Organising committee chairman Lord Coe said: "It meets the biggest challenge we have over the next five years, which is reaching out to young people."
For the first time, the logo will be used for the Olympics and Paralympics.
Coe added: "It is interactive and absolutely at the heart of what we need to do - engaging the attention of young people through new media and the virtual world they can get transported into.
"It will be imperative that it is flexible. I think it is way beyond any simple logo.
A successful brand also helps bring in millions in sales of everything from mugs, mascots to T-shirts.
"We have been involved in this process now for over a year," added Coe. "We have done a lot of work about this and spoken to over 60 stakeholders and young people who each insist that we understand the challenges faced on a day-to-day basis.
"We have produced a brand which is appropriate for London, but it has an international character as well. This is different absolutely."
International Olympic Committee President Jacques Rogge said: "This is a truly innovative brand logo that graphically captures the essence of the London 2012 Olympic Games - namely to inspire young people around the world through sport and the Olympic values.
"Each edition of the Olympic Games brings its own flavour and touch to what is now well over a century of modern Olympic history; the brand launched today by London 2012 is, I believe, an early indication of the dynamism, modernity and inclusiveness with which London 2012 will leave its Olympic mark."
The brand, designed by Wolff Ollins, has been targeted at the young people the organisers hope to get involved.
It is a deliberate change from previous Olympic logos, which often feature an image from the city.
Lord Coe and London organising committee chief executive Paul Deighton were joined by a team of Olympic ambassadors for the launch at London's Roundhouse.
From : BBC London
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