Ambush marketing

Ambush marketing generally occurs when one brand pays to sponsor a large-scale event (usually a sporting event) and a rival brand attempts to associate itself with the event. A marketing campaign takes place around the event but does not involve payment of a sponsorship fee to the event organiser.

The most notable example of ambush marketing occurred at the 1996 Olympic Games in Atlanta, when a sportswear company avoided paying a multi-million dollar sponsorship fee, but successfully mounted a marketing campaign by plastering the city in billboards, handing out free banners to spectators and erecting an entertainment centre in its own name overlooking the stadium. Though this prompted large sporting organisations such as FIFA and the IOC (International Olympic Committee) to adopt anti-ambushing strategies, ambush marketing has become more and more widespread, possibly because for some companies it is the only way to compete.

To protect official sponsors, event organisations can insist on certain criteria being fulfilled before a city or region are considered or awarded a major event.

On being awarded the 2012 Olympic and Paralympic Games, London was immediately required to enter into the ‘Host City Contract’. Obligations under this contract meant fulfilling all commitments made in the bidding process - including protection for the official sponsors. As a result the UK Government brought into force the London Olympic and Paralympic Games Act 2006 (Act). The Act contains provisions to attempt to restrict ambush advertising at the 2012 Summer Olympics. The London Olympics Association Right gives the London Organising Committee for the Olympic Games (LOCOG) the right to authorise certain persons - most likely official sponsors and commercial partners - to associate themselves with the games.

The UK Government/Intellectual Property Office is using the experience gained in creating the London Olympics Association Right to formulate a policy for other major sporting and cultural events.