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Strategies for International Success
In collaboration with:
PLANETFOOTBALL
Burson-Marsteller, a leading strategic communications and public relations firm, has teamed up with The WPP Sports Practice and international tour organiser Match IQ to get to the heart of this issue. We invited some of the thought leaders in the industry to give their expert insights on how best to engage with audiences abroad. The Planet Football report highlights that football and other sports still have plenty of scope to expand their reach into new territories.
English Premier League clubs lead the way when it comes to taking part in pre-season tours abroad aimed at expanding their international fan-base. More than half of the Premier League’s 20 teams including Chelsea, Manchester United and Swansea City will play overseas games during the close season, compared with only five teams from the German Bundesliga, four from the Italian Serie A and La Liga Santander (Spain) and even fewer from Ligue 1 (France). The most popular overseas destinations for European clubs are North America and China, while markets such as Africa, South America, Indonesia and Australia are currently less successful at attracting teams. However, the potential fan base and revenues from all overseas markets are becoming increasingly relevant as clubs make winning in the global league a top priority.
Today’s technology means that audiences are no longer limited to regions; they have access to content on a global scale. The growth of a global middle class, urban migration and increasing mobile accessibility
allow sports rights owners and brands to expand far beyond their traditional base. But many have struggled to adapt to this new environment and found it difficult to identify the right path to international growth.
Significant international expansion requires new forms of engagement, new products, new markets, and often new employees or partners. Finding the right balance between the traditional and the new is no easy task for any organisation - and certainly not for stakeholders rooted in their local communities. A certain tension will always be there when it comes to determining why, when, where and how international expansion should (best) take place to ensure success in the decades ahead.
But how much stability and how much change is required to get the balance right? It is clear from our report that every sports organisation needs to seek change if it is ambitious. The process of international expansion is an unstoppable force and the status quo is not an option.
Embracing the new realities and engaging with the new opportunities is a strategic imperative for all decision-makers in the industry.
We would like to thank all contributors and organisations who helped to make this report possible. We hope that you will enjoy reading it as much as we have enjoyed researching and developing it.
One of the essential questions facing sports organisations today is how to grow in an increasingly competitive and globalized market place while, at the same time, staying true to their roots and core values.WHY,
WHEN, WHERE AND HOW
THE PATH TO INTERNATIONAL EXPANSION
Discover the international Pre-Season Tours 2017/2018 on the Global Map
William Gaillard, Senior Advisor Sport
Dominic Grainger, Chief Executive Officer
Nicholas MacGowan, Managing Director
2
Burson-Marsteller, a leading strategic communications and public relations firm, has teamed up with The WPP Sports Practice and international tour organiser Match IQ to get to the heart of this issue. We invited some of the thought leaders in the industry to give their expert insights on how best to engage with audiences abroad. The Planet Football report highlights that football and other sports still have plenty of scope to expand their reach into new territories.
English Premier League clubs lead the way when it comes to taking part in pre-season tours abroad aimed at expanding their international fan-base. More than half of the Premier League’s 20 teams including Chelsea, Manchester United and Swansea City will play overseas games during the close season, compared with only five teams from the German Bundesliga, four from the Italian Serie A and La Liga Santander (Spain) and even fewer from Ligue 1 (France). The most popular overseas destinations for European clubs are North America and China, while markets such as Africa, South America, Indonesia and Australia are currently less successful at attracting teams. However, the potential fan base and revenues from all overseas markets are becoming increasingly relevant as clubs make winning in the global league a top priority.
Today’s technology means that audiences are no longer limited to regions; they have access to content on a global scale. The growth of a global middle class, urban migration and increasing mobile accessibility
allow sports rights owners and brands to expand far beyond their traditional base. But many have struggled to adapt to this new environment and found it difficult to identify the right path to international growth.
Significant international expansion requires new forms of engagement, new products, new markets, and often new employees or partners. Finding the right balance between the traditional and the new is no easy task for any organisation - and certainly not for stakeholders rooted in their local communities. A certain tension will always be there when it comes to determining why, when, where and how international expansion should (best) take place to ensure success in the decades ahead.
But how much stability and how much change is required to get the balance right? It is clear from our report that every sports organisation needs to seek change if it is ambitious. The process of international expansion is an unstoppable force and the status quo is not an option.
Embracing the new realities and engaging with the new opportunities is a strategic imperative for all decision-makers in the industry.
We would like to thank all contributors and organisations who helped to make this report possible. We hope that you will enjoy reading it as much as we have enjoyed researching and developing it.
One of the essential questions facing sports organisations today is how to grow in an increasingly competitive and globalized market place while, at the same time, staying true to their roots and core values.
William Gaillard, Senior Advisor Sport
Dominic Grainger, Chief Executive Officer
Nicholas MacGowan, Managing Director
teams
teams
11
2
teams4 teams4
teams5
PREMIER LEAGUE CHAMPIONS IN THE GLOBAL GAME
PRE-SEASON TOURS 2017/2018
PLANET FOOTBALLGLOBAL MAP
MOST POPULAR
OVERSEAS DESTINATIONS
teams
NORTH AMERICA
15
team1
team1
teams12
ASIA
AUSTRALIA
AFRICA
Alexander Bielefeld, Manager, Burson-Marsteller
STRATEGIC IMPERATIVES 12WHICH HELP DRIVE YOUR INTERNATIONAL ACTIVITIES
Executive SummaryBE STRATEGIC PLAY THE LONG GAME Sport often suffers from an inherent tendency to think short-term. Instead set out a longer-term vision and put structures in place to deliver
DEFINE YOUR OVERARCHING PURPOSE People are looking to live a broader purpose through the organisations for whom they work and with whom they engage
EMBRACE THE NEW BROADCASTING REALITIESTake part in the new opportunities of the digital age and communicate directly with your fans
IDENTIFY YOUR GROWTH MARKETS Domestic markets will always be key but as they are close to saturation stakeholders need to carefully select future growth markets to stay competitive
NEVER FORGET YOUR (LOCAL) IDENTITY Increasing fan engagement from across the world makes the relationship between the club and its location ever more important
MANAGE SPORTING AND COMMERCIAL EXPECTATIONS Commercial strategies need to be aligned with sporting needs by the coaching and medical staff
DEVELOP YOUR OWN PROGRAMME International strategies need to be tailored to the identity, capacity and expectation of each individual organisation and ensure presence and engagement all year long
PLAN YOUR INTERNATIONAL TOURS International tours need to be planed as an integrated part of a wider market access and engagement strategy
ATHLETES WILL DRIVE YOUR ENGAGEMENT People engage with people rather than organisations. It is the athletes and fans who create authentic interactions
BUILD OUTSIDE THE BOX PARTNERSHIPS New and creative partnerships at local and global level are essential to allow for authentic and credible engagement
THERE IS NO STATUS QUO IN SPORTThe process of internationalisation and trans-nationalisation of football will vigorously run its course since there is no force on the horizon that could even temporarily divert it
UNDERSTAND THAT YOUR AUDIENCE IS CHANGING Centennials are digital, mobile and social natives. They are your audience of today and tomorrow so don’t be afraid of the new and engage
3INTERNATIONALISATION AT A GLANCE
Alexander has a deep understanding of sports business and governance. He advises a wide range of international sport clients, is involved in EU sport governance and is leading on award winning multi-market campaigns. He is currently a candidate of MESGO IV, the Executive Master in European Sport Governance.
Why international sponsors demand more from rights-holders Andreas Sigl, Managing-Director, Burson-Marsteller Geneva Making Fans your Number 1 Stakeholder Kevin Ashby, Senior Editorial Manager, UEFA
The Preparation of International Tours Julian Neuburger, Head of International, Match IQ
US Fan Demand for European Football TelecastsGeorgios Nalbantis & Prof. Dr. Tim Pawlowski, University of Tübingen
Pre-Season Tours as Part of an Integrated Fan StrategyKristian Gotsch, Director Client Services, Two Circles
The Internationalisation of the Player MarketDr. Raffaele Poli, Head of the Football Observatory, International Centre for Sports Studies (CIES), Neuchâtel
The Changing Power of Players’ Image Rights Jonas Baer-Hoffmann, Director Policy, World Players’ Union (FIFPro)
Executive Summary: 12 Strategic Imperatives Alexander Bielefeld, Manager, Burson-Marsteller Engaging with Young PeopleDominic Grainger, CEO EMEA, GroupM and CEO, The WPP Sports Practice
INTERNATIONALISATIONAT A GLANCE
Burson-Marsteller
The WPP Sports Practice Match IQ
ABOUT US
INSIDEStrategic Communications Playing the Long GameProf. Raymond Boyle, School of Culture and Creative Art, University of Glasgow
The Evolution of Sports Media Rights Mark Lichtenhein, Chairman, Ladies European Tour
The Power of Purpose Geoff McDonald, Senior Adviser EMEA Corporate Purpose Practice, Burson-Marsteller
How Football can Change the World Jürgen Griesbeck, CEO and Founder, streetfootballworld
Defining ExpectationsNicholas McGowan von Holstein, CEO and Founder, Match IQ
How Football Gaming can help Grow the SportRonnie Hansen, Senior Consultant, TSE Consulting, a Burson-Marsteller Company
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PERSPECTIVES BY STAKEHOLDERS
STRATEGY, PURPOSE AND EXPECTATIONS
FAN ENGAGEMENT AND NEW MARKETS
Trans-nationalisation and its Impact on Competition William Gaillard, Senior Adviser Sport, Burson-Marsteller
The Globalisation of LeaguesNathalie Boy de la Tour, President, LFP
Possible future evolutions in the Internationalisation of FootballAlex Phillips, Head of Europe-Asia Relations, UEFA, seconded to AFC
The Club and its City Umberto Gandini, CEO, AS Roma
Authenticity - The Key Driver for Development of BarçaFrancesco Calvo, Chief Revenue Officer, FC Barcelona
A Unique Programme Wolfsburg United Andreas Kruse, Head of International Sponsoring, VfL Wolfsburg
ESports - a Big Step Towards the Club’s FutureTim Reichert, Head of e-Sports, FC Schalke 04
5PLANET FOOTBALL ©
AS
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ma
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Centennials are digital, mobile and social natives. As the most diverse generation ever they seek experience, passion and engagement. The same behaviors make centennials elusive to marketers. Two thirds use ad blocking software and 84% prefer ‘dark sharing’ social networks (Snapchat, Whisper, iMessenger). They are cautious with their time, their money and their data. They would rather pirate stream than pay for subscription TV which creates an imperative for brands to attach their narrative to things about which they actually care.
CENTENNIALS ARE DIGITAL, MOBILE AND SOCIAL NATIVES.
By Dominic Grainger, CEO EMEA, GroupM and CEO, The WPP Sports Practice
ENGAGING WITH YOUNG PEOPLE
The sports industry is rich in opportunity for rights owners and brands to take advantage of the truly global market of passionate, engaged sports fans. The growth in the global middle class, increased urban migration and growing mobile accessibility is allowing sports rights owners and brands to expand beyond their traditional, local audience bases – appealing to new geographies and demographies in the pursuit of broader long term brand relationships. Centennial audiences – the future lifeblood of any competitive industry – will represent 40% of consumer purchasing power by 2020 and are a key target in this expansion.
Dominic is the CEO of GroupM Europe, Middle East and Africa since 2008 and also serves as the CEO of The WPP Sports Practice, the global entry point to WPP’s collective sports services and expertise.
The good news is that, validated by the US Center for Digital Future, Centennials actually like ads with their sport more than any other generation. They are also the most informed sports fans in history, even if the sports they are informed about aren’t the traditional ones (they prefer e-Sports, Action Sports, Ultimate Fighting Championship (UFC) and sports content like Dude Perfect) and they are not just consuming them on traditional marketing channels like linear TV or VOD. They live stream, watch pirated highlights on YouTube, short form content on Snapchat or alternative ‘secondary’ content – talk shows, reality shows, documentaries – all on mobile devices. ‘Live’ is at the center of the experience but not the whole experience.
They are ambivalent towards valueless interactions, but aware of their importance to marketers and open to transactions from which they gain emotional, financial or social value. To take advantage of this, a shift in marketing strategy from attracting eyeballs to building fan groups is required. Fans can no longer be viewed as just a revenue source. Building robust relationships through deep engagement will allow more effective commercialisation. Uber’s recent in-car content partnership with Manchester United demonstrates how to deliver value whilst forging deeper relationships.
CREATING RELEVANT AND AUTHENTIC INTERACTIONS FOR AN ENGAGING GENERATION
7INTERNATIONALISATION AT A GLANCE
AND THE CHANGING FACE OF SPORTS MEDIA
“Fans can no longer be viewed as just a revenue source.”
Effectively commercialising those relationships in an age of cable cutting is difficult but ultimately rewarding. Centennials demand customised, editable content they can interact with. If brands and rights owners don’t provide this, they will find it elsewhere. The guarded approach major rights owners are taking toward access to their media assets is unlikely to bear fruit. Looser controls on content and more engagement on relevant social channels will help drive affinity.
Accepting that ring-fencing valued content will not deliver results, shared commercial models that leverage centennials proclivity towards co-creation can flourish – driving both revenue and engagement. Fans are now end users, influencers and distributers. Partnering with them to deliver authentic, scalable content will help generate organic reach, bypassing expensive media buys.
Ultimately, the source of good content concerns young audiences less than it’s quality and accessibility. More skinny, direct-to-consumer offers that are flexible and provide a more involving experience (choice of commentators, camera angles, replays etc.) will be welcomed. Working with athletes and owned talent to develop engaging, authentic content stories is also essential in appealing to an audience who increasingly relate more with stars than teams. Partnering with brands to deliver this will create a world of more profitable content packages.
Looking internally, leveraging owned data, merchandise and content assets into fit-for-purpose sponsorship inventory will help deepen revenue streams and satisfy brands demanding more accountability. As content aggregators like DAZN follow in the footsteps of Netflix and Amazon – disrupting the content distribution model – advanced technology is helping turn rights owners into broadcasters with sellable media inventory. The LA Clippers retention of their digital broadcast rights is just the tip of the rights-owner-as-broadcaster iceberg.
A conscious focus on utilising emerging technologies (virtual reality, over-the-top streaming) and loosening controls over content is helping the NBA appeal to young audiences in Asia. Providing access to iconic talent and engaging with centennials on native social channels has unlocked significant audience growth.
For brands, making the shift from sponsor to rights holder offers considerable commercial advantage. Establishing equity in emerging, put popular, niches like e-Sports may allow brands to build new revenue streams and own a more direct relationship with fans. No longer do brands have to be stuck on the outside, looking in. With the advances in broadcast and content distribution technology, they can begin to take more ownership of the sports platform that was so attractive from the beginning.
A SHIFTING BROADCASTING REALITY
The same old strategies aren’t working. Centennial consumers are fundamentally different. They demand more value from their interactions and more meaningful experiences. In an interconnected world where local and global markets are increasingly indistinguishable, brands and rights owners must work harder to provide them with this. Marketing Directors should view this necessary shift as an opportunity to broaden appeal, access new markets, build revenue streams and create more effective sponsorships.
Embracing innovative technology and new commercial models are the solutions. Partnering with fans and key influencers to publish more authentic content stories are the methods. Doing all this requires a degree of bravery, an acceptance of new risk and a willingness to abandon accepted wisdom. But change is needed. How quickly it happens will determine the shape of the sports landscape for years to come.
ADAPTING TO A NEW SPORTS LANDSCAPE
“The same old strategies
aren’t working. Centennial consumers are fundamentally different.”
“ Embracing innovative technology and new commercial models are the solutions. Partnering with fans and key influencers to publish more authentic content stories are the methods.”
9INTERNATIONALISATION AT A GLANCE
ABOUT US
Burson-Marsteller, established in 1953, is a leading global strategic communications and public relations firm. It provides clients with strategic thinking and program execution across a full range of public relations, public affairs, reputation and crisis management, advertising and digital strategies.
The firm’s seamless worldwide network consists of 77 offices and 85 affiliate offices, together operating in 110 countries across six continents. Burson-Marsteller is a part of Young & Rubicam Group, a subsidiary of WPP, the world’s leader in communications services.
TSE Consulting is a Burson-Marsteller company. As an international consulting firm specialised in sport, TSE helps its clients (public sector bodies and sports organisations) in four highly inter-related practice areas that are fundamental to driving sport forward: events, performance, participation and facilities. Headquartered in Lausanne, Switzerland, and with regional offices in Europe, North and South America, Africa and the Middle East, TSE has an international reach and an unparalleled connection to the international sports world. For more information, please visit www.tseconsulting.com.
The WPP Sports Practice is the global entry point to WPP’s collective sports services and expertise. We play to win, bringing Brands, Rights-Owners and Event hosts the very best of WPP’s global sports marketing and communications solutions, to help them create and exploit new opportunities in the fast-changing world of sports marketing. Mastering this new world requires a completely new outlook. A vision of the sports industry is needed that embraces new models of fan engagement - grounded in data - and a rigorous understanding of the fast changing media landscape.
The WPP Sports Practice has this vision and scale. We see the big commercial picture and have the global resources to help our clients win, creating and exploiting new opportunities across the industry. We build customised teams to suit client needs, drive horizontal collaboration and fuel the continued development of our services with thought leadership and strategic guidance.
Supported by WPPs broader marketing and communications services, our specialist sports marketing agencies are already working with some of the world’s biggest brands, rights holders and event hosts. Delivering cutting edge services across the full communications spectrum, globally.
• Fan Engagement & Purpose
• Corporate and Commercial Strategy
• Campaign design and destination marketing
• Data intelligence & measurement
• Content Creation & Storytelling
• Media and Influencer Relations
• Digital Strategy
• Athlete & Brand Activation
• Corporate & Commercial Strategy
• Rights Sales & Investment Consultancy
• Fan Engagement
• Destination Marketing
• Sponsorship Assessment & Activation
• Data Intelligence & measurement
ABOUT BURSON-MARSTELLER
ABOUT The WPP Sport Practice
Our range of services in the international sports arena include:
This includes:
For further information about The Sports Practice please contact:
Grant PatersonBusiness Development Managerwww.wpp.com/wpp/about/whatwedo/ the-wpp-sports-practice/[email protected]+44 7769 361532
For further information about Burson-Marsteller please contact:
Alexander BielefeldManager, EMEA [email protected]+32 2 7436611
93ABOUT US
Match IQ acts as a consultant to more than 25 Bundesliga and European clubs as official and long-term partner in the fields of sporting preparation, match day execution and internationalisation. For its clients, Match IQ works as an official partner on the basis of long term contracts, representing the clients interest in the market. Working totally transparent and always in the background, Match IQ’s goal is to optimise and implement the sporting preparation for the season and simultaneously create new platforms to activate unused potentials for sponsors and fans.
Match IQ benefits from its international network and from new approaches, in order to generate additional economic revenues.
Match IQ also works with rights holders and brands around the world in the creation, sourcing, planning and implementation of major friendly matches, tournaments, training camps and international tours. Match IQ creates unique and innovative sports marketing concepts and has, over the years, done so all over the world, including the USA, South Africa, China, Indonesia and so forth.
• Pre- & mid-season preparations
• International (marketing-)tours
• Commercial friendly matches
• In- & outdoor preparation tournaments
• Travel planning for away games
• Sporting events of all kinds
• Sponsoring
Our core business at a glance:
ABOUT MATCH IQ
For further information about Match IQ please contact:
Julian NeuburgerHead of [email protected]+ 49 40 85403926
94 ABOUT US
IN COLLABORATION WITH
PLANETFOOTBALL Strategies for International Success
EMEA SportsSquare de Meeus 37B-1000 [email protected]+32 2 7436611
MATCH IQ GmbHFriedensallee 120D-22763 Hamburg
The WPP Sports PracticeWPP plc. 27 Farm StreetLondon W1J 5RJ, UK
