Ambush marketing involves promoting a brand at a major event without paying sponsorship fees. It is a source of frustration for event promoters and sponsors. Techniques include purchasing space around an event and distributing promotional materials. The issue highlights the reliance on sponsorship fees and raises questions about integrity. Look for competitors’ materials at major sporting events.
Ambush marketing is a marketing technique that involves participating in the events of a major event without paying sponsorship fees, essentially using the event as a free promotion. A classic example of ambush marketing occurred at the 1996 Olympic Games in Atlanta, when the company Nike covered the city in advertisements, benefiting from the focus on the city for the Olympics, without having to pay the many and hefty sponsorship fees. Ambush marketing is a source of frustration for sporting event promoters as well as the companies that pay sponsorship fees.
This type of marketing usually takes place in association with major sporting events, although potentially other events could also be used as a venue for ambush marketing. In a typical sporting event, many companies pay very high fees for exclusive marketing rights, and these fees can run into the billions of dollars for events such as the Olympic Games. In exchange for the fees, the company receives exclusive advertising space and must receive protection from competitors. Rival soft drink companies, for example, cannot pay sponsorship fees for the same event.
A variety of techniques are used in ambush marketing. The most basic is simply purchasing space on the bulletin board around an event, ensuring that people attending the event will see the marketing. This practice is completely legal, although event organizers and sponsors may find it irritating. Ambush marketers can also be more subtle, doing things like handing out t-shirts, hats and other promotional materials to people attending the event so that their brand is seen in the stadium.
The ambush marketing issue highlights the growing reliance on sponsorship fees among many major sports organizations. Some people have suggested that the huge sponsorship fees undermine these events; for example, at the Olympics, athletes are generally not allowed to bring their own food and drink into the Olympic Village, so if they are photographed or videotaped, it will not harm the sponsor of the event. In other cases, a sports team or organization may be forced to make certain concessions to meet a sponsor’s demands, raising questions about its integrity.
The next time you attend or are in the vicinity of a major sporting event, you can probably spot some ambush marketing. At the stadium itself, large banners often proclaim major sponsors and may also display advertisements or hand out promotional materials. Look at the stadium margins for competitors’ materials.
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