This document discusses ambush marketing, which is when companies associate themselves with events or celebrities without paying for sponsorship rights. It provides examples of ambush marketing at the Olympics. The document argues that ambush marketing provides competition for large sponsors and allows smaller companies to market at lower costs. While sometimes seen as unethical, the document claims ambush marketing is a legal tactic as long as companies do not use prohibited words or infringe on trademarks. Forms of legal ambush marketing include advertisements near events and using athletes to promote brands. Overall, the document takes a pro-ambush marketing stance, arguing it creates competition and opportunities for companies in an otherwise restrictive sponsorship environment.

1. 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 Kodak’s 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 today’s
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, Reebok’s $40 million contractual agreement to be the games main sponsor
was heavily ambushed by Nike. Prior to the event, Nike flooded Atlanta’s 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 Nike’s actions, companies like Reebok ultimately lose value in
purchasing exclusive sponsorship rights, and due to today’s 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 Nike’s 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
FIFA’s 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 doesn’t prohibit
forms of indirect ambush marketing and doesn’t 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 doesn’t 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 men’s 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
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Downing, D. M., Bram, M. R., Azevedo, R. (2013). Ambush Marketing: Coming to a Stadium
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http://www.marketingweek.co.uk/news/top-ambush-marketing-stunts/4002355.article
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