Marketing Metrics

Marketing metrics are huge for sports business as much as any other. If' you're interested in creating great competitor analysis, positioning maps, and any other strategies related to managing market performance then you might want to check out Roger Best's Marketing Metrics Handbook. (Get a free trial here.)

The table on the left is an example of a Relative Market Share and Market Concentration table I created for Nike, adidas, New Balance, and Under Armour. (I used 2008 revenue numbers for each company, and used 2008 figures from retail sporting equipment, sports apparel, and retail athletic footwear.)

It's a cinch to calculate the ROI, ROS, margins, etc. for these tables, and they really beef up presentations and quantify marketing expenses.

Note: I am not affiliated with Roger Best, and receive no incentives (financial or otherwise) for promoting his handbook.

Warsaw Guest Speakers

Last winter I posted a list of the fantastic guest speakers and visitors who came to the Warsaw Sports Business program. Here’s a list of sports industry leaders who have recently shared their insights with MBA students in my program.

Adam Antoniewicz, NBA China

Stephen Baines, Sports Business International

David Baker, AFL

Eric Barmack, ESPN

Lee Berke, LHB Sports

Declan Bolger, Stoneybatter, Inc.

Gert Boyle, Columbia Sportswear

Justin Byczek, NBC Sports

Carter Carnegie, NTRA

Tim Chen, NBA China

Emilio Collins, NBA

Jason Day, IMG

Len DeLuca, ESPN

Andy Dolich, San Francisco 49ers

Dave Doroghy, Vancouver Organizing Committee for the 2010 Olympic & Paralympic Games

David Dunn, Athletes First

Dennis Farrell, Big West Conference

Sal Galatioto, Galatioto Sports Partners

Chris Granger, NBA

Stephen Greyser, Harvard University

Arthur Griffiths, Octagon

Eric Guthoff, IMG

David Haney, AFL

Chris Heck, NBA

Heather Higgins, NTRA

Stu Jackson, NBA

Akash Jain, NBA

Patt Keck, AT&T

Erica Kerner, adidas

Hollis Kosco, IMG

Peter Land, NTRA

Amy Lasky, NTRA

Sheng Li, Visa

Hunter Lockman, NY Knicks

Donna Lopiano, Sports Management Resources

Joe Mattson, Relay Worldwide

Mike McCarley, NBC Sports

Chris McCloskey, AFL

Jim McDonald, Cornerstone Marketing

Nolan Mecham, IMG

Jason Michelotti, Millsport

Jim Noel, ESPN

Vince O’Brien, General Motors R*Works

Donna Orender, WNBA

Lisa Orzechowski, Relay Worldwide

Andy Peake, Under Armour

Jeff Price, Sports Illustrated

Shannon Pruitt, FremantleMedia

Emma Qui, Fudan University

Dave Rosen, Electronic Arts

Peter Rotondo Jr., NTRA

Peter Rotondo Sr., NTRA

John Rozeira, General Motors R*Works

Beth Schnitzer, Pier 39

Adam Silver, NBA

Andrew Sippel, ESPN

David Stern, NBA

Robert Strand, Jarden Outdoor Solutions

Lucy Strong, Octagon

Tyler Vaught, EA Sports

Marvin Washington, University of Alberta

Carter Westfall, Helios Partners

Pat Zeedick, Nike

Chris Zimmerman, Vancouver Canucks

Nike Campus Trek

Nike recruiters selected sixty students from MBA programs at Columbia, USC, Virginia, Georgetown, Michigan, Texas, and the University of Oregon to attend their annual campus trek visit last Wednesday. It was a great experience for all of us, and a unique opportunity to connect with employees and recruiters in our specific fields of interest.

8:30 a.m. – We started the morning off right with a light continental breakfast and networking with other MBAs from around the country. Most were interested in marketing, though a fair number were focusing on finance, merchandising, or strategic planning.

9 a.m.— Individually, three executive speakers gave us lessons on Nike culture, history, human resources and retail forecasts.

Nelson Farris, Director of Corporate Education, spoke on the history of Nike, highlighting the accomplishments of Phil Knight, Bill Bowerman, Jeff Johnson, Steve Prefontaine, Michael Jordan, and Carolyn Davidson.

David Ayre, VP of Global Human Resources, talked about Nike culture, goals, and talent opportunities within the company. Particularly of interest was his spiel on developing at least 30 people within the company who could be VPs for any position. How do you succeed at Nike? Be smart. “But if you think you’re the smartest person in the room, you probably aren’t.”

Louis Jordan, CFO of Global Retail, gave us an inside look at some of the goals and revenues of Nike that clearly weren’t meant to be shared outside the room. He did impart some great Nike maxims, like “Remember the Man,” “Be a Sponge,” and “Nike is a Company.”

10:30 a.m.— A panel of Nike MBAs were perhaps the highlight of the trip, talking about the 2-year rotational program, how they found their way to Nike, and how others should proceed if Nike is their dream. Julian Duncan from Global Brand Marketing stole the show, with an impressive background in football, Madden NFL parties, DJing and a lot of humor.

11:30 a.m. — Lunch, not surprisingly, was my favorite part of the trip. I sat next to Jen Jacobs, a nice lady in Brand Marketing, and a bunch of good-natured Texas folks who wanted to know more about the Warsaw program. The lasagna: excellent.

12:15 p.m. — The pouring rain didn’t stop us from enjoying a tour of the Nike campus. What a place! I’m more of a fan of inner-Portland than the suburbs, but you can’t beat the spectacular college-campus feel of the Beaverton location. A blue-line MAX stop nearby is icing on the cake.

YouTube Sports Channels

Consumers of sports programming are seeking out online video for a number of reasons. Whether they’re looking for Web gems, using videos to find a community, or sharing tastes, these consumers are more likely to visit YouTube than any other online video-sharing site, as shown by the graph below. (YouTube accounts for more than 96% of all videos shown by Google.)

Among sports properties, there is no clear winner in the battle for online video supremacy. Last month, I wrote about Nike and adidas in the online video world, but these aren’t the major sports properties on YouTube. On the contrary, while the Nike Soccer channel boasts 286,000 views and adidas “It Takes 5ive” channel can claim 413,000 views, the NBA channel on YouTube leads the pack with 2.7 million views.

I’ve created a chart with a sampling of sports properties and their respective rankings on YouTube. Some sports properties have no official presence on YouTube, such as Major League Baseball and NASCAR, while some (like the NFL) have made a disappointing effort.

A YouTube channel is a centralized location where other users can see a user’s videos, favorites, bulletins, comments, subscribers and video log. In the case of these sports properties, a YouTube channel is similar to a Web site or a social networking profile page. The sports properties use these landing pages to direct viewers back to their official homepages (“Visit NBA.com for over 15,000 videos”) and to help promote a campaign (“Help decide which NFL player story should be made into a Super Bowl commercial”).

And while the skeptic might point out that none of the 2008 Super Bowl ads pointed to their social media presences on YouTube, the number of Americans viewing online video is encouraging (research indicates that 78.5 million viewers watched 3.25 billion videos on YouTube.com in January). In a market where grabbing a consumer’s attention seems ever more difficult, these numbers are worth a second look.

Nike Marketing Campaigns

Nike has had some very forgettable marketing campaigns. In a year or two, who will remember the “Free” campaign in which Nike urges athletes to train like they were wearing no shoes? Or the “Second Coming: Our Game. Our Time.” campaign that celebrates the 25th anniversary of Nike Air Force 1? Though they might be successful, they won’t last in the public imagination in the way that some of Nike’s most beloved branding accomplishments have.

But unlike these comparative flops, I think it’s fair to say that Nike, more than any other brand, has created marketing campaigns that have emblazoned themselves into our memories, and have changed the way we look at sports and maybe even ourselves.

Too corny? I challenge anyone to find marketing efforts from any industry that have made as much of an impression as the JUST DO IT and LIVESTRONG campaigns.

The slogan “Just Do It” combines grit and determination with a touch of humor. It’s a rallying cry to get off the couch. It’s self-empowering. And, according to the book, Nike Culture: The Sign of the Swoosh, the slogan shows that no matter who you are, no matter what your physical, economic or social limitations, “transcendence is not just possible: it’s waiting to be called forth.”

Lance Armstrong’s “Livestrong” movement, run in association with Nike, is similarly empowering. For a dollar, people wanting to support the fight against cancer could purchase a yellow “baller band.” By 2005, a year after the loopy wristbands were released, they had sold 42 million, making it one of the most successful cause-related marketing campaigns ever. According to the book, Why We Talk: The Truth Behind Word-of-Mouth, Nike succeeded with this campaign by focusing on customers’ higher-level needs. The “Livestrong” bracelet helped a tribe of loyalists identify themselves and with each other.

These are just two out of many Nike marketing endeavors. Below I’ve assembled a partial list of the others (most done by the Weiden + Kennedy ad agency) along with the year the campaign began.

Air Jordan – 1985
Revolution – 1987
Just Do It – 1988
Bo Knows –1989
Instant Karma – 1992
I Am Not a Role Model – 1993
Let Me Play – 1995
Whatever – 2000
Secret Tournament – 2002
Livestrong – 2004
Free – 2005
Joga Bonito ("play beautiful") – 2006
Second Coming: Our Game. Our Time. – 2007
Quick is Deadly – 2007
Become Legendary – 2008

Portland Sporting Goods & Apparel

Today’s edition of Portland Business Journal featured an announcement that snowboarding apparel company, Holden Outerwear, has just established its headquarters in Portland, OR. Recently a number of sports apparel companies have relocated to the city, thanks in part to the proximity of Nike, adidas North America, and Columbia Sportswear. Besides these three giants, the greater Portland area is home to the following:

End Outdoor Inc., sustainable footwear
Icebreaker, outdoor sports apparel
Keen Inc., footwear
Le Coq Sportif, sporting goods and apparel
Li Ning Sports USA Inc., footwear and apparel
Lucy Activewear, women’s sports apparel and accessories
Montrail, footwear
Nau, inc., outdoor apparel
Nautilus, Inc., exercise equipment
Rapha Racing Ltd., cycling apparel
Solstice Outdoor Inc., outdoor gear

Online Video Marketing Campaigns

A 30-second spot in last year’s Superbowl cost advertisers $2.6M (it was $2.7M this year) plus hundreds of thousands of dollars in production costs. But for Five Point Productions, the winner of the 2007 Doritos “Crash the Super Bowl” contest, the production cost for their ad, “Live the Flavor” cost only $12.79. Though the story is inspirational (USA Today ranked the ad 4th out of the 62 ads that were aired), the implications of this sports marketing triumph went beyond the Frito-Lay accomplishment. The larger picture is that the Doritos ad campaign from the 2007 Superbowl affected the norms of sports marketing video content: how it’s assembled, where it’s distributed, and how much it costs.

In the last year, sport marketers seem to have boosted their online presences with fancier Web sites, integrated Flash applications, Social Networking profiles, and more. But of all the improvements these companies have made online, perhaps the most effective (after a Web site) has been the use of innovative video techniques.

One of the best videos, shot with an amateur camera, features the Brazilian soccer star, Ronaldinho, as he meticulously straps on a pair of Nike soccer shoes, juggles the ball for a minute, then fires four consecutive shots off the top of the goal post without letting the ball touch the ground. The video, posted by Nikesoccer.com, has been viewed more than 21 million times as of this posting. To put that in perspective, this is roughly a quarter of the global viewership of an average Superbowl. Not bad when you consider that the clip is 2 minutes and 44 seconds, and that viewers were likely paying more attention to the video they had chosen to see than they would to a Superbowl commercial.

With the majority of online video viewers saying that they find new videos through friends’ recommendations, it’s helpful to note that the Ronaldinho video was selected as a favorite (“favorited”) by 48,740 different viewers. Youtube, like other social participation sites, allows users to tag, comment, rate, and embed the videos as well as add them to a favorites list. In the near future participants should also expect to be able to personalize, edit, an add in-video comments.

“It Takes 5ive” is the adidas basketball campaign based on the idea of believing in the team. The campaign has put together a presence on YouTube with clips of Dwight Howard, Jerry Stackhouse, Adam Morrison, TJ Ford, and other celebrity ball players. Their most viewed clip, “adidas 5ive on 5ive,” has just over a million views, and is part of a campaign that includes at least 14 other short videos. Though not as successful as the Nike soccer video campaign, adidas finishes the video with a call to action, urging viewers to see all the action by visiting their video site. Adidas’ video is a jumping off place for the basketball enthusiast to see more related videos and the accompanying marketing messages.

Digital marketing can help maximize the impact of production budgets (the Ronaldinho video would have cost more than $10M to air on the Superbowl because of its length), it can act as a gateway to a longer piece that allows for a deeper and more interactive experience, and it can work without the formal constraints of time (both in the sense of 30 second spots and the sense of ads appearing only after the 5 o’clock news). Digital marketing doesn’t mean that traditional marketing is irrelevant, but it has become enough of a force that media campaigns should have an Internet component. Moreover, traditional media should take a lesson from the 2007 Doritos “Crash the Super Bowl” contest and learn how to integrate this new format with their own.

Facebook Applications

Sports marketers use the popular networking site, Facebook, to promote events, market leagues, advertise media outlets, and generate excitement about sports properties. And while not all sports entities have created a presence on Facebook, those that have can claim real results for a minimal investment.

CBSSports.com has recently created the Official Tournament Brackets application. Roughly 500,000 users have uploaded this app, and most days nearly 5,000 of those users open the application to play around with it. This particular application lets users create a NCAA basketball tournament bracket, register themselves as fans of particular teams, and compare brackets against friends and other users for a chance to win $10,000.

Sports Illustrated has created a more modest application with roughly 10% as many users as the CBS sports app, which allows the user to choose favorite teams from the “Big Four” leagues plus NCAA basketball and football. It then spits out customized SI headlines for those teams.

A third, less-known company, Citizen Sports Network, has created dozens (possibly hundreds) of Facebook applications targeted uniquely to fans. Each page is a forum for fans of a team to congregate, discuss, and cheer with fellow supporters. Citizen Sports Network has highly-downloaded and viewed applications, with names like “Red Sox Nation” and “England Football.”

Many sports properties, such as Nike, haven’t necessarily created their own Facebook applications, yet still maintain a Facebook presence. A search for Nike applications, for example, yields a “Nike+ Running Monitor” app that lets users share Nike+ running progress with friends, and a few other applications designed independently from the company. Searches for “adidas” and “nfl” yield similar results.

Other sports properties have reserved the use of their name in the same way that someone might buy a domain name for future use. The difference with Facebook is that application names are free and must be at least 7 characters (thus “nike” would be unacceptable, but “niketennis” would work). Callaway Golf has reserved their name without actually creating an application, as have EA Sports and adidas. However, some companies have clearly failed to reserve the use of their names, as “IMGWorld” and “Daktronics” are still available for anyone to snatch up.

I reserved the use of some excellent application names that might someday have value just as domain names in the early 21st century came to be valuable. Perhaps years from now “icehockey,” “softball,” and “wrestling” will all be worth hundreds or even thousands of dollars. And even if these names aren’t worth anything, it seems prudent for any corporation to grab up their own name. I just registered “NorthFace” and it didn’t cost me a penny.

Accepted to the UO Sports Marketing MBA program

Today I was accepted to the University of Oregon Warsaw Sports Marketing Center’s MBA program, class of 2010. The Sports Marketing program at the U of O places graduates in sports leagues, sports franchises, sports media, and sports products companies. Nike hires more UO MBA graduates than any other company, and more UO MBAs intern at Nike than at any other company. Other top firms to hire UO Sports Marketing MBA graduates include adidas North America, the NBA, the WNBA, the NFL, Visa, Octagon, Wieden + Kennedy, Columbia Sportswear, and many more.

Warsaw Guest Speakers

The sports marketing program at the University of Oregon had a strong group of guest speakers this winter. Below is a list of the industry professionals who recently shared their insights with students. Source: Lundquist College of Business biannual magazine, Business. (Volume 5, Number 11, Winter 2008)

Rick Alessandri, ESPN

Grant Armbruster, Columbia Sportswear Company

Marc Badain, Oakland Raiders

David Baker, Arena Football League

Scott Bedbury, Brandstream

Jeff Benjamin, Printroom.com

Malcolm Bordelon, San Jose Sharks

Renee Brown, WNBA

Carter Carnegie, National Thoroughbred Racing Association

Arjun Chowdri, Genesco, Inc

Michelle Collins, IMG

Ron Coverson, Stanford Athletics

Bob Cramer, Genesco, Inc

Jarrod Dillon, Oakland Raiders

Andy Dolich, Memphis Grizzlies

Kelly Dredge, IMG

Jarrett Dube, ESPN Andrew Fink, NFL

Evan Frankel, NASCAR, Inc.

Tom Fritz, Marmot Mountain, LLC

Mary Pat Gillin, NBA

David Haney, Arena Football League

Chris Heck, NBA

Stephanie Heidrich, Columbia Sportswear Company

Mike Herst, Electronic Arts, Inc.

Calen Higgins, Columbia Sportswear Company

Heather Higgins, National Thoroughbred Racing Association

Gregory C. Houser, Marmot Mountain, LLC

Stu Jackson, NBA

Akash Jain, NBA

Brian Jennings, NHL

Ilana Kloss, World Team Tennis

Katie Lacey, ESPN

Amy Lasky, National Thoroughbred Racing Association

Michael Leming, Nike, Inc.

Dana Lent, NASCAR, Inc.

Hunter Lochmann, New York Knicks

Mike Lopono, Arena Football League

Marc, Lowitz, Arena Football League

Julie Malmberg, Nike, Inc.

Mark Martin, Marmot Mountain, LLC

Donovan Mattole, Nautilus, Inc.

Chris McCloskey, Arena Football League

Tom McDonald, San Francisco Giants

David Murrell, Columbia Sportswear Company

Darrin Nelson, Stanford Athletics

Kim Nelson, Nike, Inc.

Jim Noel, ESPN

Jolynn Ovington, nau inc.

Steve Patterson, Portland Trailblazers

Andi Poch, WNBA

Jeff Price, Sports Illustrated

Craig Purcell, Oakland Raiders

Dan Reed, NBA

Andrew Rentmeester, Oakland Raiders

Michael Rooney, ESPN

Peter Rotondo, Jr., National Thoroughbred Racing Association

Peter Rotondo, Sr., National Thoroughbred Racing Association

Robert Rowell, Golden State Warriors

Jennifer Rowland, Visa International

Norris Scott, NASCAR, Inc.

Adam Silver, NBA

David Stern, NBA

Jimmy Su, NBA

Aaron Taylor, ESPN Bob Thompson, Fox Sports

Gary Treagen, Electronic Arts Inc.

Donna Tripiano, IMG

Jeff Tucker, San Francisco Giants

Jim Tucker, NASCAR, Inc.

Steve Tseng, IMG

Heidi Ueberroth, NBA

Matthieu Van Veen, NBA

Ted Van Zelst, NASCAR, Inc.

Tyler Vaught, Electronic Arts Inc.

Pamela White, National Thoroughbred Racing Association

Promotional Products Association International Expo

Last week I attended the Promotional Products Association International (PPAI) expo in Las Vegas. More than 14,000 promotional consultants showed up to the expo at the Mandalay Bay Convention Center, where they walked the 1.1 million square feet of exhibition space in search of products for their corporate clients.Sports products made up a large percentage of the promotional products available. From footballs with space for a company logo, to specialty water bottles, to name-brand golf equipment, the convention was filled with sports merchandise.I went around to some of the more prominent booths (Nike Golf, Augusta Sportswear, Spalding, etc) and to booths belonging to less established exhibitors, to ask them about the challenges of marketing a sports product. The responses were varied. Some spokespeople claimed they had no difficulties because their’s was such a great product. Others didn’t see their industry as the sports industry but rather the promotional products industry—as though selling an imprinted jersey was the same as an imprinted book or coffee mug. Still, I got some honest and interesting answers, shared below.“The most challenging part is reaching the right audience. We do team sports and corporate uniforms, so the challenge is not losing each side.”

-Doug Massong, Augusta Sportswear

“My biggest challenge is the constant price increase in urethane foam.”
-Tom Teach, Quality Foam Designs

“We’ve needed to differentiate our product. Everybody knows about these sticks [holding up a pair of thunder sticks]. We make ours out of beach ball material so you can inflate these and reuse them.”
-Terry Brizz, Galaxy Balloons

“We sometimes have trouble with big companies because they may only have a few preferred customers. We’d like to communicate directly to them, but we can’t.”
-Bob Nowak, Spalding