Sports Marketing 2.0 (2010)

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Sports Marketing 2.0
‘The times they are a changing’
Dr. Jim Hamill
jim.hamill@ukonline.co.uk
Alan Stevenson
ast3v3nson@googlemail.com
November, 2010

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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 own
choice, evaluate the progress made in adopting Web
2.0/social media and make strategic recommendations
for improvement. Your evaluation should cover use of
Web 2.0/social media on their own web site and the
extent of their involvement in external Web 2.0/social
media sites

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Continue the conversation on
www.tourism2-0.co.uk
www.energise2-0.com

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www.energise2-0.com

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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)

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 2.0
Web 2.0 Applications
Open source
Online Applications/ Web Services
Social Network Sites
Social Content – Social Bookmarking
Blogs or Weblogs
Wikis
Podcasts/ Vodcasts
Virtual Realities
Mash Ups
RSS Feeds
Mobile Web; Internet Telephony
Twitter
Characteristics
Communities and Networks
Openness
Sharing
Peering
Hosted Services – online
applications; the Internet as
the platform
Interactivity
Social Element
Mass Collaboration
Empowerment
Global
Impact – Wikibusiness
Mindset
Business Intelligence
Customer Insight and Understanding
Customer Interaction
Enhanced Customer Experience – Rich
Internet Applications
Reputation Management
Sales and Marketing
Product Development and R&D e.g.
engage and co-create
IT/Software/Applications
Operations, 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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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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Things to Remember
about 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?

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Source: The Future of Advertising, APA, 17/02/09 as published on Slideshare (
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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Brand Engagement

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Fashion brands v
the new ‘kid on the block’

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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

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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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• 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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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
2.0/Social Media
Initiative 2
- Objectives
- KPIs
- Targets
- Actions
2.0/Social Media
Initiative 3
- Objectives
- KPIs
- Targets
- Actions
2.0/Social Media
Initiative 4
- 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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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
“Edinburg
h Castle”

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Visit
“Edinburgh
Castle”
Visit
“Kelvingrov
e”

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Bob Dylan
Come gather 'round people
Wherever you roam
And don’t criticise
What you can't understand
Your sons and your daughters
Are beyond your command
Your old road is
Rapidly agin‘
Then you better start swimmin’
Or you'll sink like a stone
For the times they are a-changin’

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Continue the discussion at
www.energise2-0.com

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Thank You
Questions

Sports Marketing 2.0 (2010)

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