Pat Coyle's thoughts on Klout, and the potential for leveraging social influence in sports marketing & media.

1. Leveraging influence in sports
Presented by: Coyle Media
Inspired by: Klout

2. Have you seen Moneyball?
Influence is the new
“on-base-percentage”

3. Sports marketing ecosystem is complex
• League
Global • Sponsor brands
• Athlete
• League
• Sponsor
National •
•
TV Networks
Athlete
• League
• Sponsor
Local •
•
Team
Athlete
• Participant

4. Size of U.S. Sports Market
$400 Billion
Annual spending in U.S. including ticket sales, licensed products, sports
video games, collectibles, sporting goods, sports-related advertising,
endorsement income, stadium naming fees and facilities income
(Plunkett Research)

5. Applying influence: a new approach
Sports Marketing Sports Media

6. Vested Interests in U.S. sports
Television Networks Sponsor Brands Professional Professional
Leagues Teams
Investments More than 42,500 hours of live Major brands spend $7.5 Leagues have large Biggest team expense is
sports on broadcast & cable in billion annually in staffs of lawyers, player payroll.
2011. sponsorship licensing fees, strategists, marketers
and likely spend at least as and technologists.
Big 4 Networks plus DirecTV & much on “activation” and Invest in advertising,
Verizon paying over $7 billion measurement. research, development
annual broadcast rights fees for and sales.
NFL alone. Top 10 U.S. brand sponsors
account for 26% of annual
Rights fees go much higher when sports ad spending on TV
college, NASCAR, Golf, etc. & ($2.7 billion). Top 50
special events (i.e. Wimbledon) brands spend $6.6 Billion
are included. annually on sports 32% of
TL advertising budgets)
Revenues National TV sports advertising: Retail and e-commerce Annual revenues from Share in league TV and
$10.9 Billion in 2011 (Nielsen sales. Big 4 U.S. Sports is licensing revenue.
data, includes broadcast & cable approximately $23
advertising). Often measure value from Billion per year Tickets and sponsorship
sports in terms of brand (Plunkett Research from local market; some
Cable networks have advertising recall, media impressions 2012) teams have
plus subscription revenues. or TV rating points (media) merchandise businesses
Note: cable sports advertising
increased 37% year-over-year in
2011

7. What are brands & networks paying for?
National Scale Local Sizzle
Large, Live audiences Emotional engagement
Young men Early adopters Multi-platform
This model values just ½ of the audience (men), and values each man equally.

8. What should they be buying?
Influence

9. Observations: they’re buying reach
• Sports properties (leagues) have leverage over TV
networks, rights fees for sports content are rising
• TV networks have leverage over brands who want
ads to appear in live games, prices for premium
sports inventory is rising
• Teams have leverage over local / regional
sponsors who want access to live games / in
arena
Status quo thinking is driving the prices higher and higher

10. Is it possible that…
• Brands are overpaying for rights
• Brands are overpaying in venue
• Brands are overspending on TV (in games)
• Networks are paying too much for broadcast
rights
?

11. How can Klout help sports marketers?
Insurance Ambush
You are the official sponsor and / or Your competitor owns official rights, now
using sports TV to gain WIDE reach, now use KLOUT to Break mass media model, and
use KLOUT to Go DEEP and WIDE – and target fans without wasting money on
maxmize ROI from the investment rights fees.
you’ve made in sports
Protect status quo Tap social to drive impressions AND create
demand for brand
Tap social for Incremental improvements
Social reach can replace broadcast media
80% of fans watching on TV are online reach, and produce better results
#1 things they’re doing is sharing with Brands may not need to purchase rights or
friends buy national “reach” campaigns
60% of game attendees share via FB Real time is valuable, but long-tail of
and TW attention / time shift is too.

12. How TV Networks can use Klout
• Target influencers
– Sports on TV, drive viewers, engagement
– Other programs, driver viewers collar programs
– Sponsor brands, drive engagement with Ads.

13. How Sports Leagues can use Klout
• Gather influencer data, fans impact on…
– TV shows / viewers
– Brand purchasing / buyers
– On sport content creation / consumption
– On sport ticketing / buyers

14. How sponsor brands can use Sports Klout
• Leverage sports / sponsor license among
sports fans who are also brand influencers
• Buy media the delivers most brand influencers

15. How pro teams can use Klout
• Score fans – drive quests, add perks
– Ticket buyers
– Team (sports) influencers
– Sponsor (brand) influencers

16. Engage the influencers
Make a measurable impact
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