I think the scariest thing for sponsors is that ambushers who use social media effectively have very low marginal hard costs to a campaign. Whereas, traditionally each billboard, street team or premium had an additional cost, the scaling costs to a social media-based ambush campaign are rather insignificant. Tough to swallow if you’re the sponsor paying millions of dollars in rights fees, only to be blindsided by a five figure viral promotion online.

With that said, nothing can replace the live experience when leveraged appropriately as you point out, Kim.

I’ve written a blog about just this. If you’re interested, here is the link:

http://blog.powersponsorship.com/index.php/2009/08/why-ambush-marketing-legislation-will-never-work/

Thought you might find interesting an article I wrote about “leveraging Olympic momentum” for the Vancouver Observer.

http://www.vancouverobserver.com/politics/commentary/2009/11/29/olympic-brand-ambush-marketing-isa-mortal-sin-b-good-business-sense-c

Also, a few myths and facts about the term “ambush marketing” and its history.

http://www.area46.com/services/Creative_Olympic_Marketing.html

I published a book in 2006 entitled “Leverage Olympic Momentum” http://www.leverageolympicmomentum.com/LOM/CitizenJournalism.htm that teaches people in Olympic regions to explore legal and ethical ways to attach their companies to Olympic events in a manner that improves the visibility of their company and the Olympics, without harming the event.

My argument has always been that if the Host region has to pay so dearly for the Games they should benefit proportionately too. Overpriced infrastructure like new roads and sport stadiums don’t count as a benefit when you consider they cost sometimes twice as much or more to build under an Olympic timeline. Plus, not one Olympic Host region has seen a “return on investment legacy” since 2000.

It’s not a question of “if” social media will provide the impetus, but instead will the 2010 Olympics in Vancouver “or” the 2012 Olympics in London push sport event marketing into a new social media paradigm? Many believe Vancouver had the opportunity to do so, but they are not sophisticated enough to pull it off and that the change will occur in London. It’s a good argument, even considering the great strides Vancouver companies like lululemon achieved in this regard. Unfortunately, as NIKE said, “You don’t win silver you lose gold,” which means the podium finish for “sport event marketing changes” will probably be awarded to London in 2012 with Vancouver only 1/100 hundredths of a second away from gold victory.