Klout leveraging influence in sports


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Pat Coyle's thoughts on Klout, and the potential for leveraging social influence in sports marketing & media.

Published in: Sports, Business

Klout leveraging influence in sports

  1. 1. Leveraging influence in sports Presented by: Coyle Media Inspired by: Klout
  2. 2. Have you seen Moneyball? Influence is the new “on-base-percentage”
  3. 3. Sports marketing ecosystem is complex • League Global • Sponsor brands • Athlete • League • Sponsor National • • TV Networks Athlete • League • Sponsor Local • • Team Athlete • Participant
  4. 4. Size of U.S. Sports Market $400 BillionAnnual spending in U.S. including ticket sales, licensed products, sportsvideo games, collectibles, sporting goods, sports-related advertising,endorsement income, stadium naming fees and facilities income(Plunkett Research)
  5. 5. Applying influence: a new approachSports Marketing Sports Media
  6. 6. Vested Interests in U.S. sports Television Networks Sponsor Brands Professional Professional Leagues TeamsInvestments More than 42,500 hours of live Major brands spend $7.5 Leagues have large Biggest team expense is sports on broadcast & cable in billion annually in staffs of lawyers, player payroll. 2011. sponsorship licensing fees, strategists, marketers and likely spend at least as and technologists. Big 4 Networks plus DirecTV & much on “activation” and Invest in advertising, Verizon paying over $7 billion measurement. research, development annual broadcast rights fees for and sales. NFL alone. Top 10 U.S. brand sponsors account for 26% of annual Rights fees go much higher when sports ad spending on TV college, NASCAR, Golf, etc. & ($2.7 billion). Top 50 special events (i.e. Wimbledon) brands spend $6.6 Billion are included. annually on sports 32% of TL advertising budgets)Revenues National TV sports advertising: Retail and e-commerce Annual revenues from Share in league TV and $10.9 Billion in 2011 (Nielsen sales. Big 4 U.S. Sports is licensing revenue. data, includes broadcast & cable approximately $23 advertising). Often measure value from Billion per year Tickets and sponsorship sports in terms of brand (Plunkett Research from local market; some Cable networks have advertising recall, media impressions 2012) teams have plus subscription revenues. or TV rating points (media) merchandise businesses Note: cable sports advertising increased 37% year-over-year in 2011
  7. 7. What are brands & networks paying for? National Scale Local Sizzle Large, Live audiences Emotional engagement Young men Early adopters Multi-platform This model values just ½ of the audience (men), and values each man equally.
  8. 8. What should they be buying? Influence
  9. 9. Observations: they’re buying reach• Sports properties (leagues) have leverage over TV networks, rights fees for sports content are rising• TV networks have leverage over brands who want ads to appear in live games, prices for premium sports inventory is rising• Teams have leverage over local / regional sponsors who want access to live games / in arena Status quo thinking is driving the prices higher and higher
  10. 10. Is it possible that…• Brands are overpaying for rights• Brands are overpaying in venue• Brands are overspending on TV (in games)• Networks are paying too much for broadcast rights ?
  11. 11. How can Klout help sports marketers? Insurance Ambush You are the official sponsor and / or Your competitor owns official rights, now using sports TV to gain WIDE reach, now use KLOUT to Break mass media model, and use KLOUT to Go DEEP and WIDE – and target fans without wasting money on maxmize ROI from the investment rights fees. you’ve made in sports Protect status quo Tap social to drive impressions AND create demand for brand Tap social for Incremental improvements Social reach can replace broadcast media 80% of fans watching on TV are online reach, and produce better results #1 things they’re doing is sharing with Brands may not need to purchase rights or friends buy national “reach” campaigns 60% of game attendees share via FB Real time is valuable, but long-tail of and TW attention / time shift is too.
  12. 12. How TV Networks can use Klout• Target influencers – Sports on TV, drive viewers, engagement – Other programs, driver viewers collar programs – Sponsor brands, drive engagement with Ads.
  13. 13. How Sports Leagues can use Klout• Gather influencer data, fans impact on… – TV shows / viewers – Brand purchasing / buyers – On sport content creation / consumption – On sport ticketing / buyers
  14. 14. How sponsor brands can use Sports Klout• Leverage sports / sponsor license among sports fans who are also brand influencers• Buy media the delivers most brand influencers
  15. 15. How pro teams can use Klout• Score fans – drive quests, add perks – Ticket buyers – Team (sports) influencers – Sponsor (brand) influencers
  16. 16. Engage the influencersMake a measurable impact 16