Real Madrid, the world’s most successful football club, has developed a global mobile strategy aiming to engage fans and generate additional revenues through mobile content sales. The strategy includes localized and international content distribution models, partnerships for mobile marketing, and the launch of the MyMadrid app, a mobile community allowing users access to exclusive content. With nearly 500,000 subscribers, Real Madrid leverages mobile media to enhance fan interaction and boost revenue through cross-selling opportunities.

1. Real Madrid Case Study: Developing a Global Mobile Strategy Pedro Duarte. pduarte@realmadrid.es Mobile Marketing Manager. Real Madrid C.F.

2. Introduction

3. Some Figures WORLD´S MOST SUCCESSFUL FOOTBALL CLUB - With 31 national leagues , Real Madrid is the football club with the most leagues won. Real Madrid even beats NBA, NHL or NFL franchises like LA Lakers, NY Yankees! With 9 European Championships , Real Madrid beats every other football club! (AC Milan: 7, Manchester Utd.: 3, FC Barcelona: 3) - In 2002 FIFA voted Real Madrid as the “WORLD’S BEST CLUB OF 20TH CENTURY”

4. Some keynotes: Prestigious Brand ( 1.063 M de euros, Source: Bbdo Consulting ). Worldwide focus Emotional vinculation Continuous generation of exclusive content Financial resourses and important media exposure Created in 2007 Some Figures

5. New Media 360º “ To be where the user is, using the channels the user uses”

6. Mobile Business. Engaging Fans worldwide

7. €€€ : Business : Bi-Communication Sponsors Mobile Marketing Business. Main Objectives

8. Mobile Content Creation Strategy “ Extra revenues through the mobile content sales.” 1st Step : Internal Floop of content creation. Official Photos  Communication dpt. Audiovisual content  Real Madrid TV News Rss  Communication dpt. Realmadrid.com Licensing business:  Official java games,music, apps… DIGITAL ARTISTS ENTERTAINMENT

9. Content Distribution Strategy. Local Strategy The mobile content distribution strategy is different in Spain than outside this territory. SPAIN  Direct management INTERNATIONAL  licensing/franchising model ON PORTAL BUSINESS Mymadrid OFF PORTAL BUSINESS MEDIA PARTNERSHIPS

10. Content Distribution Strategy. Local Strategy Case 1: Real Madrid Mobile off portal Content suscription club *Launched in June 2009. Flat fee: 3€/week. The user signs up and can download up to 12 content per week *Content: games photos, latests videos, games, animations and latest news. *Acquisition: through web (affiliate programs and SEM) with splash pages. * Kpis: ARPU: 12€. CPA: 4,8€. 40.000 users suscribed so far.

11. Content Distribution Strategy. Local Strategy Case 2: Real Madrid sms on portal alerts *Launched in June 2007. *Cost for the user: 0,35€ per sms received *Content: latest news and min by min of the games *Acquisition: onportal business. The business was important in the beginning, but has decreased aprox 50% in the last year, due to: Decreasing of the classic onportal business. The news and min by min info of the games is a commodity, that could be found in multiple media. Is basic exclusive content

12. Content Distribution Strategy. International strategy Dificultness of managing directly the mobile content distribution in all the countries worldwide. RM looks for partners to be in charge of the mobile marketing strategy in it’s territory. This partner acquires the exclusivity for that territory. This partner pays RM a licensee fee+Rev share The exclusivity and the fee are important to assure a minimum level of promotion by the partner. INTERNATIONAL BUSINESS  LICENSEE/FRANCHISE MODEL

13. Content Distribution Strategy. Wordwide presence

14. Content Distribution Strategy. Some examples Example 1: Saudi Arabia with STC -Classic onportal sms/mms alerts. -Promotion through the media partnership of STC. -100.000 users suscribed to RM mobile services Example 2: Japan with MLJ -off portal content. Suscription model -Promotion through the media partnership of MLJ and rm.com -10.000 users suscribed to RM mobile services

15. MyMadrid

16. MyMadrid: Mobile Community Step 1 : Content creation. Step 2 : Content Distribution Step 3: Creation of the mobile community of RM Interaction P2P & Club-P Creation of a permission mkt data base for crosselling: tickets sales, merchand sales, fidelity program….

17. MyMadrid: Mobile Community My Madrid is the first mobile community that a football club launches to the market. It is a multilanguage and multiformat App (java, iPhone and soon Android/360) for the fans worldwide. My Madrid allow users to access to: Clasification, Schedule, exclusive contests, Results, videos, News, Chat, 3d Goals, Messenger, ticket sales…and soon fidelity program and sales of jerseys. 150.000 users 3M Impressions/month

18. MyMadrid: Mobile Community July 10: m-commerce and RMTV! *m-Commerce (official retail). RMTV (simulcast and VOD). Ticketing Membership programm

19. MyMadrid: Mobile Community Social features! Chat and messenger Social casual games (Penalties..) Follow me services Exclusive contests Facebook connect

20. Other actions. „Madridista Experience“

21. Other services - MADRIDISTA EXPERIENCE : Contracts with the main media group in Spain (Unedisa, Prisa, La Sexta…) to develop continuos contest in TV, internet, magazines…offering the fans the possibility to win exclusive prizes (white days, tickets,…) - COMMUNICATION : Usage of mobile in the traditional communication messages with the fans: Videogreeting 3G in Christmas or after winning the League Trophy. Kpis: 35% response rate 3G+45% response rate 2G. Vs 20% RR emailing Show Video 1 Show Video 2 Show Video 3

22. Other services REAL MADRID FANTASY MANAGER 2010 Social Game for Mobile+Facebook. Totally integrated. Launching: 15th August Business model: Freemium

23. Some figures and conclussions

24. Some figures Close to 500.000 users worlwide suscribed to RM Mobile Suscription services. Continuos download of official content worldwide. Generation of permission mkt data base for RM  crossellings M-commerce  additional sellings

25. Overview Football Clubs have competitive advantages to develop mobile marketing strategies in a profitable and scalable way. Real Madrid has bet on the mobile media, as a new channel to sell content, generate business, data base creation and crosselling Worldwide focus of all the activities X10 the incomes generated in the last 3 seasons. “ To be where the user is, using the channels that the user uses”

26. Real Madrid Case Study: Developing a Global Mobile Strategy Pedro Duarte. pduarte@realmadrid.es Mobile Marketing Manager. Real Madrid C.F.