sports marketing 2.0 (2010)

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Sports Marketing 2.0

‘The times they are a changing’

Dr. Jim Hamill [email protected]

Alan Stevenson [email protected]

November, 2010

mailto:[email protected]

mailto:[email protected]

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• Opportunities and threats for sports marketing organisations from the rapid growth of Web 2.0/social media

– Web 2.0/social media – what is it? how big is it?– Business benefits– Web 2.0 in action – examples (non sports and sports)– What progress is being made?– What do the fans think?– Sports Marketing 2.0 strategy development and

implementation– Performance measurement/ social media monitoring tools

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Agenda

• Morning– Presentations and class discussion

• Afternoon– Group work and group presentations

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Group Work

Groups of 4 or 5 students

Taking a sports marketing organisation of your ownchoice, evaluate the progress made in adopting Web

2.0/social media and make strategic recommendationsfor improvement. Your evaluation should cover use ofWeb 2.0/social media on their own web site and the

extent of their involvement in external Web 2.0/socialmedia sites

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Continue the conversation on

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Web 2.0/Social Media Overview

An Overview

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Web 2.0/Social Media

An Overview

»Applications»Features and Characteristics»Implications

Applications

Social Network Sites

Social Content

Social Bookmarks

Blogs

Wikis

Virtual Realities

RSS Feeds

Podcasts

Social Applications

Twitter

Mash Ups

Mobile Web; Internet Telephony

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Social Media in Plain English

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Internal and External Use

These applications can be used on the sports marketing organisation’s own web site

and/or by participating in‘external 2.0’ sites

2.0 redefines the concept of a web site (see www.skittles.com)

http://www.skittles.com/

Characteristics

Communities and Networks

Interactivity

Social Element

Openness

Peering

Hosted Services

Global

Sharing

Empowerment

Mass Collaboration

The Internet as the platform

Impact

Business Intelligence

Customer Interaction

Sales & Marketing

Customer Experience

Customer Insight

Processes and HRM

Mindset

Product Development

Reputation Management

Rich Internet Applications

IT Infrastructure

Business/Marketing 2.0Web 2.0 Applications

Open sourceOnline Applications/ Web ServicesSocial Network SitesSocial Content – Social BookmarkingBlogs or WeblogsWikisPodcasts/ VodcastsVirtual RealitiesMash UpsRSS FeedsMobile Web; Internet TelephonyTwitter

Characteristics

Communities and NetworksOpennessSharingPeeringHosted Services – online applications; the Internet as the platformInteractivitySocial ElementMass CollaborationEmpowermentGlobal

Impact – Wikibusiness

MindsetBusiness IntelligenceCustomer Insight and UnderstandingCustomer InteractionEnhanced Customer Experience – Rich

Internet ApplicationsReputation ManagementSales and Marketing Product Development and R&D e.g.

engage and co-createIT/Software/ApplicationsOperations, Internal Processes and HRM

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Potential Business Benefits of Social Media

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Business Benefits

• Market Knowledge

• Customer Insight and Understanding

• Customer Interaction

• Enhanced Customer Experience

• Business Intelligence

• Reputation Management

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Business Benefits

• Improved Sales and Marketing

• Identify and network with high value, high growth prospects

• Product Development and R&D e.g. engage and co-create

• Internal cost savings

• Improved Operations and Internal Processes

• Increased ROI

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Potential Business Benefits

Wide ranging:

• Market/Customer Knowledge & Insight• Engagement & Reputation Management• Enhanced Customer Experience and Loyalty• Sales/Marketing Effectiveness, Efficiency and ROI• Operations/ Internal Processes (open source and

hosted apps)

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Potential Business Benefits

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Things to Rememberabout Social Media

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Key Things to Remember

• It’s social– A key feature is online democracy – with content being provided

by the network for the network – represents a fundamental and revolutionary change in online behaviour, expectations and the online customer experience. The end of the ‘read only’ internet

• Power shift– Social media empowers customers, empowers the network.

Recognizing this shift is the cornerstone of future success • Declining effectiveness of traditional approaches

– Does anyone listen to sales/brand messages anymore?

ENERGISE2-0.COMSource: The Future of Advertising, APA, 17/02/09 as published on Slideshare (www.slideshare.com)

http://www.slideshare.net/gamages/the-future-of-advertising-apa-170209?type=powerpoint

http://www.slideshare.com/

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• Pull v push– Consumers/users decide what information they wish to access

• New ‘mindsets’ are required– Marketing as a conversation with your customers/network–

dialogue not broadcasting– But this is something that most of us are not very good at doing.

We prefer ‘telling’ people• SM ‘winners’ and ‘losers’

– ‘Winners’ will be those organisations who fully utilise the interactive power of Web 2.0 technology for engaging with and energising customer and network relationships

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• New performance measures– Requires new performance measures

• Quality of your network• Relationship strength• Ability to leverage

• Social media monitoring tools

• Redefines the concept of a web site

• The need for new business/marketing models

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Performance Measurement

Involvement – network/community numbers/quality, time spent, frequency, geography

Interaction – actions they take – read, post, comment, reviews, recommendations

Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc

Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking

Social Media Monitoring Tools –Audit, Assess, Impact

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Monitoring the Conversations

• Use Social Media Monitoring Tools to monitor online conversations relevant to your brand

• No or low cost tools such as Google Alerts, Yahoo Pipes, Social Mention, IceRocket, Blogscope, Blogpulse and ViralHeat

• More expensive and sophisticated tools such as Radian6, Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar

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The need for new business/marketing models

– Traditional approach:• Product development – Differentiate – Market and Promote -

Sell

– New model based on: • Communities, networks, openness, peering, sharing,

collaboration, customer empowerment, ‘think and act’ globally

• Engage and energise• ‘Create the Buzz’

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Built using wordpress

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Embeds content from social media

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How big is it?

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Social Media Revolution 2

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How Big Is It?

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Social Media in Action

Quick Examples

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In a Web 2.0 Era, the Brand Becomes the Customer Experience of the Brand

A quick ‘personal experience’

Dubai Hotel

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From the web site

• This 5-star hotel and residence offers European hospitality with an unmistakable French touch. The hotel consists of 318 beautifully appointed guest rooms/suites, while the residence offers 112 fully furnished and equipped deluxe Studios and 1-3 bedroom apartments.

• The ultimate in comfort, we offer 318 luxuriously elegant rooms and suites.

• Take a trip. Escape. Go and visit somewhere new and see if we are there… Give in to that irresistible wanderlust. Discovering and staying in the most exceptional hotels in the world has become the modern-day Graal, a game, a quest…

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The Customer Experience of the Brand

Tripadvisor

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From Tripadvisor

• It's getting old, the rooms are unappealing and it will never be more than a business hotel

• Being a Sofitel hotel we expected something quite 'flashy' unfortunately we were let down. The rooms, although comfortable and clean, were not of the standard we expected and were definately not what we expected after looking at the photos on the hotel's website.

• Booking my stay via the Sofitel website after a pleasant experience at several other Sofitel locations over the past 2 years with my new job I was looking forward to a 5 star luxury stay after a stressful business trip. My expectations were reasonable, however certainly not met by this hotel.

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Will It Blend? - iPad

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5.7 Million Views

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United Breaks Guitars

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9 Million Views

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The Italian Man Who Went To Malta

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14.6 million views

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Cafe Gandolfi

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Brand Engagement

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Fashion brands v the new ‘kid on the block’

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Buy Our Stuff

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Threadless.com

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Customer Engagement

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Reverses the Business Model

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Threadless on Facebook

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170,784 'likers'

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1,556,929 Twitter Followers

1.5 Million Twitter Followers1,556,929

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www.skittles.com

www.skittles.com

http://www.skittles.com/

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A few references.........

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Wikinomics

Tapscott and Williams (2006)

• Web 2.0 represents a major paradigm shift and requires new corporate mindsets and new approaches to business strategy development, implementation and online branding.

• O’Reilly (2006)........Web 2.0 as ‘a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet—a more mature, distinctive medium characterised by user participation, openness, and network effect.’

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The Groundswell

Li and Bernoff (2008)

• A spontaneous movement of people using online tools to connect, take charge of their own experiences and get what they need from each other (information, support, ideas, products, bargaining power etc)

• The ‘groundswell’ is unstoppable – it’s a social revolution. It’s a permanent, revolutionary shift in the way the world works

• You can try to fight it or join it – energise the groundswell

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Marketing to the Social Web

Larry Weber (2009)

• Marketers must look for new ways to communicate with customers. New mindsets and a radical rethinking of past practice is required

• Rather than broadcasting sales messages to an audience who no longer listen, innovative marketers should become ‘aggregators of customer communities’. They should participate in, organise and encourage social networks that people what to belong to

• Rather than talking at customers they should talk with them

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Grown Up Digital – Don Tapscott (2009)

• $4m research project covering 10,000 people in the age group

11 to 30

• The Net Generation – the first generation to have grown digital

• Revolutionary impact on all aspects of life including the world of work, education, family relationships, political engagement and the global environment

• YouTube Videos

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Does It Work?

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• Aberdeen Research Group – study of the social media practices of 250 organisations– ‘Best in class’ (50)– ‘Industry average (125)– ‘Laggards’ (75)

• ‘Best in class’ outperformed others in many key areas– Customer satisfaction– Actionable insights delivered– Reduced time to market– Customer insight

Source: Weber, 2009

Does It Work?

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Worlds Top 100 brands

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Does it work?

• Financial performance correlates with engagement

• Companies that are both deeply and widely engaged in social media surpass their peers in terms of both revenue and profit performance by a significant difference

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Does It Work?

• The Top =10 Brands Using Web 2.0 / Social Media

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Progress Being Made

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• Business benefits for Sports Marketing Organisations (SMO)

• What’s happening out there? What has the response been?

• How well are sports marketing organisations utilising the power of Web 2.0 for building community and network relationships with their tribe?

• Research covering the top 20 European football clubs

• Emerging ‘best practice’ examples

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‘Football is nothing without the fans’

Jock Stein

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A Marriage Made in Heaven

Web 2.0 Sports Fans

Information ‘pull’ rather than ‘push’

User generated content Openness Sharing Collaboration Interaction Communities Networking

The ‘Tribe’ Passion Loyalty Commitment Desire Involvement Community Belonging Family

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Business Benefits

• Enhanced marketing effectiveness

• Marketing efficiency

• Improved ROI

• Relationships and networking effects – engage and energise – increased fan loyalty and commitment

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Internal Web 2.0

• Increased visits to the official site• Increase ‘stickiness’ (length) of site visits• Divert traffic from unofficial fanzine sites • Increased advertising revenue• Increased e-commerce sales for the official site• Actionable customer insight, knowledge and understanding • A channel for responding to customer comments and feedback • Enhanced online customer experience• Build community and leverage network effects - engage, energise

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External Web 2.0

• Social Networking Sites: Sports Marketing Organisation becomes a ‘community aggregator’ - ‘Talk with rather than at fans’ - actionable customer insights

• Multimedia Sharing Sites - a very powerful marcoms channel leveraging networking and ‘word of mouth’ effects

• Podcast Sites: Provides the SMO with a rich media channel for maintain on-going dialogue with customers/fans

• Virtual Reality: ‘virtual stadium’ allowing fans to interact with each other in a virtual space

• Mapping Tools: - satellite images of the Stadium etc. Can enhance the online customer experience leading to increased site visits, advertising revenue and e-commerce sales

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Progress Made

• Evaluation of the Web 2.0 progress made by the top 20 football teams in Europe (2008)

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Internal Use (own web site)

• UGC (User Generated Content)– text, images, video, wiki

• User FOD (Feedback, Opinion, Discussion)– blog, forum, ratings, favourites, online chat

• RIA (Rich Internet Applications)– widgets, mash-ups, podcasts/vodcasts

• Folksonomies– social tagging, social bookmarking, tag cloud

• Feeds– content feeds in and out

• Community– site community

• External Links– to other 2.0 sites

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External 2.0

• Social Network Sites– facebook

• Multimedia Sharing Sites– Youtube, flickr

• Podcast Sites– Itunes

• Twitter• Linkedin

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Results

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2010 Update

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Results

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Emerging ‘Best Practice’ Examples in Sports Marketing

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• Could a community takeover happen at a bigger club?

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Examples

Chelsea – www.chelseafc.com

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What do the fans think?

Online survey of Celtic fans (2008)

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Celtic Survey

• There are over 50 ‘Celtic Minded’ fanzine sites. These provide alternative information channels for the fans, competing with the official Celtic web site

• The top 5 fanzine sites have more than 51,000 registered

users. Over 13 million messages have been posted highlighting the vibrancy of the groups

• Content analysis reveals that fans are discussing a wide range

of issues, many of which are relevant to the business/marketing aspect of the Club

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Celtic Survey

• The online survey, completed by 356 respondents within the first 48 hours of going live, showed that 50 per cent of fanzine members were ‘professional’ people, students (11%), skilled manual (21%), self employed (6%), unemployed (4%) or others (7%). This is substantially different from the demographic profile of fanzine members normally reported in the mass media (‘the great unwashed’)

• The survey revealed a high level of demand among fans for greater Web 2.0 functionality on the official Celtic club site – RSS feeds (58%), discussion forums (66%), blogs (70%), Club podcasts (71%) and User Generated Content (41%)

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Celtic Survey

• Major changes taking place in the way in which fans accessed information about the Club

– 85 per cent stated that fanzine sites were an ‘Important’ or ‘Very Important’ source of information, TV (57%), the official Club web site (50%), general sports web sites e.g. Sky (42%), printed newspapers (29%), newspaper web sites (23%)

• 84 per cent stated that they were reading fewer newspapers and using more online information sources; 77 per cent stated that they were accessing the official Club web site less and the fanzine sites more often

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Name of Website

Number of Registered

Users Total Posts

Number of Threads

www.celticminded.com 16,954 8,344,813 650,660 www.kerrydalestreet.co.uk 6,998 2,413,850 65792

www.talkceltic.net 23,533 1,523,512 86,316 www.celticoverall.com 3,124 474,253 52,899 http://www.cybertimscsc.com 839 131,407 9,714 www.monthehoops.co.uk 10,610 123,863 16,542 www.celticforum.net 2,995 56,799 4,866 www.talfanzine.com n/a 49096 7390 www.keep-the-faith.net 753 37,480 1,020 www.celtic.vitalfootball.co.uk 52,778 25,221 2,581 http://www.planet-celtic.co.uk/ 6795 430 88

http://www.celticsupporterassoc.co.uk 406 83 27

http://wigandpen.proboards18.com/index.cgi#general 287 8 23 www.thejunglebhoys.net n/a n/a n/a www.etims.net 1335 24,429 2968 www.thehuddleboard.com n/a n/a n/a

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• Survey covered fanzine site users – might not be representative of all Celtic fans

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Web 2.0 Strategy Development

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‘Getting There’

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Next Steps

• Get Involved– Google Alerts, Linkedin, Social Media Monitoring

• Learn more• Develop a strategy• Implement• Monitor

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Social Media Development Cycle

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SM Development Cycle

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Each Step is being covered in detail on our blog at www.energise2-0.com

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Five Key Areas

• External Analysis: Evaluate Your Social Media Landscape• Internal Analysis: Evaluate Your ‘Readiness to Engage’• Develop Your Social Media Strategy and Action Plans for

‘Getting There’• Evaluate Your Social Media Performance and ROI• Organization, People and Resource Issues

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‘Be Customer Led’

Three key questions:

• Who are our customers, who do we wish to engage with?

• Where do we find them ‘hanging out’ on social media?

• How can we best engage and energise them?

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www.mashable.com

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Develop Your Social Media Strategy and Action Plans for ‘Getting There’

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Use a Simplified Balanced Scorecard

• Will ensure that the social media actions and initiatives you take are fully aligned with and supportive of your overall business goals and objectives; that KPIs are agreed for monitoring and evaluating social media performance, business impact and ROI; and all key success factors are considered, especially the organization, people and resource aspects critical to successful strategy implementation

• A Scorecard approach can also be very useful for internal and external communications – a simple framework to present social media goals, objectives, key actions and initiatives to colleagues, partners and other stakeholders

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Social Media Balanced Scorecard

• Not ‘paralysis by analysis’. By providing an agreed framework to follow, the Balanced Scorecard considerably speeds up strategy development and implementation

• The steps involved can be captured in a Social Media Strategy Map

• Five key questions to address……

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Social Media Balanced Scorecard

• What is the overall social media vision for your organization?

• What are the key objectives and targets to be achieved?

• Who are your customers?

• Key Actions and Initiatives

• Organisation, Resource and People Issues

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Social Media Strategy Map

Brief statement of your overall 2.0/Social Media Vision and Mission Strategic Objectives Customer Perspective Internal Management Perspective Organisation Perspective

Strategic Objectives KPIs / Targets

KPIs / Targets KPIs / Targets

KPIs / Targets

Customer Group 1

Customer Group 2

Customer Group 3

Customer Group 4

2.0/Social Media Initiative 1 - Objectives - KPIs - Targets - Actions




Organisation People Resource

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Organization, Resource and People Issues

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Organization, Resource and People

• Organisation, resource and people issues sit at the bottom of your SM Balanced Scorecard NOT because they are the least important issues to address. In fact, the exact opposite is true

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Monitor and Measure

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Monitoring the Conversations

• Use Social Media Monitoring Tools to monitor online conversations relevant to your brand

• No or low cost tools such as Google Alerts, Yahoo Pipes, Social Mention, IceRocket, Blogscope, Blogpulse and ViralHeat

• More expensive and sophisticated tools such as Radian6, Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar

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Monitor and Measure

• To ensure that your SM strategy delivers a return on investment, it is important to monitor and evaluate on-going performance benchmarked against agreed objectives, KPIs and targets

• Performance evaluation should be undertaken at three main levels using the ‘4Is’ approach….

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Performance Measures - The ‘4Is’

Involvement – network/community numbers/quality, time spent, frequency, geography

Interaction – actions they take – read, post, comment, reviews, recommendations

Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc

Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking

Social Media Monitoring Tools –Audit, Assess, Impact

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Monitor and Measure

• Individual Channel Performance– the effectiveness/success of each channel benchmarked

against agreed targets for the ‘4Is’ i.e. Involvement, Interaction, Intimacy and Influence

– most channels provide easy to access statistics for measuring each ‘I’ to a very high degree of accuracy

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Facebook Insights

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Monitor and Measure

• Wider Social Media Performance

– monthly or quarterly reporting of the overall ‘buzz’ created by your SM activities using appropriate Social Media Monitoring tools

– this will show the impact of your SM activities on others and other channels

– it measures the volume of mentions, trends over time, which channels are driving your buzz, who is taking your message further, through which channels, and what affection or affinity they are showing, and so on

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Monitor and Measure

• Underlying Business Performance– the performance of each social media channel and the

overall ‘buzz’ created are ‘lead’ rather than ‘lag’ measures– in a social media era, they are the main ‘drivers’ of future

business performance– the final level of performance monitoring, therefore, is

linking your social media activity to overall business goals and objectives e.g. enquiries, sales or customer loyalty. Is social media achieving your ultimate business objectives i.e. ‘lag’ measures?

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Who is talking about you, where online, what are they saying?

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Visit “Edinburgh Castle”

Visit “Kelvingrove”

Visit “Falkirk Wheel”

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Visit “Kelvingrove”

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Bob Dylan

Come gather 'round peopleWherever you roamAnd don’t criticise

What you can't understandYour sons and your daughters

Are beyond your commandYour old road is

Rapidly agin‘Then you better start swimmin’

Or you'll sink like a stoneFor the times they are a-changin’

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Continue the discussion at www.tourism2-0.co.ukwww.energise2-0.com

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Thank You

Questions

sports marketing 2.0 (2010)

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