35
FanEngagement:TheIn-Gamevs.At-HomeExperience
“Theimplicationsforsportsmarketersisthatmessagingemphasisshouldremainonfans’personalinvestmentinteamsandproperties,theescapismandconsistentvalueprovidedinlivesportsandtheuniqueengagementthatgoodsportsmarketingcanprovide.”–SLRGPresidentJonLast
41%
35%
35%I'dratherwatchprosportsonTVthanattendalivegame
SLRGSportsFanOmnibus2018Report
2018SportsFans
2017SportsFans
2016SportsFans
2015SportsFans
2014SportsFans
2 Source:SLRGSportsFanOmnibusFebruary2018Report
40%
36%
DiggingDeeper:FanEngagementTheUltimateSportsMarketing(Activation)Fantasy
TheCallaway-PetcoParkpromotion(turningSD’sPetcoParkintoanine-holegolfcourse)isagreatexampleofasportsmarketingactivationthatmeetssomanyoftheessentialelementsofagreatpromotion.
3
“SportsFantasy”wasapre-cursortotheparticipatoryfandomthathasspawnedsomeofthemorecreativeandamusingpromotions,nottomentionaprescientlookaheadtoourincreasingzesttoprovideuniqueandmemorableexperienceswhilebuildingourbrandsthroughsports.
1. Itstimulatesproducttrialatanopportunetime
2. Itbuildsmediabuzz
3. Itplaystothedesiredpositioningoftheactivatingbrands4. Itresonateswithconsumerimaginationsandaspirations
5. It’smeasurableandfacilitatesadialoguebetweenbrandandconsumer
DiggingDeeper:FanEngagement
4
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
5
(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:
6
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
4,000
69,487
29,908
21,692
17,884
17,516
4,125
67,405
28,659
21,873
17,987
17,446
3,940
NFL
MLB
MLS
NBA
NHL
MiLB
AverageAttendance
AverageMajorSportsLeagueRegularSeasonAttendance
2015-2016 2016-2017 2017-2018
OurPOVonEnhancingtheFanExperience
8
Theproliferationoflivesportingevents,combinedwithincreasedandimprovedout-of-homeaccesschannels,haskeptsportsmarketersfocusedonenhancingtheonsiteexperience.Couplingthisphenomenonwithanincessantdesireforticketsalesgrowthhassurfacedapervasivechallengeforpropertieslookingtoboostattendance.Thishasamplifiedadesiretobroadentheentertainmentandamenityofferingstoappealtoawiderevententhusiastaudience,onethatlikelylacksastrongaffinityforthehometeamorsportbeingmarketed.
It’seasiestandappropriateforapropertytoinitiallylooktoitscoreaudienceindevelopingenhancedamenities,increasedfanaccessandcreativeonsiteactivations.Mostpropertieshavealsobolsteredexistingfanrelationshipsthroughtechnologyvalue-addandcommunicationsprogramsthatleveragethecentralvaluesandparticipationdriversthatmaketheirofferingsresonant.Misstepsherecanbecostlybothatthegateandinmaintainingfanequity.
Therearewidelydocumentedeffortsofsportspropertiesmarketingtothenextgenerationofcorefans.Assumingthatasimple“builditandtheywillcome”approachisenoughtocapturethisaudienceisoftenshort-sighted.
Ourresearchhasshownthatafocusonprovidingenhancedaccesstotheeventcanoftenreinforcetheessentialemotionaldriversforattendancefromthisnextgenerationoffans.Butthechallengeistougherwhenreachingbeyondthisgrouptothosewithalimitedinterestinthecentralsportingevent.
(continued)
OurPOVonEnhancingtheFanExperience
9
(continued)
Thetypicalresponsebyproperties,oflate—particularlythosefocusedonmillennialandGenZaudiences—hasbeentodevelopsocialspacesoramenitiesthatemphasizeinteractivity,unrelatedentertainmentorupgradedfoodandbeverageexperiences.Theseareoftenlessdependentuponthecentralsportingeventtakingplace.
Buttheappropriatequestionthatemergesis,what’sthecostoffollowingthisstrategy?Amarketingandactivationplanfocusedontertiarypotentialfansdemandssignificanthumanandfinancialresources,whileriskingdilutionofthecoreproduct,withoutanyassuranceofpositiveROI.
Howdoesapropertyfindtherightbalancebetweencreatinganenvironmentwiderinappeal,withoutwateringdowntheexperiencethatcorefansareseeking?Howdoesoneidentifythosesegmentsmostreceptivetotheseofferings?
Forpropertiesfocusedonseasonticketpackages,thereisalsotheinevitableneedtocultivatetheevententhusiastintosomeonewithatleastabasicappreciationandunderstandingofthecoreproduct.
Thesearethemostimportantconsiderationsthatmustbeevaluatedthroughresearchacrossmultipleconstituentgroups.There’snosingularmagicbullet.Butanswersareoutthere.
OurPOVonEnhancingtheFanExperience
10
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.
(continued)
OurPOVonEnhancingtheFanExperience
11
(continued)
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
12
$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
13
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
15
$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
16
• 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
17
AndResearchDemonstratestheSpecificImpactsofSportsMarketing
Exposure
Competition
Coverage
Advertisement
Privileges
Exclusivity
SportSponsorship
BrandEquity(Incremental)
BrandAssociations(Incremental)
BrandAwareness
(Incremental)
BrandLoyalty
(Incremental)
PerceivedQuality
(Incremental)Hensler,WilsonandWestberg;2011
18
ROIFRAMEWORK
19
KeyMeasuresoftheSportsSponsorshipIndex(SSI)RevealPotentialDriversofSportsMarketingImpact:
1. Thelevelofbrandexposure;
2. Theamountofcoverage(TVandspectatorsinthestadium)thatasportentityhas;
3. Theclub’squality(operationalizedbythecompetitionstheclubplaysin);
4. TheAdvertisingopportunitiesthatthesponsorreceives;
5. Certainprivilegesgrantedtothesponsor;and
6. Theexclusivitygiventothesponsor.
AnROIFramework
20
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
22
AnSLRGApproachTowardsMeasuringSportsMarketingImpact
KEYMEASUREMENTCRITERIA
► RecallandAwareness
► Likeability/PositiveAssociation/Favorability
► PurchaseIntent/CategoryEngagement
SponsorROO=RESONANCE+Audience
23
AnSLRGApproachTowardsMeasuringSportsMarketingImpact
▶ Gainanunderstandingoftargetaudiencemotivations,behaviorsandpreferences
▶ Identifyoptimumbundlesofamenitiesandservicesthatmeetfanneeds
▶ Testvariouspricingpropositionsforavarietyofofferingssoastogaugepriceelasticitiesforeachtargetsegmentandidentifytheoptimalpackages
▶ Evaluatetheimpactofvariousmarketingmessagepointsandpositioningforthesepackagessoastospearheadthedevelopmentofeffectivecommunicationsstrategy
AnOverview
24
AnSLRGApproachTowardsMeasuringSportsMarketingImpact
► CustomizedPre/PostTestswith“Exposed”and“Control”samplesmovestheevaluationbeyond“scorekeepingtocommunicationsoptimization.
► Measureprogramresonance,awareness,recall,andassociationinacontextual“brandblindenvironmentforhonest,actionableandbrandbuildinginsights.
► Conduct“GapAnalysis”toassessimpactopportunitiesacrossmultipletargetmarketsandprogramelements…Helpsyoutoderiveaudiencebasedsolutions.
MeasuringEfficacy,NotjusteyeballsforSponsorPartners
25
AnSLRGApproachTowardsMeasuringSportsMarketingImpact
► Pre-PostTrackingStudieswithfansandattendeesopenawindowtoatarget’sperceptualmovementandascertaintheImpactofsponsorshipactivation
► Measuretheeffectivenessofacampaigntocreateproperassociationswithabrand’sdesiredposition
► Measurerelativeperceptionvs.competitivebrands
► Gaugeimpactacrossmultipledynamics:
– Exposedvs.Un-Exposed– Exposedoveraccumulationtimehorizons
DeriveInsightsontheImpactofYourCampaign
26
► 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”
AnSLRGApproachTowardsMeasuringSportsMarketingImpact
SampleSummaryMeasurementResults
27
► 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:
AnSLRGApproachTowardsMeasuringSportsMarketingImpact
KeyResearchMeasures
28
► 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
AnSLRGApproachTowardsMeasuringSportsMarketingImpact
29
BRANDCOMMUNITIES
30
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.
31
Ourresearchcontinuestoshowthatbothfigurativelyandliterally,timedepravityyieldsopportunityformarketerswhocanbringfamiliesandlike-mindedcohortstogetherforameaningfulexperience.Addinadoseofcommunityserviceandbenevolencetofellowman,andyouhaveatminimum,ametaphorfortheAmericanway.
FanMindset:Forbrandsthatmaketheefforttounderstandthefanmindsetwithinthatenvironmentandactivateaccordinglyaroundit,thepotentialreturnoninvestmentcanclearlyexceedthesheeraudienceGRPequivalent.
CustomResearch:Byleveragingcustomresearch,asportspropertyormediabrandcantransformthemarketingrelationshipwithsponsorsandadvertisers.
➜ HowSLRGaccomplishesthis:Bypartneringwithapropertyforcustomerresearchitwouldlooktodoelsewhere,thesponsoringbrandcanachievesignificantcostefficiencies,andthepropertycanpotentiallygobeyondtheaddedvaluemodelandturnresearchintoaprofitcenter.
LiveSportsistheUltimateBrandCommunity
32
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
Brand
TWOWAYCOMMUNICATION
COMMUNITY
ConsumersEngageBrandCommunitiesBy:
33
LoyaltyMarketingFoundations
ommunications ommunity
ecognition eward
34
JonLastPresident
445HamiltonAvenue,Suite1102
WhitePlains,NY10601
914.358.3558/3557
ContactUsforFurtherInformation:
35
