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A white-paper written for the Sports Leadership conference 2012 - describing how to maximize the value of sports sponsorship in a digital world
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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.
10th October 2012
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,
10th October 2012
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.
10th October 2012
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.
10th October 2012
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:
10th October 2012
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
10th October 2012
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