Sherwin-Williams signs with IndyCar MLS, SNHU sign new partnership The Lefton Report: Playing it Safelite Mike Slive: Going out on top Precourt thoughtful in remaking Crew Challenging schools on cheating DraftKings closes on $300M funding round NBC readies year-out efforts for Games Best opportunities outside of teams Fanatics' new era of racetrack retail
SBJ/April 4-10, 2011/Events and AttractionsPrint All
When March Madness on Demand streamed the Kings of Leon concert Saturday, it marked the first time that something other than a basketball game had been broadcast on MMOD.
The concert, sponsored by Coca-Cola Zero as part of the NCAA’s “Big Dance” at Houston’s Discovery Green, was one of two major programming initiatives by the soft drink company over the Final Four weekend.
Coke Zero also sponsored a Saturday afternoon show on CBS called “Most Impressive Moments of March Madness,” which aired at 3 p.m. and served as a college basketball lead-in for the network’s pregame coverage.
Coke’s agency for the Final Four since 2003, Atlanta-based Melt, produced the TV show and the Kings of Leon concert with the help of CBS Sports producer Craig Silver. Crispin Porter & Bogusky, Coke Zero’s ad agency in Boulder, Colo., worked on strategy as well.
“What we want to do is provide the excitement of the Final Four to all of the fans, those in Houston and those who can’t be in Houston,” said William White, group director for Coke Zero and Diet Coke.
Coca-Cola, as an NCAA corporate champion, annually sponsors a Final Four concert and floods CBS with advertising throughout the NCAA tournament.
But White said the company was looking for activation opportunities that could extend beyond the usual presence at the “Big Dance” and “Bracket Town,” the NCAA’s fan fest area.
In conversations with the NCAA’s partners, CBS and Turner, Coke wanted more activity on MMOD. It already advertised heavily on the online channel with 15-second and 30-second spots, but it wanted to bring more elements to life.
“We love the TV, but we wanted more online,” White said. “We really wanted to make sure that we reach the 18-34 guys in the richest way possible. Traditional TV is a great way to talk to your audience, but we know with 18-34, they spend a lot of time in the digital world and the social world. For them, content is king. They’ve grown up in the digital media world and they expect great access and impressive content.
“To make sure we delivered that, we had to go deeper.”
Meanwhile, Turner was seeking to integrate a popular band and song into the opening of the tournament broadcasts. Kings of Leon and their song “Immortals” were identified earlier this year. The band agreed to be part of the Final Four, and Coke gave them the thumbs up to perform in Houston.
“The challenge is to get a band that everybody is going to like, from Turner to CBS to Coke and the NCAA,” said Craig Barry, Turner’s senior vice president of creative and content. “It turned out, when we contacted the band, that they’re all college sports fans and we know they’ve got a huge rock and indie following, so you’re reaching a broad demo as well.”
Coke had streamed last year’s Daughtry concert in Indianapolis onto its Facebook page, and the natural progression was to take Kings of Leon to MMOD this year.
“What we’re seeing is really the evolution of the Final Four as a global property that reaches audiences around the world,” said Vince Thompson, president and CEO of Melt, who worked on his ninth straight Final Four. “I think it’s on par with the Super Bowl as a mega sports and entertainment event, or at least a very close No. 2.”
Coke Zero’s White was influenced by the stats from last year, which showed 11.7 million hours of video was streamed on MMOD. Those numbers have remained strong this year with a 60 percent increase in total visits to MMOD going into the Final Four weekend.
“I like to consider the concert an extension of our event content,” Turner’s Barry said. “The broader we can go to bring experience to the viewer, the better off we’ll be.”
The 30-minute “Most Impressive” show on CBS tied in another online initiative, Coke Zero’s social arena on NCAA.com. The social arena aggregated Twitter posts and other social media information about the NCAA tournament into a centralized website, ncaa.com/cokezerosocialarena.
But there was also discomfort caused by uncertainty on several important issues, including labor, the perils of social media and the future of content distribution. The inescapable conclusion: The future of the sports industry is being reshaped by forces beyond many executives’ control.
SportsBusiness Journal’s Abraham Madkour (left) leads the Rapid-Fire Roundtable, discussing the headlines of the day with ESPN’s Mike Tirico, Gatorade’s Sarah Robb O’Hagan, EA’s Peter Moore, Turner Broadcasting’s David Levy, the NHLPA’s Donald Fehr, the USOC’s Scott Blackmun and the WTA’s Stacey Allaster.
Even during the recession, the sports industry enjoyed the type of stability most businesses would envy. TV rights rose steadily, sponsorship values increased incrementally and new additions to premium seating continually boosted the bottom line.
But there was an awareness throughout the conference that the easy, organic growth of years past was over, and the key to mapping the future lay in long-term labor security, understanding social media and harnessing the opportunities of mobile and digital distribution.
“These are all significant issues leagues and properties will tackle,” said Rob Temple, vice president of sports management at ESPN. “The leagues, sponsors and media companies that are listening to fans are going to come through it stronger. The ones not staffed well or willing to listen will struggle. ”
A panel on team ownership, moderated by SBJ staff writer Tripp Mickle, featured Stephen Ross (second from left) of the Miami Dolphins, Rocky Wirtz of the Chicago Blackhawks, and Merritt Paulson of the Portland Timbers.
“Now it’s personal,” Leiweke said, alluding to the escalating vitriol that has emerged as one of the biggest threats to a deal between the NFL and NFLPA.
While Leiweke said he thought the league might miss games, others at last week’s conference expressed confidence that the sides would reach a resolution and start the season on time. But the lack of consensus underscored just how much uncertainty there is around sports’ biggest property.
“It’s not good, and the longer we don’t get a deal, the worse it will get,” said Brian Rolapp, NFL Media’s chief operating officer. “We’re confident and hopeful we’ll get to the table and get something done.”
NHL Chief Operating Officer John Collins agreed, adding, “Labor is the one big hiccup holding everything back. You have to see where the NFL goes and the NBA goes. Baseball’s right after that.”
Sports marketers already are spending twice as much time developing activation plans for the 2011 season as in previous years because they need to prepare a contingency plan in case the lockout continues, and they said the repercussions of that could extend beyond this year.
Procter & Gamble has developed both NFL and non-NFL-related point-of-sale displays and retailers will make a decision which one to feature this May. The activation is for a major retailer, and Greg Via, Gillette/P&G global sports marketing director, said if the retailer doesn’t take it this year, it would make it less likely the retailer would opt for an NFL display in 2012. “It’s going to have a long-term effect,” Via said.
At the same time that marketers are making tough decisions about how they activate their sponsorships, they’re also deciding how they will advertise.
“We’re looking at our upfront marketplace on the entertainment side and saying, ‘Where are all these [gross ratings points] going to go?” Turner Sports President David Levy said. “Sports is really the only thing that seems to be growing from a [gross ratings point] standpoint, so if advertisers have to lay their money down in the fourth quarter and there is no football and there is no NBA, that’s going to cause a shortage in supply, high demand and high pricing.”
Five years ago, Peter Moore said EA Sports developed campaigns that shaped what consumers thought of the brand and its products. Now he tracks what consumers say about the brand and tries to influence their commentary in social media.
“You can’t control it, you have to manage that,” Moore said. “We have lost control of the conversation to the consumer.”
The Florida Panthers’ Michael Yormark (left) listens as the Miami Heat’s Eric Woolworth talks about the fan experience.
“It’s a social revolution that’s in play for the marketplace, and the sports world has to embrace it,” said Michael Lynch, Visa’s head of global sponsorship management. “Right now, everyone’s trying to figure it out.”
Research has shown that consumers are 12 times more likely to trust a recommendation from a friend for a product than they are a traditional advertisement, and brands are deploying an array of strategies in an effort to influence recommendations.
Visa provided exclusive content around its Olympic athletes during the Vancouver Games in order to increase its Facebook fan base by 110,000 fans, and Farmers Insurance sponsored an airplane in the Facebook game Farmville that got downloaded 6.5 million times.
“Can I show you a spreadsheet that shows it translates to sales? No, I can’t,” said Coca-Cola chief marketer Bea Perez. “But we believe this is a space we will continue to learn from and will be important to our business.”
But as great as the potential rewards are, there are risks with social media, as well. Reliant Energy employs 12 people to monitor customer feedback across social media platforms, so it can respond to complaints before they influence opinions of the brand.
Gatorade tells its athletes to be wary of Twitter and reminds them that everything they tweet is on the record.
“If you talk to public relations directors in pro sports, Twitter keeps them up at night,” said ESPN commentator Mike Tirico. “Some of it’s great because we’ve taken down the barrier of athlete to media to fan, but like everything, life’s a laboratory, and we have to proceed with caution.”
Communicating directly to fans presents both an opportunity and an obligation, said MLS Commissioner Don Garber.
“It’s all going into a big pot,” Garber said. “We’re stirring it around, trying to get our hands on it.”
SBJ’s Abraham Madkour (left) moderates a panel including Reebok’s Tom Shine, IMG’s George Pyne, AEG’s Tim Leiweke, the Boston Bruins’ and Delaware North’s Jeremy Jacobs, and MLS’s Don Garber.
But even with that unanimity, uncertainty remains about whether distributors have the rights to stream channels like Time Warner Cable started doing, allowing its TV and broadband subscribers to view a 32-channel lineup on their iPads.
Powerful entertainment programmers — including Fox and Viacom — have threatened to sue Time Warner Cable over the service. Last week, Time Warner Cable pulled channels that complained, and threatened legal action itself.
The question of whether Time Warner Cable legally is allowed to stream a 32-channel lineup to its iPad-using subscribers almost certainly will be settled by a court of law. But the sports industry threw its support behind the service — even though it doesn’t currently include any sports channels. League and ESPN executives described Time Warner Cable’s service as a natural evolution of video.
Their remarks stand in stark contrast to entertainment programmers, like Fox, Scripps, Viacom and Discovery. Last week, Fox sent Time Warner Cable a cease-and-desist letter, trying to persuade it to pull its channel from the lineup. The networks allege that Time Warner doesn’t have the right to stream their channels to an iPad, and they worry that they’ll start to lose control of where their content can be viewed if they allow such a move.
But sports executives say Time Warner Cable’s service — as well as one planned by Cablevision — doesn’t necessarily concern them. Because viewing is confined to Time Warner Cable subscribers within range of their router, league executives view the iPad as another television screen in the home.
“I think we’re going to stop the debate about screens and devices and get to a philosophy about content,” said Tim Brosnan, MLB’s executive vice president of business. “Live games get sold here in this fashion for all these purposes. [A content] library gets sold here in this fashion for those purposes. We’re going to look to extract value on all of it.”
Tim Brosnan (left), John Collins, Brian Rolapp, Adam Silver and John Skipper share a laugh during the sports media panel.
“It’s important for all of us that those screens get counted in the home,” Silver said. “When it comes to televising the games in the household, I’m in favor of [Time Warner Cable’s service], with the exception of the Nielsen issue.”
Unlike programmers like Fox and Scripps, ESPN doesn’t see problems with Time Warner Cable’s service. ESPN signed a carriage deal with Time Warner Cable that allows the cable operator to stream several of its channels to its subscribers. John Skipper, ESPN executive vice president of content, said the iPad app is a natural progression.
“This is really about video on the best available screen,” Skipper said. “The distinction between these screens is becoming nonexistent. They’re just screens. … You want to watch whatever you want to watch on whatever the best screen available is.”
NFL Media’s Rolapp agreed that video to a tablet is a natural evolution from 2005, when DirecTV started making “Sunday Ticket” available to Internet users.
“You could get your ‘Sunday Ticket’ package on your mobile phone or your computer,” he said. “Now you can get it on your tablet. It’s always been there.”
Staff writers Eric Fisher, Brian Helfrich, Daniel Kaplan and Terry Lefton, and correspondents Jennifer Rodrigues and Joseph Argenziano, contributed to this report.
ALL PHOTOS BY GORT PRODUCTIONS
George Pyne of IMG Sports and Entertainment, tennis academy founder Nick Bollettieri, and tennis’ Mary Joe Fernandez and Brad Gilbert
Basketball’s Val Ackerman, a Champions honoree, with Joe Leccese (left) and Howard Ganz of Proskauer
Former USTA chief Arlen Kantarian, Ann Kenny of IMG World, Frank Supovitz of the NFL and Tery Howard of the Miami Dolphins
Daryl Gross of Syracuse, Reebok’s Tom Shine and Mike Tirico of ESPN
Rick Abramson of Delaware North Sportservice and Jeremy Jacobs Jr. of Delaware North
Howard Ganz of Proskauer and Peter White of
IMG media executive and Champions honoree Barry Frank
Doug Perlman of Sports Media Advisors, the NFL’s Frank Supovitz and Brian Rolapp of NFL Media
ALL PHOTOS BY GORT PRODUCTIONS
Guests attend a networking reception hosted by Sun Life Financial. At top left, the NFL’s Ingrid Petri (left) joins Sun Life’s Sara Fabrizio. At top right, Sony’s Tracy Ham (left) joins Conviva’s Tim Prukop and Anil Hinduja, and Comcast Sports Group’s Eric Grilly.
Scenes from Wednesday’s after party hosted by the Miami Heat.
Participants awoke early Thursday for a fun run hosted by Competitor Group.