repucom - unlocking sustainable growth

SPORTS SUMMIT 2016EVIDENCING IMPACT &

MEASURING DATA

UNLOCKING SUSTAINABLE GROWTHWORKSHOP 1:45PM

SIMON LONG, HEAD OF NEW BUSINESSSPENCER NOLAN, HEAD OF CONSULTING

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Who fancies a flutter?

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HOW CONFIDENT???

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Flying Winner

Ballymac Weeshie

Swift Jade

Sherries Boy

Glittering Aries

Vatican Fyne

OFFER = DOUBLE OR QUITS ON ALL DOGS

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MORE CONFIDENT???…

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Coral Regency Final – Grade 1 – 695m

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Ballymac WeeshieGrade - 1PB – 30 secsPreferred Distance – 750mLast Yr – 3rd Form - 321411

Flying WinnerGrade - 1PB – 29 secsPreferred Distance – 695mLast Yr – 1st

Form - 122112

Swift JadeGrade - 2PB – 43 secsPreferred Distance – 800mLast Yr – N/AForm - 666664

Sherries BoyGrade - 2PB – 36 secsPreferred Distance – 300mLast Yr – 4th Form - 124566

Glittering AriesGrade - 3PB – 50 secsPreferred Distance – 900mLast Yr – N/A Form - 444566

Vatican FyneGrade - 1PB – 30 secsPreferred Distance – 650mLast Yr – N/A Form - 124565

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PLACE YOUR BETS…

https://www.youtube.com/watch?v=mnGEiI7-hAk

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UNIQUE DATA AND INSIGHTS

WE DELIVER PROVEN ANALYSIS AND ADVISE UTILISING THE INDUSTRY’S MOST COMPREHENSIVE SOURCE OF MARKET DATA AND INSIGHTS.

THE LARGESTGLOBAL SOURCE

OF DATA AND INSIGHTS IN THE

INDUSTRY

500,000,000SOCIAL MEDIA POSTS[ TRACKED ANNUALLY ]

100,000 +SOCIAL MEDIA POSTS[ VALUED ]

100,000 +BRANDS

170,000SPONSORSHIP DEALS[ WITHIN OUR DATABASE ] 5,300,000 h

TV RECORDINGS[ PER YEAR ]1,100,000 +

INTERVIEWS[ PER YEAR ]

3,000 +FANS IN THE WORLDWE TALK TO EVERY DAY

50COUNTRIES FOR FAN &

INDUSTRY RESEARCH

20,000 +WEBSITES & ONLINE

[ PLATFORM AUDIENCES ]

6,000 +TV CHANNEL RATINGS

[ IN HOUSE ]

100 +COUNTRIES WITH TV

RATINGS AND ESTIMATES

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WE ARE THE PROVIDER OF CHOICE FOR OVER 1,700 OF THE TOP RIGHTS HOLDERS, BRANDS, MEDIA AND EVENTS WORLDWIDE.

TRUSTED ADVISOR AND PARTNER

FANSRIGHTS HOLDERSBRANDS MEDIA EVENTS

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DRIVING ENGAGEMENT

NURTURING TALENTED ATHLETES

INCREASING PARTICIPATION (youth, adult, disability)

ATTRACTING INVESTMENT

NATIONAL GOVERNING BODIES IN GENERAL FACE 4 KEY CHALLENGES…

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How are these groups being understood,

segmented and targeted to unlock

growth in engagement, participation and

performance?

ACTIVATORS(coaches/parents/

volunteers/teachers)

FOLLOWERS(attendees/viewers live

tv/digital/print/radio)PARTICIPANTS

(actively taking part in sport)

PLAYERS(professional/amateur level)

REPUCOM HAVE IDENTIFIED 4 KEY ENABLING GROUPS...

REPUCOM - CONNECTED SOLUTIONS FOR NATIONAL GOVERNING BODIES

MEASURING PERFORMANCE & VALUE» UNDERSTANDING AND

MEASURING VALUE» PARTNER SATISFACTION

TRENDS IN SPORT» EVOLVING TRENDS

OPTIMISING & MONETISING YOUR ASSETS» AUDITING INVENTORY» MEDIA CONTENTS, RIGHTS AND

DISTRIBUTION» COMMERCIAL INCOME

UNLOCKING SUSTAINABLE

GROWTH

UNDERSTANDING, ENGAGING AND GROWING YOUR FAN BASE » FAN ENGAGEMENT» FAN SEGMENTATION

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REPUCOM TOP 10 TRENDS IN SPORT - 2016

THE WORLD OF SPORT IS GROWING – AND EXPANDING

01 THE COMPETITION TO CAPTURE NEW AUDIENCES IS INTENSE

03 BROADCAST MEDIA: MORE VALUABLE THAN EVER BUT UNDER THREAT

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EMERGENCE OF FAST-GROWTH SPORTS AND EVENTS

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DIGITAL AND SOCIAL: THE REVENUE ROADMAP IS STARTING TO UNLOCK

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INCREASED FOCUS ON BUILDING STRONG FAN RELATIONSHIPS IS PAYING BACK07

EVERYTHING IS MEASURABLE AND ACCOUNTABILITY IS MORE IMPORTANT THAN EVER08

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‘PARTNERSHIPS’ ARE BECOMING MORE IMMERSIVE AND REWARDING

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SPORT UNDER INTENSE SCRUTINY AND GOVERNANCE IS KEY

NEW TECHNOLOGIES TRANSFORMING THE FAN EXPERIENCE – AT VENUE AND AT HOME

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THE COMPETITION TO CAPTURE NEW AUDIENCES IS INTENSE

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INCREASED DILUTION OF ATTENTION...

NUMBER OF INTERESTS

INTE

NSIT

Y OF

INTE

REST

People are intensely interested in fewer things People are

generally interested in more things

+8%

-15%

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MILLENNIALS ARE POWERFUL, PRESENTING DIFFERENT OPPORTUNITIES AND CHALLENGES FOR BRANDS AND RIGHTS HOLDERS

Grown up alongside technolog

y

2.5 Billion

Largest Generation Yet

$2.5 Trillion global spend

powerMost Ethnically & Racially Diverse

50% of the workforce by

2020

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THE BIGGEST SOURCE OF NEW POTENTIAL FANS IS ACTUALLY WOMEN…

30% increase

in number of women interested in football

2011-2015

>100 MILLION MORE FEMALE FOOTBALL

FANS GLOBALLY

$30 Trillion

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THE FANDNA CHALLENGE

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7 BEHAVIOURAL SEGMENTS

x

TREND POSITIVE Love my sport. Love what it says about me.

GAME EXPERT All about the sport, everything else is a distraction.

CONNECTION FAN It’s about participating, it brings people together.

ARMCHAIR FAN Something to watch on my own.

BUSY If only I had time!

DISENGAGED What?

CYNIC It’s a con!

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25

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6

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Global Average %

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Buying Tickets

Discounts & Offers

Watching Games on

TV

Being a club member

Buying Consumer Products

Following online

Watching Online

CRM IS AN EXTREMELY POWERFUL TOOL TO BUILD CLOSER AND MORE PERSONAL RELATIONSHIPS WITH FANS

Segmenting and targeting fans for ticket sales.

All touchpoints becoming customised and optimised around behavioural segments.

Leads to new propositions and higher yielding revenue streams.

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EXPANSION OF FAST-GROWTH SPORTS & EVENTS

502

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WE ARE SEEING FOUR TYPES OF FAST-GROWTH SPORTS AND EVENTS

» Fastest growing

» Mass participation» Huge events» Going mainstream

E SPORTS

» New leagues

» New audiences

» New engagement

» New revenues

NEW FORMATS LEAGUES/EVENTS

» Fitness options

» Fitness venues

» Wearable tech.

» Social & fun

» Personal coaching

FITNESS & PARTICIPATION

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NEW FORMATS AND LEAGUES/EVENTS ARE RE-ENERGISING TRADITIONAL SPORTS AND CREATING NEW AUDIENCES

TRADITIONAL NEW FORMATEVOLUTIONSPORT

Cricket One Day International

Tennis

Rugby

Creation of a new league with modern T20 format

Creation of special events in original venues

Squash Indoor Arena

A varied version of the game to introduce young participants

15 man contact

A pick-up version of the game to attract millennials/ new participants

Real Tennis

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BROADCAST MEDIA: MORE VALUABLE THAN EVER BUT UNDER THREAT

403

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Sky’s domestic UK programming spend on Premier League – 2016-19

UK television broadcast deals per annum value (£ millions)

THERE IS A WIDENING GAP AS RIGHTS FEES FOR PREMIUM/ TOP TIER SPORTS CONTENT CONTINUES TO RISE EXPONENTIALLY

Source: Nomura Sky Plc Report, Sep 2015; Repucom analysis

» Leading sports rights are critical to broadcasters and hence attract super premiums.

» Secondary/niche sports are struggling for exposure and rights fees.

» Alternate broadcast models are now being seriously pursued.

Series1 1793

299

65

56

39

38

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PL contract as a % ...

63%

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CASESTUDY: BASKETBALL AUSTRALIA

Objective: Determine the most suitable broadcast

strategy for Basketball Australia.

Outcome: Expanded coverage to

broadcast extra live fixtures and adopt anew hybrid model; maximised exposure

at peak times and use of digital.

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DIGITAL & SOCIAL THE REVENUE ROADMAP IS STARTING TO UNLOCK

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» The best rights-holders are now integrating brand partnerships through quality online content and using social expertly to drive users to membership sites, or ticketing and merchandising offers.

» Increasingly tailored messages, incorporating new features such as video, multi-language, multi-Fan Stories, coupled with greater investment in digital.

» As platforms such as Facebook and Twitter launched, sports teams, leagues and athletes were quick to build new online communities.

AS AN INDUSTRY, WE ARE NOW FOCUSING HEAVILY ON MONETISATION

ENGAGEMENTCOMMUNITY MONETISATION

Sports rights-holders and brand have utilised these platforms as they have grown in a variety of ways:

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WE ARE SEEING 3 KEY WAYS TO UNLOCK VALUE THROUGH SOCIAL MEDIA ASSETS

FANSTORIES™

NEW ASSETS VIDEO

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THERE ARE MANY OPTIONS IN DEVELOPING UNIQUE FAN STORIES

FAN COMPETITIONS

EVENT STATISTICS

CYCLIST & TEAM STATISTICS

ARCHIVE CONTENT

RACE COMMENTARY

FANTASY GAME

FINAL POSITIONS

RACE UPDATES

RACE TACTICS

QUESTION & ANSWER SESSIONS

“BEHIND THE SCENES” CONTENT

CYCLING EXAMPLE

STAGE HIGHLIGHTSFAN

STORIES™

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CASE STUDY: USA GYMNASTICS’ SOCIAL MEDIA STRATEGY

Objective: Provide a digital strategy and

recommendations that can be implemented to increase fan/ participation engagement

Outcome: We segmented fans and provided unique Fan Stories which resulted in participant-

generated content and sponsorship exposure beyond core gymnastics fans

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‘PARTNERSHIPS’ ARE BECOMING MORE IMMERSIVE AND REWARDING

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LEADING RIGHTS HOLDERS ARE APPROACHING PARTNERSHIPS IN A MORE SOPHISTICATED WAY

Partnerships don’t come in standard off-the-shelf packages; they are developed collaboratively based on an understanding of the partners’ business and marketing objectives.

COMPELLING DATA AS THE FOUNDATION

Business Intelligence at the Core

Customer/ Fan Base Alignment

Quantification of Customer Lifetime Value

Packaging the Sponsorship

Managing the Partnership

Clear Approach/ Structure

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SPONSORSHIP TARGETED AT SPORTS PARTICIPANTS CAN BE USED BY BRANDS TO REACH DIFFERENT DEMOGRAPHICS

Participants of…

Swimming Football Cycling

» Luxury accessories (1.7x)

» Parcel services (1.6x)

58%Of women are more likely to purchase*…

» Sport Betting (2.4x)

» Computer games consoles(1.7x)

» Cars (1.6x)

85%Of men are more likely to purchase*…

60%Of men are more likely to purchase*…

» Building products (1.8x)

» Consumer electronics (1.6x)

*More likely to purchase compared to Total Population Source: 2015/16

Quantify the numberof team fans 2.9 million

Fans that flew in the last 12 months 42%

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Actual fans that flew 1.2 million

Total flights taken 2.3 million

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Assumption on conversion rate due

to sponsorship

Assumption 1%

Additional flights acquired 23,812

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Average cost per flight $396

Sponsorship ROI $9.4 million

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Source: Repucom SponsorLink, 2014, Government stats

Example: Rights Holder X sizing the opportunity for an airline partner….

RIGHTS HOLDERS ARE GETTING CLOSER TO PARTNER NEEDS TO SUPPORT THEIR SALES OBJECTIVES

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WE ARE NOW SEEING MORE TRULY INTEGRATED PARTNERSHIPS – SAP-DFB EXAMPLE

A co-developed and innovative solution designed to improve performance:» SAP Match Insights – a data platform for coaches and players.

» Facilitates training and tournament analysis » Technology integrated at the team’s base camps.

» Provides tangible evidence of SAP’s impact on the team’s performance and success

SAP – German National Football Team (DFB)

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REPUCOM TOP 10 TRENDS IN SPORT - 2016

THE WORLD OF SPORT IS GROWING – AND EXPANDING

01 THE COMPETITION TO CAPTURE NEW AUDIENCES IS INTENSE

03 BROADCAST MEDIA: MORE VALUABLE THAN EVER BUT UNDER THREAT

04

EMERGENCE OF FAST-GROWTH SPORTS AND EVENTS

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DIGITAL AND SOCIAL: THE REVENUE ROADMAP IS STARTING TO UNLOCK

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INCREASED FOCUS ON BUILDING STRONG FAN RELATIONSHIPS IS PAYING BACK07

EVERYTHING IS MEASURABLE AND ACCOUNTABILITY IS MORE IMPORTANT THAN EVER08

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‘PARTNERSHIPS’ ARE BECOMING MORE IMMERSIVE AND REWARDING

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SPORT UNDER INTENSE SCRUTINY AND GOVERNANCE IS KEY

NEW TECHNOLOGIES TRANSFORMING THE FAN EXPERIENCE – AT VENUE AND AT HOME

REPUCOM - CONNECTED SOLUTIONS FOR NATIONAL GOVERNING BODIES

MEASURING PERFORMANCE & VALUE» UNDERSTANDING AND

MEASURING VALUE» PARTNER SATISFACTION

TRENDS IN SPORT» EVOLVING TRENDS

OPTIMISING & MONETISING YOUR ASSETS» AUDITING INVENTORY» MEDIA CONTENTS, RIGHTS AND

DISTRIBUTION» COMMERCIAL INCOME

UNLOCKING SUSTAINABLE

GROWTH

UNDERSTANDING, ENGAGING AND GROWING YOUR FAN BASE » FAN ENGAGEMENT» FAN SEGMENTATION

ANY QUESTIONS?

@Repucom#RepucomInsights