Mixed response to Olympics in Southeast Asia

SOUTHEAST ASIA - The Olympics Games have elicited a mixed response from TV advertisers in Southeast Asia, with much enthusiasm in Singapore, Malaysia and the Philippines, but little interest shown in the sub-region's largest market, Indonesia.

Indonesia’s national network TVRI, which holds the broadcasting rights for the games, has decided not to telecast the entire event. A newly launched pay-TV service provider Citra has introduced four dedicated channels, but subscribers have been few.

The previous Olympics, in 2004, were telecast exclusively by Indonesia's Kabelvision, a cable TV provider now called First Media. The company did not telecast the event this time.
 
“Indonesians are particularly not interested in sports, and even though the Olympics are being hosted by an Asian country, it has not made any difference in terms of ad spend," said Partha Kabi, MD of ZenithOptimedia Indonesia. Not a single company has bid to sponsor the coverage in Indonesia, he noted.
 
In Malaysia, however, cable operator Astro is telecasting the games on 11 interactive channels allowing viewers to watch the sport of their choice. It has attracted major sponsors such as Maxis, one of the biggest advertisers in Malaysia. RTM will also be telecasting the event, and has tied-up with Digi, a big telco player in Malaysia.

Chanchal Chakrabarti, CEO of MindShare Malaysia, says that TV channels in Malaysia will generate more revenue from this Olympics because it is being hosted in Asia.

However, he says advertisers and sponsors see the Olympics as a CSR (corporate social responsibility) exercise because of the so-called spirit of the games. "The popularity of the Olympic games is waning. The popularity of football and cricket has completely overshadowed the event.”
 
In Singapore, the response has been far from lukewarm. Pay-TV operator StarHub has introduced six dedicated channels, while national network MediaCorp, the official broadcaster for the Olympics, has a full-HD digital channel - HD-5 - dedicated to the games - the first in Southeast Asia.

Channel 5 and Channel U will also be carrying Olympics daily coverage. HD-5 has attracted advertisers including the Media Development Authority, Nikon, Thomson Osteogard, McDonald's and Samsung.
 
Gan Boon Guan, CEO of Starcom MediaVest Group Singapore, says this year's Olympics will see an increase in viewership and ratings and therefore ad-spend.

“Singaporeans have never really seen live Olympics. Plus this is the first time people can watch Olympics in high-definition. Also, Singapore is sending a large contingent to the Olympics this year - there is an expectation of gold. All these factors will improve ratings.”
 
In the Philippines, ad spend is expected to jump compared to previous Games'. Coca-Cola, Caltex, Clear, San Miguel Tanduay and Smart Communication are among the major sponsors.

Solar, the official Philippine network for Olympics, is telecasting the event on its free TV station RPN 9. It has also provided pay-per-view options.
 
Cookie Bartolome, MD of Carat Philippines, said: “If the games turn out to be exciting, particularly with USA basketball or Filipino athletes making it to the finals, then ad revenues could jump. Spot advertisers could take advantage of the closing ceremony after seeing how the opening ceremony was much talked about by viewers and hyped by the media.”
 
The Philippines has seen a large number of Olympic related campaigns, which are being supported by outdoor advertising. “Large format billboards are being used to promote brands’ association with the Olympics,” Bartolome added.