Generating an Olympics-led recovery?

“For marketers the public’s attitude towards the Olympics needs careful monitoring.  Sport this summer could provide the platform for a surge in national pride with the eyes of the world on London and a major boost to sentiment and economic activity.  What is essential is that the public remain positive about the Games and that the problems with ticket allocation do not backfire on Olympics sponsors who find they are besieged with customers wanting tickets”

 

This year we can look back with pride and see photographs capturing the national mood that both Olympics and the Paralympics created. Such a result hardly seemed possible at times given the belief that the event would be a national embarrassment as reflected in the spoof.

 

The post-Olympics GfK/JGFR Barometer reflected the surge in national spirit. 7 out of 10 adults believed both Games brought the nation more together and made the nation feel happier, compared to just under a half pre-Games. Above all the Games were socially inclusive with the efforts of the Games Makers bringing people from all walks of life together – young and old, in-work and out-of- work. 

 

Around a quarter of the adult population with many thousands of children at their sides watched the Torch Relay and free Olympics events. 17% of the public obtained tickets to watch the Olympics / Paralympics, the same proportion who intended to seek tickets.

 

Throughout the world Brand Britannia ruled as the Games put the country back on the map in terms of its world standing and showed how to connect the Olympics and Paralympic movements back to the people.

 

‘Inspire a generation’ was a key theme. Not only to take up sport but in helping others. Among young people it was the inspiration of the volunteers and their being at the centre of the experience that has resulted in a big jump in the under 30s intending to volunteer to help in sporting and community activity – up from 18% before the Games to 27% after the Games.  Already 50,000 people have registered to volunteer for the 2014 Commonwealth Games in Glasgow. 

 

Much will be written this year about legacy and whether this will be achieved. As the nation’s escape from reality ended in the autumn so the ‘Team GB effect’, boosted by the announcement of The Duchess of Cambridge’s pregnancy that capped a memorable Diamond Jubilee, appeared undermined by politicians. 

 

Firstly the decision to hold a Scottish referendum, and more recently the decision to limit the occasions the Union flag flies above Belfast City Hall will have reduced the strong feeling of togetherness that the Olympics generated.  63% of Scots believed the Olympics had brought the nation together after the Games, compared with 31% before; in Northern Ireland 82% of people believed this the case after the Games, compared to 49% before.

 

Secondly while the economic legacy will take a number of years to establish, in the near term the focus is on whether the economy will slip into a triple-dip recession. Certainly the good news of a return to growth in Q3 boosted by the £1 billion spend on the Olympics through tickets and merchandise sales, and reflected in an 8-point surge in confidence in November, was quickly negated by the  savaging of the autumn statement. December’s sentiment measure was disappointingly 7 points lower, almost entirely caused by a media-induced 27 point slump in the two economic situation measures completely reversing the 23 point jump in November. 

 

There are reasons to be cheerful in 2013 with the stock market, particularly the FTSE 250 Index that represents mainly UK companies up 23% in 2012 and starting 2013 off strongly. Around half a million jobs were created over the past year with people now much more confident than a year ago about the jobs outlook.

 

Spending confidence is improving with strong car sales reported in the past quarter and the housing market set to see stronger transaction levels in 2013. The Q1 2013 JGFR Housing Market Confidence Index is at its highest since mid-2010. A recent OECD survey finds that Britain’s recovery is in better shape than any of the world’s other leading economies apart from the US.

 

Marketers have a vital role to play in helping the recovery of the UK economy, particularly in supporting the penetration of British brands into export markets. Uncertainty about the UK’s role in Europe may push sterling lower during 2013 creating better export prospects. Brand Britannia boosted by the Team GB effect should help to create new opportunities and be part of the economic legacy. 

 

Brands have a big chance to leverage off the public’s love and enjoyment of sport, both in helping to secure the sporting legacy and also in helping to change peoples’ lives. 

 

While corporate sponsors received criticism in the build- up to the Games, overall a majority of the public believed they played a major role in the success of both the Olympics and Paralympics. For the sporting legacy to succeed some 3 out of 5 of the public believe corporate sponsors need to understand more the role that sport plays in the lives of their customers, employees and communities. 

 

Last year showed that Britain could deliver major sporting and cultural events; with the sports, entertainment and leisure/events industries vital to the nation’s standing during the decade. 

 

Although not everyone will be a participant, many will enjoy the experience of being at events. Indeed nearly a third of the public expect to watch more sport following the Olympics / Paralympics. 

 

What sport can achieve is a positive impact on the mood of the country, of improving its health and to be used as a key educational and social policy tool.

 

2013 is the Chinese Year of the Snake – according to legend:  “a great sign, a positive sign with  energy that can help us face all the challenges ahead of us”.

 

It should be a good year to tap into the nation’s energy and restore confidence to business and the consumer.  

 

Happy New Year….. or as I used to say in Hong Kong, ‘Kung Hei Fat Choy!’

 

Read more from John Gilbert.