AMBUSH MARKETING 1

Ambush marketing: Pro side

David Cummings, Julian Herth, Meghan Malone, Ryan Kowtko

RSM 317-02

November 27, 2013

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Introduction

Ambush marketing is a technique used by companies to directly or indirectly associate

with an event, celebrity, or team, without paying for the rights. Ambush marketing may be

considered an unconventional form of advertising. Major events, such as the Olympic Games

and the World Cup, now have bylaws and regulations prohibiting companies from engaging in

ambush marketing (Palomba, 2011). For an example of ambush marketing one can go back to

the dream team, United States gold medal basketball team, where Michael Jordan draped an

American flag around his shoulders to cover up the Reebok symbol on the warm ups in the

medal ceremony (Joseph, 2012). Ambush marketing can also be known as parallel marketing

because a non-sponsor will market their product at the same event of a competing sponsor will.

The term ambush marketing was created during the 1984 Los Angeles Olympic Games to

describe Kodaks actions of promoting its product (McKelvey, Sandler & Snyder, 2012). The

goal of ambush marketing is for a company, which is not a sponsor, to receive attention from the

consumers from distracting them from actual sponsors of an event (Burton & Chadwick, 2009).

This will bring legal implications into play because; companies paying for sponsorship get

frustrated. Another reasoning for ambush marketing to take place is competition between

companies. This gives smaller companies with fewer resources a chance to market its products.

Both companies will benefit because the smaller company can handout something with its logo

on it, while the sponsor has its product linked to the event (Macintosh, Nadeau, Seguin, O'Reilly,

Bradish & Legg, 2012). The use of ambush marketing is a legal manipulation of the

environment, which ultimately helps a company get exposure at a lower cost than paying for

sponsorship rights.
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Ambush Marketing: Pro Side

Marketing Competition

While ambush marketing is often seen to be a negative consequence of paid marketing

rights, both endeavors operate in the same market, and competition between companies is fierce.

While some argue ambush techniques to be unethical and unfair, others believe it is simply a fair

manipulation of the environment. With this, as Reebok and other large corporations have the

ability to purchase large sponsorship rights, one can make the case that without ambush

opportunities, these enormous singular sponsorship deals disallows competition. In todays

capitalistic society, it is truly a carnivorous world, and businesses will continue to take part in

these marketing strategies until a governing body places a legitimate legislatorial ban.

Life is a game and it is all about getting ahead. Examples can be seen throughout history,

both in small and large scopes. Small scope ambush marking truly happens all of the time, and

takes a creative technique to grab the attention of the media. An interesting example of this can

be seen through Linford Christie and Puma during the 1996 Olympic games in Atlanta. While

conducting his personal press conference, he wore a pair of blue contacts, which portrayed the

Puma logo directly in the middle of his eyes. As one can imagine, this did not sit well with

official sponsor Reebok, who paid $40 million for the exclusive rights to the event. While this

serves as a nice example of small scope ambush marketing, large-scale ventures also happen

extremely often. While smaller acts are often seen through the medium of athletes, these larger

operations are usually expressed directly by the company. Continuing to show examples from the

1996 Olympic games, Reeboks $40 million contractual agreement to be the games main sponsor

was heavily ambushed by Nike. Prior to the event, Nike flooded Atlantas streets with billboards

containing their swoosh, as well as built a massive Centre overlooking the stadium (Joseph).
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As one can see through Nikes actions, companies like Reebok ultimately lose value in

purchasing exclusive sponsorship rights, and due to todays competitive marketplace, there soon

becomes nothing exclusive about it.

Legal Forms Of Ambush Marketing

Although ambush marketing is often viewed as an unfair or unlawful advertising tactic,

there are several legal forms that exist. Non-sponsors can partake in legal forms of ambush

marketing such as distraction ambush marketing. This can consist of buying advertising space

on broadcasts for the event as well as buying advertising space on billboards and other signs near

the event. Companies can also conduct different promotional and sales activities outside of the

events or even rent blimps that display their trademark and float above arenas and stadiums. An

example of distraction ambush marketing was in 1996 at the Summer Olympics in Atlanta; Nike

bought billboards surrounding the events and created a Nike village near Olympic park

(Downing, Bram, & Azevedo, 2013).

The use of athletes themselves is another form of legal ambush marketing that many non-

sponsors use to associate themselves with major sporting events. Paddy Power, an online

gambling company, prompted a soccer player in the 2012 London Olympics to flash his Paddy

Power underwear during an important game. Paddy power has also used other legal forms of

ambush marketing by advertising allusions to the event regarding their brand. During the 2012

London Olympics, Paddy Power sponsored an egg and spoon race in London, France and had

billboards stating it was The Official Sponsor of the Largest Athletics Event in London this

Year alluding the idea that they were the official sponsor of the London Olympics (Downing et

al., 2013).
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Another clever and legal ambush marketing tactic was in the 2012 London Olympics,

where over 400 athletes wore Nikes yellow VOLT shoes. Although the Olympic Committee

has enforced rules prohibiting Olympic athletes from using their name or likeness for advertising

during the Olympic games, there are no rules or laws prohibiting athletes from wearing apparel

of non-sponsors (Downing et al., 2013).

Although there are many forms of legal ambush marketing, there have been laws passed

prohibiting different types of ambush marketing and restricting companies from associating their

brands with major events. In 2012, the Brazilian World Cup General Law was enacted protecting

FIFAs trademarks and rights to the images and sounds of the soccer games. Brazil also enacted

the Olympic Act in 2009, protecting Olympic symbols, flags, and other trademarks. The

Olympic Act passed by Brazil protects the Olympic trademarks and symbols but doesnt prohibit

forms of indirect ambush marketing and doesnt contain any criminal penalties (Downing et al.,

2013).

Despite the laws and acts Brazil passed to prohibit forms of ambush marketing, there are

limitations that protect the public interest and constitutional rights of open competition as well as

freedoms of speech and enterprise. Non-sponsors of major events do have constitutional rights

regarding their advertising techniques but should be mindful of the restrictions that countries or

organizations enforce. Rather than using key words or phrases that are prohibited, non-sponsors

can use athletes, teams, or the sport itself to promote their brand without violating any laws or

regulations passed (Wilson Harle, 2011). As long as companies follow these regulations and

ambush market within the restrictions, they can continue to maintain a competitive edge against

sponsors of major events and get a fair shot at reaching a vast market segment.
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Ethical Stance

In sports the stakes are always high; the same goes for marketing and advertising in

sports. Marketing campaigns between competing industries has high stakes of its own. Large

events such as the Olympics and World Cup bring out the best in industries. Some may question

if the idea and tactics used in ambush marketing are ethical, but it is being creative and

marketing your industry with whatever it takes mentality. Industries who are worried about

being nice and believing that strategies such as ambush marketing are unethical, are often the

industries who fall behind and miss out on big opportunities while their competition takes

advantage of those opportunities (Sauer 2002). There are no laws against ambush marketing and

nothing about it is illegal. Although another industry may pay to be the official sponsor of an

event that doesnt necessarily mean another industry cannot find a way to promote and market

their company. For example Reebok paid a near $40 million to be the official sponsor during the

1996 Summer Olympic games in Atlanta. Nike may be one of the best when it comes to ambush

marketing; they put billboards all over the city, Nike banners and a Centre overlooking the

stadium. Another example is in 1992 Olympic games in Barcelona when Michael Jordan and

Charles Barkley of the United States mens basketball team covered up the Reebok logo when

accepting their gold medals because they were brand ambassadors for Nike (Joseph 2012). Just

because one industry pays to be the official sponsor of an event that does not mean other

industries cannot put their brand out there to be seen. Nike never put up any billboards or

anything saying they were the official sponsors of the event so they were not doing anything

wrong. Ambush marketing is just being smart and competitive and doing whatever you need to

do to gain an advantage over competing brands and industries. If one brand can steal the

spotlight from another such as an official sponsor from out marketing them and putting together
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a better campaign for the event, then they deserve and earned that success, nothing illegal or

wrong was done to earn that (Minato 2012).

Advantages of Ambush Marketing

There are four main advantages to using ambush marketing, which include: lower costs,

creates more competition, more consumer choices, and increases brand recognition. The lower

cost associated with ambush marketing is companies are not buying sponsorship rights to an

event, but are still advertising their product at the event (Burton & Chadwick, 2009). Ambush

marketers goals are to distract the consumers and make them confused as to who is the sponsor

for the event and who the ambusher is. This also allows for more choices for consumers where

there will be at least two companies promoting its product, but only one having the sponsorship

rights. This allows for more competition between companies for consumers to choose their

product. Ambushing occurs when a company who purchases the sponsorship rights does not read

the contract they signed. The Olympic games is one of the only events that offer the sponsors

first rights to all possible advertising for the event. This allows companies who are not sponsors

to compete with its competitors when not all the time slots for advertising are taken (Sauer,

2002). Although, ambush marketing may be a last resort for some, it is the only way some

companies can compete. Ambush marketing helps companies increase their brand recognition,

because viewers will see their products either at an event or on television.

Conclusion

Ambush marketing is a technique that companies use to advertise and associate its

products with an event without paying for sponsorship rights. Although many view ambush

marketing as unethical, smaller companies can argue the costs of sponsorship rights are

unethical. It is very beneficial to smaller companies that cannot afford the outrageously
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expensive sponsorship fees that larger companies can. The Dutch beer Bavaria, is a prime

example of a smaller company engaging in ambush marketing at the World Cup because it

cannot compete with the big name beer distributers like Budweiser that pay millions of dollars

for sponsorship rights (Minato, 2012).

The competition between companies has become extremely intense making ambush

marketing a common tactic for many companies to use to maintain their competitive edge.

Ambush marketing has evolved from ordinary marketing techniques as a result of the

increasingly competitive industry (Sauer, 2002). Ambush marketing has arguably become the

most creative way for companies to gain publicity and to get their product or brand name out

there. If done in a tasteful and clever manner, ambush marketing can be more influential than

paying the unreasonably high sponsorship fees. Despite the negative view that many companies

have on ambush marketing, this new innovative tactic is and will continue to be one of the most

creative and effective forms of marketing.

Competition is a big aspect of the world we live in today. Ambush marketing is a fine

example of competition. I do not find anything wrong or unethical with ambush marketing. If

one industry wants to pay to be an official sponsor of an event that does not mean what so ever

that another industry cannot be competitive and campaign around the event as well. As long as

competing industries do not try to create an image or state that they are the official sponsors of

the even it is completely okay with me. (Minato 2012) If one industry bought the rights to being

an official sponsor of an event does not mean another industry lost their rights to still run an

advertising and marketing campaign. Sports are competitive, and so is business we live in a

competitive world and it surrounds us everywhere it takes a lot of hard work and creativity to be

the best. Ambush marketing is just one strategy to becoming the best. (Sauer 2002) I find
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ambush marketing a very smart way to be creative in the marketing of your industry and

potentially can be just as successful as becoming an official sponsor of an event and you can do

so at a much more cost efficient way.

As discussed thoroughly throughout the paper, ambush marketing can be best described

as an intentional manipulation of the environment, in which a company receives the benefits of a

sponsorship, without having to pay for it. With this, advertisement is not free, just much less

expensive than a full sponsorship. While this is definitely a viable and legal course of action a

company could take to help them gain publicity, it is not seen to be respectable, when

considering its ethical weight. Marketers of businesses must evaluate both sides when deciding

which venture to take, as their decision carries specific repercussions. If a company ignores the

possibility of ambush marketing tactics and opportunities, they can be seen in a respectable light

of fairness and ethical respect. This positive and truthful atmosphere surrounding ones company,

by not subjecting to ambush tactics, opens the door for a friendly relationship between

companies. On the other hand, we live in a capitalistic society- a carnivorous world. If one

simply ignoring the profitably of marketing through ambush techniques, they will watch every

piece of their competition take part, and ultimately flourish to a level of incomparable

comparison. Ambush marketing, while carrying negative connotations, is a completely legal

assertion of environmental exploitation, and truly a fantastic idea for a company with low

budgets for sponsorship, and a high outlook of profitability.

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References

Burton, N., & Chadwick, S. (2009). Ambush marketing in sport: An analysis of sponsorship

protection means and counter-ambush measures. Journal Of Sponsorship, 2(4), 303-315.

Downing, D. M., Bram, M. R., Azevedo, R. (2013). Ambush Marketing: Coming to a Stadium

Near You. Retrieved by http://www.acc.com/legalresources/quickcounsel/amcstasny.cfm

Joseph, S. (2012, June 22). Top ambush marketing stunts. Retrieved from

http://www.marketingweek.co.uk/news/top-ambush- marketing-stunts/4002355.article

Macintosh, E., Nadeau, J., Seguin, B., O'Reilly, N., Bradish, C. L., & Legg, D. (2012). The Role

of Mega-Sports Event Interest in Sponsorship and Ambush Marketing Attitudes. Sport

Marketing Quarterly, 21(1), 43-52.

McKelvey, S., Sandler, D., & Snyder, K. (2012). Sport Participant Attitudes Toward Ambush

Marketing: An Exploratory Study of ING New York City Marathon Runners. Sport

Marketing Quarterly, 21(1), 7-18.

Minato, Charlie (2012). Ingenious Ambush Campaigns From Nike, Samsung and BMW Make

Official Sponsorships Look Like A Waste. Retrieved from

http://www.businessinsider.com/best-ambush-marketing-campaigns-2012-6

Palomba, M. (2011). Ambush marketing and the Olympics 2012. Journal Of Sponsorship, 4(3),

245-252.

Sauer, Abram (2002). Ambush Marketing Steals the Show. Retrieved from

http://www.brandchannel.com/features_effect.asp?pf_id=98

Wilson Harle. (2011). Ambush Marketing Law. Retrieved from

http://www.wilsonharle.com/assets/Ambush-Marketing-Law-MEMA-June- final-.pdf