Posted: Mon Jan 29, 2007 5:45 am 

   Post subject:   AMBUSH MARKETING

AMBUSH MARKETING 

Recently, Ambush marketing has received a lot of publicity in the Indian and international marketing arena. Here, we make
an attempt to explain what ambush marketing is, and why it is causing such uproar. 

Simply put, Ambush marketing occurs when a company signs on to sponsor an event as official sponsor, and a rival hijacks
the mind space through backdoor means. It is a concept that describes the actions of companies who seek to associate
themselves with a sponsored event without paying the organizers. The ambush consists of giving the impression to
consumers that the ambusher is somehow affiliated with the event. Ambush marketing can provide some, if not most, of
the benefits of a legitimate, paid-for sponsorship at relatively little cost. 

For example, In 1996, soft drinks giant Coke paid a fortune for the right to call itself the official sponsor of the World Cup.
Rival Pepsi promptly launched a massive advertising blitz, based on the catch-line: Nothing Official About It. The Pepsi
campaign captured the public imagination - and Coke, the official sponsor, lost out. 

The above incident highlights the subtlety & potential of ambush marketing – hijacking the consumers' mind. 

Contexts 

The myriad contexts in which ambush marketing can arise include tangential actions ranging from the placement of
competitive advertising on television broadcasts of the event to the underwriting of promotions to send to participants of
the event. Some examples of ambush marketing include: 

Placement of competitive advertising on Media in an advantageous position- first break on TV or back cover of the event
magazine. 
Organize contests to send consumers to the event. 
Sponsoring contestants (Teams or individual participants) 
Placement of hoarding or booths at strategic locations during the event. 
Promotional items using the mascots/ Logos of the events. 
Commercial time on TV shows or specials during or before the event. 
Why sponsorships 

It would be pertinent to review why exactly companies do sponsorships as a part of their marketing programs because this
will help explain the implications of ambush marketing. 

Audience awareness: When people are relaxing they can imbibe information faster. This helps the brand message
penetrate effectively into the consumer psyche. 
Image: Sponsorship leads to the brand's image enhancement by virtue of association with a high profile event. 
Segment targeting: Sponsorship enables the marketers to target their consumers in an efficient & relevant manner. So if
Mercedes Benz wants to reach CEOs, they can do so more efficiently by sponsoring a golf tournament than by advertising
on TV. 
Other options: Sometimes companies have no other avenue for reaching the masses due to governmental restrictions on
advertising etc. (for example many tobacco & alcohol companies cannot directly advertise). 
Public Relations: Finally, sponsorships give an opportunity to get high visibility & Free PR. 
Companies & event organizers understand the importance of sponsorships & that is why commercial sponsorship is big
business. Not surprisingly, high-visibility events attract aggressive competitors intent on creating their own association
with the event. 

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

The roots of Ambush Marketing can be found in several phenomena typical of modern sponsorships: 
Escalating (almost prohibitive) prices. 
Distressing imagery of sports & scandals (can lead to negative image rub off by being associated with the event) 
Increasing marketing competition (Many other avenues of competition take away resources). 
Clutter in sponsorship (Too many brand associated with event – no benefit for anyone). 
Given the above situation, those companies who want to buy, or can afford to buy, do buy; others must consider their
marketing alternatives. In explaining the practice of Ambush Marketing, and in noting its virtual necessity in modern
competitive business practice, and indeed its inevitability -- there may actually be no issue of ethics or morality. 

The point to understand is that, in buying a sponsorship, a company buys only that specific event. In sponsoring, the
company does not purchase the rights to all avenues leading to the public's awareness of a property; and neither does it
buy the rights to the entire consumer mind space in which the sponsorship is one resident. (e.g. in the thematic space of
cricket – World Cup is one resident). 

The mind space here refers to the various associations (ideas, images, and events) that occur in the consumers' minds
when they think of the sponsored space. This thematic space is not "created" by anyone, & hence no one "owns" it. 
Non-sponsors want their product or service to be a part of the thematic space without sponsoring the event. So long as
they do nothing to claim that they are indeed a sponsor, they are free to pursue other event-related activities (e.g.,
television advertising on the event broadcasts, onsite events, and other such activities), to underscore their company's
support of, and dedication to, the thematic space which the event occupies. 

The contrary notion, put forward by event organizers, that non-sponsors have a moral or ethical obligation to market
themselves totally away from the thematic space of a sponsored property, is absurd because sponsors have bought a
specific property; they have not bought a thematic space. 

Given the above then, the real marketing game begins once a sponsorship has been undertaken. Ambush marketing can
be "parasitic" only to those who have not sufficiently covered their sponsorships with adequate, anti-competitive
protection. A sponsor's competitor does not have an ethical obligation to make sure that their sponsorship is successful. 

Conclusion 
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. 

The year 2006 has been a year full of major international sporting events where the

complex issue under analysis has risen, to local concern, mainly before, during and

after the FIFA World Cup which took place in Germany.

Ambush marketing, also called parasite marketing, is a practice common to major

cultural or sporting events where an advertiser which is not an official sponsor of

the event intends to associate itself to the event without paying the organizer for

the right to do so. However, sports particularly provide companies with a greater

opportunity to advertise their marks, goods and services to a wide and sometimes

worldwide audience and, at the same time allows interested parties to be

associated with a major event.

We shall only refer to sporting events for our purpose.

There are two types of ambush. The first is the so called ambush marketing by

association, and happens when a non-sponsor gives out the impression of being

an official one, whereas the second form, ambush marketing by intrusion is when
the non sponsor intends to be associated with the event by means of its media

and/or spectator exposure.

An example of the first type of ambush marketing is when the non sponsor uses the

official event’s logos, symbols or mascots. An example –among many- of ambush

marketing by intrusion is when the non sponsor places banners or advertisements

close to the event’s venues.

Benefits of sponsoring

Who benefits with sponsoring? Both, organizers and sponsors do.

On the first hand, the organizers need sponsoring. In terms of sportive activities,

sponsoring has become an essential part of the development of today’s sports

and is one of the most fruitful means of revenue. Without the presence of sponsors,

organizers of the major events such as the FIFA World Cup or the Olympic Games

would not be able to obtain the sources of income to get the events going.

On the other hand, sponsoring derives in many benefits for the sponsors as well,

such as: A T T O R N E Y S A T L A W

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• Getting their marks, goods and/or services advertised during the event to a

massive audience, sometimes worldwide

• Association with the image and principles of sports and with the sponsored

activity

• The ability to tackle new commercial markets and public

• Obtaining the recognition of the public and an association with the

sponsored event

• Benefit with the association with one or some of the heroes of today’s

society, that is: sportsmen

Finally, the public and the cities hosting the event also benefit with sponsoring

because same permits the audience to have a well organized event, increase the

town’s commercial activity in the host country and, no less important, the city and

its citizens will receive improved and sometimes new venues and better and new

infrastructure, among other benefits.

Combating Ambush Marketing

Organizers always promise and sponsors expect to have the exclusivity in the use

of the official event’s marks, logos, symbols and other forms of official designations.

That derives in having unique publicity and/or promotional possibilities, on site

concessions and the right to define themselves as the official sponsors of the

event. Therefore, the grant of exclusivity to official sponsors is a must. There is no

value to sponsorship with no such exclusivity. Consequently, organizers and

sponsors necessarily need to ensure a control of the marketing practices

connected with the event by all means possible.

In this respect, Intellectual Property (IP) protection is extremely necessary for all

organizers of major events as ambush marketing by association always involves

elements of deception. Usually existing IP laws and Unfair Competition regulations

are sufficient to control and punish these type of associations.

However, the case is not as clear as to ambush marketing by intrusion because this

type of activity not always infringes an IP right. As mentioned, in most cases

ambush marketing advertisements and promotional campaigns do not refer to

sponsor’s IP rights (trademarks mainly). Ambushers refer to themselves and to their

goods and services in a crafty manner. Therefore, specific legislation is needed to

combat this form of ambush marketing to which we shall refer as from now on. A T T O R N E Y S A T L
AW

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First, we shall give some examples of different forms of intrusion ambushing

activities and thereafter we shall refer to some examples of said conduct which

occurred in past major sporting events.

Forms of ambushing activities displayed by non sponsors:

• sponsoring live and/or recorded radio/TV transmissions of the event

• acquiring advertisement spots during live and/or recorded transmissions of

the event

• placing advertisements around the host city and/or nearby the venue or

stadium which include images of the sport, venue and/or event which is

about to take place or actually happening

• placing stands, flags, promotional personnel, etc. nearby the venues or

stadiums

• giving out free merchandising around the venues and stadiums such as

caps, flags, t-shirts, etc.

• promotions with tickets to the event or transportation in and out of the

hosting city or town at the time of the event

• greetings to sportsmen or teams which are sponsored by competitors

• placing hot air balloons above the open venues

The legal status of some of the above mentioned activities will depend on the
nature of same and the actual contractual relation between the sponsor and the

event’s organizer and the local regulations.

Examples of intrusion ambush marketing:

• During the 1984 Olympics in Los Angeles, where Converse was the official

sponsor, Nike built large walls close by the Los Angeles Coliseum and

displayed the Nike logo with several athletes wearing the marks clothes; the

ads could be seen from inside the Coliseum

• At the Atlanta 1996 Olympics, the winner of the 100 meters race, Linford

Christie appeared at a press conference wearing contact lenses with the

Puma logo in the center of same, when Reebok was the official sponsor of

the event

• In the same Olympic games, Nike handed the public at the venue’s

entrance, paper flags bearing the Nike logo, which were captured by the

TV cameras in despair of Reebok, the official sponsor

• T-Shirts were handed out by the same firm during the 1992 Barcelona

Olympic Games with the same effect A T T O R N E Y S A T L A W

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• Pepsi flew a hot air balloon over the Sharjah on the day of the Coca Cola

Cup final

• On the other hand, Coca Cola launched its C2 refreshment by sponsoring 8

cars during the Pepsi 400 at the Daytona Speedway. Inside the track, Pepsi

signs were seen but outside the venue, Coca Cola placed stands and
banners everywhere

• Visa was the official sponsor of the Winter Olympics at Lillehammer (Norway)

in 1994. and aired TV commercials were they claimed that American

Express cards were not accepted at the Olympic Villa. However, American

Express aired ads which stated that American travelers did not need any

visa to travel to Norway

Having seen some of the examples of ambush marketing by intrusion, it is clear

that non sponsors and ambushers gain from their intrusion activities because they

advertise their marks, goods and/or services to massive audiences, potentially

attacking new markets or commercial segments. They also benefit with the

association the public will most certainly do with their marks and the event or the

teams and sportsmen participating in same.

Measures to combat Ambush Marketing

What practices can organizers and sponsors adopt to combat both types of

ambush activities and prevent its consequences?

There are various alternatives to take to prevent the association and intrusion

activities by non sponsors or, at least, improve the odds against them.

The first thing to do is for the organizers to effectively protect –usually via trademark

registrations- the official symbols and logos of the event, including the eventual

mascot, if existing. This would be helpful to combat ambush marketing by

association.

The actual laws of most countries are not adequate to prevent ambushing

activities. Most countries –including Argentina- still rely in their traditional IP Laws to

protect sponsors against ambushers, however, these laws seem to be ineffective in

most cases, due to the creativity of the ambushers and the way they circumvent
those regulations.

We have mentioned that intrusion ambush marketing needs special legislation

regarding the protection of major sporting events. This specific legislation is a

condition to be eligible as a host of the Olympic games, for instance. Sydney 2000 A T T O R N E Y S A T
LAW

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were the first games in which this type of special and ad hoc legislation was put in

practice and Athens 2004 followed.

This kind of ad hoc legislation is an exception to the standard legal systems of

each country and is designed to protect the major sporting event a particular city

or country is to host. In general, the scope of this kind of regulation is limited to a

certain event and does not apply to any other event or sports. The need for this

type of legislation is recognized by the European Sponsorship Association (ESA).

Other examples of ad hoc legislations are the ones adopted by Portugal for the

UEFA Euro 2000 Nations Cup; the one adopted by Korea for the FIFA World Cup of

2002; the same status quo was granted in South Africa for the Cricket World Cup

(where it is a criminal offense to gain promotional advantage for a mark by

association with a certain event); in Germany for the Leipzig Winter Olympics;

Australia for the 2003 Rugby World Cup and in London for the 2012 Olympics.

Among other things, this type of legislation would regulate the way in which

advertisements can be done, who can do so, where can the ads be placed and

would limit the surroundings of the venues for protecting the exclusivity of the

sponsors advertisements and promotional campaigns. In the case of FIFA,

advertisement around the World Cup must comply with FIFA’s rights and those of

its official sponsors without fail.

Such legislation recognizes that there is a public interest that should be protected,

despite the usual private interest involved and, thus, the official symbols of the

event are reserved to the organizing committee and local authorities (i.e.

Portugal).

An alternative to the ad hoc legislations could be found in an extensive

interpretation of art. 6ter of the Paris Convention in order to obtain the extension

of the prohibition of registering and using State Emblems to the event’s distinctive

signs. This alternative is actually existing in Canada.

Other alternatives for sponsors and organizers to combat ambush practices can

be:

• placing ads in the media informing who are the official sponsors

• control the photo and broadcast rights by the organizer as well as the

souvenir hand out on site A T T O R N E Y S A T L A W

PATENT AGENTS

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• acquisition by sponsors of air timing in live and/or recorded broadcasting of

the event

• acquisition of advertisement spaces close to the event’s venues within the

realm of common sense

• sponsoring the transmissions of the event

• sending letters to the competitors well in advance to the event warning

them who the sponsors are.