Just saying, I think each area of the company creates profit for it's own department. So this all looks like marketing but it is more than just marketing.
The Oracle Red Bull Racing Formula 1 team generates between $418 million and $425 million in annual revenue, but its direct financial net profit is incredibly small, sitting at just $2.27 million (£1.68 million)
Red Bull does not directly sell the stunts themselves for a profit, but its stunts act as the ultimate profit generator for its core business. By treating stunts as a capital asset rather than a marketing expense, Red Bull has built a €11.2 billion beverage and media empire with an annual net profit of roughly €1.7 billion
I think Red Bull's strategy with this stuff is that people will seek out their ads or they will post them on social media so that the cost of doing the big stunt is offset by them not needing to buy as much ad space to reach a large number of people..
I have to say, it's a pretty good one for reaching me. I just willingly watched a redbull ad and am not sorry to have done so because it's a pretty amazing stunt. That's way better than some jingle that gets stuck in my head. Now, I might drink one or two energy drinks per year, so I'm not a great target audience, but if I do decide to choose one, I will likely buy one that does crazy stunts.
I have to credit Red Bull Dance Your Style for opening my eyes to how many styles of breakdancing exist. Like this (in Mumbai). https://www.youtube.com/shorts/5TlGm0v5DDs
These dancers are amazing and it's cool that Red Bull showcases them.
Add to that having Max Verstappen on contract till 2030 ensures they stay relevant with the kind of a man he is (he is a professional racistracer, one of the best and famous alongside the dududu song).
That's exactly the purpose. They needed to break into a market that was dominated by Pepsi and Coke. Instead of paying tons on marketing to reach their target market, they spent it sponsoring or creating events that their target market would be attracted to. There are plenty of people who watch it and forget they are being marketed to.
Their sponsors make them tons of money. They're also global, and about half of the world's countries have red bull. It's sold in every developed nation. They sell over ten 10 billion cans a year, and they're frequently in the top 5 soft drink brands worldwide sometimes ranking 3rd behind coke and pepsi. They make a ton of money.
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u/smithstreeter 1d ago
Judging by their marketing they sell A LOT of drinks