Olympic Sponsors Plan to Stay Put Despite Protests

While passing the Olympic torch has become a focal point for demonstrations over China's human rights record, major sponsors of the games aren't expected to flame out over the controversy.

Advertising and marketing pros say the protests over Chinese actions in Tibet and against its own people will be shunted aside in August, when the rest of the world enjoys the majesty of the Olympic games.

AP

So far, protests in Paris and London have drawn international media coverage. And an anti-China demonstration in San Francisco attracted thousands when the torch passed through that city Wednesday.

There are billions of dollars at stake in the Olympic games. Ad revenue alone is expected to reach about $1 billion for CNBC parent General Electric , which spent $3.5 billion for the Olympic broadcasting rights from 2000 to 2008.

Dozens of other companies have anted up millions to get their names associated with the games--including Coca-Cola , which said it has no plans on pulling back its efforts, as well as Johnson & Johnson , Adidas , McDonald's , Visa , UPS and Budweiser .

Corporations that have already committed to sponsoring the competition likely will not back out, though they're flying under the radar for the time being.

"They're all committed now," says Al Ries, of Ries & Ries market strategy firm in Atlanta. "The Chinese have milked every possible sponsor so there's not a question of backing out anymore. They're obviously going to go ahead with the promotions but I think they're laying low right now because they don't want to associate anti-China (sentiment) fundamentally with their Olympic promotions.

"But I think the mood is going to change when the Olympics starts. There's something about the competition. You're going to have an enormous amount of day-to-day coverage."

The controversy, which has arisen in large part from China's violent suppression of a Tibetan uprising, couldn't come at a worse time for China and the array of multinational companies looking for a commercial foothold in the nation.

During the past four years, China has been making bold moves to find its place as a major emerging market in the global economy. Footwear giants Nike and Adidas are in a pitched battle to assert themselves in the marketplace as Chinese consumers become increasingly modernized and seek out hipper products.

Despite the massive unrest over Chinese policies, analysts don't foresee widespread consumer backlash against companies that sponsor the Olympics, while the sponsors themselves are hoping to stay above the fray.

"Adidas is conscious of the exceptional importance of the protection of human rights. Sponsors, however, should not be expected to solve political issues," Adidas said in a statement to CNBC.com. "In China, we focus on the protection of human rights, fair labor and environmentally sustainable conditions in the factories manufacturing our products. We believe that boycotting the Olympics is counterproductive and will therefore uphold our commitment to the Olympic Games."

CONTINUED: Bush May Skip Opening Ceremony

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