Chris Townsend has a clear view of the Olympic Park from his headquarters on the 23rd floor of a skyscraper at Canary Wharf. And it's a good job, because Townsend, who is known for putting his stamp on things, can keep an eye on his latest project without leaving the office.
Townsend is the commercial director for the London Organising Committee of the Olympic Games (LOCOG) and has the responsibility for generating the £2bn it needs to prepare and stage the games in 2012.
LOCOG is distinct from the Olympic Delivery Authority (ODA), the public body responsible for developing and building the new venues and infrastructure for the games and, unlike the ODA, it cannot go over budget.
The day Townsend talks to Media Week, half London has been brought to a standstill, or at least walking pace, by striking Tube staff. However, the Docklands Light Railway and the Jubilee Line are running, and Canary Wharf is bustling with bankers.
Townsend's personal journey to Canary Wharf included three years as marketing director of Transport for London, as well as time at BSkyB and the BBC, and he is well-regarded by those who have worked with him in the media industry.
Townsend works closely with Charles Wijeratna, director of commercial negotiations, and they are jointly working towards hitting LOCOG's target of £2bn. Domestic sponsorship will provide £700m, with up to £100m raised through merchandise. Alongside the 11 global partners, Townsend and the commercial team have already signed up 19 domestic partners and secured more than £500m.
Brands wanting to take advantage of London 2012 must become an official sponsor. Under the London Olympic Games and Paralympic Games Act 2006, it is an offence to create an association with the games for commercial purposes without the proper licence to do so. Each of the sponsor brands has complete exclusivity in their market.
There are still opportunities for brands from many sectors, with all Games-related contract opportunities published through the CompeteFor service. In addition, LOCOG put out the tender for licences to produce a number of London 2012-branded items at the end of May, and there will be additional commercial activity around the torch relay, the tickets for the games and other milestone events on the path to 2012.
Significant investment
Support from these official sponsors makes the Olympics possible, and part of the role of the commercial team is to educate agencies and advertisers on how not to ambush the event. All the official sponsors have made a significant investment, and have thus acquired valuable marketing rights they will activate over the next few years.
Their activity will provide a significant injection of cash into the media industry. If the sponsors spend the same amount activating rights as they did acquiring them - a cautious estimate - an extra £1.3bn will enter the economy. Most of these funds, Townsend says, will be spent on media space, creative work and production.
The outdoor industry is particularly well-placed to take advantage. After the 1996 Olympic Games in Atlanta, when Nike ambushed proceedings by plastering the city with its billboards, outdoor media owners must agree to offer their inventory to the sponsors first. Out-of-home advertising will be central to brands' exposure around the games and, because opportunities within the Olympic stadia are limited, the focus will be on the consumer's journey to the games.
Andrew Oldham, former chief operating officer of CBS Outdoor, is working with LOCOG as a consultant to organise the option agreements that will cover the vast majority of Games-related outdoor media space in London for the 12 weeks surrounding the event. Oldham will initially work with LOCOG until September, but will return to the role in 2010 to finalise out-of-home plans.
The out-of-home industry is understandably excited about the opportunity. David McEvoy, marketing director of JCDecaux, believes London is "the world centre for excellence in outdoor advertising" and that the industry will ensure out-of-home is "a showcase for the Olympic Games".
Outdoor bonanza
Townsend says it is important to remember the UK will have come out of recession by 2012, and claims he would be "surprised if the majority of outdoor media wasn't sold".
London 2012's marketing needs will be provided by McCann Erickson, which won the account in a showdown with WPP. Townsend says the agency is initially charged with "the look and feel for the games", both in the park and the city, and the campaign plan should be "pretty much scoped out by the end of August".
McCann Erickson will provide all LOCOG's marketing services and, as a third-tier partner, has committed £10m. Townsend is clear this is not a pro bono arrangement, and that the value of an Olympic sponsorship outweighs its financial obligation. LOCOG has secured the services of architects, engineers and strategic consultants through sponsorship deals, and preparations are well underway.
Townsend can clearly spot a good deal and the industry can be confident the man who launched the Oyster Card and renegotiated the £1.2bn London Underground contract with Viacom will, once again, deliver results.
? To register with London 2012's CompeteFor service, visit
CV
2006 Commercial director, London 2012
2003 Group marketing director, Transport for London
1999 Director of interactive TV and e-commerce, Telewest
1995 Marketing director, BSkyB Digital
1992 Customer marketing director, BSkyB
1984-92 Roles at DMB&B, then the BBC
Football team Manchester United
Lives Wimbledon
Transport Doesn't own a car, but uses his Oyster Card to get everywhere
Desert island media The Times, iPod and BlackBerry
Hobbies Concerts and cycling
Townsend on...
Restrictions on commercial broadcasters The BBC has the broadcast rights. There is a window before and after key events where commercial broadcasters cannot be associated with the Games. At other times, they can produce factual content, but they must not be promoted in a way that makes the broadcaster appear to be a rights holder or officially linked to the games.
Investment potential Partners believe there will be greater investment across media as we come out of recession, and there could be great demand in 2012.
Potential partners We haven't made any decisions about the media partnerships we may sign up, other than McCann Erickson. We are going through a planning process until the end of July, so any decisions will be made after then.
The rights package When you buy domestic rights, you are buying rights to the Olympic Games and the Paralympic Games and the Olympic and Paralympic teams, which is a first. BT is investing significant resources behind the Paralympic movement.