Airbnb, IOC Demonstrates Importance Of Authentic Engagement For Sports Properties

BY ADAM GROSSMAN

In previous posts, we have demonstrated the importance of authentic engagement when it comes to influencer marketing. More specifically, influencers that actually use a product or service are more likely to create engaging content that generates more partnership value typically through lifts in brand sentiment, engagement, and awareness.

Less common, however, is exploring this type of authentic engagement with properties. One of the most common criticisms of partnerships, particularly from many outside of the sports industry, is sports properties are believed to only work with partners because these companies pay for this association. More specifically, properties rarely would actually use the products or services that partners provide to their customers in their normal course of business.

Counteracting this narrative is one reason Airbnb’s new partnership with International Olympic Committee (IOC) is compelling. Airbnb and the IOC announced a new agreement in which the company “would commit to providing ‘guaranteed’ accommodation over the next nine years in the host countries of upcoming Olympic events.” Airbnb will join The Olympic Partner (TOP) programme that includes companies such as Coca Cola, Alibaba, Atos, Bridgestone, Dow, GE, and Intel.

One of the most important challenges the Olympics faces is finding accommodations for the massive influx of people that will attend its events in new cities every two years. The expense of building temporary lodging for two weeks when the Olympics occur add to the cost concerns often borne by current and potential host cities. My co-authors articulate the negative financial impacts that Olympics can cause for these cities in The Sports Strategist – Developing Leaders for a High-Performance Industry.

Airbnb CEO Brian Chesky articulates how his company’s new partnership helps solves this critical challenge for the IOC. The company’s core product enables “hosts and travelers choose to create a free Airbnb account so they can list their space and book unique accommodations anywhere in the world.” In the context of the 2020 Olympics, Chesky said, “Hundreds of thousands of people, if not more, are going to come to Tokyo. They don’t have enough hotels to house everyone. Where are all these people going to stay? You know, you’re not going to build a hotel for a once-in-a-25-year event.”

Airbnb core product and services directly benefit the IOC in two clear ways beyond the generating new partnership revenue. First, it enables the IOC and its host cities to dramatically reduce the cost of building temporarily lodging by potentially tens of millions of dollars. Second, it provides local residents with new opportunities to directly generate revenue from the Olympics by making their house, condominium, or apartment available as “hosts” to Olympic “travelers” during the games. The second way in particular helps to counteract the narrative that the Olympics provides little to no direct financial benefit to the residents of host cities. This is one key reason many cities have decided not to try to become host cities in the first place.

The benefits of this Airbnb partnership can be applied outside of the IOC given the rise in importance in experiential and event marketing. More specifically, companies are increasingly looking to provide experiences to increase customer acquisition and retention while also creating competitive differentiation. One of the challenges of experiential / event marketing is that people usually have go to a location and find lodging where the activation is taking place.

Airbnb can solve the second half of this equation for sports properties looking to benefit from experiential / event marketing by providing an increase in affordable accommodations. Airbnb can also use its partnership with the IOC as a clear proof point of this capability. If Airbnb can work on the global scale of the Olympics then it can likely help accommodate experiences / events at a more regional and local level. The increase in experiential and event marketing then helps the company increase its own revenue directly as well (i.e. the more people travel the more likely they will use Airbnb).

Lodging is not the only way properties and partners can demonstrate this type of authentic engagement. Verizon is currently making its NFL partnership a key element of its marketing campaign for 5G wireless using a similar approach. More specifically, NFL teams need high-speed wireless connectivity so that its fans can use their mobile devices effectively in their venues. If Verizon 5G works well in NFL stadiums on gamedays given that digital traffic volume then it should be able to help companies, cities, etc. in similar ways.   

The Airbnb partnership with the IOC does face unique challenges that need to be mentioned. More specifically, Airbnb is not always well received by cities and their governments. They often enact regulations to moderate or prevent the use the company’s products and services in their cities. In addition to challenges from more traditional lodging companies from within a city, it is not clear how Airbnb hosts and travelers should or have employed or followed tenant / landlord laws. Tokyo is already enacting laws to address these issues for the 2020 Olympics.

The larger opportunity, however, for properties to authentically use its partners’ products is something that needs to be further explored in the industry. Not only does it counteract a critical narrative for sponsorship but also can help properties address its core business challenges while provide revenue opportunities and case studies for corporate partners.