Latest / Building Brands with Fexingo: Identity, Reputation, and Long-Term Business Equity / How Red Bull Built a Media Empire Around a Drink
Transcript
- Lucas: You know, when people think of Red Bull, they usually think of a can with a bull on it, or maybe the slogan 'it gives you wings.' But what's fascinating is that Red Bull has quietly become one of the world's most influential media companies — and it all started because they realized they weren't just selling a drink. Luna: Yeah, it's almost like the drink became a side project to the content machine. I mean, they have a record label, a TV channel, a publishing arm — it's wild. Lucas: Exactly. And the turning point for most people was probably the Stratos jump in 2012. Felix Baumgartner jumping from the edge of space, 39 kilometers up. Red Bull streamed it live on YouTube — 8 million concurrent viewers at its peak. That was a decade before most brands even understood live streaming. Luna: And that wasn't an ad. It was an event. They produced it like a Hollywood movie, but it was branded from start to finish. Lucas: Right. And that's the key insight. Red Bull realized early that traditional advertising — a thirty-second spot on TV — couldn't capture the adrenaline and lifestyle they wanted to associate with their product. So they started creating the content themselves. Luna: So how did they scale that? I mean, one stunt is one thing, but they're now producing over a thousand pieces of content every day. Lucas: They built Red Bull Media House in 2007, well before Stratos. It's a full-fledged production studio with over 500 employees. They produce content across extreme sports, music, culture, even gaming. And the distribution is everywhere — their own website, YouTube, TV networks, even a 24-hour cable channel called Red Bull TV. Luna: And they don't just put their logo on it. The content is genuinely watchable. I've watched their cliff diving and air race coverage — it's better than most sports broadcasts. Lucas: That's the point. They compete on quality, not just branding. And the return on investment is huge. Red Bull spends roughly 30 percent of its revenue on marketing — that's about 2 billion euros a year. But most of that goes into content production and sponsorship of athletes and events, not traditional ad buys. Luna: So the content is the ad, and the ad is the content. It's a complete blurring of lines. Lucas: And it works because the audience self-selects. If you're watching a Red Bull event, you're already in their target demographic. It's not interruption marketing; it's attraction marketing. They draw people in with something they love — whether it's Formula One, snowboarding, or breakdancing — and the product is just part of the experience. Luna: But does this model work for any brand? Or is it unique to Red Bull because they have this high-octane, adventurous identity? Lucas: Great question. I think it's harder for brands that don't have a natural link to excitement. But the principle still applies: find the content your audience already cares about, and become the best producer of that content. For example, a B2B software company could create a podcast or video series about industry trends that's genuinely useful — not just a sales pitch. Luna: Yeah, I've seen that work. HubSpot's blog and academy are basically content media, and they sell CRM software. But it's not as glamorous as skydiving. Lucas: No, it's not. But the economics are similar. Red Bull's brand equity now rivals that of major media companies. Their content generates billions of views annually, and they've even licensed shows to Netflix and Amazon. The drink is almost the merchandising arm of the media empire. Luna: Wait, so they're making money from the content itself now? Beyond just selling more cans? Lucas: To some extent. Red Bull TV has advertising and sponsorship from other brands. They have a record label that signs artists. They publish magazines and books. But the primary purpose is still to sell more Red Bull. The media arm is a marketing expense that also generates some ancillary revenue. But the brand halo effect is enormous. Luna: It's almost like they've built a moat. Competitors can copy the drink formula, but they can't copy the brand's cultural relevance. Lucas: Exactly. And that's the takeaway for any brand builder. The product is just the starting point. The real value is in the stories you tell and the community you build around it. Red Bull proved that if you create something people genuinely want to watch, they'll reward you with their loyalty — and their wallets. Lucas: And that's actually something I want to come back to, because it ties into why we keep doing this show ad-free. If these conversations have moved your work forward in some small way, listener support is what keeps it that way. You can find us at buy me a coffee dot com slash fexingo. Luna: Yeah, it's a simple way to help us keep digging into these cases. And we appreciate every bit of it. Lucas: So back to Red Bull. One of the riskiest moves they made was stepping away from traditional advertising almost entirely. In 2020, they cut TV ad spending by over 50 percent and poured it into digital content. That was a bet. Luna: And it paid off, especially during the pandemic when everyone was glued to screens. Lucas: Right. They actually gained market share during that period. But there's a cautionary tale here too. When you become a media company, there's a danger of losing focus on the core product. If the content overshadows the drink, you might end up with a audience that loves your videos but doesn't buy your product. Luna: Has that happened to them? I mean, do people associate Red Bull more with extreme sports than with the actual energy drink? Lucas: Possibly, but that's not necessarily bad. Brand associations are powerful. If you think of Red Bull as the brand that brings you the Red Bull Air Race, you're still thinking of Red Bull. And when you're tired and need a boost, that positive association makes you reach for the can. So it's a virtuous cycle. Luna: It's also a very long-term play. Most brands want quick ROI from their marketing spend. Red Bull is willing to invest for years. Lucas: That's the luxury of being privately held. Dietrich Mateschitz, the founder, said he built the company to last 100 years. He wasn't thinking about quarterly earnings. And that allowed them to take risks that public companies couldn't. Luna: So what's the one concrete lesson from Red Bull that a brand could apply today? Lucas: I'd say it's this: stop thinking of your marketing budget as a cost center. Start thinking of it as a media production budget. Instead of renting attention from third-party platforms, invest in creating your own content that attracts attention naturally. It's harder, but the long-term payoff is a brand that owns its audience. Luna: And maybe you don't need a space jump. But you do need something your audience can't find anywhere else. Lucas: Exactly. The medium is the message, and for Red Bull, the medium is the can. But the brand is the whole experience.