From Time
Review by Ryan Gerrity in SRM 435 (section 2)
College football has been a cornerstone for not only college students, but for fans of all ages. It seems as though college football brings the best out of people because they want to be apart of something bigger than themselves. Football is not just a four hour event, it is a weeks long countdown until a full day event that starts at sometimes, 8:00 AM. Attendance to these college football stadiums has filled over 80,000 people, but in the past couple of years, attendance has fallen dramatically.
The Southeastern Conference is the biggest, best, fastest, strongest conference in college football and they have even seen a fall in attendance. Nine of the fourteen SEC schools have seen a dramatic drop in attendance at college football games. University of Florida had a 137 game streak of sold out home games and that streaked ended just over a year ago. The University of Alabama, who has won the last two National Championships, has not sold out any of their home games in the past two years.
Before attendance dropped dramatically most Universities required the season ticket holders to make a donation on top of their purchase of the tickets. Most schools had a requirement of at least $5,000. Now, there is no required donation because they are trying to attract more people to purchase the season tickets. Another threat to the Universities and a cause of the drop in the attendance is the upper classmen that are attending the Universities. Over the past year 20% more upper classmen are not going or purchasing tickets to the football games. Another problem the Universities are having is promoting the games that the students or fans do not care about. All the fans want to see a top 25 ranked team in the country, and they cannot sell the tickets to the lower ranked teams. Some of the Universities are requiring people to buy tickets in two, one ticket for a big game against a big name school, and a ticket against a smaller school.
Marketing and promotions for college football games is very easy because everyone wants to be apart of the game and atmosphere. The problem the Universities are having is getting the fans into the game. Everyone loves to go to the tailgates, but once the tailgates end most people have started to go hoe to their own house and watch the game on their big screen HD TV. Having promotions at the tailgates is very important and when we worked the JMU football walking around the tailgates promoting the game worked. Interacting with the fans and getting them involved in the process is important because you want to know what will get them into the game and stadium.
A marketing strategy that could work for college football attendance is to promote the idea of being apart of something bigger. There really is not much better than the atmosphere of a intense college football, and you cannot replace that with atmosphere with a TV and surround sound. This article is relevant to this course because there is important ways we can learn how to promote and market tickets to not only students, but also all fans. Learning the different ways to reach people through different kinds of channels like social media, email, personal promotions through the tailgates. Also knowing your client, in this case it is the students and fans, and trying to promote the idea of going into the stadium and game.
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Review by Ben Edsall in SRM 435 (section 2)
The article we chose to use for this assignment was called “College Football Encounters Its Biggest Rival: The Couch” written by Brad Tuttle. This article talked about the current trend of college football teams struggling to sell out games, even including the SEC. It stated that with today’s drastic improvement in television technology, people do not feel the need to go to games when they can watch better quality in their living room. Tuttle also discussed how teams are struggling to sell season tickets as well as games against lesser opponents. The decrease in fan attendance is not extreme, but looks like it will continue to decline in the future. In the article it showed that nine out of fourteen teams in the SEC saw a decline in attendance. With these hard times some teams are starting to not require donations from season ticket holders. One program that was hurt tremendously was the University of Nebraska. The donations for the 2013 season ticket holders dropped 25% to 80% compared to last year.
Later on in the article the topic of watching the game at home vs. watching the game at the stadium is discussed. People tend to feel that they receive a better experience in the comfort of their own home compared to the stadium. When people watch at home they have high definition television, their own food/beverages, easy access to the bathroom, and can watch multiple games. These factors need to be addressed by college football teams and figure out a more efficient way to market themselves. They need to promote that the experience at the stadium is like no other. I believe that teams can positively promote themselves by reaching out to the media and getting fans excited for the upcoming game. The team can do activities around campus and get the students involved to show school spirit, and make them feel as though they are a part of something bigger. Another strategy is to hang up posters around campus and host pep rallies to create a buzz around campus. Not only is the comfort of watching the game at home a huge factor, but the prices of food and beverages at games as well. From a sales point of view I believe it would be beneficial to lower the prices so more people would purchase the products, rather than keep them high where everyone just ends up getting frustrated. I believe that if football teams took these factors into consideration they could see a rise in ticket sales.
This article is relevant to this course because it demonstrates the difficulty with fan attendance, and how teams need to market and promote themselves to increase ticket sales. Last weekend I worked the football game for James Madison University against Central Connecticut State University, and noticed some positive aspects of promoting the team. I walked around tailgates handing out posters and key chains to boost morale. Everybody loves getting free stuff and it showed from the reactions I received. If you are able to hand out free merchandise then there is a possibility more students will attend games. Also when students and fans were entering the stadium before kickoff I handed out thunder sticks which increased the excitement in the stadium tremendously. Overall I had a great experience working the game and feel that if teams put more effort into promoting the positive aspects of the game day atmosphere then they would have higher ticket sales.
Friday, September 6, 2013
"With Deals Done, Fox Sports 1 and Advertisers to Hit 90 Million Homes Saturday"
From Ad Age
Review by Ryan Oliphant in SRM 435 (section 1)
On August 17, fox introduced its new national television network; Fox sports One (FS1) to audiences across the nation. The 24/7 sports network reached 90 million homes that Saturday. Reaching 90 million homes pleased many of the advertisers signing ad deals with the network. FS1 will carry advertising from blue-chip marketers in the auto, electronics, food & beverage and insurance categories. General Motors, Chrysler, Ford, Toyota, Microsoft, Samsung, Pepsi, State Farm, Geico, AT&T, Verizon, and Taco Bell are among the companies that will run advertisements on the sports network. Automotive companies so far are spending the most for advertising on the new station. Such companies include Toyota, Nissan, Hyundai, Kia and the Big-Three Detroit auto-makers, GM, Chrysler and Ford. Ford has long supported Fox’s broadcast network and will big a big partner once again with Fox’s new channel. The automotive company has agreed to sponsor the pregame show for FS1’s new Big East College Basketball coverage coming in the fall and they will run advertisements throughout the networks regular programing and broadcast schedule. FS1 will lack NFL games but Fox is strongly suggesting companies who purchase times for the NFL regular season as well as time in the Super Bowl too buy time on FS1 too.
What Fox is essentially trying to do is market their new Fox sports 1 channel to companies for ad space. To effectively market FS1 to companies for ad space they have to attract enough viewers and be on enough cable providers. The network must not only compete with the “World Wide Leader of Sports”, ESPN, for business but also NBC Sports, CBS Sports and other sporting networks. To compete with these other networks Fox has to really sell and promote their new channel not only to audiences across the nation but also to advertisers. The television network did a lot to promote the new FS1 by running commercials, internet ads, utilizing social media and sending emails to customers before the big launch on August 17. Besides the different PR initiatives, what will also make audiences aware of the new channel is the instantly recognizable on-air talent including Regis Philbin, former NFL quarterback Donavon McNabb, NBA great Gary Payton, and former tennis star Andy Roddick. With this array of on air talent and personalities, a massive PR campaign, and the rights to broadcast big time sporting events such as U.S. Open golf, World Cup soccer, UFC, and Major League Baseball Fox is very much on their way to attracting consumers to the new FS1. This will also help Fox Sports 1 become a more recognizable sports channel. All these factors appeal to advertisers. Fox recognized this and booked hundreds of millions of dollars in ad sales.
The cable company then had to find interested advertisers to be on board and help support the startup channel. They looked to marketers who had long supported Fox’s broadcast networks, such as Ford. Companies such as Microsoft and Samsung use sports to reach consumers so they as well purchased ad space on FS1. With the cable company reaching millions of homes, more blue-chip marketers than decided to market their brand on the channel. It was important that Fox Sports 1 reached 90 million viewers its opening weekend to convince companies that they made a wise advertising investment.
We had learned about promotion in class and more specifically the sport promotional mix. Fox with their new channel, Fox sports 1, used several promotional tools commonly used in sport to promote the 24/7 sports station. The company used infomercials throughout the summer to get consumers and marketers attention about the release of the new channel. They had several sales presentations, most recently Cynopsis Media’s Second Annual Sports Business Summit. The cable network then created a website to explain about the upcoming programing, introduce the new on air personalities, and inform the public and marketers about what to expect from the new channel. Fox then created a Facebook page and a Twitter account to promote the new channel and get attention.
Another significant concept from our class that we touched on is sales. Fox is trying to “sell” this channel to consumers, to have them buy into their programing and sporting events. They are then trying to sell this new channel to advertisers so they can buy ad space. One initiative that Fox is trying to do is sell Fox Sports 1 ad space with Fox’s ad space during the Super Bowl. The company is really trying to encompass more of an all-buy across the media group instead of having everything be separate. Fox’s new channel Fox Sports 1 is still fairly new, being aired about three weeks ago on August 17. The cable network will have to do a lot in regards to marketing, sales and promotion if they are to compete with the other sporting networks, including the giant, ESPN. By continuing to use promotional tools, selling ad space, and covering big time sporting events Fox could very well grow in popularity. They even one day could surpass the monopolistic ESPN.
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Review by Henry Bronez in SRM 435 (section 1)
Fox Sports Media Group unveiled a new channel, Fox Sports 1 (FS1) as a key competitor to ESPN and other network leaders in the sports broadcasting industry. FS1 was broadcasted in 90 million homes when it premiered in August, which is only slightly lower than the 100 million homes, that ESPN and its networks reach. Major enabling factors for Fox being able to introduce this channel are contracts Fox were able to sign with most major broadcast distributors and monetary support from marketing firms on Madison Avenue that were dependant on said contracts.
Fox Sports Media went down to the wire getting the distribution packages secured but in the end the network was able to obtain distribution deals with all major providers including Time Warner Cable, DirectTV, Dish, and others. These last minute deals are what enabled the new channel to air in those 90 million homes and is the key to being able to effectively compete with industry leading channels such as ESPN and ESPN2. Without these deals coming to fruition FS1 would only have been available in about half of the90 million households that were predicted to marketing firms when obtaining marketing deals and selling advertising prior to the initial broadcast.
The Fox Media Group wasted no time in selling advertising on the new channel. Somewhere in the “hundreds of millions” worth of advertising time was sold prior to FS1’s initial broadcast. The main purchaser of early advertising has been from the auto industry with both domestic and overseas auto-manufacturers purchasing significant advertising time. This is not unexpected, as Fox Media has maintained a strong working relationship with the auto industry in the past, particularly Ford Motors. Insurance companies as well as the food and beverage industry have also purchased advertising time on the channel, which bodes well for early success. Fox Media carries strong brand recognition as a network and without the support from previous advertising clients the success of FS1 during its first few weeks of broadcast would have been suspect.
One key shortfall of FS1 is the lack of its ability to broadcast games from the National Football League (NFL). However, Fox holds the broadcasting rights to this season’s Super Bowl XLVIII and has strongly encouraged those who have purchased Super Bowl advertising time to also invest in FS1. Although FS1 will not carry NFL games Fox Sports Media is using the new channel and promoting advertising as a complete package across several different mediums. Including but not limited to both broadcast and cable broadcasting and digital services in order to offer a more complete advertising portfolio. The media group is promoting Super Bowl advertising as a total buy-in of advertisement rather than simply buying advertising space between linked channels. This new approach may put off some companies who would rather buy time on specific channels to target particular audiences, although if the price of time does not increase dramatically the new strategy of a total marketing package may also gain appeal because it will enable companies to reach an audience across several different channels and mediums for an only marginally higher price.
This approach has the potential to send ripples through the sports and broadcast industries when it comes to buying and selling advertising. If the Fox Sports Media Group is successful with selling advertising as a complete package across an entire network rather than specific channels it may further increase the price of advertising time but also may pique the interest of the companies, teams and organizations wealthy enough to afford expensive air time. A complete network package of adverting is much more marketable as an effective use of company dollars than investing in a single specific channel. The possibilities of Fox’s attempt to create a complete marketing package as a single network is interesting and quite broad in how it may play out, but if successful it very well may be a game changer in how media advertising is bought and sold.
"A Rich Fantasy Life: Sports Fans Dream of Making a Living Off Games"
Review by Cara Yaworske in SRM 435 (section 2)
Fantasy sports are a booming industry. With football being the most popular sport in fantasy, people will play in leagues regardless of their interest or knowledge. Players participate by joining leagues, either with their friends or random. Some require buy-ins and others are free. There is a set date and time where the league will complete their draft and players will take turns creating their fantasy team. Each player will act as though they are the general manager for their team by making executive decisions such as drops and pick-ups each game. Some leagues are just for the social fun whereas others have monetary prizes. One lucky man defied the odds and took his winnings further than anyone would ever think of going.
The article chosen primarily talks about Drew Dinkmeyer, a 31 year old male, who felt that he was successful enough in fantasy sports to quit his full time job and make a living off of his earnings. Dinkmeyer began playing fantasy sports when he was 9 years old and now plays every single day with up to $500 on the line per game. He became very popular for his decision that he now writes and hosts his own radio show about fantasy. The article goes on by talking about how in 2012, $1.7 billion dollars were spent on fantasy sports and daily-fantasy games, like the ones Dinkmeyer participates in, contribute $492 million of that total. Fantasy sports have gained up to about 30 million participants in North America alone and the percentage of women participants have increased to 20%. A small handful of people in 2012 won at least $40,000. While the number of people winning that much money is very small, the fact that it is still a possibility is what is making this industry boom.
Fantasy sports are a very smart aspect of the sport marketing industry. It is exempt from the law forbidding online sport gambling, which makes it legal to participate. It increases viewers during every game of every sport and also increases the use of social media and apps so participants can watch their results. It is a booming industry because there are plenty of free leagues available. There are leagues with different buy-in amounts and different grand prize winnings that it is almost guaranteed to find one to please everyone.
This subject is very important to our course and our subject because there are many aspects to the sport marketing industry and it does not always include physically being at a sporting event. Fantasy leagues alone promote teams, players, apps, social media, and the game day providers. It is an industry gaining more and more participants every year and hopefully working to continue to grow.
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Review by Matt Kaiser in SRM 435 (section 2)
Fantasy Sports is beginning to become more than just a hobby in America. With what started as a group of friends competing against each other, people all over the world have begun making serious money playing a tactical game behind their computer screens. So much money in fact that jobs are being quit in order to focus on this game of luck. The article we chose talks about this exact phenomenon that is sweeping the country and some of the few that have already left their jobs to become professional fantasy sports players while offering their expertise and helpful insight on fantasy radio shows and websites. The two individuals discussed were working more than decent jobs as a stock broker and investment analyst, where interestingly enough both jobs deal greatly with numbers. Fantasy sports is an industry that brought in $1.7 billion in 2012 alone with $492 million of that coming in the form of daily fantasy games. It says that up to a quarter of the 30 million fantasy players engage in daily games and that around 100 people earned as much as $40,000 last year, slightly less than average national income. Certain websites have available winnings of $2 million weekly and even held a $200,000 fantasy baseball championship in August of last year. Buy-ins for websites like these are usually $1 to $500 and considering the amount of players and amount of big winners, numbers will prove the same people keep winning while millions of others leave empty handed. Which is where this game of luck suddenly seems to be a game of talent. The main players look in to many statistical factors before putting together their team, which shows that maybe there is an actual science behind what these “pro’s” are doing.
As the fantasy world has exploded, many more commercials are popping up promoting fantasy sports. Almost all of the major television stations offer their own version of fantasy sports and while airing a national game they will promote their networks fantasy games. Certain channels even offer their own television shows geared solely towards fantasy sports and websites where daily money winnings are available have begun promoting on major television networks through cable and radio ads. Marketing campaigns are more than viral now, as they are now featured on billboards and magazines. If you go to the sports section of a magazine rack you will most assuredly find more than a few different magazine publishers version of fantasy sports filled with expert predictions and analysis. Whether through paper or fiber optics, fantasy sports is becoming a cash cow and everyone seems to have taken notice. Potential earnings are being realized in this booming business and I truly feel there will only be a heavier emphasis on marketing and sales in the very near future. Fantasy sports are relevant to this course because of the increase in marketing promotions that have taken place over the last several years. TV shows are being made focused around fantasy football and with what started out as one or two players featuring in fantasy commercials a season has turned into several players running many different commercials. As the business begins to grow and more people start playing for money the sales will go through the roof.
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