Felix Baumgartner and Red Bulls sponsorship

(Source)

Corporate sponsorship for this one jump is worth 50 million euro and was predicted to cost even more. Result? Does it really worth 50M?

Lets take a better look.

First of all, there are rights for broadcast worldwide, for which RedBull may have charged (although I do not think so). Also, worldwide sales of the the actual Redbull drink will increase, due to immediate exposure to the advertisement and over time, due to powerful, new associations created in regards to the brand (i.e., fastest, most daring, breaking world records, etc.). Other sources of income are merchandise sales and other sales rights such as of technology (e.g., NASA now uses the data acquired from this jump to improve their own space activities).

Overall, worth it.

And why am I so sure? Well because annual sales of Red Bull are of 4.5 billion cans and their marketing budget was of $900 Million (2010). So, while 50 Million for one campaign is a lot comparing to a 900 Million year budget (1/18), the average daily spending should be around 2,5 Million. Still, while average person does not see RedBulls ads every day, during the day of Felix Baumgartner jump and for at least a week to come, the brand is hitting a great number of papers, TV channels, is seen all over social media, and other channels, biggest being of course chatter, aka word of mouth (which is considered to be one of the best Marketing channels).

Overall, I have to give it to RedBull. Records are being broke everyday and new discoveries are made constantly. Still, due to a cool name (“man jumps from stratosphere”) and good amount of money investment, I will expect that a lot of people will see the brand logo one or several times during the upcoming days.

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(This photos I found on my own FB. Sorry for any offensive language. It is FB afterall.)

If you want more information about the jump, check also, the Red Bulls page where they show the jump footage and offer other event related information.