Ambush Market Ting

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AmbushAmbush MarketingMarketing

By: Lakshya KhannaNaveen TushirDeepak Bansal

NishiDeeksha

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““AMBUSH MARKETINGAMBUSH MARKETING””

– “Ambush marketing takes place when a trader seeks to utilise the publicity value of an event, for instance a major sports tournament or concert, to gain a benefit from it despite not having an involvement or connection with that event and more particularly having made no financial contribution to entitle him to derive benefit from it.”

– “Ambush Marketing” by O H Dean, De Rebus, June 2000

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Why AmbushWhy Ambush

• High Cost of Rights Fees

• Consumers Not Offended by Ambushers

• Attitude Within Industry May Be Changing

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Piracy Versus AmbushingPiracy Versus Ambushing

• Piracy Is Illegal

• Ambushing Represents an Ethical Dilemma for the Marketer

• Ambush Marketing Is Legal in Most Countries

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TYPES OF AMBUSH MARKETINGTYPES OF AMBUSH MARKETING

Association

Intrusion

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AssociationAssociation

• “In this form of ambush marketing, the ambush marketer misleads the public into thinking that he is an authorised sponsor or contributor associated with the event.”

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INTRUSIONINTRUSION

• “The ambush marketer seeks not to suggest a connection with the event but rather to give his own name, trade mark, or other insignia exposure through the medium of the publicity attracted by the event; this is done without any authorisation of the event organiser.”

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Ambush Marketing StrategiesAmbush Marketing Strategies

Sponsor Media Coverage of the EventSponsor SubcategoriesMake Sponsorship-Related Contribution to

the Players’ PoolPurchase Advertising Time During the

Broadcast ReplayEngage in Advertising to Coincide with the

Timing of the EventUse Other Dilution Strategies

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Sponsor Media Coverage Sponsor Media Coverage of the Eventof the Event

• Advertise During the Original Broadcast

• Example: Fuji Film Was an Official Sponsor of the Olympic Games, but One of the Major Advertisers during the Broadcast Was Kodak

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Sponsor SubcategoriesSponsor Subcategories

• “Ambushing Up” – Sponsor at a Lower Level with Objective of Being Associated with the Property at a Higher Level

• Example: adidas Was the Official Sponsor of the 2006 World Cup of Soccer, but Nike Sponsored the Brazilian National Team that Competed in the Tournament

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Make Sponsorship-Related Make Sponsorship-Related Contribution to the Players’ PoolContribution to the Players’ Pool

• Payments Made to Competitors Who in Turn Acknowledge This Involvement. May Serve as Performance Incentive

• Example: Speedo Promoted a Plan to Reward Olympic Swimmer Michael Phelps with a $1,000,000 Award if He Wins Seven Gold Medals in the 2008 Olympics

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Purchase Advertising Time during Purchase Advertising Time during the Rebroadcast of the Eventthe Rebroadcast of the Event

• Events Are Often Shown on TV Many Times After the Live Broadcast. There Are Fewer Restrictions Regarding Who Can Purchase Advertising Time.

• Example: The World Cup of Soccer Prohibits Advertising by Ambushers on Original Broadcast, but the Championship Game Will Be Rebroadcast on Various Sports Channels Where that Prohibition Will No Longer Be in Effect. This Represents an Opportunity for Nike to Ambush.

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Engage in Advertising to Coincide Engage in Advertising to Coincide with the Timing of the Eventwith the Timing of the Event

• Even if the Ambusher Cannot Advertise on the Event Broadcast, It Can Advertise on Other Programs within that Timeframe

• Themed Advertising: Wendy’s Ambushed McDonald’s and the Winter Olympics by Showing Ads Featuring Winter Sports and Former Olympic Athletes

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Engage in Advertising to Coincide Engage in Advertising to Coincide with Timing of the Event (Cont’d)with Timing of the Event (Cont’d)

• Traditional Advertising: Using Advertising that Represents a Normal Creative Execution for the Nonsponsor.

• Coors Light Was the Official Sponsor of Super Bowl XL. Budweiser Ran Advertising Throughout the Football Season on Many Networks and During Regular Season Games.

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Other Dilution StrategiesOther Dilution Strategies

• Purchase Tickets to the Event– Distribute Tickets; Use as Contest Prizes

• Confusion Technique– Duplicate Effort of an Actual Sponsor

• Create Own Event– Similar Event that Appeals to Same People

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Other Dilution StrategiesOther Dilution Strategies

• Sponsor Other Events at the Event Venue– Association with the Venue or Secondary

Event May be Mistaken for Association with the Original Event

• Wear Nonsponsor’s Logo Clothing at the Event– Giveaway Shirts for Fans to Wear

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When Should Ambush Marketing When Should Ambush Marketing Be Considered?Be Considered?

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Example of Ambush MarketingExample of Ambush Marketing

• Sydney Olympics: Official Sponsor Was Nike; the Ambush Marketer Was adidas– adidas had hospitality

centers and media centers where press could meet with adidas-backed athletes

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Example of Ambush MarketingExample of Ambush Marketing

• Major League Baseball All-Star Game: Sponsor Was Coca-Cola; Ambusher Was Pepsi-Cola– Pepsi Sponsored MLB, but Not the All-Star

Game; The Ambush Marketing Effort Also Involved the Flying of the “Pepsi Balloon” Over the Stadium During One of the Official Competitions of All-Star Weekend (the Home Run Derby)

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ExamlpesExamlpes

1984 Olympics; Kodak sponsors TV broadcasts of the games as well as the US track team despite Fujifilm being the official sponsor.

1988 Summer Olympics; Fujifilm sponsors the games despite Kodak being the official sponsor.

1992 Summer Olympics in Barcelona; Nike sponsors press conferences with the US basketball team despite Reebok being the official sponsor. During ceremonies, the players covered their Reebok logos.

1994 Winter Olympics; American Express sponsors the games despite Visa being the official sponsor.

1996 Atlanta Olympics; sprinter Linford Christie wore contact lenses embossed with the Puma AG logo at the press conference preceding the 100 metres final, despite Reebok being the official sponsor.

1996 Atlanta Olympics; Messages On Hold strategically infiltrates a banner within the camera frame as US runner Jon Drummond prepares for the opening leg of 4x100 relay final. The moment is broadcast live across the world.

1996 Cricket World Cup; Pepsi ran a series of advertisements titled "Nothing official about it" targeting the official sponsor Coca Cola.

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• 1998 World Cup; Nike sponsored a number of teams competing in the Cup despite Adidas being the official sponsor.

• 2000 Sydney Olympics; Qantas Airlines’ slogan "The Spirit of Australia" sounds strikingly similar to the games’ slogan "Share the Spirit." despite Ansett Air being the official sponsor.

• 2002 Boston Marathon; as Adidas-sponsored runners come off the course Nike are treated to spray-painted messages honoring the day of the race, but not the race itself.

• 2003 Cricket World Cup; Indian players threatened to strike over concerns that the anti-ambush marketing rules were too strict. Of particular concern was the length of time before and after the cup that players were not allowed to endorse a rival to one of the official sponsors. Players argued that if they had pre-existing contracts that they would be in breach of them if they were to accept the ICC's rules.

• 2006 FIFA World Cup; fans of the Netherlands had to disrobe Bavaria Brewery's leeuwenhosen because Budweiser was the official beer sponsor.

• 2008 Beijing Olympics; entire countries were tuned into the Opening Ceremonies, and worldwide, millions more saw Li Ning light the torch and learned that he owns a shoe company with the same name, a direct rival of Adidas and quite famous in China, but not an official Olympic sponsor.

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Protection from Ambushers Protection from Ambushers

• Sponsors Should Learn How to Ambush

• Leverage with Collateral Support (Remember: Sponsorship Is Not a Stand-alone Promotional Activity)

• Clean Stadium (Devoid of Nonsponsor Signage)

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Protection from Ambushers Protection from Ambushers (Cont’d)(Cont’d)

• Establish More Control Over Advertising

• Restrict Use of Virtual Advertising

• Limit Ability of Players to Endorse Brands of Nonsponsors

• Educate Consumers

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Protection from Ambushers Protection from Ambushers (Cont’d)(Cont’d)

• Engage in Surveillance Programs

• Limit Number of Sponsorships

• Prohibit Pass-Along Strategy

• Incorporate Sponsor’s Name

• Lobby Governments to Enact Legal Restrictions

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Are Preventative Are Preventative Measures Effective?Measures Effective?

• No Event Is Immune to Ambushing

• Sponsor Who Understands How to Ambush Is Better Prepared to Assess Its Own Vulnerability

• Many of the Techniques Are Effective

• Many Events Now Require New Laws and Clean Stadia as Conditions for Staging an Event

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Closing CapsuleClosing Capsule

• Ambushing Is Cheaper Than Sponsorship

• Ambushing Can Be Effective

• Ambushing Reduces Sponsor’s Benefits

• Sponsors Must Effectively Leverage

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ConclusionConclusion

Ambush Marketing should be understood as a marketing strategy occupying the consumer mind space for an event. What Ambush Marketing is not, is some underhanded attempt to take advantage of sponsored properties without paying the associated fees. The marketing decision around sponsorships is really a question of whether or not the sponsorship, as currently offered, is really commercially viable.

Successful ambush strategies feed on ill-conceived sponsorships and inept sponsors; in that regard, Ambush Marketing is the natural result of healthy competition and has the long-range effect of making sponsored properties more valuable, not less, in that successful ambushes, over time, help to weed out inferior sponsorship propositions.

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Ethical issuesEthical issues

• Is it ethical for a company to ambush an event? Why do brands with excellent reputations get into this & are they justified?

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Any Questions?