MARKETING STRATEGY

Is Ryan Reynolds or Red Bull the best marketer in the world?

by Jeff Haden: Bestselling non-fiction ghostwriter, speaker and columnist for Inc.com.

Ryan Reynolds knows a little about marketing. He was (and is) the face of Mint Mobile, the upstart wireless brand sold to T-Mobile in a deal valued at up to $1.35 billion. He purchased a stake in Aviation Gin in 2018 and and used a similar marketing strategy to promote it; two years later Aviation was acquired by Diageo for over $600 million. Then there’s Wrexham AFC, the Welsh soccer team Reynolds and actor Rob McElhenney purchased in 2020; while that investment likely hasn’t paid off financially (yet), the team’s on-field success - and worldwide attention - certainly has.

So yeah: Reynolds knows a little about marketing.

But then there’s Red Bull.

If you’re unfamiliar, Dietrich Mateschitz partnered with Krating Daeng founder Chaleo Yoovidhya to launch Red Bull: changing the formula, adding some fizz, and creating the eye-catching thin can. Per their agreement, Yoovidhya handled production, and Mateschitz was solely responsible for marketing.

And in the process, it served as a precursor to Reynolds’ content marketing approach. Reynolds often uses content to spread the word.

Mateschitz created content in a different way. Instead of conventional advertising - in the early days of Red Bull, that would have meant TV, radio, and print ads - he sponsored athletes (especially action sports athletes), created one-off events, and launched or acquired teams and properties.

Like the Red Bull Formula 1 team, and its sister team, Visa Cash App RB. Like the New York Red Bulls, RB Lepzig, and RB Salzburg in soccer. Like Red Bull Salzberg and Red Bull Munchen in hockey. Like Red Bull Ring, the motorsports track in Austria.

Or like the time Felix Baumgartner jumped from a capsule in the stratosphere, becoming the first person to break the sound barrier without an engine before parachuting safely to earth. While it cost approximately $50 million to pull off, that one stunt alone raised Red Bull’s profile in core markets, and over the next six months, U.S. sales rose a reported 7 percent to $1.6 billion. (How’s that for effective content marketing?)

But all that marketing does come at a cost, although some of Red Bull’s sports properties may be profitable in their own right. For example, the New York Red Bulls soccer team, purchased in 2006 for $30 million, is currently valued at over $600 million. In some cases, relentless brand exposure and property value growth can make for a nice double-dip.

Plus, unlike conventional sponsorship arrangements, owning the team gives Red Bull the freedom to brand, execute, and active the way it chooses. (You don’t have to compromise or ask for permission when you’re the boss.)

Even so, Red Bull allocates over 30 percent of its annual sales revenue to marketing. Contrast that with Coca-Cola and Pepsi, which allocate less than 10 percent of sales to marketing.

That’s a lot of money to spend on advertising, but it clearly works. In 2023, Red Bull captured 39 percent of the energy share market. Second was Monster (interestingly, a company that in some ways mimics the Red Bull marketing approach) at 29 percent. All other brands? Single digits.

Add it all up, and as HubSpot co-founder Dharmesh Shah says:

Although it is still possible to blast the world with your message and offering, and try to interrupt your way into people’s lives with your marketing, that’s the most expensive way to do it.

The cheaper and better way is to tell a story or share something helpful and useful: that’s the power of content marketing.

Red Bull goes to where its customers are. At soccer games. At F1 races. On social media platforms. While it does use conventional advertising approaches - TV commercials are why “Red Bull gives you wiiings” has a worldwide slogan recognition of nearly 60 percent - team ownership, stunts, and athlete partnerships clearly makes the greatest impact.

Advertising can be effective, but the impact of advertising is temporary - when you stop paying the rent, you stop getting attention. One-off stunts are closer to advertising than content marketing; as the buzz fades, so does the impact. That’s where owning ongoing properties is crucial. Red Bull doesn’t sponsor the team; it is the team.

If you’re a fan, over time your emotional connection - at least in part extends to - the brand. (I’m willing to bet most Max Verstappen fans who consume energy drinks choose Red Bull, not Monster.)

Maybe Red Bull is a better marketer than Ryan Reynolds. Or maybe not. Doesn’t matter.

Because you’re free to learn from both.

Useful resources:

Jeff Haden learned much of what he knows about business and technology as he worked his way up in the manufacturing industry from forklift driver to manager of a 250-employee book plant. He has written more than 30 non-fiction books, including four Business and Investing titles that reached #1 on Amazon's bestseller list.

Visit our website.

Related Articles

Is Ryan Reynolds or Red Bull the best marketer in the world?

Related Courses

Driving High-Performing Sales Teams

Related Events

Ecommerce Live 2025

Follow Us

Newsletter

Receive the free Leader.co.za newsletter for the latest news and trends: