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AGENDA
• 2017 Trends to Watch
• Sports Marke;ng Sponsorship Revenue
• Ac;va;on Drivers & Impacts of Sports Marke;ng
• ROI Framework
• An SLRG Approach to Sports Marke;ng ROI
• Importance of a Brand Community
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Sports Industry = Big Business The sports industry is now es;mated to be worth somewhere in the region of $500-‐$600 billion worldwide – with impressive growth for the foreseeable future
Trends to watch in 2017:
– Women
– eSports – Fan Engagement
– Smart Stadiums
*source: Inc Jan. 2016 3
Digging Deeper: Women In a stereotypically male-‐dominated industry, more and more women fans and athletes have begun engaging and par;cipa;ng.
• The Women’s World Cup became the most-‐watched soccer event in US television history – 26.7 million viewers in 2015
Sources: Inc Jan. 2016; Fifa: Dec. 2015
• Sports Illustrated’s coveted “Sportsman of the Year Award” was appropriately renamed “Sportsperson of the Year” upon announcement of the 2015 winner, Serena Williams
• Yahoo’s annual report of the most searched athletes of 2015 was dominated by women
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Digging Deeper: Women Yahoo’s annual report of the most searched athletes of 2015 was dominated by women
Most Searched Athletes – Yahoo!
Ronda Rousey
Lindsey Vonn
Maria Sharapova
Danica Patrick
Caroline Wozniacki
Tiger Woods
Floyd Mayweather
Manny Pacquiao
Ana Ivanovic
Hope Solo
5 Sources: Inc Jan. 2016; *Fifa: Dec. 2015; Yahoo! Sports Dec. 2015
Digging Deeper: Women Golfing business women are significantly more likely than golfing business men to strongly believe that golf has contributed to their business success
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59%
58%
57%
47%
48%
46%
Being able to talk about golf enables me to be more successful in my business
rela;onships
Playing golf has contributed to my professional success
Playing business golf has made me feel more included in my place of work
Women Golfers
Men Golfers
Please indicate how much you agree or disagree with each of the following statements Q
TOP 3 BOX SUMMARY
Source: SLRG and PGA’s Report “The Gender Puzzle: A New Context for Business Golf” February, 2016.
Digging Deeper: Women
Have you ever closed a business deal on the golf course or at the golf club? Q
Have Closed a Deal on Golf Course Median # of Deals Median Deal Size
Women golfers 58% 5.0 $100k
Men golfers 60% 5.0 $250k
► More than a quarter of the women who have closed a deal through golf, have closed a deal valued at $500k+.
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Just Under 60% of Business Golfers Have Closed A Deal on the Golf Course or at the Golf Club and Women are Just as Likely to Have Done so, as Men
Source: SLRG and PGA’s Report “The Gender Puzzle: A New Context for Business Golf” February, 2016.
Digging Deeper: eSports
• According to esportsearnings.com, over $64M in prize money was awarded in eSports in 2015
• Five universi;es have incorporated eSports into their varsity athle;c program offering scholarships to top players
• Coca-‐Cola & American Express have both jumped on as major event sponsors
• Mul;ple television networks have branched out with eSports coverage – including Disney & TBS
Source: Inc Jan. 2016 8
Digging Deeper: Fan Engagement “The implicaXons for sports marketers is that messaging emphasis should remain on fans’ personal investment in teams and properXes, the escapism and consistent value provided in live sports and the unique engagement that good sports markeXng can provide.” – SLRG President Jon Last
41%
35%
35%
I'd rather watch pro sports on TV than amend a live game
SLRG Sports Fan Omnibus 2016 Report
2016 Sports Fans
2015 Sports Fans
2014 Sports Fans
9 Source: SLRG Sports Fan Omnibus February 2016 Report
Digging Deeper: Fan Engagement The Ul;mate Sports Marke;ng (Ac;va;on) Fantasy
The Callaway-‐Petco Park promo;on (turning SD’s Petco Park into a nine-‐hole golf course) is a great example of a sports marke;ng ac;va;on that meets so many of the essen;al elements of a great promo;on.
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“Sports Fantasy” was a pre-‐cursor to the parXcipatory fandom that has spawned some of the more creaXve and amusing promoXons, not to menXon a prescient look ahead to our increasing zest to provide unique and memorable experiences while building our brands through sports.
1. It sTmulates product trial at an opportune Tme
2. It builds media buzz
3. It plays to the desired posiToning of the acTvaTng brands 4. It resonates with consumer imaginaTons and aspiraTons
5. It’s measurable and facilitates a dialogue between brand and consumer
Digging Deeper: Smart Stadiums
• Interac;vity • Access to the field of play/players • Creature comforts ("oases" and social spaces within the building, restroom enhancements and "family friendly zones")
• Accessible premium sea;ng op;ons
• Expanded and upgraded food and beverage • Enhanced scoreboard technology and integra;on with personal mobile devices
• Improved parking/thoroughfares and logis;cs
• Direc;onal signage/way finding through apps and mobile devices
SLRG studies for NFL and MLB venues iden;fied what consumers coveted.
Major areas where renovaTons resonate most with fans:
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Digging Deeper: Smart Stadiums There is nearly $17 billion commimed to 135 stadium and arena construc;ons project across North America (SBJ Research) – which could correlate to a 25-‐30% lir in gate revenue during the first three years arer moving into a new venue.
68,216
30,163
21,574
17,849
17,548
NFL
MLB
MLS
NBA
NHL
Average A[endance
Major Sports League A[endance 2015/2016
Sources: PwC & SportsBusiness Journal Oct. 2015; StaXsta 2016 12
Total Revenue by Segment in North America (In Millions)
$18,251 $15,309 $16,366 $13,672 2015
$18,637 $16,140 $18,427 $13,861 2016
$19,385 $16,822 $19,150 $14,042 2017
$19,717 $17,635 $19,949 $14,252 2018
• Total revenues will grow from $60.5 billion in 2014 to $73.5 billion in 2019 – a 21% jump • Sponsorship – 20% growth rate between 2015 and 2019
Gate Revenue Sponsorship Media Rights Merchandise
$20,122 $18,306 $20,630 $14,464 2019
13 Sources: PwC & SportsBusiness Journal Oct. 2015;
Sponsorship Revenue Worldwide
$31.47 $35.13
$40.24 $45.28
2009 2011 2013 2015
Source: PwC
REVENUE IN BILLIONS
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Sponsorship Revenue Across Major League Sports
$870 $946 $1,010 $1,070 $1,150 $1,200
2010 2011 2012 2013 2014 2015
• Revenue for the NFL is highest among Major League Sports in the U.S. • Growth rises year over year for every Major League Sport in the U.S.
REVENUE IN MILLIONS
$572 $610 $642 $679 $739 $799
2010 2011 2012 2013 2014 2015
$548 $585 $626 $663 $695 $778
2010 2011 2012 2013 2014 2015
$356 $372 $390 $409 $447 $477
2010 2011 2012 2013 2014 2015
Source IEG 15
SPORTS MARKETING ACTIVATION DRIVERS
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• Sponsorship Integra;on
• Venue Naming Rights
• Endorsement
• Licensing
• Theme based Strategies
Marke;ng Through Sports
Marke;ng of
Sports
Theme Based
Alignment Based
Sports Based
Product Based
Sports Related
Non-‐Sports Related
Type of Product
Sponsorship Based
Tradi;onal Use
Level of IntegraTon
Sports Marke;ng Dimensions
Sports Marke;ng Domains
Strategic DisTncTons in Sports MarkeTng PracTces
The Four Domains of Sports MarkeTng
Sam Fullerton and G. Russell Merz
Sports Marke;ng Ac;va;on Drivers
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And Research Demonstrates the Specific Impacts of Sports Marke;ng
Exposure
CompeTTon
Coverage
AdverTsement
Privileges
Exclusivity
Sport Sponsorship
Brand Equity (Incremental)
Brand AssociaTons (Incremental)
Brand Awareness
(Incremental)
Brand Loyalty
(Incremental)
Perceived Quality
(Incremental) Hensler, Wilson and Westberg; 2011
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ROI FRAMEWORK
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Key Measures of the Sports Sponsorship Index (SSI) Reveal Poten;al Drivers of Sports Marke;ng Impact:
1. The level of brand exposure;
2. The amount of coverage (TV and spectators in the stadium) that a sport en;ty has;
3. The club’s quality (opera;onalized by the compe;;ons the club plays in);
4. The Adver;sing opportuni;es that the sponsor receives;
5. Certain privileges granted to the sponsor; and
6. The exclusivity given to the sponsor.
An ROI Framework
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An ROI Framework
Measuring the Performance of Sponsorship Spending:
• Cost Per Reach
– Evaluate the number of people exposed to the sponsorship
• Unaided Awareness Per Reach – For every $1 spent on sponsorship rights, companies devote anywhere from $.50 -‐ $1.60 to
ac;va;on – missing huge opportuni;es
– Increased ac;va;on can result in greater unaided awareness & higher brand recall
• Sales/Margin Per Dollar Spent
– Tie spending on sponsorships to key qualita;ve marke;ng measures such as unaided awareness, propensity to buy, and willingness to consider
• Long-‐term brand a[ributes
– Brand strength contributes to 60-‐80% to overall sales – surveys can help iden;fy the brand amributes that each sponsorship property support
• Indirect benefits – May s;mulate indirect sales
Source: McKinsey & Company 21
SLRG’S APPROACH TOWARDS MEASURING SPORTS MARKETING IMPACT
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An SLRG Approach Towards Measuring Sports Marke;ng Impact
KEY MEASUREMENT CRITERIA
► Recall and Awareness
► Likeability/ Posi;ve Associa;on/Favorability
► Purchase Intent/Category Engagement
Sponsor ROO = RESONANCE + Audience
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An SLRG Approach Towards Measuring Sports Marke;ng Impact
▶ Gain an understanding of target audience mo;va;ons, behaviors and preferences
▶ Iden;fy op;mum bundles of ameni;es and services that meet fan needs
▶ Test various pricing proposi;ons for a variety of offerings so as to gauge price elas;ci;es for each target segment and iden;fy the op;mal packages
▶ Evaluate the impact of various marke;ng message points and posi;oning for these packages so as to spearhead the development of effec;ve communica;ons strategy
An Overview
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An SLRG Approach Towards Measuring Sports Marke;ng Impact
► Customized Pre/Post Tests with “Exposed” and “Control” samples moves the evalua;on beyond “scorekeeping to communica;ons op;miza;on.
► Measure program resonance, awareness, recall, and associa;on in a contextual “brand blind environment for honest, ac;onable and brand building insights.
► Conduct “Gap Analysis” to assess impact opportuni;es across mul;ple target markets and program elements…Helps you to derive audience based solu;ons.
Measuring Efficacy, Not just eyeballs for Sponsor Partners
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An SLRG Approach Towards Measuring Sports Marke;ng Impact
► Pre-‐Post Tracking Studies with fans and amendees open a window to a target’s perceptual movement and ascertain the Impact of sponsorship ac;va;on
► Measure the effec;veness of a campaign to create proper associa;ons with a brand’s desired posi;on
► Measure rela;ve percep;on vs. compe;;ve brands
► Gauge impact across mul;ple dynamics: – Exposed vs. Un-‐Exposed – Exposed over accumula;on ;me horizons
Derive Insights on the Impact of Your Campaign
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► Likeability/PosiTve AssociaTon/Favorability – Sponsoring brand associa;on with custom brand essence
trigger #1 moves from 28% to 37% (from 3rd to 2nd in the compe;;ve set)
– Sponsorship brand Likeability statement #2 moves from 34% to 43% (from #2 to #1 in the set)
► Purchase Intent – Purchase likelihood moves from 13% to 25% (One of only
two brands with posi;ve post test vs pre test movement)
► Recall/Awareness – 52% recall/awareness vs 14% for the second highest
compe;tor – 26% most impacwul presence associa;on is more than
twice that of any compe;tor
Brand “X”
An SLRG Approach Towards Measuring Sports Marke;ng Impact
Sample Summary Measurement Results
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► Brand PercepTon Metrics Measurement Module – Associa;on of specific test brands with a variety of
desired performance and brand essence characteris;cs
– Evalua;ons and Hierarchical Rankings of compe;;ve set on fit, likeability, quality, value, performance benefits
► Brand Fit Module–Full CompeTTve Set
– By Sponsorship Property – With Specific Event Property
► Brand Experience and Intended Use Module – Category U;liza;on – Prior and Future Trial/ Purchase Interest
► Demographics / Respondent Profile Module
– Key Demographics
– Audience/ Amendance History and engagement Intensity
► Brand Awareness Module – Sponsor brand and Compe;;ve Set
► Aided and Unaided Recall Module
– Category Sponsorship in General – Specific ac;va;on elements
► Main Message AssociaTon Module – Amribu;on of key brand messaging to appropriate compe;;ve set brand; derived from the crea;ve brief/brand objec;ves
Areas of Inquiry:
An SLRG Approach Towards Measuring Sports Marke;ng Impact
Key Research Measures
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► 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
PosiTve Brand AssociaTon Shows Post Survey Lis for Brand X
An SLRG Approach Towards Measuring Sports Marke;ng Impact
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BRAND COMMUNITIES
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Fundamental Sports Marke;ng Truths: Target a Broader Audience than the Obvious
– College football is a perfect illustra;on of this phenomenon. While alumni are an obvious target, there’s also the local community that is drawn in by the pageantry, spectacle and opportunity to be part of something that escapes the norm. Within those reali;es are poten;ally strong marke;ng triggers that can shape your communica;ons and your ac;va;on.
Play up Nostalgia, TradiTon, and the Escape to “Be[er Times” – Our research con;nues to show that Americans are looking for a wiswul escape from the chaos of our 24-‐7
world. This phenomenon is exacerbated in stressful and challenging ;mes. With the holidays oren heightening these desires, the bowl season (and by analogy other well-‐executed sports marke;ng ac;va;on) can be a wonderful surrogate for days of yore where selec;ve memory tells us that life was simpler, and the prospects of unlimited opportunity abounded. By re-‐opening old windows, sports marketers can deliver “oases of comfort” and that’s a compelling proposi;on.
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Our research conXnues to show that both figuraXvely and literally, Xme depravity yields opportunity for marketers who can bring families and like-‐minded cohorts together for a meaningful experience. Add in a dose of community service and benevolence to fellow man, and you have at minimum, a metaphor for the American way.
Fan Mindset: For brands that make the effort to understand the fan mindset within that environment and ac;vate accordingly around it, the poten;al return on investment can clearly exceed the sheer audience GRP equivalent.
Custom Research: By leveraging custom research, a sports property or media brand can transform the marke;ng rela;onship with sponsors and adver;sers.
➜ How SLRG accomplishes this: By partnering with a property for customer research it would look to do elsewhere, the sponsoring brand can achieve significant cost efficiencies, and the property can poten;ally go beyond the added value model and turn research into a profit center.
Live Sports is the Ul;mate Brand Community
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Special and Safe Place: Somewhat to the client’s surprise, the game, when posiXoned as one of those truly comforXng escapes from all of life's distracXons and challenges, was actually seen as a special and safe place ... a welcome respite that addressed a need for comfort and consistency, and evoked a simplicity and familiarity that was coveted amidst the chaos.
➜ 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
Brand TWO WAY
COMMUNICATION
COMMUNITY
Consumers Engage Brand Communi;es By:
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Loyalty Marke;ng Founda;ons
ommunications ommunity
ecognition eward
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Jon Last President
445 Hamilton Avenue, Suite 1102
White Plains, NY 10601
914.358.3558/3557
Contact Us for Further Informa;on:
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