How sports teams can increase digital sponsorship revenues

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Pat Coyle delivered this presentation at the National Sports Forum in Phoenix on January 26, 2009

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  • Hi Pat, thank you for your nice presentation.
    I'am in Holland commercial responsible for www.sport.nl, the online TV sport platform for the Dutch sportfans. I believe strong that technology will driven the behaviors for sport consumers.
    If you have more presentations like this, please share them.
    Thank you, Ivo Abels, ivo@unicemmedia.nl
       Reply 
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  • How sports teams can increase digital sponsorship revenues

    1. 1. Digital Cash Pat Coyle Coyle Media, Inc How to stop throwing in your Website, and make more money from your Digital assets (sports)
    2. 2. Source: Interactive Advertising Bureau Internet advertising is still fastest growing segment Dot Bomb $21 Billion in 2007
    3. 3. U.S. Internet Ad spend $21.2 Billion surpasses Cable , Radio in 2007
    4. 4. Alt. Media: $160 Billion by 2012 <ul><li>“ Alternative” media </li></ul><ul><li>Sponsorship </li></ul><ul><li>Consumer Gen. Media </li></ul><ul><li>Mobile advertising </li></ul><ul><li>Video game ads </li></ul><ul><li>Online video ads </li></ul><ul><li>Word of Mouth </li></ul><ul><li>etc. </li></ul>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+ Billion Global sponsor: $40 Billion
    5. 5. New fan behaviors… …powered by technology <ul><li>Watching sports on TV, while online </li></ul><ul><li>Connecting to other fans in online community… before , during and after games </li></ul><ul><li>Text messaging, WAP sites and mobile video </li></ul><ul><li>Creating their own content: blogs, videos, photos, etc. </li></ul>
    6. 6. W = (R) T 2 Technology has changed the game for fans So why aren’t teams making more money from digital?
    7. 7. 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:
    8. 8. “ 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
    9. 9. 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….
    10. 10. Sports Business Paradigm Team Revenue mindset = Stadium-centric League = Television-centric $3.75 Billion per year
    11. 11. What’s my point? <ul><li>Get out of “sports” business (paradigm) </li></ul><ul><li>Embrace technology (powered by fans) </li></ul><ul><li>Become better marketing partners </li></ul><ul><li>And this economy could be just the ticket </li></ul>To maximize digital revenue, we may need to:
    12. 12. Key takeaways from today <ul><li>Time is NOW Your digital inventory is perishable. Tomorrow is too late. </li></ul><ul><li>Time is NOW Your sponsors need you. Teach them how to buy. </li></ul><ul><li>Time is NOW This isn’t rocket science. It just takes practice ( Start today ) </li></ul>
    13. 13. Sports Sponsorships…Beyond the Stadium Tackling the “long tail” fan base Pat Coyle GM, MyColts.net Founder, Sports Marketing 2.0 President, Coyle Media, Inc. Contact Pat Coyle: coylep@colts.nfl.com Case Study
    14. 14. Colts Digital Sponsorship 2008: Where we are today (+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)
    15. 15. 2008 Revenue by product <ul><li>Banner Ads 35% </li></ul><ul><li>Title / Section sponsors 24% </li></ul><ul><li>E mail banners 16% </li></ul><ul><li>Landing Pages 11% </li></ul><ul><li>Promo page 5% </li></ul><ul><li>Page sponsors 5% </li></ul><ul><li>Video pre roll 4% </li></ul>
    16. 16. Keys to success <ul><li>Believing it was possible ( Vice president ) </li></ul><ul><li>Find your story ( Analytics ) </li></ul><ul><li>Simplify inventory ( So sales guys can sell ) </li></ul><ul><li>Stop throwing it in ( Easier than you think ) </li></ul><ul><li>Start selling it first ( Incentives for sales ) </li></ul>
    17. 17. Discovering the opportunity: blowing up the paradigm The universe is BIGGER than we thought, but what are we going to do about it?
    18. 18. Technology creates new opportunities for teams AND sponsors AND fans - Season ticket holders - Local Market - Bricks & Mortar: - Stadiums & retail <ul><li>Season Tix holders </li></ul><ul><li>E – Commerce - Outside Market - Outside Season - Social Nets </li></ul>Soft economy + ready technology = time for change? Displaced Fans Local market
    19. 19. Contact Pat Coyle: coylep@colts.nfl.com
    20. 20. Contact Pat Coyle: coylep@colts.nfl.com 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?
    21. 21. Beyond the home market 10 million Americans 12+ say Colts are favorite team. 24% from Indiana. Contact Pat Coyle: coylep@colts.nfl.com Note : 67% of Colts fans live outside Indiana
    22. 22. Beyond the Season Page Views Site Visits Season 65% Draft & Cheer Indianapolis Colts
    23. 23. Multi-screens, multi-markets @ Bengals Steelers MNF Total Page Views : 3,320,004 Visitors Percent Indy 17,616 13.9% Pitts 1,092 .9% Cincy 3,595 2.8% Chgo 7,454 12.4% Visitors Percent Indy 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 x x x x x TV audience drives Website traffic
    24. 24. Finding valuable inventory Fan generated Indianapolis Colts
    25. 25. Stats are great, but… <ul><li>How will the team make more money? </li></ul>W = ( R ) T 2 Sell National Fan Base
    26. 26. Simplify Inventory: IAB banners Indiana: $20 – National $12 NFL Home
    27. 27. Simplifying Inventory: Sponsored Sections Logo presence on home page Branding and offer links on internal section pages
    28. 28. Simplifying Inventory: E mail <ul><li>6 Products: </li></ul><ul><li>Friday Preview (52) </li></ul><ul><li>Monday Recap (26) </li></ul><ul><li>Season Tix (52) </li></ul><ul><li>Club Seat (13) </li></ul><ul><li>Community (13) </li></ul><ul><li>Wait List (13) </li></ul>Contracts: 52 insertions 26 Insertions 13 insertions Open Rate
    29. 29. Simplify Inventory: Media Player Title sponsor – logo on player Home Page exposure Split pre-roll (5-ways) Banner on player
    30. 30. Sponsorship ≠ advertising <ul><li>Affinity </li></ul><ul><li>Emotions </li></ul><ul><li>Engagement </li></ul><ul><li>Avid </li></ul><ul><li>Eyeballs </li></ul><ul><li>Demographics </li></ul><ul><li>Interruption </li></ul><ul><li>Amusement </li></ul>What is the PROMISE of sponsorship?
    31. 31. Are “displaced” fans AVID? Contact Pat Coyle: coylep@colts.nfl.com BSU Study, 2005
    32. 32. But SPONSORS HAVE PARADIGMS TOO <ul><li>Team deals I’ve seen: </li></ul><ul><ul><li>Focus on local DMA </li></ul></ul><ul><ul><li>Activate through traditional media </li></ul></ul><ul><ul><li>Push products rather than engaging fans </li></ul></ul>Do we have the guts to become digital marketing partners?
    33. 33. Custom Solutions <ul><li>Sell local to local sponsors – charge premium </li></ul><ul><li>Sell national to national – earn new biz </li></ul>
    34. 34. Digital Sponsor Activation Strategy: <ul><li>Fans want: </li></ul><ul><ul><li>Camaraderie </li></ul></ul><ul><ul><li>Recognition </li></ul></ul><ul><ul><li>Access </li></ul></ul><ul><li>Sponsors want: </li></ul><ul><ul><li>Attention </li></ul></ul><ul><ul><li>Consideration </li></ul></ul><ul><ul><li>Action </li></ul></ul>WIN - WIN - WIN DIGITAL Sponsorship PROGRAMS Team wants : $$
    35. 35. Digital Activation sample pitch L ocal dealer Program: ReMax (100 Indiana dealers)
    36. 36. <ul><li>Banner Ads on Colts.com (or other sites) </li></ul><ul><li>You choose the number of impressions / target geography: $TBD </li></ul><ul><li>Create “co-brand” awareness (associate sponsor with Colts) </li></ul><ul><li>Drive “click-thrus” to home page or landing page (fans want tickets) </li></ul><ul><li>Or promote local agent based on city name </li></ul><ul><li>Landing Page </li></ul><ul><li>Custom “co-branded” page: www.colts.com/statefarm </li></ul><ul><li>Engage fans with register to win </li></ul><ul><li>Gather data: name, email, zip, </li></ul><ul><li>Continue building “co-brand” status </li></ul><ul><li>Promote sponsor services, E-tools (content) and generate opportunties </li></ul><ul><li>Confirmation Page </li></ul><ul><li>Confirm fan benefit: “you are registered, you have a chance to win” </li></ul><ul><li>Introduce local agent - link to profile page in MyColts?? </li></ul><ul><li>Promote local service – offer call to action (posters? Parties?) </li></ul><ul><li>Email Message </li></ul><ul><li>Additional contact from local agent </li></ul><ul><li>Promote local service – local call to action (for example, stop by my office for free Colts poster, window cling, etc. </li></ul>Local Agent Sponsorship Program
    37. 37. Sample Banners Get attention by offering unique experience
    38. 38. Sample Landing Page Collect data from Colts fans Add content and features from your company site Branded URL: www.colts.com/remax
    39. 39. Confirm benefit and introduce local agent Sample Confirmation Page
    40. 40. 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?
    41. 41. Colts.com myColts.net myIndianaFootball.com Expanding digital inventory Indianapolis Colts Plus WAP
    42. 42. Thinking beyond the stadium <ul><li>Colts fans are a national affinity group </li></ul><ul><li>Digital media enable “long tail” strategy </li></ul><ul><li>Some teams are not equipped </li></ul><ul><li>Requires tests, experimentation </li></ul><ul><li>It keeps changing, faster… </li></ul>Contact Pat Coyle: coylep@colts.nfl.com
    43. 43. <ul><li>Let’s stop giving it away </li></ul><ul><li>Local vs. national </li></ul><ul><li>In-season vs. off-season </li></ul><ul><li>Home page vs. run-of-site </li></ul><ul><li>Sell value – say ‘no to ad networks </li></ul><ul><li>Do what you do best: sell sponsorship </li></ul><ul><li>Adopt 2.0 mindset </li></ul><ul><li>Know what it’s worth </li></ul><ul><li>Get departments involved </li></ul><ul><li>Keep learning and growing </li></ul>
    44. 44. Final thoughts The largest enemy of change and leadership isn't a &quot;no.&quot; It's a &quot;not yet.&quot; “ Not yet&quot; is the safest, easiest way to forestall change. &quot;Not yet&quot; 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
    45. 45. Contact: Pat Coyle 317-332-7878 [email_address] Powered by:

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