The upcoming 2024 Summer Olympics presents a monumental advertising opportunity for brands globally. As the flagship television event of 2024, the Paris Olympics promises an unmissable opportunity for global giants to local businesses.
During the 2020 Tokyo Olympics, 3.05 billion viewers tuned in globally. An even higher engagement rate is anticipated, particularly among American viewers during July. The Paris event will be scheduled at broadcast-friendly times for U.S. audiences.
Typically, the 50-to-64 age group exhibits the highest U.S. viewership. But the 2024 Olympics will also cater to the interests of Millennials and Gen Z audiences. They have increasingly shown a specific penchant for women’s sports. The Olympics has broad appeal across all income levels and especially popular among college-educated viewers. So, it’s expected to draw diverse audiences.
This 2024 Summer Olympics come at a delicate time amid a challenging macro environment. Also, primetime viewership for the Tokyo Olympics averaged 15.5 million viewers, the lowest since 2000.
Therefore, let’s examine three stocks that could see their prices increase during the 2024 summer Olympics event.
Comcast (CMCSA)
Comcast (NASDAQ:CMCSA) and its NBCUniversal are gearing up. They are prepping for an extensive and improved live coverage of the 2024 Paris Olympics. Streaming service Peacock will feature all sports, events, and exclusive content to address past criticisms.
According to media reports, NBCUniversal is set to enhance its live coverage. It will dedicate at least nine hours to daytime coverage, a significant increase from previous Olympics. Additional plans include a primetime show recapping the day’s highlights.
This strategic decision follows feedback from the 2020 Tokyo Olympics. Concerns were raised about limited live coverage on Peacock and interruptions due to commercials. By expanding live coverage and incorporating exclusive content, NBCUniversal aims for a more engaging Olympic viewer experience.
Chairman of NBC Sports Pete Bevacqua commented that broadcasting the two previous Olympics on Peacock “was a home run.”
“We drastically improved our strategy in the time between Tokyo and Beijing,” he added.
Hence, Comcast could experience another home run, especially as the number of viewers for this year’s Olympics is expected to significantly increase. According to the New York Times (NYSE:NYT), NBC is spending as much as $7.75 billion for exclusive broadcast rights to the Olympics through 2032.
Alphabet (GOOGL)
Alphabet, (NASDAQ:GOOGL, NASDAQ:GOOG) generates a substantial portion of its revenue from advertising. This includes Google Ads and Google AdSense businesses.
When users click on or view ads, Google generates fees from advertisers. And so, Google has been the market leader in online advertising for well over a decade.
Therefore, Alphabet remains extremely well-positioned for popular worldwide events that generate significant attention across the globe. Events like Summer Olympics, football World Cup, or U.S. Presidential elections, tend to benefit large-scale advertisers like Alphabet.
The Summer Olympics attract a large, demographically diverse audience, making it a marquee event for TV advertising. NBCUniversal reported over $1 billion in national television advertising revenue for the 2020 Tokyo Summer Olympics. And that number is likely to increase significantly for the 2024 Summer Olympics.
For the third quarter last year, Alphabet said it generated advertising revenue of $59.65 billion, up from $54.48 billion a year ago. YouTube advertising revenue came in at $7.95 billion, with both set to increase in the second half of the year due to 2024 Summer Olympics and U.S. Presidential elections.
The Trade Desk (TTD)
Bull case for The Trade Desk (NASDAQ:TTD) is similar to the one of Alphabet in the context of the 2024 Summer Olympics. The Trade Desk is a provider of a global technology platform for buyers of advertising. In Q3 2023, the company delivered revenue of $493 million, accelerating growth to 25%.
TTD outpaced nearly all areas of digital advertising in 2022. With 32% revenue growth year over year (YOY), it included significant profitability and cash flow. Thus, the firm earns revenue through fees calculated as a percentage of its clients’ advertising expenditures. Since its initial public offering (IPO) in 2016, The Trade Desk has experienced an average annual revenue growth rate of 43%.
On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
