In the past, traditional agencies played a significant role in the world of sports. They were involved in the creative process, media buys, and sports sponsorships. However, the landscape has drastically changed over the last two decades. Today, sports marketing has become far more complex, leading towards specialization.
As the industry has evolved the complexity of sports marketing has outpaced the capabilities of traditional agencies. Sports marketing is much more intricate than it used to be, and the plethora of assets available in a sports sponsorship leaves traditional agencies struggling with effective evaluation.
Specialized Agencies
As a shameless plug to our company, Knox Sports was one of the first to specialize in sports, fulfilling the need for expertise in evaluation, negotiation, and execution. Traditional agencies tend to measure success on impressions and radiance, which is no longer feasible now that clients have gone beyond just branding. Clients are looking for deals to accomplish their specific business goals, and this is where agencies like Knox Sports excel, while traditional agencies fall short.
It is important to focus on what the client actually wants and what their business goals are. College sports, for example, offer the ability to generate content year-round. This continuous engagement creates a larger marketing opportunity and positive content creation. University relationships offer year-round opportunities that traditional advertising can’t match.
“University relationships deliver a year-round opportunity for a client who needs that and can't get it by just buying an institutional ad on a network. That's what sports does and they do it better than anyone else”, Paul Sickmon, Founder and CEO of Knox Sports Marketing, said emphasizing the crucial role sports marketing plays for clients.
Expertise in Sports Marketing Agencies
Pitching to a client is often quicker and more effective when done by a sports marketing agency. These agencies possess a deep understanding of media value, return on investment, and the affinity associated with college sports. They go beyond just using intellectual property (IP) for branding, understanding that an impression-based model won't deliver the desired results.
In sports marketing, data is so important. Agencies need to drill down into fan bases and their habits, supplying clients with detailed feedback and information. This data helps target specific demographics effectively. For instance, if a client’s target is 55-75-year-old men, sports marketing can capture this audience due to their affinity for sports entities. Sports sponsorship can be so effective because the fans will care if the brand is associated with their favorite sports team.
“If they care about sports and the affinity for that brand, then the affinity for that brand will make them react and then we have a chance to change their habit”, Paul Sickmon explains.
Evaluation of Sports Sponsorship
When creating a deal with clients it is important to focus on building a long-term relationship. The focus is on achieving the best possible deal for the client, not just maximizing profits. This approach involves frequent evaluation, and eventually when it comes to renewal, ensuring that goals are met and strategies are adjusted as needed.
A great example of this effective evaluation is with Kane’s furniture and their partnership with sports teams like the Tampa Bay Rays, Tampa Bay Buccaneers, USF, and Tampa Bay Lightning. Each season, there is a specific goal and performance indicator, such as driving traffic into the store. This relationship is easy to measure and renew, as it involves tangible results of foot traffic and people driven into the store.
The Translator Role of Sports Marketing Agencies
Sports marketing agencies play a crucial role as translators for clients. They understand the language of sports assets and the client’s business goals ensuring open communication and effective strategies. Traditional agencies do not have as much of a place or the skills to be effective in the sports marketing world.
Overall, the shift from traditional agencies to specialized sports marketing agencies reflects the industry’s evolution and the growing complexity of sports marketing. This transition has led to more effective sponsorship evaluations, better alignment with client’s goals, and the creation of long-term, mutually beneficial relationships.
Intrested in learning more?
You can listen to a full-length podcast episode on the topic. Listen, here.