Portland Digital Marketing

Check out my latest blogging adventure: A digital marketing blog for professionals.

Here are some of the online marketing topics I cover:

• Mobile Marketing

• Web Analytics, Metrics & Tracking

• Digital Strategy

• PPC & Online Advertising

• Search Engine Marketing

• Site Architecture & Navigation

• Marketing Automation

• Email Marketing

• Social Media Marketing

• Online Lead Generation

• Project Management

• Product & Brand Marketing

• Online Campaign Management

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.

Facebook Best Practices

Since the inception of the new Facebook layout in March, 2009, company best practices for using Facebook have changed. Now, the site is dramatically less reliant on independently-developed applications and much more focused on fan pages. The following are company best practices, mostly from outside of the sports property sphere, for developing a fan page.

Integrate other platforms. On the “Year One” page, fans have the option to play “Rock, Paper, Spear,” a clever game that redirects fans to YouTube. After a quick video that ties in the new Year One movie with a humorous version of rock, paper, scissors, fans play a two-round game of rock, paper, spear with a tribal warrior. The video then directs viewers to watch the movie trailer.

Converse with fans. The Disney fan page is a leader in this practice. With increasing frequency, the Disney asks its fans questions to create a conversation. After Disney recently asked, “Who is your favorite Disney couple?” 1,294 fans posted comments in the first two weeks. Talk about engagement.

Another way to engage with fans is through the “reviews” feature on the Facebook fans page. Several brands make excellent use of this feature, such as EA Sports in its FIFA 09 page. Here, fans have free rein to post unfiltered opinions about the game, some of which are vulgar, others unfavorable, but most of which are overwhelmingly positive.

Get and use feedback. In a recent conversation with Pat Coyle, former Executive Director of Digital Business with the Indianapolis Colts, I asked haw the Colts get feedback. A major source of feedback is forum threads about marketing issues or emotional topics, which they use in various ways.

Use Flash. Fox news goes a little overboard with its Flash games, but is a good fan page to look at to see the different applications of this tool. Here, Fox News has a “Fox News Flair” Flash widget that lets fans send buttons of their favorite conservative pundit, a “360 degree studio tour” that lets news junkies get a view of the inside of three studios and the Green Room, a Flash tile game, a “Fun Facts” widget for fans to learn more about these TV personalities, and a shop that allows fans to buy trinkets like hats and mugs.

Post events. Barack Obama used social media as a successful campaign tool, on the way garnering more than 6 million Facebook fans. Part of his success came from keeping his events calendar stocked with upcoming meetings, rallies, and speeches.

Create albums. Just like individuals, brands are starting to create photo albums. A classic example of this is the Coca-Cola page. Here, Coca-Cola has 11 different albums with hundreds of photos, in categories like “Coke is Everywhere,” showing cans from around the world, and “Coca-Cola Archives,” displaying vintage advertisements. The site also allows fans to post Coke-related photos, which has led to more than 1,300 pictures of fans engaged with the brand.

Social Media Podcast

On Friday, I interviewed four top sports business managers about their use of social media as a branding tool. We talked about how their companies use social media, platforms of interest, and the future of online communities.


Jason Mucher, Communications Manager at USA Triathlon
Ryan Stephens, Social Media Analyst at Sports Media Challenge
Bryan Srabian, Vice President of Marketing at Sacramento River Cats
Andy Rentmeester, Director of Relationship & Strategic Marketing at Oakland Raiders

Online Branding with Ning

Four days ago, Ning celebrated the one millionth social network created on its platform. The site, which allows individuals to create their own social networking sites, has amassed 22 million users (six million active users) in just two years, and yet few online brand managers even seem to know it exists.

How has this little-publicized startup reached so many people so quickly? CEO Gina Bianchini contends that no one else is thinking about people with a focus on passions. Ning, however, is all about encouraging users to congregate around their interests. Because of this highly-niche grouping, Ning is an ideal tool for online brand managers to create conversations or add to discussions.

There are a number of cases that brand managers should look at for best practices.

Adidas, for example, created a human resources site on Ning just a couple of months ago. Already, the site is an enormous success: 3,600 members from across the globe, more than 50 blogs, forums, and discussion about how to make adidas a better place to work.

Pat Coyle, online sports marketer extraordinaire, built a Ning site to helps industry members network. Sports businesspeople assemble themselves into subgroups (team marketing, sponsorship, collegiate marketing & NCAA, among others) to share ideas, discuss events, and talk about industry trends.

Ning is simple to set up, but also allows network administrators to customize their offerings. Kicks on Fire is currently running a contest, for example, where members who reTweet their message can win a pair of Nike Air Yeezys. UFC fighter BJ Penn has a shop to sell apparel to his 81,000 members and fans, while Veloist lets users map and share bike routes.

Ning is far from a perfect solution. Here are a few of the issues brand managers face when considering whether to start a site.

1. Spammers. Many sites quickly get bombarded by users trying to push a product or service that has no place on your site. Ning doesn’t offer flagging or similarly helpful anti-spamming measures, so administrators often spend too much time cleaning forums and blocking offenders.

2. Brand control. Ning is a great way to offer a voice to niche fans, but online brand managers should carefully consider whether the goals of the organization could be better met through a company Web site. A brand gives up a certain amount of control in exchange for the ease-of-use Ning provides.

3. Generic features. While Ning lets administrators create their own features or choose from preset forms, the look and feel of a Ning site is as generic as a MySpace page. Sure, you can upload a unique background, but Ning sites generally have few feature distinctions that brands might want to set themselves apart.

Twitter Best Practices

I recently had a conversation with a senior executive at an NBA franchise that opened my eyes to how much corporate leaders distrust Twitter. There is a commonly-held view that Twitter is populated by ego-driven geeks who drone on about what they had for breakfast. While there is certainly some of this, brand managers should also be aware that Twitter is filled with millions of users who are talking right now about their needs, their likes & dislikes, and about your brand.

Hundreds of companies are using Twitter to successfully promote their brands and engage with customers. Here are six best practices for Twitter:

1. Provide customer care and feedback. This is the most talked about brand management tool available on Twitter. Ford, JetBlue, and ComCast all put tremendous effort into responding to customer complaints, praise, and questions. By using the search function on Twitter or more advanced listening tools, brands can immediately redirect frustrated customers toward the help they need, often turning a bad experience into a positive one.

2. Engage your audience. Customers want to feel like they have a voice. Starbucks asks its followers to come up with new ideas, EA asks its gamers what they’re playing now, and 10 Downing Street (Tweets from the Prime Minister’s office) asks followers to throw questions out via YouTube.

3. Start a conversation. Whether it’s Al Gore reflecting on the market for electric cars in China or John McCain lambasting the Wall Street bailout, Twitter is a public forum for conversation. Brand spokespeople can make use of this great feature, too, by authentically raising a concern or praising an achievement. It’s best if the achievement isn’t their own.

4. Learn about customer needs. Marcel LeBrun, CEO of Radian6, encourages companies to use Twitter to answer key questions about their customers. What other things (besides my product) are customers interested in? What are the most important subjects being talked about by people who use my product? Who are the key influencers?

By learning and listening, companies have the opportunity to meet their customers at a point of need. Most people won’t open an email coming from a lawn-care company, but are happy to listen to a pitch right after they complain about their brown grass.

5. Advertise an event or promotion. AdidasRunning promotes running events around the world, Powell’s Books lets readers know when an author is coming to Portland, and Samsung pushes cell phone deals and giveaways. All these companies are taking advantage of their large voice that comes with thousands of followers, brand loyalists, and industry influencers.

6. Be creative. Ashton Kutcher is quickly becoming best known for his Twitter personality, thanks in part to the gauntlet he dropped at the feet of Larry King and CNN to see who could be the first with 1,000,000 followers. EA has taken advantage of the media hoopla to offer Ashton’s 1,000,000th follower 10 EA games, and a role in the Sims 3. EA’s individual titles also creatively use Twitter to engage customers. Battlefield Heroes, for example, holds Twitter trivia contests and gives away swag to the winners. Great publicity, and a model for Twitter best practices.

@SamBoush

adidas House Party

In late November adidas Originals launched a marketing campaign called “House Party,” designed to garner attention for the 60th anniversary of the brand. While the campaign includes live events, real house parties, commercials, and other media buys, House Party has enjoyed its largest successes in the digital sphere, where the campaign attracts viewers on YouTube, Facebook, and on the adidas corporate Web site.


In the House Party video—the focal point of the campaign—celebrities (Young Jeezy, David Beckham, Kevin Garnett, The Ting Tings, and others), as well as hundreds of good-looking young people, congregate at an urban house party where they skateboard inside, paint on the walls, and dive fully-clothed into a backyard pool—all-the-while conspicuously sporting the three stripes and adidas Originals logo.

Response to the campaign has been overwhelmingly positive. The YouTube video has 830,000 views to date, the adidas Originals Web site continues to hawk online spin-offs of the campaign (like The Ting Tings paint party), and the adidas Originals Facebook page (with more than 1.5 million fans) threw a house party for a lucky fan.

The important question to consider, though, is whether adidas loyalists have found the campaign authentic enough. While Adrants.com called House Party “an ego-fueled, self-indulgent, hipsteresque, celebu-fest,” most blogs have been on fire with praise for the campaign, and one TV station even created a knockoff of the ad to promote The Simpsons. It’s clear from a look at the online chatter over the campaign, that the vast majority of online creators, critics, and collectors agree with themusingsofondolady.blogspot.com that House Party’s use of skateboarders, hip hop, motorbikes, and graffiti all contribute to the authenticity of the campaign.

While the most successful attribute of the campaign is authenticity to the brand and to brand loyalists, the campaign didn’t take full advantage of the Web’s most fascinating feature: user-generated content. House Party is hugely successful in a Web 1.0 world, where adidas has pushed excellent content on the consumer. On the adidas Originals Web site, viewers can even get more in-depth in the house party by choosing a room they’d like to see more of—the living room, for example—and can witness more footage of people drinking, dancing, playing poker, and painting on the living room walls.

However, nothing put forward by the campaign allows users to interact on a more personal level, or create their own content. Wouldn’t it be a more successful campaign if users were uploading their own house party videos, using social network to create a virtual house party, or pulling content onto their own sites?

Moving forward, adidas might consider revising their campaign to make full use of the following online tools:

1. Twitter. Adidas Originals has 108 followers of their Twitter profile. So few because there are zero Tweets coming from adidas Originals. Adidas could quickly start a conversation (and, more importantly, be a part of a conversation) by updating their fans and asking questions of the roughly 8 million people who use Twitter. It’s a small number, relative to Facebook, but Twitter caters to early adopters, young people, and those who like to be on the cutting edge: just the demographics adidas Originals would like to target.

2. Content sharing on the corporate Web site. Adidas should encourage their fans to use House Party to create something original of their own. To do this, adidas could allow fans to download:

• Art assets including concept art & hi-res logos
• Site design elements including borders, backgrounds, fonts, and stylesheets
• Exclusive content: Forum avatars / Messenger images

3. Ning. Why not create an online House Party? Ning allows users to create their own social networking site, which would be the perfect tool for adidas to create an invite-only virtual gathering, where invitees could invite friends, who could invite friends, who could invite friends… just like a real house party.

Interested in learning more about sports business? You might be interested in The Business of Sports, Second Edition.

Sports that Tweet

The hottest new Web 2.0 site isn’t really that new at all. Twitter—the subject of recent adulation from The New York Times, Wall Street Journal, LA Times and more—started as former Blogger creator Jack Dorsey’s side project in March 2006. Now this stripped-down, not-for-profit social networking site has an avid group of followers, estimated at around 7 million. Not so much compared with Facebook’s 132 million unique users, or Myspace’s 117 million users, but a rapidly-growing vanguard of early adopters that Web 2.0-savvy sports properties shouldn’t overlook.

So far, an impressive collection of sports apparel manufacturers, teams, sports media, and athletes have staked out virtual territories on Twitter. The NFL has 600 followers (and no posts), while ESPN has 36,000 followers and Lance Armstrong has 150,000 followers.

Among sports video games, EA Sports has some of the best content. About two dozen employees, developers, producers, and community managers actively tweet, including Will Kinsler (Raczilla), who has 1,300 eyes reading his Madden and NCAA series posts. Sports game publishers Activision, 2K Sports, SEGA, and Sony Computer Entertainment also have Twitter accounts.

At minimum, a Twitter presence can help communicate with customers and fans. At best, Twitter can build a brand by engaging a pre-segmented market of tech-hungry loyalists, sharing insights into upcoming products, pointing fans to a Web site or other forum, and relating with consumers in a non-corporate setting.

The white hot risk with Twitter seems clear, though. Even at 7 or 8 million unique users, Twitter has a lot of catching up to do before it can compete with its larger Web 2.0 kin, let alone traditional media giants. But, like Ray Kinsella in Field of Dreams, many companies are betting that if they build it, fans will come.

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.

Sponsorship Overview

My previous sports marketing terminology post covered some basic definitions of everything from affect transfer to the seven mechanisms of influence in sports sponsorship. This post, while still a cursory glance at sponsorship, lists some principle reasons why companies sponsor teams and events, criteria for choosing what to sponsor, and marketing strategies to pursue in conjunction with sponsorship.

Reasons for sports sponsorship:
· Strengthen customer relationships
· Acquire new customers
· Portray brand as unique or differentiated, relevant, active, relatable, or similarly related to the company value proposition
· Generate advocacy on a targeted tier of the consumer spending pyramid
· Provide incentives for retail distribution channels
· Create awareness and acceptance
· Correlate brand with goodwill and positive emotions of event

Sponsorship criteria:
1. Brand fit
2. Interest
3. Reach
4. Event credibility
5. Risk
6. Activation & implementation difficulty
7. Control by governing body

Integrated Marketing
1. Central marketing theme
2. Member programs
3. Merchant programs
4. Advertising
5. Promotions
6. PR
7. Athlete relations
8. Partner (team/host city/event) presence
9. Onsite activation

Competition Between "Traditional" and "Extreme" Sports

According to a recent SGMA International survey, the popularity of some extreme sports is much higher than many traditional sports. To compete with these adrenaline-sports and stay relevant to young fans, a traditional sports league’s general strategy should be to create a more exhilarant experience. The league should add visual appeal, integrate youth interests and youth brands, and create “extras.”

Many adventure sports—such as surf competitions, snow boarding, and mountain biking—are geared toward television audiences, since watching these events in a stadium setting is difficult. To compete for television viewers, a league should ramp up the visual thrills of its sport. On-screen score boxes with cartoons can add excitement, while virtual confetti and animated dueling robots are more likely to keep young people interested and engaged.

Visual appeal is not limited to television audiences. In-stadium, a sports league can create thrills by adding special-effects lighting, improved sound systems, and video boards in high-definition. The new cricket league, Twenty20, has gone further, changing uniforms, adding firework displays to the stadium experience, and dressing cheerleaders in sports bras.

Beyond visual appeal, a sports league needs to integrate youth interests and brands to compete against adrenaline-sports. By creating a presence on the Internet or in the world of video games that allows for a high level of interaction, leagues can construct a social milieu that appeals to a media-savvy generation while also branding their sport as “cool.” The NBA’s creation of a headquarters in Second Life is just one example of how a league can use online communities to generate interest.

And, although it’s understandable why some leagues choose large, unglamorous corporate sponsors (i.e. the NHL and Scotiabank, and MLB and Bank of America) these sponsors can put off young viewers. Better sponsorship choices include Sony Playstation and Mountain Dew: the sponsors of kiteboarding, wakeskating, longboarding, and other non-traditional sports.

Finally, adrenaline sports often emphasize style over statistics. For that reason, it’s important for a league to adopt events, stunts, or individual performances outside the scope of regular competition. Consider the slam dunk contest: this NBA competition allows participants a forum for individuality and style. It also appeals to a basketball subculture by showcasing moves and behavior not generally seen on the court. Similarly, all-star games, three-point contests, and field-goal competitions highlight the individual athlete over the team and can help leagues compete with sports that rely on freestyle play, tricks, and an alternative image.

Though a traditional league would benefit from a more exciting and relevant fan experience, it should be wary of upsetting fans who rely on the sport’s history and traditions. To avoid becoming another XFL, a league should court youth viewers without resorting to major format shifts, gratuitous behavior, or iconoclastic rule changes. If a traditional league can adapt to changing interests and technologies without isolating its core fan base, the league can compete with adrenaline-sports and stay relevant to a new generation.

[This post derives from my entrance essay to the Warsaw MBA program, originally written September 2007.]

Sports Book Trailers

So many of the videos seen on the Internet are those viral videos with funny cats or Saturday Night Live clips that people share over email or IM. But for those of us who want to use Internet videos for promotions, the Internet is becoming a friendlier place to raise awareness using the important video medium.



I made the above video for a book about football in Alaska. It took only a couple of hours using the Ken Burns effect on iMovie, the simplest video editing program I know of.

Facebook App -- Fan Page

The Facebook App I wrote about last time is working and in full-gear. Every day roughly 40 new users upload the application to track their favorite Olympic sports. Unfortunately, the application usage has grown linearly, rather than exponentially as we'd hoped, but there are some bright spots.

One of these bright spots is the fan page. Every application has a fan page--those users who are so pleased with the application that they become "fans." Usually this is a relatively minor percentage of overall users. For example, the Michigan St. Football Application has more than 6,000 users, but only 150 fans. Our Olympic Games 2008 application has only 200 users so far, but 44 fans.

Facebook, for all its flaws, allows for some pretty neat data collection. The fan page enables us to run numbers on even a relatively modest sample size, and to come up with some neat findings.

The table to the left, for example, shows the gender and age range of the fans page. It's startling to see that more of our Olympic Games Application fans are women rather than men. And, looking at the ages, 40% are minors.

It would be interesting to compare these numbers with Facebook's overall demographics or the Neilsen rating demographics for the Beijing Olympics on NBC. My guess is these numbers are much closer to the former group than the latter.

In an unrelated surprise: the 44 fans of the application aren't just Americans. There are users from Switzerland, New Zealand, China, Canada, Australia, Morocco, England, Lebanon, and elsewhere.

Olympics Facebook Application

I'm happy to announce that the Facebook application I created (with George Mandis of Snaptortoise) is now up-and-running.

Olympic Games 2008 is a fun way to track medal standings by country, rank, or event. And though we don't have high usage numbers yet, this project has taught me a lot about the opportunities and challenges surrounding the promotion of a Facebook application. I've put links on content-sharing sites like Digg and Reddit, posted on group forums like Yahoo groups and Tribe, and mentioned it on StumbleUpon. So far, my best luck has come directly from Facebook, where friends and friends-of-friends have helped our little sports app take off.

The best part of this experiment has been what I've learned about running a project that unfolds in real time. If Uzbekistan gets a medal and we don't have a flag ready for that country, or there's a tie for bronze, we need to adapt quickly or lose viewers.

The hardest part of this project has been entering in stats for each event. Was there a way to automate this? Next time I'm looking for an open source data feed.

Sports Terminology

Below is a compilation of sports business terminology.

Activation – The act of leveraging sponsorship to augment the impact on the target audience. For example, during Visa's recent sponsorship of the Olympic Games they spent $3 to $4 on marketing for every dollar spent on acquiring sponsorship rights (not including media buy).

Affect Transfer in Sponsorship – A non-conscious connection in which positive feelings for a sporting event or property transfers to a brand. For example, "I love the NFL so I love Pepsi." (The second mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Affiliation in Sponsorship – Consumers define themselves in part by their memberships and affiliations to various social groups, so highly identified fans see themselves as "members" of the team and act in ways to support the team. (The fourth mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Ambush Marketing – A marketing campaign by an organization with the goal of associating themselves indirectly with a sports event in order to gain the recognition and benefits associated with being an official sponsor (Sandler & Shani, 1989). An example of ambush marketing took place in the 2000 Sydney Olympics when Qantas Airlines used the slogan, "The Spirit of Australia" in imitation of the games’ slogan "Share the Spirit," despite Ansett Air being the official sponsor.

BIRGing – Basking In Reflected Glory. When a fan takes credit for a team’s success.

Blasting – A defensive mechanism similar to CORFing wherein a fan will attribute negative characteristics to the opposition. For example, after a loss to the Pistons, a Blazer’s fan might say, “The Pistons are from dilapidated Detroit, whereas the Blazers (and I) are from progressive Portland.”

Branding – The effort of distinguishing one product or service from a competitor’s product or service. Factors of branding include Brand Awareness (getting customers to recognize your sport product), Brand Image (building a customer’s belief in the product), Brand Equity (the value the brand adds), and Brand Loyalty (consistent preference of a brand).

Communication Communities in Sports – A segmentation of those who watch sports. The three Communication Communities proposed by Shoham & Kahle (1996) breaks the market into three groups:

1. Those who watch live sporting events (spectators)


2. Those who watch sports on TV (viewers)


3. Those who read about sports (readers)

Consumption Communities in Sports – A segmentation of those who participate in sports. The three consumption communities proposed by Shoham & Kahle (1996) breaks the market into three groups:

1. Those who participate in competitive sports


2. Those who participate in fitness sports


3. Those who participate in nature sports

CORFing – Cutting Off Respective Failure. When a fan distances himself from his team’s failure or loss.

Endorsement – The use of a (sports) celebrity’s name, likeness, or autograph in connection with the sale or promotion of a product or service. Fans might chose to buy the product in order to emulate the celebrity, in what is sometimes called “image transfer.” (Gardiner, 2006)

Event Management – The planning, organization, delivering, and management of an event. Typical tasks include management of ticket sales, sponsors, performers, permits, promotions, and budgets.

Experiential Consumption – When the consumer takes on an active role in the production and delivery of the consumption experience. Sports spectators are often active in their consumption of their experience, such as those who feel drained after watching a game or match. (Morgan & Summers, 2005)

Extreme Sports – Also called “Adrenaline Sports,” “Action Sports,” and “Adventure Sports,” these are sports with a perceived level of danger that often focus on performing tricks or stunts, and which are geared toward the individual rather than a team. The adherents of Extreme Sports are perceived to reject traditional marketing approaches. The X Games and Gravity Games are both examples of multi-sport events that feature extreme sports.

Fan Equity – What a fan believes he deserves for his loyalty. Also, the emotional bond that links a fan to a team. (McDonald & Milne, 1999)

Image Transfer in Sponsorship – The abstract beliefs about a property that transfer to a sponsor. An example of this is when a consumer feels that the personality of a brand takes on the personality of a property—as in Ironman watches (brand) taking on the toughness of an Olympic decathlon (property). Moderating variables include degree of similarity, level of sponsorship, event frequency, and product involvement. (The third mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Implied Endorsement in Sponsorship – This mechanism requires the consumer to infer that the property is somehow endorsing the brand. Athletes are a primary example of this, as in: "If Greg Oden is wearing those shoes then I'll jump higher if I wear them too." (The sixth mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Implied Size in Sponsorship – The perceived size of an event selected for sponsorship is a signal of the company's financial strength. Implied size acts as a heuristic (mental shortcut) similar to "price equals quality." (The fifth mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Licensing – The method of exploiting intellectual property by transferring the rights of use to a third party without the transfer of ownership. In sports this often means the use of a logo or trademark on merchandise, such as the use of a team-specific logo on a credit card.

Marketing Sports – Marketing a sports good or service directly to sports consumers. Selling tickets is a prime example of this.

Marketing Through Sports – Using a sports affiliation to market non-sport goods and services. Selling stadium naming rights is an example of this kind of marketing, and should not be confused with licensing.

Narrowcasting – Media messages directed at specific segments of the population defined by values, preferences, or demographics. Sports marketing strategists attempt to distinguish and separate the large groups of consumers that are brought together through sports.

Olympic Effect, The – An economic boom that affects the hosting city and country of the Olympic games. Examples of this include increased housing prices in London years before the 2012 games, and the creation of jobs brought on by the Beijing 2008 Olympics.

Parasitism in Sports – The act of taking advantage of another’s representation without authorization. For example, in 1977 the state of Delaware created a lottery based on the results of NFL games without permission from the league. (Moorman & Greenwell, 2005)

Primary Sports Roles – Those who participate in sports. (See Consumption Communities in Sports.) This is also called “direct involvement.”

Reciprocity in Sponsorship – The message of reciprocity is that the sponsor supports an event an individual consumer cares about, so the consumer will go out of his way to support the sponsor by purchasing the sponsor's product. (The seventh mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Relatedness in Sponsorship – The closer the relationship between properties and sponsoring companies, the easier it is for consumers to recall the sponsoring company's brand. For example, it is easier to remember that Speedo sponsored Olympic swimming than it would be to remember Coca Cola's sponsorship of the same property. (Pracejus, 2004)

Secondary Sports Roles – Those who act as listeners, readers, spectators, or viewers of sports. (See Communication Communities in Sports.) This is also called “indirect involvement.”

Seven Mechanisms of Influence in Sports Sponsorship – The seven mechanisms through which sponsorship can influence consumers. Proposed by John W. Pracejus, the mechanisms that sponsorship influences brand equity and brand positioning are, in order of cognitive elaboration needed: Simple Awareness, Affect Transfer, Image Transfer, Affiliation, Implied Size, Implied Endorsement, and Reciprocity. (Pracejus, 2004)

Simple Awareness in Sponsorship – The awareness of a brand's existence, or initial exposure to a brand. (The first mechanism of influence in sports sponsorship.) (Pracejus, 2004)

Sponsorship – A deal under which a sponsor pays a sport entity (athlete, event, league, or team) to promote the sponsor’s product or organization. The sport entity also often delivers advertising space and some level of exclusivity. (Andreff & Szymanski, 2006)

Sponsorship Recall – The recognition of a company's role as a sponsor. In a practical application: a non-leading brand must be prepared to spend more money than a leading brand to achieve high sponsorship recall. (Pracejus, 2004)

Works Cited

Andreff, W. & Szymanski, S. “Sponsorship, in Handbook on the Economics of Sport.” Edward Elgar Publishing, 2006. p 49.

Gardiner, S. “Sports Law.” Routledge Cavendish, 2006. p 433.

McDonald, M.A. & Milne, G.A. “Cases in Sports Marketing.” Jones & Bartlett Publishers, 1999. p 6.

Moorman, A. M. & Greenwell, T. C. “An examination of consumer perceptions of ambush marketing practices.” Journal of Legal Aspects of Sport, 2005. p 191.

Morgan, M..J.J & Summers, J. “Sports Marketing.” Thomson Learning Nelson, 2005. p 16.

Sandler, D.M. & Shani, D. “Olympic Sponsorship vs. ‘Ambush’ Marketing: who gets the Gold.” Journal of Advertising Research, August/September 1989, Cambridge University Press. p 9.

Pracejus, J. Edited by Kahle, L.R. & Riley, C. “Sports Marketing and the Psychology of Marketing Communication.” Lawrence Erlbaum Associates, 2004. p 175-186.

Works Consulted

Kobel, P. “International Report on Question B : Ambush Marketing Too Smart to Be Good ? Should Certain Ambush Marketing Practices Be Declared Illegal and If Yes, Which Ones and Under What Conditions?” International League of Competition Law. Accessed January 3, 2008.

The Top-Paid US athletes

Sports Illustrated released its annual listing of top-paid athletes today. For some, the findings are no surprise. For example, Tiger Woods holds on to the top spot, raking in more money than Phil Mickelson, LeBron James, and Floyd Mayweather Jr (ranked second, third, and fourth) combined. Also, NBA players made up 26 of the top earners (counting Amaré Stoudemire who was mistakenly listed as a baseball player).

However, the data leads to some interesting findings. Here are three observations:

The difference between low salary and high salary was small ($24.7 million, with a mean average of about $16.1 million and a standard deviation of $5.1 million) compared to the differences between endorsements (with a range of $104.9 million, a mean average of about $9 million and a standard deviation of $16.8 million). So while these top athletes’ salaries are relatively uniform, the amount of endorsement money they get is not.

This is illustrated more clearly in the following table.

The range in players’ endorsement money isn’t that surprising. What is more interesting is the relationship between race and endorsement. In a 1996 New York Times article David Falk, Michael Jordan’s agent, said “Very few companies call for athletes, and even fewer call for black athletes.” To see if that still held true, I divided the top 50 earners into two categories: Caucasian in appearance or not Caucasian (the second category includes Hispanic athletes like Alex Rodriguez). What I found was good news for those of us who hope for racial equality in sports: the mean salary for the Caucasian group was smaller than that of the non-Caucasian group. ($8.7 million vs $9.2 million). Moreover, when the top-sponsored athlete was removed from each category (Tiger Woods and Phil Mickelson) the sponsorship dollars still favored the non-Caucasian group ($5.9 million vs $6.1 million).

The above numbers seem to show that the business of sports has lost some of its racial baggage, since endorsements and salaries are higher for non-Caucasian athletes. But that’s not the whole story. If we start with the premise that salaries are a good indication of a player’s worth to a team, at least within his league (and I use “his” because a woman hasn’t yet broken the top 50 mark for earnings), then it should follow that the more talented athletes should rake in the greater share of endorsement dollars. But a closer look at the numbers shows that Caucasian and light-skinned athletes make more sponsorship money as a ratio of their salaries than non-Caucasians. Just look at the chart.

The ratio here is endorsements/salary, so a higher ratio indicates a greater amount of endorsement money over salary money. What we see is that, on average, a greater percentage of the Caucasian group’s total earnings come from endorsements. For an example of this, take two NBA players: Jason Kidd (white) and Jermaine O'Neal (black). Both make an identical salary, yet Kidd pulls in exactly twice as much money in endorsements.

Fifty data points is still a relatively small sample size, and the salary indicators point to an equal playing field, but these numbers should be a reminder to sponsors who use athletes in their marketing that the disparities that David Falk bemoaned may not have disappeared.

Negotiation Tips from a Sports Agent

Last week I sat down with a sports agent who represents top-level players from the NFL, NBA and MLB. In the midst of our conversation, he shared some outstanding tips on how to score big for a client, while also maintaining the personal relationships with leagues and owners that buttress his reputation.

1) Be prepared. “I happen to be in a business where you can persuade people. To do it right, we out-prepare anyone.”

2) Control as many aspects of the negotiation as you can. “Sometimes it’s just me, one-on-one at dinner. Sometimes I come with multiple people, guns blazing. You have to know who you’re dealing with and leverage the situation to your advantage.”

3) Know the other side’s priorities. “Lots of times, it’s cash. If you can give a little in one area, you can almost always gain a lot in another.”

4) Use time zones to your advantage. “If we’re on the West Coast talking to guys out East, we start late, order a pizza at 7 p.m., and beat the stamina out of ‘em. On the East Coast calling West, it’s all about the early morning negotiations.”

5) Know your opponent. “For a new negotiator, I’ll get them comfortable, bring them into my office, have my dog nuzzle up.”

6) Make them feel good in the end. “Let the other side win on the last point. You can kill ‘em in the war, let ‘em win the last battle.”

Interview with Ransu Salovaara

Last week I asked a emailed a few questions to Ransu Salovaara, CEO of Sportsyndicator Ltd., an online advertising company focused on sports sites. Mr. Salovaara was kind enough to share some of his insights on the convergence of sports and the Internet.

Q. How can sports properties benefit from the world of Web 2.0?

A. People spend significant amounts of time on sports Web sites and are therefore easy to reach with online advertising. Moreover, these interactions are totally measurable. In regards to sports, the Web has surpassed the print medium as the number one content resource. So, with Web 2.0, sports brands can create services that truly engage customers and attract them to brands. A good example of this is Nikeplus.com, which is a great way to measure and share content – specifically running information.

Q. What do you think will be the most significant change in sports advertising in 2008? In the next 5 years?

A. I see three major changes:

1. Print will die. Already we’re seeing a decline in youth magazines, like those aimed at snowboarders and skiers. Young guys don’t see a reason to buy magazines anymore since the Web is full of info, videos, and other content that appeals to them. I’m sure that outdoor, golf and running titles will soon follow as the active adult generation really picks up on the Internet as a place for news, tips and community.

2. Videos on the Web will grow substantially in coming years and advertisers will find ways to get their messages in.

3. Mobile advertising will take off. This still might be a couple years away, but mobile ads are definitely coming. Now that iPhone has opened its platform to developers, it’s easy to see how resort guides, how-to tips, etc. will work on mobile phones.


Q. What niche sports audiences are the most difficult for advertisers to reach? Why?
A. There are really no hard ones, since everyone is on the Web nowadays. However, high net-worth golfers are probably the toughest as these professionals don’t surf around the “cool” Web sites like snowboarders do.

Local audiences are also tricky. Mastering "the long tail" of sports advertising so that we can target our campaigns to a specific sport and city will be crucial for many advertisers.

Q. In terms of originality and cutting-edge content, what do you think are the top sports Web sites in Europe and the US?

A. Pinkbike.com is a great example of a cool niche site that caters to free-ride mountain bikers and has 40 million page views and 400,000 unique visitors every month. Every day people upload more than 1,000 mountain biking pictures to the service. Pinkbike is from Canada but it has a global audience as is one of the most popular sports sites some European countries.

Another great site is Newschoolers.com, a freesskiing site from California. The site has more than 100,000 registered users and is considered the Facebook of skiers.

(Mr. Salovaara’s responses have been edited for clarity.)

Top Sports Sites

Sports is big business. According to some estimates the industry rakes in around $213 billion/year. Just a fraction of that comes from the Internet ($239.1 million, according to The Sports Business Journal), so it comes as no surprise that only three of the top 100 most viewed sites in the US are devoted to sports.

ESPN Sportszone is ranked highest in this category, at 19^th overall, while NBA.com and Foxsports.com trail at 43^rd and 92^nd respectively. In China, an important emerging market for many sports properties, NBA.com is the highest-ranked sports site at 71^st place. In several European countries, Eurosport has top honors.

The graph above illustrates the disparity in overall page views for nba.com, espn.go.com, eurosport.fr and Foxsports.com.