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WHITE PAPER DECEMBER 2016
THE VALUE OF SPORTThe value to be gained by broadcasting live sports within licensed premises
THE VALUE OF SPORT - DECEMBER 2016
Contents
Graeme Loudon Commerical Director, CGA Strategy
“The ability to partner with CGA Strategy put us in a unique position to finally equate pubs sales data with what the pubs are broadcasting. The result is a fascinating insight into the impact of the most important competitions and sports on sales and a great insight into what drives different sports fans. Football clearly drives the largest return on investment to the on trade, however it benefits from it's sheer volume of content and other sports drive a huge return. This is hopefully the start of more powerful and actionable data.”
“It is great to finally be able to accurately and robustly answer the questions about the impact of televised sport in pubs. Being able to triangulate the sales performance with search data from consumers and feedback from licensees gives a fully rounded view of the impact that different sporting events can have on footfall and sales. The findings from the report show that showing televised sport puts extra cash in the outlet's till. It also shows that there is a marked difference between sports and competitions, and highlights a wide variation in sports fans.”
Dom Collingwood Head of Pubs and Brands, MatchPint
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THE VALUE OF SPORT - DECEMBER 2016
OVERVIEW The investment required by pubs is increasing, with no signs of slowing do the returns follow suit? The newest Premier League TV rights agreement has cost Sky and BT an average of £10.2 million per game – the overall cost has risen by a staggering £2.1 billion since 2013. With the prices, therefore at an all-time high for both broadcasters, Sky and BT Sports raised their prices by 10% and 8.9% respectively, the cost has also never been higher to publicans in the UK. MatchPint and CGA Strategy have partnered up, in a genuine market first, to analyse how sales data correlates with what sports and competitions were being shown. The aim was to establish for the first time the actual benefit of showing live sport to pubs and in the wider UK on-trade. It has always been clear that football dominates the UK sports market, a thought supported by 53% of all 10 million searches made on MatchPint being for football. However, there is mounting pressure on both publicans and broadcasters to make the most of the large opportunities presented by other sports. Over 85% of publicans show a wide variety of sport in their premises. This has enabled us to provide an in-depth report covering the value of football, rugby union, boxing and Superbowl 50. The report is a compilation of accurate competition sales data coupled with publican opinion, user demographics and feedback as well as MatchPint’s unique historical search data.
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THE VALUE OF SPORT - DECEMBER 2016
Outline Findings Football, and specifically the Premier League, is the biggest driver of sales in the on trade. The average pub saw incremental sales of over £30k last season. Other sports had a large impact on sales - the Superbowl saw incremental revenue of £1,130 per pub and the Rugby World Cup saw 47% value uplift Boxing fans spend 15% more than an average football fan
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Methodology undertaken
Match Pint’s mobile app provides an extensive list of outlets showing a number of different sporting events. Over 2,000 sports pubs will be used for this report
Outlet IdentificationBy combining outlet lists with CGA’s deep pool of on trade sales data, analysis has been conducted to look into uplift in outlets that broadcast sports vs. those that don’t
Sales Uplift Publican Research Consumer Research
Sales uplift value from live sport
Genuine Market First Football is massive, but other sports can be dramatic
What is included?
Purchasing the report
Full sports package - £10,000
Cost
Full White Paper covering all 4 sports Formatted Excel Data Pack of category sales data Personal Workshop to discuss findings relevant to specific business with MatchPint & CGA
OutputWhite Paper & Data Pack available from w/c 12/12/16 Personal Workshop from w/c 16/01/17 (Extra time used to tailor workshop to specific business ahead personal workshop)
Delivery
Football was responsible for 53% of all traffic on MatchPint last season
Spirits saw a value uplift of 6% on the last day of the 6 Nations in 2016
Soft drinks saw a volume increase of 18% during PPV boxing events
Canvassing opinion from licensees who advertise the sports they are showing via MatchPint
Sales data will be supported by MatchPint’s historical data around consumer searches
Interviews with publicans and sports fans will seek to establish whether their sense of value matches the real impact of live sports events on sales.
The report will address the value of sport for pubs and bars by analysing MatchPint’s search data, publican and sports fan interviews, and CGA sales data down to a category level
Never before has the market been able to understand true performance in outlets showing sport. This report will compare uplifts at a category level to understand relative uplifts and sales mix changes in venues showing live sport
THE VALUE OF SPORT - DECEMBER 2016
CGA are the world’s leading business intelligence and strategic consultancy provider for the ‘out of home’ leisure market; the definitive source of integrated consumer insight and market measurement informing strategies for our clients’ growth. We live, love, breathe our industry: harnessing our passion and knowledge to help the market make smarter and more informed decisions. CGA work closely with consumers, retailers, suppliers, trade bodies and government, so that our expert consultants can bring every strategic insight to life.
MatchPint is a platform which connects sports fans, pubs and brands. At the heart of MatchPint is a B2B product, which enables pubs to organise, market, and measure their sports offering, thus driving footfall & revenue. Using this data, MatchPint’s mobile app allows sports fans to find the nearest pub showing their chosen match and invite their friends. The app reaches over 1M sports fans every year. With this network of both venues and consumers in place, brands are able to run powerful and measurable digital campaigns in the on trade. The service now has just under 2,000 pubs signed up across the length and breadth of the UK, and reached over 1m people in 2015/16.
The copyright in this documentation is owned by MatchPint and CGA Strategy. All content of this publication is subject to worldwide copyright protection and reproduction in whole or part, in any form whatsoever, is expressly forbidden without the prior written consent of the Publishers. © MatchPint and CGA Strategy, 2016
Please contact MatchPint for questions regarding content or contributing to future releases: MatchPint T: 07793 525 880 E: [email protected]
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Please contact CGA Strategy for questions regarding research or content CGA Strategy T: +44 (0)161 476 8330 E: [email protected]
