Cavs' Len Komoroski Tackles New Media At SBD/SBJ Conference

Komoroski Says Online Content Most Measurable Form Of Media

Cavaliers and Quicken Loans Arena President Len Komoroski yesterday at the SBJ/SBD Sports Facilities & Franchises conference in N.Y. delivered a presentation titled “The Web and Social Networking: What You Need to Know to Monetize Your Assets.” Komoroski began the talk by recounting what a “big deal” it was to have radio and TV in-house in the '80’s, but how it was not until someone with expertise in that realm came into the organization that they were able to fully monetize those assets. The same is true for digital assets today, he said, the difference being after its first 14 years, “online spending basically dwarfs TV (spending). We’re in the midst of something pretty special here.” Komoroski then touched on everyone’s desire to quantify ratings of different mediums and how online content is “the most measurable form of media that exists and something that’s very easy to quantify in a return on investment perspective." He gave an example of how easy it is to quantify by showing a graphic displaying the NBA’s average corporate sponsorship revenue at $16.5M, of which 1.3% is allocated to online, which creates a “huge opportunity." Komoroski then introduced Cavaliers Manager of New Media Sales Mike Maleski, who took over the presentation. Maleski launched into the success of the Web site CavFanatic.com, which he credits to the sales team “believing there’s opportunity in that space and grabbing that opportunity.” He said looking at traffic on game days and non-game days gives “more predictable page views on predictable days, which allows you to offer premium pricing” when you know the traffic will be high. Also, tracking the amount of time the average user spends on Cavs.com, seven minutes, “is a big advantage … and allows for us to present our partners with an advertising opportunity which is unmatched.” Maleski’s presentation continued to boil down to understanding when premium ad space would be available and being able to leverage that accordingly and building the confidence of the corporate sales team regarding online assets. As questions rolled in, Maleski squashed the idea of being tentative of the online arena due to the fear that someone will say something negative, saying, “You can’t filter a lot of the content that comes in from your fans … but you can certainly stamp out anything that seem the least bit inappropriate.”

Santana (l) And Clark Feel Sponsors Placing More Importance On Customized Programs

THINKING OUTSIDE THE BOX: The way that sponsors are viewing value and assets in the current economy has shifted, and more importance is being placed on more customized programs, a panel of leading brand experts said yesterday during a panel titled "The Brand Side: Perspective on Sponsor Integration." PepsiCo North America VP/Colas Ralph Santana said that his company is more interested in deals that offer content and flexibility in crafting creative. Santana: "Get outside of that square box so that we can talk about how we can make this deal work for both of us so we can get through this rough patch in the economy.” MillerCoors Dir of Sports & Entertainment Dockery Clark said, “It will be interesting to see if the leagues realize ... (content) is better the more it's shared.” Subway Senior Brand Manager of Sports & Strategic Partnerships Paul Bamundo added that bringing added value in this economy is critical. He pointed to MSG coming to Subway with a virtual signage opportunity during Rangers games. Bamundo: "It was phenomenal. I got so many e-mails (about it). ... The fact that they brought that to us as an opportunity and not to someone else was very meaningful.” But Santana added, “It's one thing to bring those to partners and upcharge. It's another to bring them as added value.” Modell's Sporting Goods President Seth Horowitz said his company looks at a variety of things but foremost among them "is a commitment to winning." Clark agreed, saying, "We sold a lot more beer in Detroit the last week than we would have done otherwise.”

Exec Discusses How Going Green Can Also Lead To Cost Savings

JOLLY GREEN GIANTS: Mariners VP/Ballpark Operations Scott Jenkins earlier yesterday detailed the environmentally-conscious changes the franchise has made and plans to make in favor of saving money and staying green in a case study titled, “The Bottom Line on Going Green: Can Green Initiatives Mean Greenbacks?” Jenkins started by outlining why organizations should “go green” in the first place, saying that owners and CFOs like the savings, the public is starting to expect it, it is the responsibility of good corporate citizens and it provides excellent marketing potential. He then addressed the threat of not going green, saying, “We have an insatiable appetite for burning fuels and it’s doing nothing but growing.” Jenkins then discussed “Bottom Line Opportunities” and advocated the motto, “treat the building like you treat your home -- when you’re responsible for the bill.” By doing simple things like turning off the lights, keeping doors to the outside closed, adjusting temperature set points and upgrading controls on domestic hot water, the Mariners were able to save nearly $284,000, a 32% reduction in use from '06 to '07. During that same time period, Jenkins and his team saved on recycling, conserved water and reducing paper use, which totaled an annual savings of $453,000. He went on to outline a 10-step plan companies can use to be more environmentally conscious which included creating a “green team," joining the EPA’s Waste Wise program and Energy Star program and, most importantly, raising awareness within the public and fan base. When asked about how to get leadership to buy in to going green, Jenkins said, “I think some of it is just being lucky to be with people who are forward thinking and realize the benefits. ... $450,000 doesn’t seem like a lot when you’re talking about a naming-rights opportunity or big marketing deal or broadcast rights, but it’s real money.” He felt MLB has been “very supportive” of the green initiatives, but added “it’s up to the teams” to have a big impact, which is possible when marketing and sales team up. Jenkins closed his speech by saying the move to go green is inevitable and “rather than being pushed into it, why don’t we lead?” He said by doing that we can “score a Triple Bottom Line Win: people, planet and profits.”