£250m Olympic auction prepares for bidders
The auction of the outdoor media space available during London 2012, expected to raise in excess of £250m, will open at 8am on Monday, 4 April, with a last minute addition of the large digital site at Hogarth Roundabout.
Since Nike ambushed the 1996 Olympic Games in Atlanta to the disadvantage of its rival and official sponsor, Adidas, outdoor media owners have been obliged to offer their inventory to official sponsors first.
MediaEquals, the online media marketplace, was appointed to handle the official auction by the London Organising Committee of the Olympic Games and Paralympic Games (Locog) last year.
Last week it was revealed ‘The London Gateway’, owned by Abbeyrock, was to be auctioned off ahead of the official process but after discussions with the industry MediaEquals suspended the bidding process.
It has now been agreed that the Hogarth Roundabout site will sit wit the other outdoor media sites in the official auctions, though it is being sold for 12 months, rather than the usual 12 weeks from Monday 25 June 2012.
All relevant outdoor space has been divided into one of four categories. ‘Vicinity’ sites, those close to Olympic venues, Spectacular, such as Ocean Outdoor’s IMax, and then premium and standard packages, for example six-sheet packs.
The auction will start at 8am Monday morning when the vicinity sites will be offered to the global and tier one sponsors. Tier one sponsors will then have the opportunity to buy spectacular sites on Thursday and Friday.
The premium and standard packages will be offered to global and tier one sponsors during the week commencing 11 April 2011. The auction will offer the sites to the tier two and tier three sponsors in turn.
After the auction window closes on 1 July the spectacular and premium and standard packages will be offered to non-sponsors, if they remain unsold. Non-sponsors are not allowed to buy any media in vicinity of the Olympic sites.
The official auction of the outdoor sites alone is expected to in excess of £250m for the various outdoor owners with space governed by the London Organising Committee of the Olympic Games and Paralympic Games’.
Prices for spectacular sites or uncapped and will go to the highest bidder. Other inventory is capped at 2010 prices plus 11%, to avoid a major escalation in prices.
This article was first published on mediaweek.co.uk
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