Top Story Replay - Tablets Rattle Olympic Sponsor Categories

This story was originally published March 7.

(ATR) With three worldwide Olympic sponsors marketing their own brand of tablet devices, this hot technology is sparking some fundamental questions about Olympic sponsorship categories.

While Acer will be able to promote its tablets at the London Olympics as part of its computing equipment category, both Panasonic and Samsung could make the argument the technology falls under their categories of audio and visual equipment and wireless communications equipment, respectively.

Davis Butler, who managed The Olympic Partner program for the IOC from 2004 to 2010 and negotiated the deals, says the IOC did its best to define a piece of technology that could fall under many categories.

"We kind of had an idea what they were going to be, so we did the best we could in defining what’s a phone versus what’s a computer," he tells Around the Rings. "But we all know now that line is really blurred."

Butler says the overlap among today’s smartphones, computers and even cameras could force the IOC to rethink its categories.

"One of the things that people working on TOP really need to think about is: does the convergence of technology mean at the end of the day that there are no product categories anymore on the technology side?" asks Butler.

For the 2012 Games, Acer has the rights to market its tablet. This week the company released an Olympic version of its Iconia Tab A510, emblazoned with the Olympic Rings.

Lisa Baird, chief marketing officer for the U.S. Olympic Committee, says that under the current contracts, tablets clearly fall under Acer’s computing equipment category.

"This is why you write contracts. They force people to be really definitive. It is hard in technology, but in this case the actual physical tablet is in Acer’s category," she tells ATR.

"But it doesn’t mean technology’s not changing all the time and in the future," Baird adds.

IOC Works to Sort Out the Category

Under its contract, Acer’s sponsorship deal with the IOC ends after London 2012.

IOC marketing chief Gerhard Heiberg tells ATR that the "sensitive issue" of sponsorship rights for tablets could change after this summer.

"We are working on a solution for 2014 and thereafter," he says.

With the end of many TOP sponsorships in 2020, it could be an opportune time for the IOC to deal with how its categories are defined, says Butler.

"They don’t have any choice but to come up with some type of solution for this in the future," he tells ATR. "I think in 2020 the IOC will have to take a look at the technology side of things."

While the IOC would not comment specifically on tablet technology, Timo Lumme, managing director of television and marketing services, says the sponsorship program hinges on the "principle of exclusivity for each partner within a specific sponsorship category."

"As has been the case for many years, technology is rapidly evolving and new technology products or capabilities come to the market which may have functionality that crosses over these pre-defined sponsorship categories," he tells ATR.

"The IOC works in close collaboration with our partners to ensure that as technology develops, the exclusivity of the sponsorship categories is respected, and if necessary a reasonable solution is found, in the interest of all parties involved."

Samsung, Panasonic Contend for Tablet Rights

Out of the three sponsors at hand, Samsung has the largest share of the tablet market and manufactures a variety of models.

Wired reporter Mark McClusky tells ATR the company is essentially making a bunch of different products "to see what sticks in the marketplace."

Samsung may use the Olympics to advertise its tablet technology, according to IOC spokesperson Ben Seeley, who says the tablets belong in both Samsung’s category of wireless communication and Acer’s computing equipment.

"The association of ‘tablet’ products with the Olympic marks is managed according to these existing category definitions," Seeley tells ATR.

"Therefore, Acer and Samsung are both entitled to associate their ‘tablet’ products with the Olympic marks, in connection with their existing product category."

Sunny Hwang, VP and head of global sports marketing for Samsung, says the company will provide tablets to Olympic staffers. "Samsung will provide smartphones and the Galaxy Tab (7-inch) to the Olympic Family to support the operational infrastructure of staging the Olympic Games," he tells ATR.

Panasonic is also currently in discussions with the IOC regarding tablets, according to a spokesperson.

"The IOC is saying that the tablet is not our category since the product is similar to a PC. The point of IOC is the basic function of the product," says Shunsu Sonoda.

"If the product is originally TV and has internet connection … it is our sponsorship category and we can promote it with the Olympic Rings or images," he adds.

While the Japanese electronics manufacturer cannot currently advertise tablets in association with the Games, a Panasonic executive tells ATR that its durable Toughpads are ideal for Olympic construction and management jobs.

"The advertising in the Olympics might be geared towards the consumer (but) our products are probably a better fit for the Olympics themselves and the workers there," says Greg Davidson, executive business development manager of Panasonic System Communications Company of North America.

He adds that the issue of which sponsor should be able to promote tablets at the Games is not sensitive for Panasonic since it designs its devices for a different market than Samsung or Acer.

"Their target market is consumers that are really working in a perfect environment whether that’s sitting in front of their couch or on a plane where you’ve got nice lighting conditions and things aren’t moving around," says Davidson.

"We’re really going after those types of users in the enterprise and government space who need something that’s more reliable and more durable."

Panasonic unveiled its Toughpad technology last fall and will ship 10-inch and 7-inch devices this summer. "The timing of our shipping is right in line with the Olympics," says Davidson.

Defining Categories for the Future

If the IOC upholds its existing sponsorship categories, marketing experts tell ATR there are a couple of aspects to consider in this debate.

Michael Payne, former head of the IOC’s marketing division, says it’s basically an issue of core versus secondary competency.

"If I was looking at it on the basis of historical categories …and I doubt the categories have evolved that much… I think most people would have to say, ‘a tablet basically is an evolution of a portable computer,’" he explains.

"You don’t use a tablet fundamentally to run around making phone calls," adds Payne.

Butler says the IOC’s "cross-over functionality" marketing guidelines could allow for multiple sponsors to advertise the same product.

"If you have new technology that could be in another category of another sponsor, but it has a functionality that’s in yours, you can promote it in its entirety, but you just have to be careful how you do it," he tells ATR.

Written by Ann Cantrell .

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