Fan Engagement: The In-Game vs. At-Home...

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FanEngagement:TheIn-Gamevs.At-HomeExperience

“Theimplicationsforsportsmarketersisthatmessagingemphasisshouldremainonfans’personalinvestmentinteamsandproperties,theescapismandconsistentvalueprovidedinlivesportsandtheuniqueengagementthatgoodsportsmarketingcanprovide.”–SLRGPresidentJonLast

35%I'dratherwatchprosportsonTVthanattendalivegame

SLRGSportsFanOmnibus2018Report

2018SportsFans

2017SportsFans

2016SportsFans

2015SportsFans

2014SportsFans

2 Source:SLRGSportsFanOmnibusFebruary2018Report

DiggingDeeper:FanEngagementTheUltimateSportsMarketing(Activation)Fantasy

TheCallaway-PetcoParkpromotion(turningSD’sPetcoParkintoanine-holegolfcourse)isagreatexampleofasportsmarketingactivationthatmeetssomanyoftheessentialelementsofagreatpromotion.

“SportsFantasy”wasapre-cursortotheparticipatoryfandomthathasspawnedsomeofthemorecreativeandamusingpromotions,nottomentionaprescientlookaheadtoourincreasingzesttoprovideuniqueandmemorableexperienceswhilebuildingourbrandsthroughsports.

1.   Itstimulatesproducttrialatanopportunetime

2.   Itbuildsmediabuzz

3.   Itplaystothedesiredpositioningoftheactivatingbrands4.   Itresonateswithconsumerimaginationsandaspirations

5.   It’smeasurableandfacilitatesadialoguebetweenbrandandconsumer

DiggingDeeper:FanEngagement

Sportsmarketershavelikelyponderedsomevariationoftheoldadagethat80%ofyourbusinesscomesfrom20%ofyourcustomers.Notallfansarethesame,andtheirrelativequalityshouldhaveadirectimpactonaproperty’smarketingfocusandthewaysinwhichsponsorsevaluatepotentialpartnerships.

Listeningtoarecentsportstalkradiodebateabouttheimportanceof“fanattendance”versus“fanintensity”gotmethinkingaboutmylong-heldbeliefthatpurereachissecondarytoaudienceengagement.

I’vewritteninthepastabouthowexperimentaldesignresearch(throughpre-vs.post-exposuretesting)isamorerelevantmetricthanGRPequivalents.Withresearchers’increasedabilitytointegratebehavioralandattitudinaldata,Ibelieveit’stimetoapplyafanorcustomerintensitymeasuretoevaluatetheimpactofsportsmarketingactivationandticketmarketing.

Whatshouldbeincludedinthefan/customerintensityalgorithm?

I’veneverbeenonetobelieveinone-size-fits-allsolutions.Butasaffinitymarketershavelongdoneincategoriesliketravel(whereaffinitymarketingwasborn),anyfan-intensitymetricneedstofactorinlifetimecustomervalue.Organicallythismaybealargepartofwhatdrivessportsmarketers’obsessionwithyouthandthenextgeneration.Thereisafundamental(butnotalwayscorrect)beliefthatifyouconvertsomeonewhiletheyareyoung,thereturnoninvestmentwillbegreater.Whatgoesintoafanintensityequationiswherethingscouldgetreallyinteresting.Herearesomeinitialconsiderations:

(continued)

DiggingDeeper:FanEngagement

(continued)

Recency,frequency,monetary:ThisCRMstaplelooksathowoften,howmuchandhowrecentlythetargetaudiencespentonaproperty.Itcanidentifybestcustomers.

Tenure:Thedurationoftherelationshipisimportantbothaspredictoroffuturebehaviorandasaloyaltybarometer.

Breadthofengagementpoints:Hereonelooksatconsumptionpatternssurroundinglegacyanddigitalplatforms,aswellasancillarytouchpointsthatcanincludediscussionboardsandmerchandise.

Brandaffinityforpartners:Here’swhereareadonpre-vs.post-activationexposurealignmentwithasponsorbrandtriggersyieldsinsightonengagement.Ourworkhasoftendemonstratedthepoweroflivesportsinreinforcingsponsormessaging.

Satisfactionrelativetoexpectation:BeyondNetPromoterscores,oneneedstofactorinthecontextaroundwhichtargetsareevaluatingtheirsatisfaction.ImightnotrecommendaKnicksgametosomeonewhowantstoseeahometeamvictory,butIstillmightenjoymyexperience.

Impactofinfluence:Whoisthefancommunicatingwithdirectlyandviasocialmedia,andtowhatextentisthatdrivingbehaviors?

Shareofcustomervs.otherleisureactivities:Helpsevaluaterelativeprioritization.

DiggingDeeper:SmartStadiums—WhatFansWant!

•  Interactivity•  Accesstothefieldofplay/players•  Creaturecomforts("oases"andsocialspaceswithinthebuilding,restroomenhancementsand"familyfriendlyzones")

•  Accessiblepremiumseatingoptions

•  Expandedandupgradedfoodandbeverage•  Enhancedscoreboardtechnologyandintegrationwithpersonalmobiledevices

•  Improvedparking/thoroughfaresandlogistics

•  Directionalsignage/wayfindingthroughappsandmobiledevices

SLRGstudiesforNFL,NBAandMLBvenuesidentifiedwhatconsumerscoveted.

Majorareaswhererenovationsresonatemostwithfans:

VenueEnhancementsToCombatStagnantAttendanceThereisnearly$17billioncommittedto135stadiumandarenaconstructionsprojectacrossNorthAmerica(SBJResearch)–whichcouldcorrelatetoa25-30%liftingaterevenueduringthefirstthreeyearsaftermovingintoanewvenue.

Sources:PwC&SportsBusinessJournal2016-2019;Statista2019;BaseballReference,NBA.com,NHL.com7

68,216

30,163

21,574

17,849

17,548

69,487

29,908

21,692

17,884

17,516

67,405

28,659

21,873

17,987

17,446

AverageAttendance

AverageMajorSportsLeagueRegularSeasonAttendance

2015-2016 2016-2017 2017-2018

OurPOVonEnhancingtheFanExperience

Theproliferationoflivesportingevents,combinedwithincreasedandimprovedout-of-homeaccesschannels,haskeptsportsmarketersfocusedonenhancingtheonsiteexperience.Couplingthisphenomenonwithanincessantdesireforticketsalesgrowthhassurfacedapervasivechallengeforpropertieslookingtoboostattendance.Thishasamplifiedadesiretobroadentheentertainmentandamenityofferingstoappealtoawiderevententhusiastaudience,onethatlikelylacksastrongaffinityforthehometeamorsportbeingmarketed.

It’seasiestandappropriateforapropertytoinitiallylooktoitscoreaudienceindevelopingenhancedamenities,increasedfanaccessandcreativeonsiteactivations.Mostpropertieshavealsobolsteredexistingfanrelationshipsthroughtechnologyvalue-addandcommunicationsprogramsthatleveragethecentralvaluesandparticipationdriversthatmaketheirofferingsresonant.Misstepsherecanbecostlybothatthegateandinmaintainingfanequity.

Therearewidelydocumentedeffortsofsportspropertiesmarketingtothenextgenerationofcorefans.Assumingthatasimple“builditandtheywillcome”approachisenoughtocapturethisaudienceisoftenshort-sighted.

Ourresearchhasshownthatafocusonprovidingenhancedaccesstotheeventcanoftenreinforcetheessentialemotionaldriversforattendancefromthisnextgenerationoffans.Butthechallengeistougherwhenreachingbeyondthisgrouptothosewithalimitedinterestinthecentralsportingevent.

(continued)

Thetypicalresponsebyproperties,oflate—particularlythosefocusedonmillennialandGenZaudiences—hasbeentodevelopsocialspacesoramenitiesthatemphasizeinteractivity,unrelatedentertainmentorupgradedfoodandbeverageexperiences.Theseareoftenlessdependentuponthecentralsportingeventtakingplace.

Buttheappropriatequestionthatemergesis,what’sthecostoffollowingthisstrategy?Amarketingandactivationplanfocusedontertiarypotentialfansdemandssignificanthumanandfinancialresources,whileriskingdilutionofthecoreproduct,withoutanyassuranceofpositiveROI.

Howdoesapropertyfindtherightbalancebetweencreatinganenvironmentwiderinappeal,withoutwateringdowntheexperiencethatcorefansareseeking?Howdoesoneidentifythosesegmentsmostreceptivetotheseofferings?

Forpropertiesfocusedonseasonticketpackages,thereisalsotheinevitableneedtocultivatetheevententhusiastintosomeonewithatleastabasicappreciationandunderstandingofthecoreproduct.

Thesearethemostimportantconsiderationsthatmustbeevaluatedthroughresearchacrossmultipleconstituentgroups.There’snosingularmagicbullet.Butanswersareoutthere.

Sportsmarketersremainfocusedonoptimizingin-venuefanexperiences.Earlierthisdecade,muchofourresearchinthisspacesurfacedfandemandformoresocialspaces,enhancedWiFiandupgradedfoodandbeveragethatleveragedlocalcuisineandbroader,healthiermenuoptions.AstheproliferationofOTToptionsandthecontinuingevolutionofhometheaterraisedproperties’concernsaboutthepotentialdowngradeofvalueforliveevents,therewasgreaterattentionpaidtoupgradedseatingoptionsandthereimaginingoffamily-friendlyoasesandticketpackages.

Today,weseeanextensionofthesetrendstowardsanevenboldervisionofthefuture.Legalizedsportsgamblingwillcontinuetocrumblethewallsof“churchandstate,”underthewatchfuleyeofsports’governingbodies.

Theideaofin-venuesportsbooksputsamoderntwistonparimutuelbettingwindows—althoughthistimeensconcedinVIPloungesrepletewithdigitalkiosks,banquetteswithbuilt-ininteractivetablets,videomonitorsandmaybesomefirepitsandaDJforthosewhowanttomultitaskonmorethanjustthegameitself.

Forthosewhoaren’tinclinedtowardsbetting,theconfluenceoftechnologyandadesiretobuildgreaterinteractivityharkensbacktooneofmyfirstvisitstoDisney’sEpcotCenter.There,Iwasenamoredbyatheaterthatforeshadowedtoday’sin-flightentertainment,withinteractivetouchpadsthatallowedgueststocompeteintriviacontests.Extendthisconcepttotomorrow’ssportsvenue—andsecond-guessingthecoach,playingarmchairumpireanddailyfantasysportstakeonanewcrowd-sourceddimension.

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Also,imagineapushofabuttononthein-seatconsolesummoningwaitstafftodeliveryourchickenandwafflesoravocadotoast.

Interactivityintegrationcanalsoborrowfromprosports’currentembraceofesportsandtheTopGolfphenomenon,focusingonparticipatoryactivitieswhereguestscansimulateplacingthemselvesinthemiddleoftheaction.

Asasportsandentertainmentjunkie,I’mexcitedbytheprospectsofthesepotentialenhancements.ButasaGenXmarketingresearcher,it’sincumbentuponmetoquestionwhatthecustomerreallywants.

Ourtestingsomeoftheaboveenhancementsalsosurfacedahealthydoseofskepticism,particularlyfromolder,affluentfansfearingthedilutionofthecoreproduct.

Lastweek,journalistMikePurkey,suggestedthesameinthegolfspace,coiningthewickedlywonderfulterm,“Youth-anasia.”

It’simportanttoconsiderwhetherthesenewin-venuediversionswillfailtoresonatewith“oldschool”fansorevenyoungerones—who,ourresearchhasshown,oftenembracethetraditionandescapefromtheday-to-daymultitaskingdigitalworldthroughlivesports.

Willtheseinnovationsultimatelybediscardedbyyoungertargetsforthenextshinynewobject?Therightanswerswillvarybymarketandproperty.Ihopeoperatorsseekthoseanswers.

TotalRevenuebySegmentinNorthAmerica(InMillions)

$18,649 $16,301 $18,372 $13,9662016

$19,015 $16,658 $19,073 $14,3902017

$19,311 $17,169 $20,141 $14,5652018

•  Totalrevenueswillgrowfrom$63.5billionin2015to$73.5billionin2020–a20%jump•  Sponsorship–16%growthratebetween2015and2019

GateRevenue Sponsorship MediaRights Merchandise

$19,750 $18,030 $20,944 $14,7392019

$17,963 $15,481 $16,305 $13,8062015

$20,298 $19,057 $21,752 $14,9382020

Source:PwC

SponsorshipSpendingWorldwide

$44.00$48.60

$53.00$57.50

$62.70$65.80

2009 2011 2013 2015 2017 2018

Source:Statista2019;revenuecitedacrossallformsofentertainmentsponsorship

SPENDINGINBILLIONS

SponsorshipRevenueAcrossMajorLeagueSports

$870 $1,010

$1,150 $1,250 $1,320 $1,390

2010 2012 2014 2016 2017 2018

•  RevenuefortheNFLishighestamongMajorLeagueSportsintheU.S.•  GrowthrisesyearoveryearforeveryMajorLeagueSportintheU.S.•  NBAmadelargestleapinSponsorshipRevenueinthe2017/2018season

REVENUEINMILLIONS

$572 $642 $739 $799 $861 $1,120

$548 $626 $695

$827 $892 $938

2010 2012 2014 2016 2017 2018

$356 $390 $447 $477 $505 $560

SourceIEG;Statista14

SportsMerchandiseRevenueinNorthAmericainBillionDollars

$12.57$12.77

$13.49

$13.97$14.39 $14.57 $14.74

$14.94

2010 2012 2014 2016 2017 2018 2019 2020

•  MerchandisinginSportshasincreasinglydrawnmorerevenueinNorthAmerica

•  Since2010revenuehasincreasedbynearly2BILLIONdollars.

Source:Statista2019

SPORTSMARKETINGACTIVATIONDRIVERS

•  SponsorshipIntegration

•  VenueNamingRights

•  Endorsement

•  Licensing

•  ThemebasedStrategies

MarketingThroughSports

Marketingof

Sports

ThemeBased

AlignmentBased

SportsBased

ProductBased

SportsRelated

Non-SportsRelated

TypeofProduct

SponsorshipBased

TraditionalUse

LevelofIntegration

SportsMarketingDimensions

SportsMarketingDomains

StrategicDistinctionsinSportsMarketingPractices

TheFourDomainsofSportsMarketing

SamFullertonandG.RussellMerz

SportsMarketingActivationDrivers

AndResearchDemonstratestheSpecificImpactsofSportsMarketing

Exposure

Competition

Coverage

Privileges

Exclusivity

SportSponsorship

BrandEquity(Incremental)

BrandAssociations(Incremental)

BrandAwareness

(Incremental)

BrandLoyalty

(Incremental)

PerceivedQuality

(Incremental)Hensler,WilsonandWestberg;2011

ROIFRAMEWORK

KeyMeasuresoftheSportsSponsorshipIndex(SSI)RevealPotentialDriversofSportsMarketingImpact:

1.  Thelevelofbrandexposure;

2.  Theamountofcoverage(TVandspectatorsinthestadium)thatasportentityhas;

3.  Theclub’squality(operationalizedbythecompetitionstheclubplaysin);

4.  TheAdvertisingopportunitiesthatthesponsorreceives;

5.  Certainprivilegesgrantedtothesponsor;and

6.  Theexclusivitygiventothesponsor.

AnROIFramework

MeasuringthePerformanceofSponsorshipSpending:

•  CostPerReach

–  Evaluatethenumberofpeopleexposedtothesponsorship

•  UnaidedAwarenessPerReach–  Forevery$1spentonsponsorshiprights,companiesdevoteanywherefrom$.50-$1.60to

activation–missinghugeopportunities

–  Increasedactivationcanresultingreaterunaidedawareness&higherbrandrecall

•  Sales/MarginPerDollarSpent

–  Tiespendingonsponsorshipstokeyqualitativemarketingmeasuressuchasunaidedawareness,propensitytobuy,andwillingnesstoconsider

•  Long-termbrandattributes

–  Brandstrengthcontributesto60-80%tooverallsales–surveyscanhelpidentifythebrandattributesthateachsponsorshippropertysupport

•  Indirectbenefits–  Maystimulateindirectsales

Source:McKinsey&Company21

SLRG’SAPPROACHTOWARDSMEASURINGSPORTSMARKETINGIMPACT

AnSLRGApproachTowardsMeasuringSportsMarketingImpact

KEYMEASUREMENTCRITERIA

► RecallandAwareness

► Likeability/PositiveAssociation/Favorability

► PurchaseIntent/CategoryEngagement

SponsorROO=RESONANCE+Audience

▶  Gainanunderstandingoftargetaudiencemotivations,behaviorsandpreferences

▶  Identifyoptimumbundlesofamenitiesandservicesthatmeetfanneeds

▶  Testvariouspricingpropositionsforavarietyofofferingssoastogaugepriceelasticitiesforeachtargetsegmentandidentifytheoptimalpackages

▶  Evaluatetheimpactofvariousmarketingmessagepointsandpositioningforthesepackagessoastospearheadthedevelopmentofeffectivecommunicationsstrategy

AnOverview

► CustomizedPre/PostTestswith“Exposed”and“Control”samplesmovestheevaluationbeyond“scorekeepingtocommunicationsoptimization.

► Measureprogramresonance,awareness,recall,andassociationinacontextual“brandblindenvironmentforhonest,actionableandbrandbuildinginsights.

► Conduct“GapAnalysis”toassessimpactopportunitiesacrossmultipletargetmarketsandprogramelements…Helpsyoutoderiveaudiencebasedsolutions.

MeasuringEfficacy,NotjusteyeballsforSponsorPartners

► Pre-PostTrackingStudieswithfansandattendeesopenawindowtoatarget’sperceptualmovementandascertaintheImpactofsponsorshipactivation

► Measuretheeffectivenessofacampaigntocreateproperassociationswithabrand’sdesiredposition

► Measurerelativeperceptionvs.competitivebrands

► Gaugeimpactacrossmultipledynamics:

–  Exposedvs.Un-Exposed–  Exposedoveraccumulationtimehorizons

DeriveInsightsontheImpactofYourCampaign

► Likeability/PositiveAssociation/Favorability–  Sponsoringbrandassociationwithcustombrandessence

trigger#1movesfrom28%to37%(from3rdto2ndinthecompetitiveset)

–  SponsorshipbrandLikeabilitystatement#2movesfrom34%to43%(from#2to#1intheset)

► PurchaseIntent–  Purchaselikelihoodmovesfrom13%to25%(Oneofonly

twobrandswithpositiveposttestvspretestmovement)

► Recall/Awareness–  52%recall/awarenessvs14%forthesecondhighest

competitor–  26%mostimpactfulpresenceassociationismorethan

twicethatofanycompetitor

Brand“X”

SampleSummaryMeasurementResults

► BrandPerceptionMetricsMeasurementModule

–  Associationofspecifictestbrandswithavarietyofdesiredperformanceandbrandessencecharacteristics

–  EvaluationsandHierarchicalRankingsofcompetitivesetonfit,likeability,quality,value,performancebenefits

► BrandFitModule–FullCompetitiveSet

–  BySponsorshipProperty–  WithSpecificEventProperty

► BrandExperienceandIntendedUseModule

–  CategoryUtilization–  PriorandFutureTrial/PurchaseInterest

► Demographics/RespondentProfileModule

–  KeyDemographics

–  Audience/AttendanceHistoryandengagementIntensity

►  BrandAwarenessModule

– SponsorbrandandCompetitiveSet

► AidedandUnaidedRecallModule

– CategorySponsorshipinGeneral– Specificactivationelements

► MainMessageAssociationModule

– Attributionofkeybrandmessagingtoappropriatecompetitivesetbrand;derivedfromthecreativebrief/brandobjectives

AreasofInquiry:

KeyResearchMeasures

►  Brand X shows positive perceptual growth across virtually all metrics—and with greater intensity than its competitive set!

►  Brand X sees significant widening of leadership gap as competitor sees demonstrative fall-off against many dynamics

►  Lift is particularly significant across the following dynamics:

Pre Survey Total

Post Survey Total

Has bold flavor 43.6% 49.7%

Is a smart way to snack 37.5% 39.6%

Has intense taste 38.4% 45.9%

Is more than a snack 28.3% 37.6%

From the quality leader 48.6% 53.6%

Biggest jump in the competitive set; broadens gap from #1 to #2

Tops in the competitive set; and the only brand with positive movement

Tops in the competitive set and the only brand with positive movement

Significant leadership growth to more than half of all respondents

Only brand with positive pre-to-post movement, climbing from third to second in set

PositiveBrandAssociationShowsPostSurveyLiftforBrandX

BRANDCOMMUNITIES

FundamentalSportsMarketingTruths:

TargetaBroaderAudiencethantheObvious–  Collegefootballisaperfectillustrationofthisphenomenon.Whilealumniareanobvioustarget,there’salsothe

localcommunitythatisdrawninbythepageantry,spectacleandopportunitytobepartofsomethingthatescapesthenorm.Withinthoserealitiesarepotentiallystrongmarketingtriggersthatcanshapeyourcommunicationsandyouractivation.

PlayupNostalgia,Tradition,andtheEscapeto“BetterTimes”–  OurresearchcontinuestoshowthatAmericansarelookingforawistfulescapefromthechaosofour24-7

world.Thisphenomenonisexacerbatedinstressfulandchallengingtimes.Withtheholidaysoftenheighteningthesedesires,thebowlseason(andbyanalogyotherwell-executedsportsmarketingactivation)canbeawonderfulsurrogatefordaysofyorewhereselectivememorytellsusthatlifewassimpler,andtheprospectsofunlimitedopportunityabounded.Byre-openingoldwindows,sportsmarketerscandeliver“oasesofcomfort”andthat’sacompellingproposition.

Ourresearchcontinuestoshowthatbothfigurativelyandliterally,timedepravityyieldsopportunityformarketerswhocanbringfamiliesandlike-mindedcohortstogetherforameaningfulexperience.Addinadoseofcommunityserviceandbenevolencetofellowman,andyouhaveatminimum,ametaphorfortheAmericanway.

FanMindset:Forbrandsthatmaketheefforttounderstandthefanmindsetwithinthatenvironmentandactivateaccordinglyaroundit,thepotentialreturnoninvestmentcanclearlyexceedthesheeraudienceGRPequivalent.

CustomResearch:Byleveragingcustomresearch,asportspropertyormediabrandcantransformthemarketingrelationshipwithsponsorsandadvertisers.

➜  HowSLRGaccomplishesthis:Bypartneringwithapropertyforcustomerresearchitwouldlooktodoelsewhere,thesponsoringbrandcanachievesignificantcostefficiencies,andthepropertycanpotentiallygobeyondtheaddedvaluemodelandturnresearchintoaprofitcenter.

LiveSportsistheUltimateBrandCommunity

SpecialandSafePlace:Somewhattotheclient’ssurprise,thegame,whenpositionedasoneofthosetrulycomfortingescapesfromalloflife'sdistractionsandchallenges,wasactuallyseenasaspecialandsafeplace...awelcomerespitethataddressedaneedforcomfortandconsistency,andevokedasimplicityandfamiliaritythatwascovetedamidstthechaos.

➜  Participating in events

➜  Serving as brand evangelists – carrying the marketing message into other communities - resulting in new customer leads

➜  Constituting a strong market for licensed products and brand extensions

TWOWAYCOMMUNICATION

COMMUNITY

ConsumersEngageBrandCommunitiesBy:

LoyaltyMarketingFoundations

ommunications ommunity

ecognition eward

JonLastPresident

445HamiltonAvenue,Suite1102

WhitePlains,NY10601

914.358.3558/3557

jlast@sportsandleisureresearch.com

ContactUsforFurtherInformation:

Fan Engagement: The In-Game vs. At-Home...

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