Bocog cracks whip on outdoor

With just two months until the event, the new rule is a setback for sponsors, who are required to relinquish advertising media purchased over the past 12 months and resubmit their bids.

The move follows the removal last year by the city authorities of hundreds of billboards in an effort to eradicate advertising fragmentation ahead of the Games.

“This will allow Bocog to better manage the city and to streamline everything,” said Siew Ping Lim, managing director of MindShare in Beijing, adding that sponsors had had advanced notification of the ruling and had been invited to participate in negotiations along with selected agencies.

Lim said that in view of the enhanced marketing opportunity presented by the Olympic climate, there were unlikely to be any ‘losers’ among sponsors. Non-sponsors are facing a separate challenge. To protect the rights of official sponsors, Bocog has introduced measures to prevent guerilla marketing by non-sponsors, including the priority allocation of prominent advertising sites around the city to official sponsors between July and September.

Meanwhile, brands in China remain vulnerable to rapid shifts in public perception.

Christian Dior has had to make an apology and pull advertising featuring Sharon Stone after the actress’ ill-advised comments about the Sichuan earthquake. The disaster has also precipitated a backlash against domestic and MNC brands that are being perceived as stingy in terms of their donations.

An SMS campaign circulated last week claiming brands, such as Vanke, Coca-Cola and KFC, had not given enough.

Beverage producer Wanglaoji - believed to have donated Rmb 100 million (US$13.8 million) - saw its generosity rewarded by a  boost in popular perception.

“The biggest backlash has been against Chinese corporations, who don’t have a long term corporate social responsibility strategy, which includes provisions for disaster relief,” said Darren Burns, managing director of Weber Shandwick in Shanghai and Guangzhou, adding that MNCs also needed to spend more CSR money in the country.

Additional reporting by Ella Fitzsimmons