"YouTube, Fox Sports Team Up for Online Video Ad Sales"

From Ad Age

Click here to see FOX Sports on YouTube

Analysis by Melissa Kniceley in SRM 435 (section 2)

The prevalence of social media and ease of information searching has made the internet more relevant than ever before. Each year, advertising tactics and ways to reach the consumer are becoming more and more creative. Marketers are constantly looking for new ways to make their company stand out from the overflow of advertisements individuals are presented on every site. 

Burger King has found a unique way to target their customers that could pave the way for future companies. Burger King has teamed up with Fox Sports to be the sole sponsor of their “Inside Fantasy” section on their YouTube channel. The branding opportunities for Burger King are virtually limitless- they are featured on the channel’s banners, advertisement videos that pop-up before the videos, and finally within the video itself. This channel of advertising has not been utilized before and will likely become more popular in the coming year because of the immense traffic YouTube’s site gets each day. 

Many of the exact details of the deal between Burger King, Fox Sports, and YouTube are not disclosed. What is public knowledge is that Burger King “made an upfront spending commitment in exchange for a guaranteed number of video views and ad impressions.” The number of video views and ad impressions Burger King is guaranteed from the deal is unclear. The ad revenue split between YouTube and Fox Sports was also never disclosed. Typically, YouTube takes 45% of the ad revenue but they have been known to work out smaller percentages with some companies.

From a marketing standpoint, utilizing YouTube as a promotional tool to increase brand awareness is very smart. The number of site visits and video views YouTube gets each day are exponentially increasing so it is beneficial for any company to piggyback on their traffic. Being able to partner with specific channels makes marketing on YouTube ideal because companies can more efficiently reach their target market. The guaranteed number of video views and ad impressions is also a plus that other forms of advertising cannot offer. For example, a company may choose to send out an email to their database but the majority of bulk emails sent out are never opened because they are not sought after; in comparison, placing a video advertisement before a video that the individual clearly wants to view requires them to spend time acknowledging the brand whether they want to or not.

In conclusion, internet marketing as a whole is on the rise so it was smart for Burger King to utilize a new channel to reach their target market. The amount of branding they are getting out of their deal with Fox Sports is enormous and has the potential to increase their sales drastically. Because the campaign just recently launched there has not been any concrete results as to whether they will see a return on their investment or not, but I personally can envision a great return for the company.

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Analysis by Matt Dumblauskas in SRM 435 (section 2)

The focus of the article concentrates on Fox Sports and YouTube partnering to sell advertisements on Fox Sports’ YouTube channel in which Burger King has been chosen to be the initial sponsor. This campaign is being used throughout Fox Sports’ “Inside Fantasy” segment on their YouTube channel. A Burger King advertisement can be found throughout the channel and the logo is even found during in the actual videos. Although the Fox Sports YouTube channel does not have nearly as many subscribers as the sport media industry giants, it still receives a good amount of internet traffic and is continuing to grow. The specific amount of money that Burger King is spending is undisclosed. 

Fox Sports is one of the first sport media channels to jointly sell ads with YouTube. This theory of sponsoring YouTube channels is fairly new and I believe it is a trend that will continue to grow. From a promotional standpoint, it is smart to pair this advertising with the “Inside Fantasy” segment because the show will bring repeat viewers to the channel. It is also a good idea for them to use Burger King as their preroll advertisements on the actual videos because I am unsure how many people watch videos by going to the actual channel rather than searching for the single video they want to see. Having a different look and feel than other YouTube channels is a good way for the Fox Sports channel to attract extra attention. Aesthetics are an important factor in gaining and retaining the consumer’s attention. In the future, I can see companies related to sports take a similar approach and advertise on different YouTube channels that coincide with their mission and have the same idea as them.

This is relevant to this course because the sports industry is always looking for new ways to market and advertise to their customers. This is a great example of how marketing strategies change and adapt to the consumer. With the increase of social media, more and more companies are finding different ways to tap into the market. This also shows how a brand that has nothing to do with sports uses sports as a platform to advertise because of the sheer numbers that it appeals to.

"More Fun for Fans"

From Athletic Management

Analysis by Alyssa Truesdale in SRM 435 (section 1)

The article, More Fun for Fans, by Mary Kate Murphy (Athletic Management, 2013), looks at the reasons why more and more college athletic programs across the country are adding alcohol to their concessions at sporting events. The three main reasons listed as to why schools are allowing the sale of alcohol now are: it boosts revenue, enhances game-day experience, and increases crowd control. 

According to CBSSports.com, as of July 2012, of the 120 Division-I football programs, just 21 sell beer to all fans of legal age and out of those 21 schools, only 11 of them are on-campus, university-owned stadiums (DeRusha, 2012). One of the major schools listed in the article that we read is West Virginia University. In 2011, one year after being appointed Athletic Director, Oliver Luck began having beer sold in the stadium during football games. After this first year, WVU saw its number of police cases, calls made to police, and arrests during games drop significantly. The other positive for the university was increased profits. By combing alcohol sales and sponsorships the Mountaineers were able to profit over one million dollars after just two seasons.

A few other schools mentioned in the article that have added alcohol to their list of beverage choices at sporting events are Colorado Mesa University, University of Texas-Arlington, and University of Maine. Colorado Mesa started selling beer at their baseball games for similar reasons that WVU started selling beer; they wanted to control the amount of alcohol their fans were drinking in hopes that they would have less incidents. The University of Texas-Arlington had location on their mind when adding beer and wine to the menu at basketball and volleyball games. Because of their close proximity to professional sports stadiums in the area, the university felt the need to enhance fans’ game-experience in order to compete. Also, they wanted to make sure that they were appealing to alumni and adults in the community. “The Dallas Cowboys and Texas Rangers are in our backyard, so our spectators are used to the professional experience, and that's what we're trying to provide,” stated Athletic Director, Jim Baker (Murphy, 2013). The University of Maine also wanted to increase entertainment value by created a “Bavarian Beer Garden” for their home football games. “It's more about providing a convivial, positive social environment where mature adults are given access to something they enjoy,” says Robert Dana, Vice President of Student Affairs (Murphy, 2013).

Ohio State University was the only school represented in the article on the negative side of adding alcohol to concessions at sporting events. OSU Athletic Director, Gene Smith, wants to keep their school moving in the opposite direction. He does not feel that with the size of the university they will be able to control the crowds if alcohol is sold. He also feels that it would be very costly to add more security and programs to help with the increased number of intoxicated fans. The fans’ safety his most important value, which is why he accepted the fact that there would be a loss in revenue when cutting ties with all alcohol sponsors also.

From a marketer’s standpoint, I think that universities should absolutely sell alcohol at sporting events, especially football games. It is obvious that most students, alumni, and other adult fans attending the games are going to tailgate beforehand and consume alcohol. If they knew that there was going to be alcohol provided at the stadium, then they would be less likely to spend their money at other stores to purchase it and would spend their money at the stadium instead. Also stated in the article is the cost for alcoholic beverages, which can be at a higher price. A fan consuming alcohol is most likely going to purchase more than one drink in the time that they are at the game. Revenues will increase from game day purchases, and also from increased sponsorship by alcohol companies.

This is also a way to get the student population at games to increase. Many students at JMU for example have admitted that they would rather tailgate than actually attend the game. If students knew they could purchase alcohol at the game, they might be more inclined to go, and stay there longer which also means possibly spending more money. One other point is that colleges are competing with other professional sports and entertainment events. If they want to be at their level in entertaining the crowd, they need to provide alcohol. Like Athletic Director Jim Baker said, if fans are paying a lot of money to attend college games, they should be provided the best game-day experience.

This article directly ties in with the topic of promotion and sales, which have been discussed in class. Part of the promotional mix is the atmosphere at games. We asked the question, “How can you keep fans coming back?” The other question we can add to this topic after our discussion last week about the declining number of students in attendance at football games is, “How can you keep fans for the duration of the game?” I believe that selling alcohol is one solution to this problem. According to this article it will not only solve the issue of promoting collegiate-level sporting events, but will also increase ticket sales revenue, concessions sales revenue, and sponsorship revenue.
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Analysis by Jen Nelson in SRM 435 (section 1)

All across the United States, students, fans, and alumni are taking part in tailgating at their colleges and universities. Tailgating has become accepted as the “thing to do” before a sporting event. Not only at the college level, but at the professional level as well. Students and fans are looking to continue their drinking, but most schools and universities can’t meet their needs. Their alcohol consumption is put to a halt before they are allowed to enter the game. What many people don’t even realize, is the amount of school and universities that don’t allow alcohol sales at games. The big debate that has become quite controversial, is if alcohol should be allowed at sporting events. The article goes in-depth about several different athletic departments that believe selling alcohol is beneficial to their program which will help increase revenue for their school. On the other hand, there are many factors to consider, especially many legal aspects, which is why the majority of schools have opted not to sell alcohol.

This topic is extremely relevant the Sports Marketing Industry. Schools and Universities are essentially a business whose main goal is to provide entertainment for their fans. College and Universities are always looking for other ways to earn revenue, so why are some of them not allowing alcohol sales during games? Sporting events are all about the game-day experience, and getting everyone involved. Jim Baker, the AD at the University of Texas-Arlington states, “Another big reason to sell alcohol at athletic events is to appeal to alumni and adults in the community” (Page 2). He makes a valid point explaining that alumni and adults are an important demographic that attend a good amount of sporting events. From a promotion aspect, allowing alcohol sales would create sponsorship deals with alcohol companies, which would increase the schools revenue. On the other hand, if only 21 schools currently allow alcohol sales that is something to keep in mind. There has to be a main reason why Division 1 schools aren’t jumping on the band wagon. As a society, the drinking culture in colleges and universities will continue to increase, which will also cause more schools to need to provide more law enforcement. In the future, this is something Athletic Directors may need to change their schools polices, or keep them the way they are.

For JMU, if eventually they are going to move up conferences in the future, allowing alcohol sales, may be an option that the AD will need to take into consideration. A main problem JMU marketing faces now, is how can they get upperclassman to stay past half-time? This is a huge consideration that would potentially cause upper-classman to stay past half-time. Most upper-class man are tailgating anyways, but would like to have a drink during the game if available. Maybe JMU could establish some sort of system, like wearing wrist bands to signify you are over 21, or even a designated area of alcohol such as a Beer Garden like the University of Main has. Or like WVU, they have a no-pass out policy meaning you can’t leave the stadium at half-time to stock up on drinks and come back into the game. These are all ideas that AD’s can factor into making their decision. At the end of the day, the AD needs to do what is best for their institution. The Ohio State AD states, “It depends on the environment of a particular university. Athletic Directors who put adequate controls in place and ensure the safety of their fans should go ahead with the idea” (Page 3). So now the question is, will universities be turning off the taps, or kicking them into full gear?

"Dunkin' Donuts Is Launching the First TV Ad Made Entirely From Vine"

From Adweek

Analysis by Ryan Dunn in SRM 435 (section 1)

Dunkin’ Donuts will have the first TV ad made completely from Vine. This ad will debut during the first Monday Night Football game of the 2013 season between the Philadelphia Eagles and the Washington Redskins. The Vine video will be on an electronic billboard that appears between segments of ESPN’s programs. There are four versions of the Dunkin’ Donuts Vine Ads. This week’s ad will be a representation of an opening coin flip using lattes instead of players and referees.

Dunkin’ Donuts thinks this short visual add is more “engaging” than a traditional still billboard that are typically seen in stadiums. Other than this pregame billboard Dunkin’ Donuts will also take one key play from the first half and remake it using their products and post it on Twitter using the #DunkinReplay. To promote this and try and get the word out more Dunkin’ Donuts plans on purchasing promotion Tweets where they will target the people who are watching the Monday Night Football game. Dunkin’ Donuts is trying to connect with the highly social fans of sports and more specifically football.

Other brands have started using Vine to appeal to a younger generation as well. One of the companies listed in the article is Virgin Mobile who ran a spot on MTV and Comedy Central to try to reach the young demographic that tends to use Vine.

Dunkin’ Donuts is trying to appeal to the new age of social media where everything is connected. I think that using popular social media forums is a good way for the younger generation to see the ads. When a company is able to keep up to the popular technology of the day it allows them to more successfully access a different group of people then the companies that don’t take advantage of the same technology.Using Monday Night Football to promote a product will get a lot of viewership for the ad. The most intriguing part is the recreating of a play that has happened in the game and posting it during the game. Advertising eventually becomes a part of most things that are popular. Vine will be no different. I think that Dunkin’ Donuts has a great idea and are going to start a trend. Using their products to promote itself in a new unique way is always a good marketing idea.
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Analysis by Val Southall in SRM 435 (section 1)

During the Monday Night Football game on September 9th, between the Philadelphia Eagles and the Washington Redskins, Dunkin Donuts ran the first TV ad in history made entirely from a single Vine, the new popular 6 second video social media platform. Dunkin donuts will use a 5 second billboard ad unit, which appears full screen between segments during ESPN programs for the remainder of the season. “We think a billboard using Vine is dramatically more engaging than a standard billboard with a corporate logo on it,” said Scott Hudler, Vice President of global consumer engagement, Dunkin’ Brands. “Everyone is multitasking while watching TV with their phone, tablet or laptop. A lot of times, the content on their mobile device is not related to their TV shows. We want to make sure we’re supporting our TV investment with social media that’s relevant. It’s our job to make sure that it’s tied together to drive consumer engagement.” In addition to the 5 second billboard ad,ESPN will promote a Vine the retailer tweets out in the final quarter of each game using the #dunkinreplay hashtag. This will include a memorable play from the first half, recreated virtually using dunkin donuts products. 

Essentially, Dunkin Donuts is using Vine to appeal to a younger audience and keep them engaged throughout the game, even during breaks in the action. They realize watching a football game has always been somewhat of a social event. “We’ll buy Promoted Tweets on Twitter and target people who are already watching the game, so they know that this fun content is available,” explained Stacey Shepatin, Senior Vice President at Hill Holliday. “Sports have always been one of the most social environments—especially football. So we’ll get good intel on whether people want to participate in this way.” The use of Vine and #dunkinreplay lets fans interact with each other and provides an innovative way to market Dunkin Donuts and promote Monday Night Football. In addition, its helping pave the way for more Vine based ads, Nissan is planning to use Vine for future ads and Virgin Mobile has already used a 30 second ad comprised solely of vine compilations.The use of vine for advertisements is somewhat uncharted water for businesses. Dunkin Donut’s use of Vine sets a precedent in funding and preparation for ads, while a typical NFL ad is costly in both time and money, a vine can be made almost instantly and without any funding.

"New Era Plots Aggressive Five-Year Growth Plan"

From SGB Weekly: http://www.sportsonesource.com/news/weekly/sgbweekly/archive/sgbw_1110lo.pdf

Review by Mason Bryan in KIN 435

Thomas J. Ryan’s article, “New Era Plots Aggressive Five-Year Growth Plan,” was a very interesting read that provided insight into the world of marketing and sales. Although the article included points regarding New Era’s sponsorship of the NFL in the 2012 season, I was disappointed with the lack of details about the sponsorship itself. New Era became one of the five official “on-field” sponsors of the National Football League (joining Gatorade, Canon, Nike, and Motorola), yet nothing regarding the price of the deal or the length of the contract is mentioned in the article and I believe that those are key points into educating the reader about the business of sports sponsorship.

Other than the fact that the details of the NFL deal aren’t made known, the article provided a great amount of detail into the world of marketing and sales for an up and coming company in the sports industry. New Era, as many already know, is the official on field cap of Major League Baseball. With annual sales of $500 million, the company is seeking new ways to double their sales by 2015. By doing so they have not only sponsored the NFL and become their official on field cap, but have done the same for the Canadian Football League, and have become the title sponsor of the Pinstripe Bowl, an annual college football bowl game played at Yankee Stadium. The company has also started a women’s apparel line and began their “Fly Your Own Flag” campaign in hopes of reaching new markets. Through the use of marketing and sponsorship, New Era is making its product(s) known to the public on a much larger scale and, in my opinion, will have no troubles doubling their sales within a five-year span.

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Review by Courtney Gannon in KIN 435

“New Era Plots Aggressive Five-year Growth Plan”, written by Thomas J. Ryan, discusses a recent change in the New Era Company and current plans to further expand the company. New Era recently became the NFL’s official on-field headwear licensee. New Era, along with Nike, Gatorade, Canon, and Motorola is a brand that will have exclusive sideline rights starting in the 2012 season. Along with the licensing agreement with NFL, New Era signed a three-year agreement to be the official headwear sponsor of the Canadian Football League. The company has become focused on expanding sales to 1 billion dollars annually within five years. As part of the five-year plan, New Era has had two acquisitions to help further the growth of the company. It acquired 5th and Ocean, a women’s apparel company and MARC4, one of Brazil’s fashion brand management companies. In the “New Era Plots Five-year Growth Plan” article, Chris Koch, CEO of New Era, referred to acquisitions by stating, “It’s definitely part of our growth strategy.” Acquisitions are a large part of the 5-year growth plan and will continue to be used in aiding the expansion of the company. Lastly, “Fly Your Own Flag,” is a campaign that aims to express individuality and show that New Era produces hats that can be used for all types of people and reasons. It consists of print and social media, as well as ambassadors from different industries. New Era wants to reach the 1 billion dollar goal by 2015 and hope to expand into all of the major cities around the world.

The sales and marketing used by New Era have made it possible for the company to become as big as it has and continue to expand. Since New Era focuses on different markets other than sports, it has the ability to expand and have customers from a variety of markets. Also, by becoming the official headwear licensee of NFL, New Era can almost double its market because now there are buyers from both the NFL and the MLB. Acquiring 5th and Ocean and MARC4 has also helped increase sales not only domestically, but internationally as well. New Era is not only focused in one specific market in a certain part of the world, which is beneficial to getting closer to the ultimate goal. Becoming the official licensee of headwear for the NFL, acquiring 5th and Ocean and MARC4, and focusing on markets other than sports, has and will continue to play a crucial role in becoming closer to obtaining the 1 billion dollar status.