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Why Data Has Become Marketing’s Most Powerful Tool

Owen Sanborn

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The more data collected, the easier it becomes to create profiles around your customers and fans.

Photo via: Digitalsport.co


There is going to be a day when you walk into your favorite ballpark, arena, or stadium, and the hosting sports organization is going to know more about how you interact with their team than you may even realize yourself.

Your purchasing trends, seat preferences, favorite concessions, household income, and your monetary value to the organization as a customer will all be neatly harnessed in a profile database ready for utilization.

Hell, that day may have already arrived. Sports organizations are accumulating all different kinds of data points to paint a picture of their fan base because: a) it will enhance the efficiency of any marketing campaign b) cut costs while hopefully raising revenues and c) their fans are willingly supplying the data! The general consumer has grown so accustomed to forking over their information at the point of purchase — I’m almost positive Great Clips doesn’t need my email in order give me a haircut — that slowly but surely organizations rake in more and more data.

But once an organization has this data at their disposal, how do they go about productively putting it to use?

“The willingness of the fan to give up data in exchange for something they value has never been higher. Having all the data in the world is useless unless you have a strategy to use the insights gained from the data to help marketers drive decision making throughout their organization,” Mike Hinson, VP of College Athletics for AudienceView told Front Office Sports. “Building up a profile over time around events attended, lifetime customer value, favorite sports, lifecycle stage or other components can be extremely helpful, but only if they are used as tools to narrow the focus and conversation.”

That last portion is perhaps the most important cog for any marketing director as we head towards the end of this decade — you have all of this data at your disposal, a customer profile at the ready, all with the intentions of narrowing the focus for the consumer. Narrowing the focus is one of the most difficult tasks in the marketing spectrum, and any head start you can garner with an assist from data could heap significant revenue and preserve resources.

Not every marketing decision from here on out will be made off the basis of what the data says. Sometimes what the data spits back at you can be obvious — marketers don’t need a special system to decipher that there is likely an opportunity for overlap between people attending a Pearl Jam concert and a Chicago Cubs game. But the right blending between traditional intuition and data-driven marketing sounds like the right place to land.

It will be fascinating to track the evolution of this process. How will fans respond to sports organizations targeting them in different ways? Which marketing team will develop the best innovation to streamline their data and monetize it in a way that becomes the model for other organizations in the industry. It feels like we are in the middle of an evolution, and evolution springs innovation. Stay tuned.


This piece has been presented to you by AudienceView.


Front Office Sports is a leading multi-platform publication and industry resource that covers the intersection of business and sports.

Want to learn more, or have a story featured about you or your organization? Contact us today.

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Owen is a current Master's student at Arizona State University studying Sports Law and Business. A University of Tampa alum, Owen has worked for Amalie Arena, Arizona State Athletics, and The Players' Tribune. Owen can be reached at owen@frntofficesport.com.

Marketing

Natty Light’s Super Bowl Moment

This year, Natural Light is giving 70 individuals the chance to pay down their student loan debt as part of their campaign around the Super Bowl.

Adam White

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Photo via Natty Light

*This piece first appeared in the Front Office Sports Newsletter. Subscribe today and get the news before anyone else. 

With the Super Bowl two weeks away, brands from most industries are looking to take advantage of the marketing opportunities surrounding the most-watched television broadcast in the U.S.

This year, Anheuser-Busch is going big for the big game. Part of their Super Bowl marketing blitz includes airing a local Natural Light Super Bowl ad in 5 of the top 10 cities hit hardest by student loan debt.

We caught up with Daniel Blake, Senior Director of Value Brands for Anheuser-Busch, to see why the brand decided to give away another $1,000,000 to help over 70 individuals pay down their student loan debt as well as how the campaign plays into the overall brand strategy for Natty Light.

On Natty’s Super Bowl approach…
“Super Bowl is a unique opportunity to talk to people, to engage with people. The Natural Light local SB spot is geared towards our core audience, students and graduates who are experiencing first-hand the gravity of student loan debt. Staying true to our fans is core to what Natty is as a brand, so it makes total sense that we talk to 21+ young adults about issues that impact their lives.”

On why sports are important to the brand…
“Sports are a big part of that, and we know from experience that our fans appreciate when we bring sports-related content and experiences into their daily lives. Our Race Resume program is the perfect example of this. In September 2018, Natural Light had the chance to create a paint scheme for Chris Buescher and the #37 car at the South Point 400 in Las Vegas. That paint scheme happened to be the resume and headshot of an aspiring motorsports journalist, Briar Starr. Briar won the contest we held to be featured on the car. It was a really innovative way to combine two topics that our fans are passionate about and it got a very positive response.”

Disruption is in Natty’s blood…
“We are always showing up in the places that are important to our fans. This will be the first of many sports moment where you’ll see Natty doing something fun and disruptive this year.”

*This piece first appeared in the Front Office Sports Newsletter. Subscribe today and get the news before anyone else. 

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Marketing

Inside the Revenue Generation and Marketing Frenzy of a Super Bowl

With kickoff just around the corner, let’s take a look at just how big of a deal (literally) the Super Bowl is from a business perspective.

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Photo via CBS

Every year, millions of Americans — and even more around the world — take time out of one particular Sunday to watch one of the most captivating, polarizing and moving spectacles in culture today: the Super Bowl.

Aside from the occasional Olympic Games or World Cup, it dominants the sports landscape around the world across all industries, too, from sports to entertainment to technology to finance. With kickoff just around the corner, let’s take a look at just how big of a deal (literally) the Super Bowl is from a business perspective.

Viewership

An estimated 103.4 million people watched last year’s Super Bowl on NBC. Consider, even though last year’s viewership was a seven-percent drop from the previous year’s broadcast (111.3 million), Super Bowl LII still ranks in the top 10 of the most-watched U.S. television broadcasts of all time.

During last year’s big game, NBC’s online viewership also averaged an additional two million fans throughout the course of the game on the NBC Sports app, NBCSports.com, and the Yahoo Sports app. With usually 180 countries broadcasting the game in 25 different languages, it has no shortage of a diverse audience.

TV Advertising Revenue

According to estimates by Kantar Media, NBC generated roughly $414 million in advertising revenue from last year’s game. In fact, NBC claimed that it had sold out of all the company’s Super Bowl commercial spots for last year’s installment.

Many viewers have grown accustomed to the Super Bowl being filled with dazzling commercials, often playing into the tongue-in-cheek humor that advertisers look to capitalize on with such a large, captivating audience.

READ MORE: How Music Will Play a Huge Role at the Super Bowl 

“For now, the Super Bowl is simply the biggest sports and entertainment event in the U.S.,” said sponsorship consultant Jim Andrews. “From an advertising standpoint, no other broadcast delivers the audience that the Super Bowl does. From a promotional perspective, there are few, if any, other platforms that can impact such a massive number of consumers. If you are a mass marketer that wants to reach the most people at one time, nothing else comes close.”

Last year’s broadcast contained a staggering 49-plus minutes of commercial time. In total, ads accounted for 22 percent of the total broadcast. There is a rhyme and reason, as NBC averaged over $5 million for every 30-second commercial spot that aired. To put this in perspective, since Super Bowl 36 in 2002, the average advertising cost has more than doubled over the last 16 years, rising nearly $1 million in the last four years alone.

Host City Economic Impact

Last year, over a 10-day period leading up to, and including, the Super Bowl, approximately $370 million in new net spending was generated throughout the Minneapolis area, where the Super Bowl and prior events were held.

The fanfare brought over 125,000 visitors to the city with 95 percent coming from outside Minnesota and six percent coming from outside the United States. Since 1988, Minnesota ranks fourth amongst Super Bowl host cities in terms of total gross economic impact. Much of the economic impact goes beyond the dollars and cents as fans travel from far and wide to take in the unique experience of this yearly spectacular event.

“One of the trends happening in the sports industry is a focus on connecting with fans and sponsors with unique content using experiential marketing,” said Adam Grossman, CEO of Block Six Analytics. “The audience has some of its best opportunities to see things in the game, halftime concert, television ads, and the social media conversation that it has never seen before. The ability for the echo of the Super Bowl content to reverberate throughout the entire year is critical and makes the event an essential annual sports experience.”

Social Media

Planning social strategy around the Super Bowl is a huge advantage that businesses have to hone their brand. Content and direct advertising of Super Bowl ad campaigns tend to see a massive uptick in content posts beginning in January and surging throughout the postseason leading into the Super Bowl.

As social media continues to grow, brands will continue to hone in on an ever-consuming online audience.

READ MORE: Why Winning Should No Longer Be a Strategy When It Comes to Driving Attendance

According to Nielsen, there were 170.7 million interactions between the three big social media platforms regarding last year’s Super Bowl throughout the day as the game was being played out. And with brands such as Pepsi, Doritos, Dodge, T-Mobile, and Tide showcasing ads that combined for over 136,000 mentions over the course of last year’s Super Bowl, it demonstrates the role social media plays in broadcasting exposure to ever-engaging fans.

Betting

During last year’s Super Bowl LII, a whopping $158-plus million was bet in Las Vegas’ sports books. This paced ahead Super Bowl LI betting intake of $138.4 million within Nevada sportsbooks. During last year’s big game, Americans were expected to dole out $4.76 billion in bets. Granted, only three percent was actually bet within Nevada sportsbooks. The other 97 percent with local bookmakers and overseas sportsbooks.

Yet this year, with multiple states legalizing sports gambling, the sheer betting numbers will continue to grow. 

Player Payouts

It definitely pays to win big.

New Orleans Saints head coach Sean Payton’s recent attempt to fire up his team at the start of the playoffs involved displaying a staggering amount of money in the locker room.

This large sum, which was to the tune of $225,000, was stacked with so many dollar bills, it echoed scenes found within a Hollywood movie (plus the Lombardi hardware accompanying the stack of cash wasn’t bad either). In actuality, the payout for going all the way in the postseason hovers closer to $201,000 per the NFL’s latest collective bargaining agreement.

But, it even pays to lose on the big stage. With playoff bonuses coming with each victory throughout the playoffs, Super Bowl losers ultimately do not walk away empty-handed. After last year’s Super Bowl LII loss to the Philadelphia Eagles, every New England Patriots player still walked away with a $56,000 check, bringing their total playoff earnings to a cool $135,000.

There is no denying that the Super Bowl presents a multitude of revenue generation and added value exposure opportunities for companies and brands. As the spectacle continues to evolve and grow, the business of football will continue to eclipse the conversation and the market.

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Marketing

Adidas Gets Creative With Latest Activation

Ahead of the Australian Open, Adidas and Parley for the Oceans teamed up to pull off an activation that made use of the iconic Bondi Icebergs Pool.

Adam White

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Image via Adidas and Parley

*This piece first appeared in the Front Office Sports Newsletter. Subscribe today and get the news before anyone else. 

Ahead of the Australian Open, Adidas and Parley for the Oceans teamed up to pull off an activation that saw them turn the iconic Bondi Icebergs Pool in Sydney into a tennis court.

Taking some time out of the craziness that is the Australian Open, Bec Ballard, Senior Manager of Brand Activation for Adidas Pacific, gave us an inside look at how they pulled off the activation.

On the idea and location…
“We were looking for a way to bring to life the story of our Parley partnership whilst launching our first Parley tennis range to the world. We wanted to visually represent the beauty of the oceans, the threat they are currently facing, and the solution that adidas and Parley are working towards. We felt the backdrop of the iconic Bondi Beach, with the symbolic empty pool (that they empty every Thursday), and then the unveiling of our footwear and apparel range made from 100% marine ocean plastic, was a perfect way to tell this story.”

Tying it to more than just sales…
“The Parley partnership is incredibly important to the adidas brand globally, and it resonates strongly with our Australian consumers. Our Parley partnership and associated products aim to protect our oceans for generations to come. This purpose aligns strongly with the Australian beach culture.”

“As a brand, we have the core belief that ‘Through sport, we have the power to change lives’. Donating the tennis court to a primary school in Western Sydney really rounded out the activation. We wanted to give the court a purpose beyond the activation; encouraging kids to be active was the ideal solution.”

On making it happen…
“The activation itself had multiple layers of complexity. When dealing with a natural environment we had to allow for many uncontrollables: the tides, the swell, and the weather. We had to be incredibly well planned, and operate with a flexible mindset. The pool is drained weekly for cleaning, so we took the small window of opportunity while the pool was empty.”

“We were given access to the empty pool at 3 am, we had to clean it, build the court, install all the signage and be ready for the event at 9 am. We had waves crashing over the side, rain, and were working in the dark! The event kicked off at 9 am and concluded by 10 am. The court had been dismantled and removed from the bottom of the pool by 10:30 am. By mid-afternoon, the pool had been filled naturally by the ocean, and people were once again swimming laps.”

On measuring KPIs…
“From a PR perspective, it completely exceeded our expectations from both reach and messaging perspective. The reach of the event extended far beyond our shores, and the more pleasing element was the integration of the message. The message about the Parley partnership and product range was prominent in all media coverage, and the sentiment was overwhelmingly positive. The products are currently available for purchase at our on-site retail store at the Australian Open, Flagship Store in the Melbourne CBD near the event, eCom and the sell-through has been very strong. We are conducting brand health research which will also be a key element in the impact of the activation for the brand.”

*This piece first appeared in the Front Office Sports Newsletter. Subscribe today and get the news before anyone else. 

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