.' Despite the positive experiences reported, it's not all rosy from a sponsorship point of view. Many advertisers will be watching to see if activists seize upon China's hosting of the games to pressure the Beijing government on issues such as the conflict in Darfur, forced evictions and freedom of the press. Also, there is a question about whether the athletes will be allowed to carry out much advertising work - the government is more concerned that they boost China's medal haul than do potentially distracting marketing work. Diver Tian Liang, who won two Olympic gold medals in Athens in 2004, was suspended from the national team for taking on too strong a marketing role after his performance. Then there is the shortage of truly marketable Chinese athletes. Houston Rockets centre Yao Ming is an obvious one, as is the gold-medal winning hurdler, Liu Xiang, but the cupboard is bare beyond those two. Research by the Octagon group shows advertisers need to understand nationalism, coupled with pride, when approaching the 2008 games. 'Most marketers may well be aware that national pride is an important factor when trying to engage Chinese consumers,' said Ivan Brixi, managing director of Octagon Asia. 'Sport is about passion. Now more than ever, marketers must engage in passion-based marketing to effectively leverage their sponsorship investments,' he said. Maximum exposure Sponsorships are big business these days The number of TOP companies paying for exclusive global rights to the Games 11