How Mercedes is navigating unique ad rules at the Masters

The Masters doesn’t just pose unique challenges for pro golfers—marketers must deal with one-of-a-kind ad and sponsorship rules. It is, to borrow the tourney’s catchphrase, a tradition unlike any other. TV ad time is limited to just four minutes per hour during coverage of the tournament on CBS and ESPN—and that is exclusively reserved for brands paying for the highest sponsorship level, known as “champions,” which this year includes Mercedes-Benz, Bank of America, AT&T and IBM. And while brand logos fill the grounds of other golf tourneys, the Masters has strict rules prohibiting such commercialism. But for Mercedes, which is returning for its 18th consecutive year sponsoring the event when play begins on Thursday, the ad rules offer a competitive advantage, said Melody Lee, chief marketing officer of Mercedes-Benz USA. “It’s one of the best properties in sports, not just because of the prestige and because it kicks off the golf season,” she said. But because there are only four top-level sponsors running ads, “there’s a real dominant share voice that you get over this week.” One of the rules dictates that sponsors run at least five all-new ads that have not aired elsewhere, she said. While that adds production costs, Lee says it’s worth it. “It’s probably our biggest brand tentpole moment of the year. So it’s a great way to showcase some of our most important vehicles in brand-building spots.” One upside this year: The Masters added five additional hours of live coverage of the third and final rounds, bringing it to a total of 14 hours across CBS and Paramount+. The automaker is using five 30-second ads to promote five models: G-Class, AMG CLE Cabriolet, GLE plug-in hybrid, Maybach S-Class and the battery electric EQS SUV. The campaign, voiced by longtime Mercedes spokesman Jon Hamm, comes from Merkley+Partners. It draws parallels between people working on their craft and vehicle attributes. For instance, the GLE ad, called “Too Far,” features a distance runner mixed with scenes of the hybrid on the open road. The ad for the Cabriolet includes a dancer, while the G-Class SUV spot features a sculptor, which is meant to show “raw elements of the environment that a G-Class often finds itself in,” Lee said. On-course marketing Mercedes-Benz enjoys a big advantage when it comes to on-course marketing. While it must adhere to the no logo rules, its sponsorship gives it the right to be the exclusive vehicle provider for the tourney. “Only a Mercedes can go down Magnolia Lane,” Lee said, referring to the iconic magnolia tree-lined entrance to the Augusta National golf course. “So if you want to come onto the grounds, you want to come onto the property, you have to be a Mercedes.” That even includes players who might have deals with other car brands, she said. Mercedes plans to have 400 cars on site. However, organizers have restrictions on the color of vehicles the automaker can use; this year, all of them are selenite grey, said Lee, suggesting the brand and tournament chose the shade by “working it out together.” “It’s got to blend into the environment but be prominent enough for us,” she said. That understated tone fits into the Master’s motif. The tournament is notorious for its strict controls. TV announcers must call fans “patrons” and refer to non-fairway grass not as rough, but as the “second cut.” Those patrons are also prohibited from carrying cell phones or cameras on the course. Mercedes this year is trying to leverage its Masters trademark rights in other ways, including integrating the tournament’s app into in-vehicle entertainment screens. (The app is compatible with CLE and E-Class models with the brand’s third-generation MBUX infotainment system equipped with the “MBUX Entertainment Plus Package.) It is also continuing a feature introduced in recent years that fills the dashboard screens with Masters imagery, including avatars of people wearing Masters-colored green shirts. The features are pushed out via software updates. “It’s a nice surprise and delight, but it’s also a reminder of how much we can do over the air,” Lee said, referring ot the software updates. Last year, Mercedes renewed its sponsorship for an additional three years. Lee declined to reveal financial terms. Bank of America is new to the champions sponsor lineup this year. Delta Air Lines, Rolex and UPS have second-tier sponsorships known as “tournament partners.” Mercedes, IBM and AT&T last year paid a total of $24 million to air their TV ads in the final two rounds, according to Sportico, which recently documented the Masters’ unique TV financial model—including the fact that ESPN and CBS aren’t charged a single cent for broadcast rights. Mercedes’ investment this year comes as it contends with new costly auto tariffs put in place last week by President Donald Trump. The German automaker imported 58% of the vehicles it sold in the U.S. last year, according to S&P Global Mobility. Some experts say automakers could pull back on marketing to protect their bottom lines. Lee, who was interviewed last week, said it was too soon to know how it will affect Mercedes marketing. “Our plans are in place for 2025 and we’re going to stick with them for now,” she said. Also read: How auto tariffs will affect marketing spending

How Mercedes is navigating unique ad rules at the Masters

Featured Stories