Leveraging influence in sports

Presented by: Coyle MediaInspired by: Klout

Have you seen Moneyball?

Influence is the new “on-base-percentage”

Sports marketing ecosystem is complex

Global

National

Local

• League• Sponsor brands• Athlete

• League• Sponsor• TV Networks• Athlete

• League• Sponsor• Team• Athlete• Participant

Size of U.S. Sports Market

$400 BillionAnnual spending in U.S. including ticket sales, licensed products, sports video games, collectibles, sporting goods, sports-related advertising, endorsement income, stadium naming fees and facilities income (Plunkett Research)

Applying influence: a new approach

Sports Marketing Sports Media

Vested Interests in U.S. sportsTelevision Networks Sponsor Brands Professional

LeaguesProfessional Teams

Investments More than 42,500 hours of live sports on broadcast & cable in 2011.

Big 4 Networks plus DirecTV & Verizon paying over $7 billion annual broadcast rights fees for NFL alone.

Rights fees go much higher when college, NASCAR, Golf, etc. & special events (i.e. Wimbledon) are included.

Major brands spend $7.5 billion annually in sponsorship licensing fees, and likely spend at least as much on “activation” and measurement.

Top 10 U.S. brand sponsors account for 26% of annual sports ad spending on TV ($2.7 billion). Top 50 brands spend $6.6 Billion annually on sports 32% of TL advertising budgets)

Leagues have large staffs of lawyers, strategists, marketers and technologists. Invest in advertising, research, development and sales.

Biggest team expense is player payroll.

Revenues National TV sports advertising: $10.9 Billion in 2011 (Nielsen data, includes broadcast & cable advertising).

Cable networks have advertising plus subscription revenues.

Note: cable sports advertising increased 37% year-over-year in 2011

Retail and e-commerce sales.

Often measure value from sports in terms of brand recall, media impressions or TV rating points (media)

Annual revenues from Big 4 U.S. Sports is approximately $23 Billion per year (Plunkett Research 2012)

Share in league TV and licensing revenue.

Tickets and sponsorship from local market; some teams have merchandise businesses

What are brands & networks paying for?

Large, Live audiences Emotional engagement

Young men Early adopters Multi-platform

National Scale Local Sizzle

This model values just ½ of the audience (men), and values each man equally.

What should they be buying?

Influence

Observations: they’re buying reach• Sports properties (leagues) have leverage over TV

networks, rights fees for sports content are rising

• TV networks have leverage over brands who want ads to appear in live games, prices for premium sports inventory is rising

• Teams have leverage over local / regional sponsors who want access to live games / in arena

Status quo thinking is driving the prices higher and higher

Is it possible that…

• Brands are overpaying for rights• Brands are overpaying in venue• Brands are overspending on TV (in games)• Networks are paying too much for broadcast

rights

?

How can Klout help sports marketers?

Insurance AmbushYou are the official sponsor and / or using sports TV to gain WIDE reach, now use KLOUT to Go DEEP and WIDE – and maxmize ROI from the investment you’ve made in sportsProtect status quo

Tap social for Incremental improvements

Your competitor owns official rights, now use KLOUT to Break mass media model, and target fans without wasting money on rights fees.

Tap social to drive impressions AND create demand for brand

80% of fans watching on TV are online

#1 things they’re doing is sharing with friends

60% of game attendees share via FB and TW

Social reach can replace broadcast media reach, and produce better results

Brands may not need to purchase rights or buy national “reach” campaigns

Real time is valuable, but long-tail of attention / time shift is too.

How TV Networks can use Klout

• Target influencers– Sports on TV, drive viewers, engagement– Other programs, driver viewers collar programs– Sponsor brands, drive engagement with Ads.

How Sports Leagues can use Klout

• Gather influencer data, fans impact on…– TV shows / viewers– Brand purchasing / buyers – On sport content creation / consumption– On sport ticketing / buyers

How sponsor brands can use Sports Klout

• Leverage sports / sponsor license among sports fans who are also brand influencers

• Buy media the delivers most brand influencers

How pro teams can use Klout

• Score fans – drive quests, add perks– Ticket buyers– Team (sports) influencers– Sponsor (brand) influencers

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Make a measurable impact

Engage the influencers