How sports teams can increase digital sponsorship revenues
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Digital Cash Pat Coyle Coyle Media, Inc How to stop throwing in your Website, and make more money from your Digital assets (sports)
Transcript of How sports teams can increase digital sponsorship revenues
Digital Cash
Pat CoyleCoyle Media, Inc
How to stop throwing in your Website, and make more money from your
Digital assets
(sports)
Source: Interactive Advertising Bureau
Internet advertising is still fastest growing segment
Dot Bomb
$21 Billion in 2007
U.S. Internet Ad spend $21.2 Billion surpasses Cable, Radio in 2007
U.S. 2007 Ad Revenue (billions)
48.6
31.221.2 20.9 19.8 19.2
13.8 11.1 7.5
0102030405060
Newsp
aper
TV D
istrib
ution
Inte
rnet
Cable
TV
Radio
Broad
cast
TV
Consu
mer
Mag
s
B2B M
ags
Outdo
or
Alt. Media: $160 Billion by 2012“Alternative” media
-Sponsorship
-Consumer Gen. Media
-Mobile advertising
-Video game ads
-Online video ads
-Word of Mouth
- etc.
Technological advances have led to critical changes in consumer behaviors and media usage patterns, which have pushed the advertising and marketing ecosystems into a seminal period of transition. Driven
by these market forces, brand marketers are seeking new strategies to connect with consumers through
engaging means in captive locations, while at the same time providing proof-of-performance metrics. This
confluence of trends is fueling the migration of dollars to alternative media.” (Patrick Quinn, President & CEO)
Global Adv. $400+ BillionGlobal sponsor: $40 Billion
New fan behaviors……powered by technology
1. Watching sports on TV, while online
2. Connecting to other fans in online community…before, during and after games
3. Text messaging, WAP sites and mobile video
4. Creating their own content: blogs, videos, photos, etc.
W = (R) T2
Technology has changed the game for fans
So why aren’t teams making more money from digital?
Power of paradigms
The way you make money today, may not be the (only) way you make money in the future…
…are you DOWN with this?
One reason:
“Google’s not a real company.
It’s a house of cards.”
- Steve Ballmer, CEO, Microsoft
Didn’t see value in Paid Search
Microsoft had no financial incentive to care,
Until Free Software came along…
Power of Paradigms – when experts speak
Put this in your paradigm…money talks
We make fun of Microsoft, but did you know…
Google thought this guy was insane?
Until the Internet bubble burst….
Sports Business Paradigm
Team Revenue mindset = Stadium-centric League = Television-centric
$3.75 Billion per year
What’s my point?
1. Get out of “sports” business (paradigm)2. Embrace technology (powered by fans)3. Become better marketing partners
• And this economy could be just the ticket
To maximize digital revenue, we may need to:
Key takeaways from today
1.Time is NOWYour digital inventory is perishable.Tomorrow is too late.
2.Time is NOWYour sponsors need you. Teach them how to buy.
3.Time is NOWThis isn’t rocket science. It just takes practice (Start today)
Sports Sponsorships…Beyond the Stadium
Tackling the “long tail” fan base
Pat CoyleGM, MyColts.net
Founder, Sports Marketing 2.0President, Coyle Media, Inc.
Contact Pat Coyle: [email protected]
Case Study
Colts Digital Sponsorship 2008: Where we are today
Share of revenue by Inventory Class
Stadium, 39%
Radio, 23%
Signage, 12%
Digital, 10%
TV, 8%
Print, 8%
0% 10% 20% 30% 40% 50%
Stadium
Radio
Signage
Digital
TV
(+86%)
(-17%)
(+24%)
(+54%)
(+5%)
(-9%)
Digital grew 54% and now accounts for 10% of sponsorship revenue, and 17% of all net growth
(Lucas Oil Stadium came on line in 2008)
2008 Revenue by product
• Banner Ads 35%• Title / Section sponsors 24%• E mail banners 16%• Landing Pages 11%• Promo page 5%• Page sponsors 5%• Video pre roll 4%
Keys to success
• Believing it was possible (Vice president)• Find your story (Analytics)• Simplify inventory (So sales guys can sell)• Stop throwing it in (Easier than you think)• Start selling it first (Incentives for sales)
Discovering the opportunity:blowing up the paradigm
The universe is BIGGER than we thought,but what are we going to do about it?
Technology creates new opportunities for teams AND sponsors AND fans
- Season ticket holders- Local Market- Bricks & Mortar:- Stadiums & retail
-Season Tix holders
- E – Commerce- Outside Market- Outside Season- Social Nets
Soft economy + ready technology = time for change?
Displaced Fans
Local market
Contact Pat Coyle: [email protected]
Contact Pat Coyle: [email protected]
Colts are my favorite sports team: U.S. POP 12+ (ESPN Sports Poll)
..but do Colts make more money because they have more fans?
Economics of winning:what is your revenue per fan?
Beyond the home market
10 million Americans 12+ say Colts are favorite team. 24% from Indiana.Contact Pat Coyle: [email protected]
Note: 67% of Colts fans live outside Indiana
Beyond the SeasonTrend Report 2004-2005
608,0981,356,020
4,924,600
7,020,8026,367,463
4,171,871
9,478,658
8,301,108
4,199,788
6,894,827
5,388,5884,525,616
1,046,831769,520
703,943602,153
687,409850,283756,524
1,328,069
793,963
1,188,821
4,053,3064,206,719
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2004 2004 2004 2004 2004 2005 2005 2005 2005 2005 2005 2005
Page Views
Site Visits
Season 65%
Draft & Cheer
Indianapolis Colts
Multi-screens, multi-markets
@ Bengals Steelers MNF
Total Page Views: 3,320,004
Visitors PercentIndy 17,616 13.9%Pitts 1,092 .9%Cincy 3,595 2.8%Chgo 7,454 12.4%
Visitors PercentIndy 27,974 12.3%Pitts 2,866 1.3%Cincy 3,371 1.6%Chgo 11,742 5.2%
Rating Share Indy 39.5 57%Pitts 24.2 38%Cincy 45.2 66%Chgo 11.7 22%
Rating Share Indy 46.4 62%Pitts 48 63%Cincy 23 36%Chgo 15.7 24%
Web
TV
Web
TV
xx
xx
x
TV audience drives Website traffic
Finding valuable inventory
Fan generated
Indianapolis Colts
Stats are great, but…
How will the team make more money?
W = (R) T2
Sell National Fan Base
Simplify Inventory: IAB banners
Indiana: $20 – National $12
NFL
Home
Simplifying Inventory: Sponsored Sections
Logo presence on home page
Branding and offer links on internal section pages
Simplifying Inventory: E mail
6 Products:
- Friday Preview (52)
- Monday Recap (26)
- Season Tix (52)
- Club Seat (13)
- Community (13)
- Wait List (13)
Contracts:
52 insertions
26 Insertions
13 insertions
Open Rate
Simplify Inventory: Media Player
Title sponsor – logo on player
Home Page exposure
Split pre-roll (5-ways)
Banner on player
Sponsorship ≠ advertising• Affinity • Emotions• Engagement• Avid
• Eyeballs• Demographics• Interruption• Amusement
What is the PROMISE of sponsorship?
Are “displaced” fans AVID?
Contact Pat Coyle: [email protected]
On a scale of 1(low) to 10 (high), how big of a Colts fan are you?
1.26% 0.21% 0.43% 0.53% 0.32% 1.68% 3.15%6.51%
12.08%
73.95%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
One Two Three Four Five Six Sevem Eight Nine Ten
BSU Study, 2005
But SPONSORS HAVE PARADIGMS TOO
• Team deals I’ve seen:
– Focus on local DMA
– Activate through traditional media
– Push products rather than engaging fans
Do we have the guts to become digital marketing partners?
Custom Solutions
• Sell local to local sponsors – charge premium
• Sell national to national – earn new biz
Digital Sponsor Activation Strategy:
• Fans want:– Camaraderie– Recognition– Access
• Sponsors want:– Attention– Consideration– Action
WIN - WIN - WIN
DIGITAL Sponsorship PROGRAMS
Team wants: $$
Digital Activationsample pitch
Local dealer Program:ReMax
(100 Indiana dealers)
Banner Ads on Colts.com (or other sites) You choose the number of impressions / target geography: $TBD Create “co-brand” awareness (associate sponsor with Colts) Drive “click-thrus” to home page or landing page (fans want tickets) Or promote local agent based on city name
Landing PageCustom “co-branded” page: www.colts.com/statefarm Engage fans with register to win Gather data: name, email, zip, Continue building “co-brand” status Promote sponsor services, E-tools (content) and generate opportunties
Confirmation Page Confirm fan benefit: “you are registered, you have a chance to win” Introduce local agent - link to profile page in MyColts?? Promote local service – offer call to action (posters? Parties?)
Email Message Additional contact from local agent Promote local service – local call to action (for example, stop by my office for free Colts poster, window cling, etc.
Local Agent Sponsorship Program
Sample Banners
Get attention by offering unique experience
Sample Landing Page
Collect data from Colts fans
Add content and features from your company site
Branded URL:www.colts.com/remax
Confirm benefit and introduce local agent
Sample Confirmation Page
Sample “personalized” E mail t
E mail message can include fan’s name and info he / she requested
Message can come from your local agent
Call to action?
Local offer?
Colts.com
myColts.net
myIndianaFootball.com
Expanding digital inventory
Indianapolis Colts
Plus WAP
Thinking beyond the stadium
• Colts fans are a national affinity group• Digital media enable “long tail” strategy• Some teams are not equipped• Requires tests, experimentation• It keeps changing, faster…
Contact Pat Coyle: [email protected]
1. Let’s stop giving it away2. Local vs. national3. In-season vs. off-season4. Home page vs. run-of-site5. Sell value – say ‘no to ad networks6. Do what you do best: sell sponsorship7. Adopt 2.0 mindset8. Know what it’s worth9. Get departments involved10.Keep learning and growing
Final thoughts
The largest enemy of change and leadership isn't a "no." It's a "not yet."
“Not yet" is the safest, easiest way to forestall change.
"Not yet" gives the status quo a chance to regroup and put off the inevitable for just a little while longer.
Change almost never fails because it's too early. It almost always fails because it's too late. - Seth Godin
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