Sponsorship Proposal

The Summer X Games and Snapchat    

     

Ty  Shanahan    

PRT  466  Spring  2016  

     

The Summer X Games and Snapchat Sponsorship Proposal      

          Thursday,  March  3,  2016      Evan  Spiegal  Chief  Executive  Officer  Snapchat  579  Toyopa  Drive  Pacific  Palisades,  CA  90272    Dear  Mr.  Spiegal,    On  behalf  of  ESPN  and  the  X  Games,  I,  John  Skipper,  would  like  to  invite  Snapchat  to  be  an  exclusive  gold  sponsor  of  our  2016  Summer  X  Games  event  in  Austin,  Texas.  We  at  ESPN  believe  that  as  exclusive  gold  sponsors  of  the  X  Games,  your  organization  will  be  able  to  reach  both  fans  and  viewers  on  a  global  level.  Our  unbelievable  staff  along  with  our  customer-­‐first  mentality  helps  provide  a  unique  and  memorable  service  to  our  fans  while  designing  innovative  events  and  promotions  directed  toward  the  target  market.  Considering  our  worldwide  audience,  the  X  Games  has  the  ability  to  enrich  and  endorse  the  nationally  accredited  Snapchat  brand  on  a  global  scale.    In  the  sponsorship  proposal  attached  below,  you  will  find  intriguing  information  regarding  the  potential  opportunity  to  expand  Snapchat’s  brand  awareness  while  acquiring  hospitality  benefits.  Undeniably,  both  Snapchat  and  the  X  Games,  have  been  considered  to  be  the  next  “cool”  thing  in  their  respective  industries  by  a  similar  young  adult  demographic.  Knowing  this,  we  believe  that  together,  Snapchat  and  the  X  Games  unique  characteristics  would  create  a  mutually  beneficial  partnership.    Here  at  ESPN  we  are  excited  to  explore  Snapchat  as  a  potential  sponsor.  Included  in  the  proposal,  the  Snapchat  organization  would  be  provided  with  increased  brand  awareness  opportunities,  increased  consumer  loyalty,  exposure  to  the  global  audience,  and  hospitality  benefits.    Designed  to  meet  the  needs  and  wants  of  your  organization,  the  X  Games  and  ESPN  have  personalized  this  proposal  for  your  company.  We  look  forward  to  further  discussing  these  opportunities  with  you.    Sincerely,    John  Skipper  President  of  ESPN,  Inc.      

The Summer X Games and Snapchat Sponsorship Proposal

The Summer X Games  OVERVIEW    The  Summer  X  Games  is  a  well-­‐known,  highly  anticipated,  international,  extreme  sports  competition  that  is  hosted  by  ESPN,  the  self  proclaimed  world  wide  leader  in  sports.  The  annual  competition  includes  athletes  and  fans  from  all  over  the  world  and  continues  to  have  an  increase  in  diversity  every  year.    The  Summer  X  Games  is  comprised  of  five  different  action  sports:  skateboarding,  moto  x,  BMX,  rally  car  racing,  and  mountain  biking.  With  that  being  said,  the  four  daylong  contests  consist  of  22  different  events  distributed  throughout  the  five  action  sports.  Aside  from  the  contest  itself,  the  Summer  X  Games  provides  fans,  locals  and  athletes  with  concerts  throughout  the  week.  As  the  popularity  of  extreme  sports  has  increased  in  the  young  adult  demographic,  so  has  the  popularity  of  the  Summer  X  Games.        HISTORY    

Ø In  1995,  the  modern  day  X  Games  hosts  its  inaugural  competition  in  Newport,  Rhode  Island  under  the  name  “Extreme  Games”,  bringing  198,000  spectators.  

Ø The    “Extreme  Games”  were  then  rebranded  and  renamed  to  the  “X  Games”  in  1996.  

Ø In  1998,  the  Summer  X  Games  goes  international  by  hosting  the  contest  in  Phuket,  Thailand.    

Ø History  was  made  at  the  fourth  annual  X  Games  in  1999  when  Tony  Hawk  landed  the  first  ever  900;  in  addition  this  X  Games  happened  to  be  the  most  attended  in  history  to  date  bringing  in  268,000  attendees.    

Ø In  2003  X  Games  moved  to  Los  Angeles  Ø In  2005  X  Games  11  aired  live  on  ESPN,  ABC,  and  ESPN  Deportes  

domestically  and  in  more  than  75  countries  and  territories  via  ESPN  International  

Ø For  the  first  time  X  Games  was  aired  24  hours  each  day  of  the  event  using  ESPN,  ESPN2,  ABC,  ESPN  Classic,  ESPN.com,  ESPN360,  Mobile  ESPN,  ESPN  International  and  iTunes  in  2006.  

The Summer X Games and Snapchat Sponsorship Proposal

Circuit Of The Americas Venue  

Ø The  Circuit  of  the  Americas,  often  referred  to  as  COTA,  occupies  1,600  acres  of  the  beautiful  city  of  Austin,  Texas  and    

Ø It  has  a  capacity  of  120,000  making  it  one  of  the  biggest  venues  in  the  United  States.    

Ø Located  approximately  20  minutes  from  downtown  Austin  Ø Essentially  a  multi-­‐purpose  racetrack  that  doubles  as  a  concert  venue  and  

as  of  2014  a  new  home  for  the  Summer  X  Games.    Ø Host  to  the  only  Formula  One  race  in  America,  the  U.S.  Grand  Prix,  which  

attracted  260,000  fans.    Ø Nestled  inside  the  track  stands  what  is  known  as  the  Austin360  

Amphitheater    Ø The  largest  permanent  outdoor  amphitheater  in  Central  Texas,  which    Ø Also  features  a  251-­‐foot  observation  tower  that  provides  a  birds  eye  view  

of  not  only  the  X  Games  but  the  city  of  Austin  as  well.    Ø Summer  X  Games  Austin  2015  brought  in  approximately  140,000  fans  

throughout  the  4-­‐day  contest,  helping  solidify  the  spot  for  2016.        

The Summer X Games and Snapchat Sponsorship Proposal

Audience Demographics  Market  Demographics    

Ø The  key  targeted  demographic  is  the  hard  to  reach  market  of  13-­‐24  year  olds  Ø The  average  age  of  attendees  is  20  years  old  with  over  66%  of  the  attendees  

being  under  21  Ø There  seems  to  be  a  growth  in  interest  amongst  females,  however  the  audience  

has  been  primarily  male  at  57%  of  attendees.    Ø For  every  100  households  there  are  50  males  ages  12  to  34  watching  the  games  

in  primetime.  

Audience  Demographic    

Ø The  2014  X  Games  in  Austin  was  the  most  attended  X-­‐Games  in  a  decade.  Ø 160,000  people  attended  over  the  four-­‐day  event  in  2014  and  140,000  

attended  in  2015.    Ø 74%  Increase  in  attendance  since  being  in  Los  Angeles  in  2013.  Ø 450,000  viewers  on  the  four  ESPN  telecasts  

The Summer X Games and Snapchat Sponsorship Proposal

Media Coverage Event  Coverage    The  Summer  X  Games’  ownership  and  broadcasting  rights  are  strictly  property  of  ESPN  and  ABC,  the  owner  of  ESPN.  Therefore  ESPN  and  ABC  broadcast  the  X  Games  on  the  following  platforms:    

Ø ESPN  Ø ESPN  2  Ø ABC  Ø ESPN  Classic  Ø ESPN.com  Ø ESPN360  Ø Mobile  ESPN  Ø ESPN  International  

       Social  Media  Coverage    Social  Media  has  recently  become  a  huge  outlet  and  news  sources  for  teens  and  young  adults,  therefore  the  X  Games  has  used  this  as  a  way  to  reach  fans  through  the  following  social  media  outlets:    

Ø Facebook  è  5.3  million  fans  Ø Instagram  è1.6  million  followers  Ø Twitter  è  909,400  followers  

         

 

The Summer X Games and Snapchat Sponsorship Proposal

Brand Alignment Target  Market    Snapchat,  like  the  X  Games,  targets  a  very  specific  market  in  that  of  young  teens  to  middle  aged  adults  usually  ranging  in  ages  from  13-­‐34.  The  X  Games  takes  pride  in  its  ability  to  provide  a  family  oriented  atmosphere  that  is  entertaining  to  a  diverse  group  of  individuals.  In  saying  that,  it  is  well  documented  and  well  acknowledged  that  Snapchat,  as  a  brand,  is  globally  accredited  for  its  diverse  consumption.  With  that  being  said,  Snapchat’s  target  market  aligns  with  that  of  the  X  Games  in  the  following  areas:    

Ø Young  teens  to  middle  aged  adults    Ø National  and  International  Consumers  

 “The  Cool  Factor”      Extreme  sports  are  undeniably  on  the  rise  primarily  because  of  its  cool  factor  to  its  generation  X  and  generation  Y  consumers.  There  is  something  unquestionably  cool  about  an  extreme  athlete  landing  a  900  or  about  a  competitor  racing  a  dirt  bike  around  a  seemingly  life-­‐threatening  obstacle  course.  The  same  proves  to  be  true  with  the  new,  innovative,  cool  characteristics  of  Snapchat.  Snapchat  has  

The Summer X Games and Snapchat Sponsorship Proposal

become  widely  acknowledged  as  the  cool,  fresh,  must  have  app  and  every  young  adult  user  has  made  it  tradition  that  whenever  he  or  she  is  doing  something  interesting  they  must  immediately  post  it  to  Snapchat’s  featured  “Snap-­‐Story”.      

         

Unique  Qualities    Since  beginning  in  1996  the  X  Games  has  continuously  broken  away  from  traditional  sport  in  an  effort  to  pave  its  own  way  as  an  extreme  sports  event.  The  uniqueness  of  extreme  sports  has  been  unprecedented  when  comparing  to  traditional  sports  that  usually  seem  to  feature  a  ball,  a  goal,  and  two  feet  on  the  ground.    Similarly,  Snapchat  has  created  its  own  path  within  the  media  industry  by  allowing  consumers  to  express  themselves  in  the  moment  while  not  creating  an  everlasting  persona.  The  unparalleled  steps  taken  by  both  organizations  give  plentiful  reason  for  quality  alignment.                      

The Summer X Games and Snapchat Sponsorship Proposal

Sponsorship Package  Increased  Brand  Awareness    

Ø Snapchat  Logo  on  banners  in  and  around  the  venue  Ø Have  athletes  take  Snapchats  with  fans  Ø Making  Snapchat  the  official  social  media  app  of  the  X  Games  

 Having  the  Snapchat  logo  on  banners  in  and  around  the  Circuit  of  the  Americas  venue  will  encourage  non-­‐users  to  begin  using  or  downloading  the  Snapchat  app.  Also,  fans  often  idolize  athletes  in  the  X  Games,  therefore,  if  some  of  these  athletes  took  pictures  using  Snapchat  and  posted  it  to  their  story  it  would  influence  fans  to  begin  using  Snapchat.  Lastly,  having  Snapchat  as  the  official  social  media  app  of  the  X  Games  would  provide  an  opportunity  for  the  organization  to  raise  brand  awareness  for  fans  that  aren’t  necessarily  in  the  stands  by  posting  it  on  the  X  Games  website  and  on  TV  advertisements.  

Customer  Hospitality    

Ø Snapchat  users  with  proven  download  will  receive  discounted  merchandise  

Ø Randomly  select  Snapchat  users  in  the  stands  to  receive  an  autograph  board  from  an  athlete.  

Ø 10  VIP  passes  for  a  luxury  suite  given  to  corporate  Snapchat  employees  for  the  entire  X  Games.  

Ø Free  X  Games  tickets  to  a  lucky,  random  Snapchat  user  around  the  world.  

The Summer X Games and Snapchat Sponsorship Proposal

 By  providing  the  10  VIP  passes  to  corporate,  Snapchat  staff  it  will  provide  the  organization  with  an  appeasing  and  entertaining  event  for  family,  friends,  clients,  or  hard  working  employees.  In  addition,  rewarding  loyal  customers  with  discounted  merchandise  and  chances  to  win  free  tickets  or  autographs  is  an  incredible  way  to  increase  future  downloads  and  retain  previous  customers.  

     

TOTAL GOLD PACKAGE VALUE $2,500,000  

SNAPCHAT GOLD INVESTMENT $2,000,000  

   

The Summer X Games and Snapchat Sponsorship Proposal

Impact Measurement Brand  Awareness    It  is  important  to  the  X  Games  organization  that  with  every  sponsorship  comes  a  mutual  benefit  to  both  organizations  involved.  Therefore,  we  find  it  essential  to  perform  a  critical  evaluation  to  measure  how  aware  X  Games  fans  are  of  Snapchat.  To  measure  this  impact  the  X  Games  organization  will  implement  the  following  assessment  principles:      

Ø Conduct  fan  surveys  after  each  day  of  the  event  to  determine  each  fan’s  awareness  of  Snapchat  

Ø Evaluate  Snapchat  archive  reports  to  determine  the  amount  of  downloads  during  the  event.  

Ø Tracking  the  number  of  users  who  make  mentions  on  social  media  about  using  Snapchat  at  the  event.  

Ø Measure  the  amount  of  Snapchat  “stories”  that  are  posted  at  the  event.    Customer  Loyalty    To  ensure  previous  Snapchat  customers  remain  loyal  to  the  brand  we  find  it  imperative  to  evaluate  the  usage  of  the  customer  hospitality  benefits  of  the  sponsorship  package.  In  order  to  effectively  measure  this  impact  we  will  implement  the  following  evaluation  criteria:    

Ø Calculate  the  amount  of  discounts  given  to  Snapchat  users  Ø Survey  X  Games  attendees  in  order  to  determine  if  they  downloaded  

Snapchat  for  the  sole  possibility  of  receiving  an  autographed  board  Ø Question  cliental  that  got  the  VIP  X  Games  experience  if  the  experience  

influenced  their  decision  to  partner  with  Snapchat        

   

The Summer X Games and Snapchat Sponsorship Proposal