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The Summer X Games and Snapchat Sponsorship Proposal
Thursday, March 3, 2016 Evan Spiegal Chief Executive Officer Snapchat 579 Toyopa Drive Pacific Palisades, CA 90272 Dear Mr. Spiegal, On behalf of ESPN and the X Games, I, John Skipper, would like to invite Snapchat to be an exclusive gold sponsor of our 2016 Summer X Games event in Austin, Texas. We at ESPN believe that as exclusive gold sponsors of the X Games, your organization will be able to reach both fans and viewers on a global level. Our unbelievable staff along with our customer-‐first mentality helps provide a unique and memorable service to our fans while designing innovative events and promotions directed toward the target market. Considering our worldwide audience, the X Games has the ability to enrich and endorse the nationally accredited Snapchat brand on a global scale. In the sponsorship proposal attached below, you will find intriguing information regarding the potential opportunity to expand Snapchat’s brand awareness while acquiring hospitality benefits. Undeniably, both Snapchat and the X Games, have been considered to be the next “cool” thing in their respective industries by a similar young adult demographic. Knowing this, we believe that together, Snapchat and the X Games unique characteristics would create a mutually beneficial partnership. Here at ESPN we are excited to explore Snapchat as a potential sponsor. Included in the proposal, the Snapchat organization would be provided with increased brand awareness opportunities, increased consumer loyalty, exposure to the global audience, and hospitality benefits. Designed to meet the needs and wants of your organization, the X Games and ESPN have personalized this proposal for your company. We look forward to further discussing these opportunities with you. Sincerely, John Skipper President of ESPN, Inc.
The Summer X Games and Snapchat Sponsorship Proposal
The Summer X Games OVERVIEW The Summer X Games is a well-‐known, highly anticipated, international, extreme sports competition that is hosted by ESPN, the self proclaimed world wide leader in sports. The annual competition includes athletes and fans from all over the world and continues to have an increase in diversity every year. The Summer X Games is comprised of five different action sports: skateboarding, moto x, BMX, rally car racing, and mountain biking. With that being said, the four daylong contests consist of 22 different events distributed throughout the five action sports. Aside from the contest itself, the Summer X Games provides fans, locals and athletes with concerts throughout the week. As the popularity of extreme sports has increased in the young adult demographic, so has the popularity of the Summer X Games. HISTORY
Ø In 1995, the modern day X Games hosts its inaugural competition in Newport, Rhode Island under the name “Extreme Games”, bringing 198,000 spectators.
Ø The “Extreme Games” were then rebranded and renamed to the “X Games” in 1996.
Ø In 1998, the Summer X Games goes international by hosting the contest in Phuket, Thailand.
Ø History was made at the fourth annual X Games in 1999 when Tony Hawk landed the first ever 900; in addition this X Games happened to be the most attended in history to date bringing in 268,000 attendees.
Ø In 2003 X Games moved to Los Angeles Ø In 2005 X Games 11 aired live on ESPN, ABC, and ESPN Deportes
domestically and in more than 75 countries and territories via ESPN International
Ø For the first time X Games was aired 24 hours each day of the event using ESPN, ESPN2, ABC, ESPN Classic, ESPN.com, ESPN360, Mobile ESPN, ESPN International and iTunes in 2006.
The Summer X Games and Snapchat Sponsorship Proposal
Circuit Of The Americas Venue
Ø The Circuit of the Americas, often referred to as COTA, occupies 1,600 acres of the beautiful city of Austin, Texas and
Ø It has a capacity of 120,000 making it one of the biggest venues in the United States.
Ø Located approximately 20 minutes from downtown Austin Ø Essentially a multi-‐purpose racetrack that doubles as a concert venue and
as of 2014 a new home for the Summer X Games. Ø Host to the only Formula One race in America, the U.S. Grand Prix, which
attracted 260,000 fans. Ø Nestled inside the track stands what is known as the Austin360
Amphitheater Ø The largest permanent outdoor amphitheater in Central Texas, which Ø Also features a 251-‐foot observation tower that provides a birds eye view
of not only the X Games but the city of Austin as well. Ø Summer X Games Austin 2015 brought in approximately 140,000 fans
throughout the 4-‐day contest, helping solidify the spot for 2016.
The Summer X Games and Snapchat Sponsorship Proposal
Audience Demographics Market Demographics
Ø The key targeted demographic is the hard to reach market of 13-‐24 year olds Ø The average age of attendees is 20 years old with over 66% of the attendees
being under 21 Ø There seems to be a growth in interest amongst females, however the audience
has been primarily male at 57% of attendees. Ø For every 100 households there are 50 males ages 12 to 34 watching the games
in primetime.
Audience Demographic
Ø The 2014 X Games in Austin was the most attended X-‐Games in a decade. Ø 160,000 people attended over the four-‐day event in 2014 and 140,000
attended in 2015. Ø 74% Increase in attendance since being in Los Angeles in 2013. Ø 450,000 viewers on the four ESPN telecasts
The Summer X Games and Snapchat Sponsorship Proposal
Media Coverage Event Coverage The Summer X Games’ ownership and broadcasting rights are strictly property of ESPN and ABC, the owner of ESPN. Therefore ESPN and ABC broadcast the X Games on the following platforms:
Ø ESPN Ø ESPN 2 Ø ABC Ø ESPN Classic Ø ESPN.com Ø ESPN360 Ø Mobile ESPN Ø ESPN International
Social Media Coverage Social Media has recently become a huge outlet and news sources for teens and young adults, therefore the X Games has used this as a way to reach fans through the following social media outlets:
Ø Facebook è 5.3 million fans Ø Instagram è1.6 million followers Ø Twitter è 909,400 followers
The Summer X Games and Snapchat Sponsorship Proposal
Brand Alignment Target Market Snapchat, like the X Games, targets a very specific market in that of young teens to middle aged adults usually ranging in ages from 13-‐34. The X Games takes pride in its ability to provide a family oriented atmosphere that is entertaining to a diverse group of individuals. In saying that, it is well documented and well acknowledged that Snapchat, as a brand, is globally accredited for its diverse consumption. With that being said, Snapchat’s target market aligns with that of the X Games in the following areas:
Ø Young teens to middle aged adults Ø National and International Consumers
“The Cool Factor” Extreme sports are undeniably on the rise primarily because of its cool factor to its generation X and generation Y consumers. There is something unquestionably cool about an extreme athlete landing a 900 or about a competitor racing a dirt bike around a seemingly life-‐threatening obstacle course. The same proves to be true with the new, innovative, cool characteristics of Snapchat. Snapchat has
The Summer X Games and Snapchat Sponsorship Proposal
become widely acknowledged as the cool, fresh, must have app and every young adult user has made it tradition that whenever he or she is doing something interesting they must immediately post it to Snapchat’s featured “Snap-‐Story”.
Unique Qualities Since beginning in 1996 the X Games has continuously broken away from traditional sport in an effort to pave its own way as an extreme sports event. The uniqueness of extreme sports has been unprecedented when comparing to traditional sports that usually seem to feature a ball, a goal, and two feet on the ground. Similarly, Snapchat has created its own path within the media industry by allowing consumers to express themselves in the moment while not creating an everlasting persona. The unparalleled steps taken by both organizations give plentiful reason for quality alignment.
The Summer X Games and Snapchat Sponsorship Proposal
Sponsorship Package Increased Brand Awareness
Ø Snapchat Logo on banners in and around the venue Ø Have athletes take Snapchats with fans Ø Making Snapchat the official social media app of the X Games
Having the Snapchat logo on banners in and around the Circuit of the Americas venue will encourage non-‐users to begin using or downloading the Snapchat app. Also, fans often idolize athletes in the X Games, therefore, if some of these athletes took pictures using Snapchat and posted it to their story it would influence fans to begin using Snapchat. Lastly, having Snapchat as the official social media app of the X Games would provide an opportunity for the organization to raise brand awareness for fans that aren’t necessarily in the stands by posting it on the X Games website and on TV advertisements.
Customer Hospitality
Ø Snapchat users with proven download will receive discounted merchandise
Ø Randomly select Snapchat users in the stands to receive an autograph board from an athlete.
Ø 10 VIP passes for a luxury suite given to corporate Snapchat employees for the entire X Games.
Ø Free X Games tickets to a lucky, random Snapchat user around the world.
The Summer X Games and Snapchat Sponsorship Proposal
By providing the 10 VIP passes to corporate, Snapchat staff it will provide the organization with an appeasing and entertaining event for family, friends, clients, or hard working employees. In addition, rewarding loyal customers with discounted merchandise and chances to win free tickets or autographs is an incredible way to increase future downloads and retain previous customers.
TOTAL GOLD PACKAGE VALUE $2,500,000
SNAPCHAT GOLD INVESTMENT $2,000,000
The Summer X Games and Snapchat Sponsorship Proposal
Impact Measurement Brand Awareness It is important to the X Games organization that with every sponsorship comes a mutual benefit to both organizations involved. Therefore, we find it essential to perform a critical evaluation to measure how aware X Games fans are of Snapchat. To measure this impact the X Games organization will implement the following assessment principles:
Ø Conduct fan surveys after each day of the event to determine each fan’s awareness of Snapchat
Ø Evaluate Snapchat archive reports to determine the amount of downloads during the event.
Ø Tracking the number of users who make mentions on social media about using Snapchat at the event.
Ø Measure the amount of Snapchat “stories” that are posted at the event. Customer Loyalty To ensure previous Snapchat customers remain loyal to the brand we find it imperative to evaluate the usage of the customer hospitality benefits of the sponsorship package. In order to effectively measure this impact we will implement the following evaluation criteria:
Ø Calculate the amount of discounts given to Snapchat users Ø Survey X Games attendees in order to determine if they downloaded
Snapchat for the sole possibility of receiving an autographed board Ø Question cliental that got the VIP X Games experience if the experience
influenced their decision to partner with Snapchat