Term
Sports Marketing in Today’s World
|
|
Definition
· Media proliferation
· Entertainment consumption choices; marketplace clutter
· Consumer diversity
Be where they are
Bring them to where you are
Speak to them in their language
|
|
|
Term
|
Definition
· Marathons
o World major marathon series
· Track & field
o IAAF World Championships
o Golden league
· Pros
o Strong on-site branding opportunities (signage)
o “health and wellness” is an undermined platform
o Not as much category clutter across these events
o Opportunity to become a “pillar in the community with select events
§ marathons
· Cons
o Pockets of strength and good following in certain territories
§ europe
o Big events get most exposure within the regional geography
|
|
|
Term
Points of Entry
Domestic sports leagues/teams
Cycling
|
|
Definition
· Giro d’ Italia (June)
· Tour de France (July-August)
· Pros
o Massive appeal in Europe, s America
o Global media reach
o Growing participant base, strong demos
· Cons
o Niche appeal vs major sports
o Sport has been plagued by doping controversies
|
|
|
Term
Points of Entry
Domestic sports leagues/teams
Rugby
|
|
Definition
· Disciplines
o Rugby union (15 players)= the gentleman’s game
§ Stronger emphasis on national teams
§ World cup
o Rugby league (11 players)= the working man’s game
§ Stronger emphasis on local club competitions/rivalries
· Host beds
o UK, Ireland, Scotland, france, Australia, New Zealand, South Africa, Tonga
· Seasonality
o N.H- Sept-Apr
o S.H.- Apr-Sept
· Platforms
o Domestic leagues
o Country vs country tournaments
§ Tri-nations (Australia, new Zealand, s Africa)
§ Six nations
o World cup
· Pros
o Significant interes in uk, Scotland, france, Australia, new Zealand, and s pacific
o Strong branding opportunities, signage
o Strong hospitality opportunities
· Cons
o Weak following in certain territories
Lesser global television distribution
|
|
|
Term
Points of Entry
Domestic sports leagues/teams
Cricket
|
|
Definition
· Disciplines
o Test cricket
o 40 overs
o 20twenty
· Host beds
o UK
o India
o Australia
o West indies
· Seasonality
o Northern Hemisphere= april- September
o Southern Hemisphere= September- April
· Platforms
o Domestic leagues
o Country vs country competitions
o World cup
· Pros
o Significant interest in S Asia, west indies Australia, UK
o Strong branding opportunities, signage
o Strong hospitality opportunities
o Evolution of new formats has helped grow popularity of the game
· Cons
o Weak following in certain territories
o Lesser global television distribution
|
|
|
Term
Points of Entry
Domestic sports leagues/teams
Baseball |
|
Definition
· Major league baseball
· Japanese league baseball
· Caribbean league
· World baseball classic
· Pros
o Trend of foreign born players from key territories competing in MLB
§ Draws interest from their “home country”
o Strong branding opportunity (signage)
o Success of recently created international event
o World baseball classic
o Draws teams from key territories
o Opportunities for deeper local associations via regional leagues
· Cons
o Strong geographic areas but not a true global platform
“an American export” |
|
|
Term
Points of Entry
Domestic sports leagues/teams
Basketball
|
|
Definition
· NBA
· Euro League
Chinese Basketball Association
· Pros
o Truly global sports
o Trend of foreign born players competing in the NBA
§ Draws interest from their “home country”
o Strong branding opportunity (signage)
o International events
§ NBA Live exhibitions games in Europe
§ NBA China regular season games
o Opportunities for deeper local associations via regional leagues
§ Euro league
§ Domestic leagues
· Cons
o Strongest product is in the US
o “An American export”
Lack of world class venues overseas |
|
|
Term
Points of Entry
Domestic sports leagues/teams
Motor Sports
|
|
Definition
· Auto racing
o Formula 1
o Izod indy racing league
o World rally championships
· Motor cycle racing
o MotoGP
o world super bike
· Pros
o F1 and motoGp are the pre-eminent forms of motor sports in the world
o Global television distribution/exposure in 200+ countires for each race
o Strong branding and hospitality platform
o Unique events and locations
§ F1 Grand Prix of Monaco
§ Races in most key territories
o Drivers and riders are from key geographic regions (EU S America, Asia)
§ Top drivers/riders are some of the biggest sports stars in the world
· Cons
o Significant investment level for F1 and MotoGP
o Lesser series are more affordable but provide much less exposure
|
|
|
Term
Points of Entry
Domestic sports leagues/teams
Golf |
|
Definition
· Majors
o Masters, US open, British open, PGA
· Tours
o European PGA/Asian PGA/LPGA
· Team competitions
o Ryder cup
o Presidents cup
· Pros
o Select events provide global sponsorship opportunity
o Good international television distribution
o Some events and tours provide strong on-site branding opportunities
§ British open
§ European PGA
§ Asian PGA
o Tour associations can provide strong benefits on a territory-by-territory basis
o Strong hospitality platform
o Many athletes are from key geographic regions (EU, S America, Asia)
· Cons
o Limited branding exposure with many events
§ US PGA Tour does not allow course sinage
§ Ryder Cup
o Event entitlement can be significant investment for one week of benefits
|
|
|
Term
Points of Entry
Domestic sports leagues/teams
Tennis |
|
Definition
· Events
o Australian open, French open, US open, wimbledon
· Tours
o ATP men’s tour
o WTA women’s tour
· Team competitions
o Davis cup (men)
o Federation cup (women)
· Pros
o Select events provide global sponsorship opportunity
o Strong branding opportunity via courtside signage
o Good international television distribution for key events
o Many events within all key territories
o Strong hospitality platform
o Many athletes are from key geographic regions (EU, South America, Asia)
· Cons
o Event entitlement can be significant investment for one week of benefits
|
|
|
Term
Points of Entry
Events derived from Domestic sport leagues/team
|
|
Definition
· Union of European Football Associates (UEFA)
o Governing body for all European football
o A member of FIFA who governs the game in Europe
o Set policy, rule and runs 3 championship events each year
§ UEFA Champions League
· Top 2-4 clubs in each European Domestic league play in a pan-Europe tournament each year
· 2010 finalists: inter Milan (Italy) vs Bayern Munich (Germany)
§ Europa Cup
· Same concept/format as champions league
· Clubs that finish roughly 3-6th in their domestic leagues
· 2010 finalists: fulham (England) vs Hamburg (Germany
· Cup Competitions
o FA Cup: England
o Copa Italia: Italy
o Copa Espana: Spain
· Year long competitions between clubs
· Open to ALL football clubs in a country
· Single elimination until champion is determined
· Equivalent of baseball holding a tournament open to
o MLB teams
o Triple A teams
o Double A team
o Single A teams
· Designed to create a competition where all clubs have a change playing on a level playing field
As coveted a trophy as winning the domestic league competition |
|
|
Term
Points of Entry
Domestic sports leagues/teams
|
|
Definition
· Football (soccer)
o European leagues
§ English Premier League-England
§ La Liga- Spain
§ Serie A- Italy
§ Bundesliga- Gemany
§ Ligue 10 France
§ Eredivisie- Netherlands
§ Scottish Premier league- Scotland
o Central/south American leagues
§ Brazil
§ Argentia
§ Columbia
§ Mexico
o Asian leagues
§ J league- Japan
· Opportunities include
o Club sponsorship
o Kit (jersey) Sponsorship
o Venue naming rights
o Field level perimeter board signage
o League sponsorship
· Pros
o Most popular sport in the world
o Some club are truly global brands
o Unique level of passion associated with the sport and the clubs the fans root for
o Significant international television coverage
§ Domestic leagues in all territories of the world
§ Events in all territories of the world
o Significant branding opportunity
o Fan base of clubs outside of home territory
o Intertwined nature of European soccer allows for “cross pollination” of teams and fans via pan-European competitions
· Cons
o Determining the appropriate strategy (club sponsorship vs event sponsorship vs naming rights, etc)
o Close affiliation with one club (via naming rights or kit sponsorship) can offend the fans of other clubs and affect business
|
|
|
Term
Points of Entry
Global Series-Leagues |
|
Definition
· Formula 1
· ATP Tour
· WTA Tour
· PGA Tour
· LPGA Tour
· Pros
o Global events, scale
o Significant international television coverage of events
o Some of the events are the biggest events within their sport-type across the world
§ F1 Grand Prix of Monaco
o Strong participants within a series can gain you strong exposure within the territories they are from
§ Strength of Korean women within the LPGA tour creates strong exposure for the LPGA in Korea
o Efficiency for the right multi-national company
§ Amortize investment over several regions or countries
· Cons
o Out-of-pocket commitment, based upon events
o Relevance of the property in all key territories
o Varying levels of exposure between the different series
§ Formula 1 vs LPGA
|
|
|
Term
| Points of Entry Domestic Governing Bodies/Federations |
|
Definition
· National Level
o US Olympic Committee
o Chinese Olympic Federation
· Sport Level
o US Ski Team
o Mexican National Soccer Team
o Russian Hockey Team
· Pros
o Harness the strong feelings of national pride within targeted countries
o Opportunity to target your spend
o Allows for flexibility in your strategy
§ Align with great sports programs
§ Spread the investment across multiple teams
o Some properties can link you to very passionate and loyal audiences
o Generally, smaller out-of-pocket commitments
· Cons
o Bulk of exposure is domestically
By sponsoring one nation, do you offend people in another |
|
|
Term
Points of Entry
International governing bodies/federations
|
|
Definition
· FIBA: Basketball
· IAAF: Track & Field, “athletics”
· FIS: International skiing
· FINA: International swimming
· ISU: international skating
· Pros
o Global, season-long, annual series of events
o Significant international television coverage of events
o These platforms are a “big deal” within their sports
o Link you to very passionate and loyal audiences
· Cons
o Relevance of the property in all key territories
Size of audience is smaller and more targeted |
|
|
Term
Points of Entry
Global events
|
|
Definition
· IOC: Olympics
· FIFA: World Cup Soccer
· Pros
o Global reach
o Massive exposure
o Most watched events of each year in which they take place
o Supported by global best-in-class brands
§ Coke; McD’s; GE; Omega; Panasonic; Acer; MasterCard; VISA
o Global platform that can allow for “local” extensions and executions
o Resonates across all countries
· Cons
· Out-of-pocket commitment
· Further investment to activate after securing the sponsorship rights
· The “big” events do not occur every year
o World cup happens every 4 years
Olympics happens every 2 years |
|
|
Term
|
Definition
· Global events
· International governing bodies/federations
· Domestic governing bodies/federations
· Global series-leagues
· Domestic sports leagues/teams
· Events derived from domestic sports leagues/teams
· Tennis
· Golf
· Motor sports
· Basketball
· Baseball
· Domestic sports leagues/teams
o Rugby
o cricket
· Cycling
· Athletes
|
|
|
Term
|
Definition
· Global brand image/awareness optimization goals
· International/regional geographis of focus
· Strategic and budgetary considerations
· Category availability within relevant global sports/event properties
· Competitive considerations
· Global communications platform
· Geo-specific cultural considerations
· Global support infrastructure
Political considerations (internal and external) |
|
|
Term
Global Sports- Consideration Set |
|
Definition
· Global events
· Football (soccer)
· Tennis
· Rugby
· Basketball
· Cycling
· Athletics (track & field)
· International federations
· Golf
· Motorsports
· Cricket
· Horse racing
· World marathons
· Athletes
|
|
|
Term
The global sports market landscape |
|
Definition
· Global sponsorship expenditures are expected to reach $50 billion (usd) in 2011, +12% vs 2010, due to the carryover from the Vancouver Olympic Winter Games and the World Cup Soccer Tournament in South Africa
· An annual global growth rate is expected to be +10% for 2012 (London Olympic Games)
· The above growth rates are a healthy rebound from the slower growth rates (approx +2.5% annually) in 2008-09, the resulting the impact of the global economic crisis and its major toll worldwide
· Strongest growth: Europe, middle east and Africa, latin America, and the asia-pacific regions
· Increased spending and growth from developed countries to emerging countries and regions
o Latin America, central and eastern Europe and asia are leading geographies and regions of growth in the sports industry
European companies spend the most on sponsorship (approx $12.6 bil) after north America (approx $17.5 bil). Asia-pacivic companies spending on sponsorship will exceed $10 bil for the first time in 2010. |
|
|
Term
Advertising Media Tactics for Sports Marketing
Advantages and Disadvantages of Various Mediums:
Outdoor
|
|
Definition
Advantages
· Billboards on highways, etc can target specific zip code areas
· Intrusive (can’t zap a billboard)
· New strategies (transit, buses, trains, bathrooms, blimps, beach planes with banners, etc) continue to reach people where they are
· Can target sports venues (outside venues, en route)
· Large area for creative can create major impact
Disadvantages
· Expensive
· Limited demographic segmentation
· Clutter
|
|
|
Term
Advertising Media Tactics for Sports Marketing
Advantages and Disadvantages of Various Mediums:
Radio
|
|
Definition
Advantages
· Allows sports marketers to reach fans during live broadcasts of sponsored events (especially baseball, football, NASCAR, etc)
· Pre/during/post game and special in-game features available
· High frequency
· Ability to target specific demographics (many radio stations cater to many different segments)
· Person-to-person intimacy
· Local personalities add creditability and persuasiveness
· Low production costs
· Flexible by hour, day, week
· Very short leadtime for planning
· National/local
Disadvantages
· Low audience levels
· Audience fragmented
· Listening is often casual (ie.e driving in a car in traffic)
· One dimensional (sound only) (but can create motion perception)
Growth of XM/Sirius will hurt traditional radio listenership (i.e. like tiva, zapping dynamic on TV) |
|
|
Term
| Advertising Media Tactics for Sports Marketing Advantages and Disadvantages of Various Mediums: Magazines |
|
Definition
Advantages
· No matter what sport or lifestyle there is probably a magazine that reaches that audience
· Excellent audience selectivity
· High quality reproduction
· Environment for longer copy (multiple page ads, advertorials)
· Relatively long life (sits on people’s coffee tables), and this allows for bonus “pass-along” readership (people who are not the subscribers but pick up the magazine when visiting or other members of the family)
· Coupon opportunities
· National, regional capabilities
Disadvantages
· Reach builds slowly
· Limited frequency (monthly)
· Long closings (2 months +) and this does not allow for short term planning or reactions
· Less intrusive than TV
· One dimensional (sight only)
Costly |
|
|
Term
Advertising Media Tactics for Sports Marketing
Advantages and Disadvantages of Various Mediums:
Internet
|
|
Definition
Advantages
· Strong ability to target specific audiences
· Data capture capabilities
· Ability to hot link to sponsor’s website
· People control their experience online (this is an advantage if sponsors tap into how people use the internet)
· Massive growth in time spent on internet, and fan “communities” as well as every sports property has a website that fans, etc visit often
· Growth of fantasy leagues
· Growth of broadband capabilities for programming will hurt TV
· Low cost to run ads
· Ability for video, streaming, as well as basic copy, text
· The future for all of us
Disadvantages
Not any major disadvantages |
|
|
Term
Advertising Media Tactics for Sports Marketing
Advantages and Disadvantages of Various Mediums:
Newspapers
|
|
Definition
Advantages
· Very local, allows for immediate, local coverage
· Strong ability for sponsor to connect with local fans
· News environment great for sponsors to promote their sponsorship
· National capabilities (USA today, WSJ)
· Available in all major metro areas as well as surrounding suburbs (allows for leveraging of minor sports that are outside of major cities)
· Couponing opportunities as well as tie-ins with local retailers
· Relatively low production costs for ads
· Short closing to get in papers (1-2 days) allows for strong reactiveness to competition, or to capitalize on current positive aspects of a sponsorship
Disadvantages
· Indiscriminate audience
· Short life (papers thrown away)
· Reproduction quality limited
· Reader time constraints (commuters)
· Constantly being hurt by people getting their news via internet/web sites
|
|
|
Term
| Advertising Media Tactics for Sports Marketing Advantages and Disadvantages of Various Mediums: Television |
|
Definition
Advantages
· Ability to run ads on sports programming
· Pre/during/post game assets as well as various in-game features (game clock, streaming, replays, special effects, etc)
· High immediate reach
· Intrusive (albeit despite zapping and Tivo dynamics)
· Sight, sound, and motion (maximum influence on the senses to build image, convey theme, generate emotion, etc)
· Prestigious
· National/local
· Flexible by daypart/time of day
· Cable TV can target demographics and psychographics better than broad network TV
· Live programming of sports contect controlled by the networks still ensures that sometimes, the only way to watch the even (except by being a spectator at the event) will be by watching that TV sports show
Disadvantages
· expensive
· limited copy (:30/:60 spots mostly)
· relatively inefficient
· clutter during broadcast
· allows for ambush by non-sponsors unless sponsor protects flanks
· eventually, the internet will carry more sports programming due to broadband technologies and this will reduce viewership of TV
|
|
|
Term
| Advertising Media Tactics for Sports Marketing Advantages and Disadvantages of Various Mediums: LIST |
|
Definition
· Television
· Newspapers
· Internet
· Magazines
· Radio
Outdoor |
|
|
Term
Examples of aggregation of sports, globalization, and interactive media |
|
Definition
· Olympic games
· World cup soccer
· Marathon/endurance running (destination events worldwide, GPS real-time tracking, global online training)
· US open (tennis); interactive technology
· America’s cup (GPS tracking/online interaction)
· Globalization of “Fandom”: cubs, Yankees, Manchester united, Michael Jordan, tiger woods, yao ming
· ESPN factor
|
|
|
Term
Reaching Gen Y/Gen X/Kids/Youth While Building the Globalization of Sports- Interactive Media Platforms |
|
Definition
· Growth of fantasy leagues
· Globalization of online video gaming
· Global “fan communities”
· GPS Technology
· The growth of the iPod and unleashing the power of the cell phone
o Apple/Nike alliance
o The flow of sports content
· Globalization dynamics of US sports leagues (NBA, MLB, NFL, NHL), F1, NASCAR
Globalization initiatives of key global sports marketers/sponsors |
|
|
Term
Formidable challenges for the sports industry in the 21st Century |
|
Definition
· Decreasing efficiency of traditional media
o In 1965, 80% of 18-49 year olds reached with 3 :60 TV spots… today, it takes over 120 spots to garner the same reach
o The critical segment, kids/youth, the future fans, attendees, viewers, participants of sports are the biggest challenge for sports marketers
· Internet users watch 38% less TV each week than non-Internet users
· Newspaper circulation has declined EVERY YEAR since 1990
· 20 million people will have satellite radio by 2010
· Shifting personal values; increased need for two-way communication and interaction
· Bottom line: consumers have more power to decide when and how they interact with sports content
|
|
|
Term
Sports Marketing Trends to Follow in the 21st Century |
|
Definition
· Sports properties, pro athletes, sports fans, accelerate integration within social media, social networking platforms (twitter, facebook, youtube, etc)
· Growth in women’s sports
· Unprecedented and largest Olympic Games in history in Beijing ’08 fuels new era of Olympic Marketing viability
o Rio de Janeiro 2015 opens South America to the Olympic Movement
· Slowdown of extreme/action sports
· Continued new venue development
· Major growth in NBA, fueled by global expansion and Lebron James (unless lockout causes havoc)
· Continued “mainstream maturity and slight growth in MLB & NFL
· Increase in sponsorship among non-traditional categories/industries
· Growth of NHL
· Moderate growth of soccer in US
· Growth in content access/delivery via ipods, cellphones, live programming on higher bandwidth computers, new mediums
· Maturing of NASCAR into mainstream national sport
· Continued expansion of sports conglomerates such as Nike
· ESPN continues major sports content acquisition (bowl games, NFL major tennis events, etc)
· Continued major growth of under armour
· Growth of youth sports and development of more cohesive national approaches
· Renewed growth of LPBA; slowdown of growth in PGA and continued downfall of Tiger Woods
Massive realignment of sports on TV networks in light of continued trend of leagues (i.e. NFL, NBA) towards creating their own networks to further control their content
· Increase in Corporate “entitlement” of teams including increased placement of logos on uniforms in sports (already done in MLS, NFL training camp jerseys)
· Increased sophistication of data capture from sports marketing will further develop “relationship marketing” for fans
· Major increase in cause-related marketing as an integral part of sports marketing platforms
· Expansion of sports brand integration within video gaming industry; broader target audiences
Sports fantasy leagues will show continued growth and expansion into non-traditional sports
|
|
|
