Have you ever excitedly shared good news, only to have the other person completely disregard it and steer the conversation back to themselves? That’s similar to what ambush marketing feels like.

Image via Japanese Olympic Committee This article delves into ambush marketing – what it is, how it works, and why companies spend millions on these marketing duels. We’ll explore its pros and cons, showcasing how renowned brands have used it effectively.

First, let’s cover the basics.

What Exactly is Ambush Marketing?

Ambush marketing, also called coat-tail or predatory ambushing, involves capitalizing on another advertiser’s campaign to promote a different company or brand, often during sponsored events.

An early example is the bitter feud that erupted between MasterCard and Visa during the 1992 Winter Olympics in Albertville, France.

Visa, the official credit card sponsor, had paid $20 million (around $35.5 million today) for this privilege. Months before the games, Visa’s TV ads warned American Express cardholders, “The Olympics don’t take American Express,” suggesting they leave their cards at home.

While technically accurate – only Visa was accepted for ticket purchases – Visa’s campaign angered American Express, who argued that it falsely implied AmEx wasn’t accepted anywhere at the Games.

AmEx retaliated with their own ads, using the tagline “When you go to Spain, you’ll need a passport – but you don’t need a Visa,” referencing the upcoming Barcelona Summer Games and a subtle dig at the company’s rival. Visa accused AmEx of “parasite marketing,” later coined as ambush marketing.

4 Real-World Ambush Marketing Tactics in Action

Let’s explore some instances of this technique, ranging from ingenious to audacious.

#1: The BMW and Audi Billboard Battle

Santa Monica, California, known for its iconic pier and pleasant weather, became the battleground for a billboard war between BMW and Audi.

It all began after a BMW rally in Wisconsin, advertised with the slogan, “A BMW rally with two nearby service centers. What’s next, paramedics at a chess tournament?”

Audi saw an opportunity in BMW’s odd slogan. They responded by renting a billboard in Santa Monica promoting their A4 sedan, mockingly stating:

Image via Jalopnik

Audi didn’t stop there. Keeping with the chess theme, they erected another billboard needling BMW:

Image via The Branding Journal

BMW, not to be outdone, purchased a massive billboard opposite Audi’s:

Image via Jalopnik

You’d expect these automotive giants to tire of this childish exchange, but they didn’t.

Audi fired back with another chess-themed billboard after BMW’s “Checkmate.” Finally, BMW delivered the ultimate blow:

To add insult to injury, BMW tethered the blimp to Audi’s R8 billboard. Brutal.

#2: Paddy Power’s Olympic Gamble

Unlike many Americans who seem wary of betting, people in Britain, particularly my fellow countrymen, enjoy a good wager. Paddy Power, an Irish bookmaker, is a familiar sight on UK streets.

Their first notable ambush marketing stunt targeted the London 2012 Olympics.

Image via AdAge

As London prepared for the Games, Paddy Power launched a city-wide billboard campaign claiming to be the “Official sponsor of the largest athletics event in London this year.” Small print revealed they were referring to a local egg-and-spoon race, which they actually sponsored, in London, France.

The International Olympic Committee (IOC), unsurprisingly, disapproved and ordered Paddy Power to remove the ads. However, Paddy Power challenged the order in court and ultimately won its fight against the IOC in a landmark case.

#3: Samsung Crashes Apple’s iPhone Party

In October 2011, as Apple geared up to release its iPhone 4S, Samsung decided to steal their thunder.

They set up a pop-up store right next to Apple’s flagship store in Sydney, Australia, and while Apple enthusiasts waited for the new iPhone, Samsung started selling their Galaxy SII for a mere $2 AUS – a steal compared to the $850 iPhone.

LOL. Image via Sydney Morning Herald.

While some remained loyal to Apple, many opted for a new, affordable Samsung device instead of waiting in line.

Although this stunt cost Samsung significantly (more on that later), it highlighted how easy it is to capitalize on a major brand’s hype.

For more on Apple’s marketing strategies, check out our post on epic product marketing examples.

#4: Rona Paints Over Apple’s Billboard

Being one of the wealthiest companies globally attracts attention, as demonstrated by Rona’s clever use of Apple’s advertising.

Back in 2010, Apple’s iPod Nano was a bestseller. Their billboard ad by Montreal’s Jacques Cartier Bridge displayed the colorful MP3 players in a rainbow pattern.

Image via Coloribus

Rona, a Canadian paint and hardware company, saw an opportunity. They erected their own billboard just below Apple’s, advertising their paint recycling program. The ad, simply stating “Nous récupérons les restes de peinture” (“We collect leftover paint”), is a brilliant and memorable example of ambush marketing.

The Allure of Ambush Marketing

Now that we understand ambush marketing, let’s analyze its advantages.

Ambush Marketing: Where Creativity Reigns

What’s captivating about ambush marketing is its audacity and creative freedom. Since these campaigns often directly respond to or utilize a competitor’s existing work, they demand exceptional creativity, from visual puns to witty wordplay. This makes them more memorable than standard ads due to their entertainment value.

Subtle references and clever humor are crucial to their success. The Audi vs. BMW example shows how visual humor, often in direct response to each other, can be a competitive advantage. Even if one ad is technically superior, the funnier one is often more memorable, as Newcastle Brown Ale proved.

Going Off-Script with Ambush Marketing

Consistency is key in display advertising, whether online or offline. From Times Square billboards to mobile ads, brands strive for a unified look and feel.

However, ambush marketing allows for more creativity.

A key advantage is the freedom to deviate from established brand guidelines in style, tone, and content. This allows for techniques outside a company’s usual approach, giving the ambusher greater creative flexibility.

Fiat cleverly used this in 2013 by parking a red Fiat 500 on the steps of Volkswagen’s Swedish HQ just as a Google Maps car drove by, immortalizing the stunt in Google Maps results for years (until Google updated the image in 2017).

Shifting Consumer Perceptions

Well-executed ambush marketing can cultivate new brand attributes and values in consumers’ minds.

Consider South African airline Kulula. For the 2010 World Cup, they launched an ad campaign positioning themselves as the “Unofficial National Carrier of the You-Know-What,” a clear reference to the tournament. FIFA, the governing body, demanded they stop immediately, alleging an attempt to “gain a promotional benefit for the Kulula brand by creating an unauthorized association with the 2010 FIFA World Cup.”

Sepp Blatter, the real MVP

Kulula complied, but not before finding a Boston Terrier named Sepp Blatter (then FIFA president) and making the dog their unofficial mascot.

This campaign demonstrates how ambush marketing can build brand personality. In a competitive industry like air travel, Kulula gained publicity and positioned themselves as a fun, unconventional airline.

The Downside of Ambush Marketing

While effective, this approach has drawbacks.

Ambush Marketing Can Drain Your Budget

The primary disadvantage is the potential cost.

Take the Audi and BMW billboard battle. Let’s assume each billboard cost a billboard in Santa Monica costs $10,000 per month (excluding design and printing). This months-long feud involved four simultaneous billboards, significantly increasing expenses. BMW then added a zeppelin, which costs between $500,000 and $5 million. That’s almost $100,000 for the billboards alone, plus the blimp and all other costs.

The Hindenburg, also known as “your advertising budget”

While ambush marketing can capitalize on another brand’s efforts, it requires substantial investment, making it unsuitable for smaller or newer companies. That’s why it’s often used by well-funded brands at major events like the Olympics or Super Bowl – the potential return justifies the high cost.

Measuring ROI: A Guessing Game

Another issue is the difficulty, sometimes impossibility, of measuring ROI.

Let’s revisit Samsung’s iPhone ambush. The upfront cost was relatively low – refurbishing the pop-up store, employee wages, etc.

The true cost was the revenue loss from selling the Galaxy SII at a steep discount.

Let’s do some quick calculations:

Assume a Galaxy SII cost $499 (its retail price in many regions). Let’s say Samsung sold 750 devices during the event.

For overhead, let’s assume two employees were paid $15/hour for eight hours each ($240), and refurbishing cost $10,000. The total event cost for Samsung was $10,240.

A standard campaign’s ROI calculation would be:

Value of a Galaxy SII multiplied by Number of devices sold minus Event overhead costs

With our figures:

499 x 750 – 10,240 = 364,010

This suggests Samsung generated $364,010 in revenue. Not bad!

However, they sold the devices for $2 each, drastically changing the picture:

2 x 750 – 10,240 = -8,740

In reality, Samsung lost almost $9,000.

Fans wait outside Samsung’s pop-up store in Sydney in 2011. Image via The Next Web.

For global brands like Samsung, $364,000 is insignificant. The question is whether the campaign was worth that amount, which is tricky to determine.

Intangible factors like brand awareness and consumer sentiment are difficult to quantify, making it hard to gauge the ROI of ambush marketing. While media mentions and social media engagement can provide some insights, proving financial ROI is a challenge.

The Time and Space Constraints of Ambush Marketing

Besides the cost, ambush marketing requires swift action and coordinated planning to effectively leverage the target campaign. Advertising inventory availability and cost can also make or break a campaign.

Newcastle Brown Ale’s “chalice” campaign, while memorable, relied entirely on the adjacent Stella Artois ads. Alone, they’d be nonsensical (and potentially confusing to Americans unfamiliar with the term “bollocks”).

Timing and placement are therefore crucial. Unless the target campaign is static (like a sponsored stadium), you need to act quickly.

Proceed with Caution

Ambush marketing isn’t feasible for most businesses. The high costs make it prohibitive for all but the wealthiest brands. However, the underlying concepts can be adapted for various campaigns, from search engine PPC to visually driven Facebook ads.

This article aims to inspire creative approaches to your advertising. When planning your next campaign, consider these examples. You might not have a Times Square billboard, but a subtle jab at competitors in your Facebook campaign is possible.