The Lefton Report: ANA conference NYC race sponsors sprint to line FXFL gives Nivea branding opportunities AutoTrader.com renews with NBA PowerBar narrows sponsorship focus King out to make Adidas swift of foot Sponsor Loyalty: PGA Tour The Lefton Report: Austin in tune The Lefton Report: Model evolves MLB aims to get them to the ballpark
Upcoming Conferences and Events
SBJ/Jan. 10-16, 2011/Marketing and Sponsorship
Network to offer discounts to endurance athletes
Published January 10, 2011, Page 7
The service, called “Schwaggle” (swag plus haggle), will launch in the San Francisco Bay Area for a three-month test period before being extended to the Active Network’s 6 million worldwide members.
“When we read that [Groupon] is the fastest-growing online company, we said to ourselves, ‘We already have a lot of those attributes,’” said Brian Enge, vice president of strategic projects with the Active Network. “But we know our customer a lot better, so instead of sending them offers on bikini waxes and tanning salons, we can send them deals on products they want.”
According to a source close to the Active Network, Schwaggle represents a six-figure investment that will include the addition of 15-20 personnel.
The Active Network provides online registration services to nearly 75,000 running, cycling and team sports events worldwide. Each event pays a small percentage per registrant to the network, which attracts 8 million unique visitors each month on its website.
Initially, Schwaggle will offer three deals each week. The debut deal is 50 percent off the $52 entry fee for San Francisco’s 12K Bay to Breakers race on May 15. The deal will be sent out via e-mail and will appear on the network’s Facebook page, and is open to the first 100 registrants. The first week also includes 50 percent off a PacWest Athletics training camp and a Fuel Belt Helium H2O hydration system.
The Schwaggle business model is a revenue-sharing agreement between the manufacturers and the Active Network. There is no up-front fee for the manufacturers — both parties split the profit, minus the cost of production.
“We see Schwaggle as an opportunity to reach the athletic-minded consumer on a much broader level in an engaging way,” said Angela Fang, general manager of the Bay to Breakers.