8-1 Chapter 8 Ambush Marketing Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

8-1

Chapter 8Chapter 8

Ambush MarketingAmbush Marketing

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin

8-2

Concept of Ambush MarketingConcept of Ambush Marketing

• Defined as: a Promotional Strategy Whereby a Nonsponsor Attempts to Capitalize on the Popularity/Prestige of a Property by Giving the False Impression that It Is a Sponsor

• Often Used by Competitors of the Property’s Official (Actual) Sponsors

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Parasite MarketingParasite Marketing

• A Parasite Attaches Itself to an Unwilling Host and Takes Nourishment From It

• An Ambush Marketer Attempts to Attach Itself to a Valuable Property and Extract Benefits from that Perceived Attachment

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Why Ambush?Why Ambush?

• High Cost of Rights Fees

• It Has Been Shown to Work

• Consumers Not Offended by Ambushers

• Attitude Within Industry May Be Changing

8-5

Piracy Versus AmbushingPiracy Versus Ambushing

• Piracy Is Illegal

• Ambush Marketing Is Legal in Most Countries

• Ambushing Represents an Ethical Dilemma for the Marketer

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PiracyPiracy

• Infringements on the Intellectual Property Rights of the Event or Property (e.g. Using an Event’s Trademarks and Logos without Permission to Do So)

• Making an Overt Claim to Be Officially Associated with the Event or Property When Such an Association Does Not Exist

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Ambush Marketing StrategiesAmbush Marketing Strategies

• Sponsor Media Coverage of the Event

• Sponsor Subcategories

• Make Sponsorship-Related Contribution to the Players’ Pool

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Ambush Marketing StrategiesAmbush Marketing Strategies

• Purchase Advertising Time During the Broadcast Replay

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

• Use Other Dilution Strategies

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Sponsor Media Coverage Sponsor Media Coverage of the Eventof the Event

• Advertise During the Original Broadcast

• For 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

• For 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 Are Made to Competitors Who in Turn Acknowledge This Involvement; May Serve as Performance Incentive

• For Example: – Speedo Promoted a Plan to Reward Olympic

Swimmer Michael Phelps with a $1,000,000 Award if He Won 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.

• For Example: – The World Cup of Soccer Prohibits Advertising by

Ambushers during the 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 the True Sponsor, adidas.

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

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

• For Example:– 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 with Engage in Advertising to Coincide with Timing of the Event (Cont’d)Timing of the Event (Cont’d)

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

• For Example: – Coors Light Was the Official Beer Sponsor of

Super Bowl XLIII in 2009. Budweiser Ran Advertising Throughout the Football Season on Many Networks and During Regular Season NFL 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– Give away Shirts for Fans to Wear

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

• Drop Box 8.1 in Here

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Example of Ambush MarketingExample of Ambush Marketing

• Beijing Olympics: Official Sponsor Was Panasonic; the Ambush Marketer Was Vizio– Vizio ran series of ads called “Splash” in an

effort ambush Panasonic. The ads ran during the Olympic broadcast, and the creative execution featured a diver in slow motion with an American flag in the background.

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Example of Ambush MarketingExample of Ambush Marketing

• EURO 2008: Official Sponsor Was McDonald’s; Ambusher Was Burger King– Burger King ran ads in host countries where

games were played. They featured a “Red Card” theme that has obvious soccer connotation. Ads featuring images of celebrating fans were run during same timeframe as the actual competition.

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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 AmbushersProtection 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

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

• Educate Consumers

• Engage in Surveillance Programs

• Limit Number of Sponsorships

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

• 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 Ambushing 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