In Depth
How Properties And Sponsors Are Making The Most Of Social Media
Social networking provides myriad benefits; key is determining what level of investment is right for each organization.
1/26/09: When the spectrum of how players in the sponsorship industry employ social networking ranges from having a marketing director with a Facebook page on one end to six-figure investments in standalone Web sites on the other, rules of thumb can be difficult to come by.
But here’s one that comes as no surprise: Like most other endeavors, the more a marketer puts into its social networking efforts, the more it is likely to earn in return. The trick, as with any other form of marketing, is determining the optimal level of resources to deploy in the face of limited budgets and other viable promotion and activation options.
Whether they view Facebook, YouTube, Twitter and other mass-market and proprietary social media platforms as opportunities for brand building, friend raising, revenue generating or other objectives, “social media is the holy grail of technology for properties and sponsors,” said David Epps, COO of college football’s Chick-fil-A Bowl.
“Everyone is asking: ‘How do we take advantage of this medium?’ ”
One clear reason for the question: It’s where fans, supporters, members and customers are. According to Nielsen Online, the average growth rate of the ten most popular social networking sites was 127 percent in the year ended September ’08. Twitter posted the largest increase with 343 percent growth followed by Tagged.com (330 percent) and Ning.com (251 percent).
Although no one-size-fits-all recommendation exists as to how a given property or sponsor should use social networking, examples of those who say they are having success are useful for surveying one’s options and gaining perspective on the still-developing area.
Primary objectives marketers are using social networking to accomplish include:
• Forging ties with young-adult audiences
• Driving ticket and merchandise sales
• Gathering feedback from social networks
• Creating a year-round platform for seasonal properties
• Generating incremental sponsorship revenue through partnerships connected to the online community
• Accessing digital media budgets in addition to sponsorship dollars
• Capturing relevant personal data that can be used by the property and sponsors to target offers
Additionally, properties are finding that response rates from community members, poll results and other measurable aspects of social media provide them a crucial metric to help sponsors judge the impact of their partnerships.
“This is a new channel to demonstrate how consumers are interacting with a property, much like attendance numbers, merchandise sales and Arbitron and Nielsen ratings,” said Adam Zimmerman, executive vice president of marketing services with Career Sports & Entertainment, an agency that develops and executes sponsorships for Aflac Inc.; AT&T, Inc. and others.
The commitment to social networking can range from six-figure cash outlays and dedicated staff resources for a proprietary site down to a minimal investment of time to post content on existing social media. Below, IEG SR looks at success stories from social networking efforts across the spectrum:
Phoenix Suns Opt For Proprietary Site
The NBA Phoenix Suns launched the PlanetOrange.net social networking site in November ’07 to better connect with fans and other stakeholders.
“Social media is where our fans spend so much time, and it was a place we couldn’t ignore,” said Amy Martin, the Suns’ director of digital media and research. “It’s a natural place for fans to talk to each other, and it also helps enhance sponsor programs through more touchpoints.”
Fans can use PlanetOrange to participate in discussion groups, post user-created videos and check out behind-the-scenes footage and other exclusive content created by the team. The site has more than 10,000 registered members, Martin said.
In addition to providing a forum for fan communication, the team also uses the site as an engagement platform for sponsors. For example, Schwartz Laser Eye Center is running a December-through-February promotion offering the chance to win a free corrective vision procedure. To enter, consumers must submit a humorous one-minute video explaining why they should win.
Based on the success of PlanetOrange, the Suns late last year rolled out a similar concept for the WNBA Phoenix Mercury. CafeMerc.com is billed as “brought to you by Verve, the official energy drink of the Phoenix Mercury.”
The total cost to build and maintain a proprietary social networking site along the lines of PlanetOrange can easily reach well into six figures, particularly when ongoing personnel costs are factored in.
Typically, the basic back-end infrastructure to build such sites is a five-figure investment before design and content are considered.
For example, the Suns hired platform developer KickApps to provide the functionality for PlanetOrange, said Martin, who noted the cost was “well below six figures.” KickApps also has provided social networking technology to the Bonnaroo Music & Arts Festival, NBA New Orleans Hornets, NFL San Francisco 49ers, NHL New York Rangers and others.
After that, much of the cost will be determined by the amount of bells and whistles the site owner deems necessary. While teams in the major pro sports leagues typically opt for sites that reflect the size and positioning of their organizations, other properties are able to take a more bare-bones approach. For example, the MLS Houston Dynamo created its new MyDynamo.net site–the first for an MLS team–using Ning.com’s social networking platform and has attracted 950 members since its launch 10 days ago.
In many cases, the costs associated with new social networking vehicles can be offset through incremental sponsorship revenue, as well as through increased sales to members of the property’s online community.
For example, the NBA Cleveland Cavaliers have recouped their six-figure investment in CavFanatic.com since rolling out the fan site last year. The Cavaliers upsold existing team sponsors presence on the site, including Alltel Wireless, CavFanatic.com’s presenting sponsor.
“The cost was minimal compared to the return, not only in terms of sponsorship revenue but ticket sales to CavFanatic.com users,” said Tad Carper, the team’s senior vice president of communications. “Being able to monetize the site from the start was key for us, and we have easily recovered the investment.”
Tostitos Uses Facebook To Drive Fiesta Bowl Promotion
As the popularity of the largest social networking sites has grown, so have the marketing programs conducted through them.
Marketers have a range of options for using sites such as Facebook and YouTube to promote their wares. At the upper end, campaigns involve purchasing advertising space from the sites and developing viral marketing applications.
Case in point: Frito-Lay North America recently wrapped up a Facebook-centric promotion around the Tostitos Fiesta Bowl.
The Tostitos Race to the Bowl campaign recruited two teams of six fans each representing the schools playing in the bowl game: The Ohio State University and the University of Texas at Austin. The fan teams competed in an Amazing Race-style competition to win a $100,000 donation to their school’s scholarship fund and tickets to the game.
Tostitos chose Facebook as the primary platform for the program since the promo was targeted to current college students and recent grads. Frito-Lay hired social marketing firm StepChange Group to develop the Race to the Bowl Facebook page and two embedded applications.
The promotion launched on Facebook in late November with the two applications, a contest entry form that allowed fans to upload photos and essays on why they should be chosen, and a viewing widget that let other users see and share the entry materials submitted.
Tostitos worked with Facebook to target ads for the promotion to students, alumni and other Facebook members who cited their team loyalty in their user profiles for schools whose football teams were in the top 10 in the BCS standings and thus likely to be among the two teams selected for the bowl.
After the bowl made its selection, Tostitos targeted campaign ads only to Ohio State and UT fans. More than 1,098 entries were received, noted Chris Kuechenmeister, Frito-Lay’s director of PR.
During the December 31-January 5 cross-country competition, the Race to the Bowl Facebook page was continually updated with professionally shot videos of the two teams’ activities to drive repeat visits.
StepChange reported 17,779 people became fans of the Facebook page, which attracted 39,477 unique visitors.
Chick-fil-A Bowl Adds Single Social Media Element To Existing Site
Short of an entire proprietary site for social networking, properties may choose to bolt on an engagement platform to their current Web homes.
Atlanta’s Chick-fil-A Bowl took that step, paying a Web developer less than $10,000 to create a user-generated-video microsite on Chick-fil-ABowl.com.
The Fan Enuf? promotion asked fans from Atlantic Coast Conference and Southeastern Conference schools to post videos showing how they support their teams. Videos judged to be the best were in line to win prizes including bowl tickets and an Xbox 360.
The bowl this year gave presenting status of the promotion to existing sponsor The Home Depot, Inc. as a value-add after testing the site without a sponsor last year, Epps said.
Sources
Frito-Lay North America, Tel: 972/334-7000
Chick-fil-A Bowl, Tel: 404/586-8500
NBA Cleveland Cavaliers, Tel: 216/420-2000
NBA Phoenix Suns, Tel: 602/379-7900
Career Sports & Entertainment, Tel: 770/955-1300