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10 th October 2012 Building a sporting ‘Brand Legacy’ through shifting from The Attention to Participation Economy How to create value from sports sponsorship in a digital world INTRODUCTION Digital has changed sport forever. The biggest challenge facing sports brands is how to use digital to maximize the value from sponsorship programs over and above traditional measures of success, such as awareness and impressions. Building a true sporting ‘Brand Legacy’ beyond just awareness is becomingly increasingly important. Sports brands need to be able to justify the rising costs in sporting rights, combat audience and customer fragmentation. On top of this, they need to overcome the prohibitive law of sports sponsorship activation, which can cost twice as much as the rights themselves. Brands need to put fan participation at the heart of their objectives, and thus make the shift from the attention to the participation economy. In order for sports brands to do this, we recommend that they follow two key principles for success: 1. Invest more in owned media and leverage fan participation so you don’t have to buy your media, you can earn it. 2. Build out from the ‘live’ sporting engagement moment to effectively drive fan participation. These principles will govern the shift from the attention to the participation economy. But before we look at them in greater detail, let’s consider the four major themes that are emerging in the changing world of sport.

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Page 1: Whitepaper How To Use Digital To Maximise Sports Sponsorship V2[1]

10th  October  2012  

 Building  a  sporting  ‘Brand  Legacy’  through  shifting  from    

The  Attention  to  Participation  Economy    

How  to  create  value  from  sports  sponsorship  in  a  digital  world  

 

INTRODUCTION      

Digital  has  changed  sport  forever.  The  biggest  challenge  facing  sports  brands  is  how  to  

use  digital  to  maximize  the  value  from  sponsorship  programs  over  and  above  traditional  

measures  of  success,  such  as  awareness  and  impressions.  Building  a  true  sporting  ‘Brand  

Legacy’   beyond   just   awareness   is   becomingly   increasingly   important.   Sports   brands  

need   to   be   able   to   justify   the   rising   costs   in   sporting   rights,   combat   audience   and  

customer  fragmentation.  On  top  of  this,  they  need  to  overcome  the  prohibitive   law  of  

sports   sponsorship  activation,  which  can  cost   twice  as  much  as   the   rights   themselves.    

Brands  need  to  put  fan  participation  at  the  heart  of  their  objectives,  and  thus  make  the  

shift  from  the  attention  to  the  participation  economy.  

 

In  order  for  sports  brands  to  do  this,  we  recommend  that  they  follow  two  key  principles  

for  success:  

 

1. Invest  more  in  owned  media  and  leverage  fan  participation  so  you  don’t  have  to  

buy  your  media,  you  can  earn  it.  

 

2. Build  out  from  the  ‘live’  sporting  engagement  moment  to  effectively  drive  fan  

participation.  

 

These  principles  will  govern  the  shift   from  the  attention   to  the  participation  economy.  

But  before  we  look  at  them  in  greater  detail,  let’s  consider  the  four  major  themes  that  

are  emerging  in  the  changing  world  of  sport.  

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1  -­‐  Fans:  The  shift  from  ‘Story  Telling’  to  ‘Story  Participation’  in  sport  

The  biggest  events  in  social  media  are  ‘live’  sporting  events.  Two  of  the  top-­‐ten  ‘Tweets-­‐

Per-­‐Second’  moments  are  football  events,  eg:  UEFA  Champions  League  and  the  Final  of  

the   Women's   World   Cup   ’11.   This   demonstrates   a   fundamental   shift   in   how   people  

engage  with  sports.  Fans  are  no  longer  passive  recipients  of  an  armchair  experience,  but  

are  now  a  fully  contributing  part  of  how  these  sporting  dramas  play  out.    

 

2  –  TV  /  Broadcasters:  Financial  value  is  increasingly  about  the  ‘live’,  social  and  multiscreen  

entertainment  experience  

TV  /  Entertainment  Broadcasters  are  investing  heavily  in  new  platforms  to  enhance  the  

viewing  experience.  Broadcasters  are  increasingly  looking  to  create  new  financial  value  

around   the   ‘LIVE’   engagement   opportunity   (live   game).   Sky   has   been   particularly  

aggressive  in  this  space  with  the  development  of  new  platforms  that  help  enhance  the  

viewing  experience,  for  example  the  SKY  GO  platform  and  their  investment  in  Zeebox,  a  

second   screen   social   TV  platform.  As   second   screen  and  micro  payment  opportunities  

evolve,   more   and   more   clients   will   look   to   utilize   live   engagement   opportunities   for  

financial  gain.  

 

3  -­‐  Clubs  /  Owners:  Helping  fans  get  closer  to  the  players  and  action  to  maximize  potential  

revenue  streams  

Despite   a   record   price   for   the   recent   sale   of   the   Premier   League   TV   rights,   it   is  

increasingly  difficult  for  clubs  to  increase  profits.  Whether  it’s  the  saturation  of  stadium  

capacity   limiting  potential  match  day  revenues,  or  the  increasing  costs  associated  with  

players’  wages,  clubs  are  increasingly  looking  to  the  digital  space  to  drive  new  financial  

opportunities.  Given  the  celebrity  status  of  footballers  (and  athletes),  and  the  ability  for  

digital  technology  to  connect  people  in  ways  that  weren’t  possible  10  years  ago,  it  is  no  

surprise  that  more  and  more  clubs  are  looking  to  help  fans  ‘get  closer’  to  players,  staff,    

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clubs’   stories   and   histories.   Of   course   these   are   all   in   an   attempt   to   generate   new  

revenue  streams.  For  example,  Manchester  City’s  deal  with  YouTube  to  broadcast  online  

video  footage   is  a  direct  attempt  to  use  unique  video  content  to  drive  desirability  and  

interest   to   build   their   fan   base.   Similarly,   brands   such   as   Nike   are   more   and   more  

directly  engaging  with  players  to  enhance  their  marketing  activity.  This    can  sometimes  

backfire,  as  demonstrated  by  Nike’s  “Make  it  count”  campaign,  which  was  banned  after  

the   Advertising   Standards   Authority   ruled   that   tweets   made   by     Wayne   Rooney   on  

behalf  of  Nike  did  not  clearly  state  they  were  adverts.  

 

The   real   challenge   however,   is   that   if   clubs   and   owners   don’t   adapt   to   this   new  

commercial   opportunity,   the   players   themselves  will   ultimately   drive   the   exclusion   of  

clubs  and  owners.  David  Beckham  is  the  archetypal  example  of  a  footballer  super  brand,  

and  others  are  now  following  in  his  footsteps.  For  example,  Rio  Ferdinand  has  recently  

launched   his   “♯5”   style   brand   and   uses   fashion   clothing   and   magazine   editorial  

platforms  to  capitalize  on  his  celebrity  brand  status.  

 

4  -­‐  Marketers:  Shifting  from  sport  campaign  messages  to  sporting  brand  experiences    

There  has  been  a  shift   in   recent  years   in  how  marketers  have  conducted  their  activity  

around  sports.  Whether  it  has  been  Adidas  “Take  the  stage”,  Nike’s  “Make  it  count”  or  

Coca-­‐Cola’s  FIFA  ’10  “Longest  celebration”  campaign,  we  are  increasingly  seeing  brands  

looking   to   build   more   participatory   executions.   The   value   these   types   of   brand  

experiences   offer   is   not   only   in   the   fan   engagement   they   can   drive,   but   also   in   their  

cumulative  effect.  As  we  shift  in  to  an  ‘always-­‐on’  world,  brands  can  no  longer  afford  to  

be   driven   by   a   campaign   mentality   alone,   with   dependencies   on   disposable   and  

expensive   bought  media.   Instead,   a   ‘brand   experience’   approach   allows  marketers   to  

continuously  engage  audiences  over   time,  adding   incremental   reach  as  well  as  deeper  

engagement.  

 

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CREATING  VALUE  THROUGH  DIGITAL:  

Through  technology,  fans  have  never  been  so  close  to  sport,  and  yet  in  some  ways  they  

have  never  been  so  far.  To  capitalize  on  this  and  to  create  value  from  sports  sponsorship  

in  the  digital  age,  brands  should  look  to  put  participation  at  the  heart  of  their  objectives,  

and  thus  make  the  shift  from  the  attention  to  the  participation  economy.    

 

This  brings  us  back  to  the  two  key  principles  for  success,  which  businesses  should  follow  

to  drive  participation.  

 

PRINCIPLE  ♯1:  

Invest  more  in  owned  media  to  leverage  fan  participation  so  you  don’t  have  to  buy  your  

media,  you  can  simply  earn  it:    

-­‐ Invest   more   in   long-­‐term   owned   media   than   short-­‐term   bought.   Generate  

earned  media  through  fan  participation  and  fuel  not  only  sports  activations,  but  

also   wider   business   programs   (acquisition,   e-­‐commerce,   content   generation,  

retention,   business   intelligence,   data   insight   and   customer   preferences).   For  

example,   Foot   Locker’s   Sneakerpedia   platform   is   a   great   example   of   a   brand  

investing  in  owned  media  to  harness  the  passion  and  enthusiasm  of  sneaker  fans  

for  business  benefits.  

 

-­‐ Sport   can   give   a   brand   something   interesting   to   say   and   talk   about   with   its  

customers   long-­‐term.   Done   well,   it   can   drive   earned   media   effectiveness,  

allowing   brands   to   not   only   move   towards   a   more   authentic   type   of  

communication,  but  also  a  more  cost  effective  one.  Thus,  breaking  dependencies  

on  expensive  and  disposable  bought  media-­‐led  strategies  to  fuel  conversation.    

 

 

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Establishing  a  program  for  how  to  use  sport  to  drive  earned  media  conversations  with  

and   between   fans,   and   identifying   how   and   where   to   incorporate   this   across   wider  

business   programs   (i.e.   acquisition,   CRM)   is   the   first   step   to   capitalizing   on   the  

participation  economy.  

 

PRINCIPLE  ♯2:    

Build   out   from   the   ‘live’   sporting   engagement   opportunity   to   effectively   drive   fan  

participation    

(THE  PRE/  DURING/  POST/  TRANSITION  FRAMEWORK):        

-­‐ Build  out  from  the  ‘live  ‘sporting  moment  to  create  maximum  fan  relevancy  and  

engagement,  as  the  live  moment  is  when  fans  are  at  their  most  passionate  and  

enthusiastic.   Identify   fans’   needs,   and   use   the   framework   to   plot   relevant  

approaches   to   help   ensure   not   only   active,   but   also   mass,   and   on-­‐going   fan  

participation.    

   

Figure  2:  The  ‘live’  and  extended  engagement  opportunity  space:    

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There   are   three   potential   approaches   sports   brands   can   use   to   maximize   the   ‘live’  

engagement  opportunity:        

1. Broaden  fan  engagement  

2. Deepen  fan  engagement  

3. Extend  (pre  or  post)  fan  engagement  

 

BROADEN  FAN  ENGAGEMENT:  

Sports  brands  can   look  to  digital   technologies  as  a  means  of  broadening  the  appeal  of  

the   ‘live’   event   experience,   helping   to   amplify   the   intensity   and   awareness   of   ‘live’  

moments.  Extending  fans’  engagement  to  include  other  fans  will  open  up  experiences  to  

the  widest  audience  possible.  

 

DEEPEN  FAN  ENGAGEMENT:  

Alternatively,  sports  brands  may  wish  to  consider  more  of  a  ‘lean  forward’  strategy  and  

look   to   deepen   fan   engagement.   Use   the   ‘live’   moment   to   draw   fans   deeper   into  

experiences  and  empower   them  to  contribute  and  add   to   it.   For   some   fans  and  some  

sports   however,   drawing   fans’   attention   away   from   the   ‘live’   moment   can   become   a  

negative,  and  it   is   important  that  clients  find  the  right  balance  between  ‘lean  forward’  

and  ‘lean  back’  strategies  when  trying  to  extend  fan  engagement.  

 

EXTEND  (PRE  OR  POST)  FAN  ENGAGEMENT:  

All  true  sports  fans  are  driven  by  hope  and  belief,  and  as  such  the  moments  leading  up  

to,   and   directly   after,   the   ‘live’   event   can   be   exceptionally   fertile   areas   for   brands   to  

extend  fan  engagement.  As  fans  begin  to  prepare  and  plan  for  a  sporting  event,  brands  

have   the   opportunity   to   directly   engage   them   in   the   build   up   hype;   from   stoking   fan  

rivalries  through  social,   to  enhancing  the   lead  up  experience  on  the  way  to  and   in  the  

stadium  through  mobile  and  digital  outdoor  technologies.  However,  it  is  the  immediate    

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moments  after   the  event   itself   that   are  often   the  most   social,   as   fans  discuss,  debate  

and  relive  the  events  and  drama.  Leveraging  this   innate  desire  to  talk  about  the  event  

and   looking   for   ways   to   carry   on   the   conversation   are   key,   as   are   planning   for   the  

‘transitions’   between   events   which   help   build   up   continued   momentum   and   fan  

engagement  overtime.  

 

 

CONCLUSION:  

Lessons  learnt  from  these  two  key  principles  will  help  sports  brands  make  the  transition  

from  the  attention   to  participation  economy.  By  doing  so,  brands  can  ensure  they  use  

digital   to   their   best   advantage,   creating   genuine   value   for   fans,   and   bringing  

transformational   value   for   the   wider   business.   Ultimately,   this   will   help   brands   to  

guarantee   a   genuine   sporting   ‘Brand   Legacy’   for   their   business   through   sports  

sponsorship.  

 

 Author:  Andrew  Gregoris,  Senior  Strategist,  SapientNitro