Orji-Oko Uzor- Introduction
- What is sports marketing?
- The value of sports marketing
- How does a sports agent make money?
- Examples of sports marketing
- Ways to start a sports marketing agency
- What do sports marketing agencies do?
- How much do sports marketing jobs pay?
Introduction
Facts to know about sports marketing agencies can not be understood without tracing the origin. Let’s go back to history.
Story
The concept and practice of this kind of marketing started in the early 1920s. The American company Hillerich & Bradsby (H & B – now known as the Slugger Museum & Factory) launched a marketing method and handled the production of baseballs at that time. This particular action unleashed different others and people began to see sports as extremely potential business opportunities.
Americans saw and understood what sports was generating – and still do today. Business chances with a huge potential for movement and application of funds and this is extremely lucrative.
And this birthed the culture of sports in the United States. Consequently, sports marketing was the most effective tool to generate and increase revenues making brands, events and athletes more involved with the public.
This culture spread throughout the world. Now in each country, sports marketing is not only for business, but equally for the advancement and increase of sports worship.
Increasing stronger and much present, sports marketing has proved to be an efficient and powerful tool to generate business opportunities. And it is very wrong to believe that this strategy only works for some market segments. To combine consumption and passion, it is an effective tool for those looking for new strategy of using marketing.
Understanding what sports marketing is, it is important, firstly, to know what marketing is.
Marketing is the process to produce and deliver demand and generate profit and the capacity to understand that demand, not simply desires. Here, marketing and its techniques come into action to offer and promote products and services demanded by a certain market.
Now that we understand what marketing is, let’s talk about sports marketing and sports marketing agencies.
What is sports marketing?
Sports marketing is a type of marketing that uses sports, in any form, to help sell products and services. This kind of marketing is less about using a single technique and more about using the content of sports to aid marketing efforts. It’s not only limited to professional sports. But for college athletics, minor leagues, or alternative sports.
Since sports can be watched on different platforms, sports marketing can take many different styles. Nowadays, teams sell advertising space inside their stadiums to marketing agencies. Who want to buy billboards and other print advertisements, including TV networks that sell airtime during the events. Famous athletes equally sign contracts to work as celebrity endorsers and lend their images to marketing agencies.
The major advantage of sports marketing is that it gives sports marketing agencies opportunity to piggyback on the popularity of the team. That many fans has towards their favorite teams and athletes.
For instance, if a fan has loved a particular team since childhood. And any marketing agency that associates themselves with that team gains instant trust in that fan’s mind. Since the revenue goes to support the team, the sport marketing agency is seen as a sponsor and invested in the team’s success.
The only major disadvantage is that the sports marketing world is so big that it may be hard to stand out in the crowd.
For example, a fan who watches a football game will be exposed to different marketing messages. Sports marketing agencies will advertise to the fans, but their ad might be overlooked because of the game.
The value of sports marketing
Now it has become relevant to use good promotional activities to grab the people’s attention. Such promotional activities have equally become impossible for the sports teams. Apart from that with the aid of sports marketing it is still possible to make proper arrangement for sponsorship deals. Sponsorship deals play a crucial role when organizing any sports event. Collect important information about different sponsors through online sports resources.
Often products and services promotion are done through the sports team of which sports marketing equally becomes inevitable. The athletes of this sports team may become the brand ambassadors of different brands which helps them to generate more money. With proper sports marketing the famous brands becomes known with the players and the wining track record of a particular sports team. They meet the players in that team to become connected with their brand. As people desire to be like their favorite player they often purchase those brands promoted by those players which helps the brand to improve their sales. This result to the name of that sports team to get popularized indirectly.
The value of sports marketing include the following:
- It’s used to raise fund for the maintenance of the sports team
- Sports marketing puts the team to be in the mind of the audience
- Assist in making arrangement for advanced sports equipment which often cost big amount of money
- Bring to the people awareness of the different activities of the sports team
- It is the most relevant way to get sponsorship
With the assistance of suitable sports marketing agency it is very much possible to carry out such functions effectively. Visit online sports guide to select the appropriate sports marketing agency. The agency acts as a connector between the sports team and potential sponsors. They also aid the players to choose the brands that will have a positive impact on their professional career. And at the same time assist to improve the visibility of the sports team. It is the work of the sports marketing agency to map out a strong marketing strategy.
How does a sports agent make money?
Agents are doing the dirty work behind the scenes at all levels of the game.
Behind every great sportsman in this modern time, certainly there is an agent pulling the strings in their favour.
In sports, an agent is a representative and a middle man who handles the interests of a player or multiple players.
The following are an agent’s core responsibilities:
- To negotiate contracts to be able achieve the best possible outcome for their client
- Securing lucrative endorsement and big sponsorship deals
- To organise TV, radio and digital media appearances
- Giving journalists access to players for interviews or newspaper columns
As well as handling the intricacies of financial issues. Sometimes agents are tasked with to manage an athlete’s public relations. As well as to arrange interviews and handling their social media accounts.
Aside from business, some agents form deeper relationships with their clients and they may occasionally become close friends who offer support in times of personal crisis. While it is not unusual to see an agent working alone, they are part of larger agencies which manage hundreds of clients. At the early stages of their careers, family members will occasionally act as their agents.
How much money an agent earns depends totally on who their clients are and how many clients they represent.
Agents take a commission (generally up to 10%) from the athletes they represent. So imagine the amount someone who acts on behalf of stars such as Cristiano Ronaldo or Lionel Messi will earn.
According to Sports Management Worldwide, an agent may earn between £1,200 to £550,000 per Premier League client annually. That’s for English Premier league
For agents of Major League Soccer players the figure ranges from $1,300 to $260,000.
Of course, some agents make millions each year, but that is an exclusive club.
Examples of sports marketing
In the world sports is one of the largest industries. It’s estimated to be worth within $1.3 trillion dollars worldwide.
Naturally, because of its popularity sports brands have some of the best marketing in the world, too.
Examples of sports marketing done by some brands
Nike
Nike is known to tell the best stories.
Sports Marketing: Nike is good at telling the best stories.
You can’t discuss about sports marketing without mentioning the largest sportswear brand in the world.
Nike is known for different things – from its waffle soles, to its technological innovations, and currently, its attempt to break the 2 hour barrier for the marathon.
But behind all these, the heart of what Nike does best is storytelling.
Adidas
Adidas does killer collaboration
sports marketing
Adidas is known for its history of interesting collaborations with artists. Examples include the recent adidas by Stella McCartney, the Y-3 product line with Yohji Yamamoto, a Japanese designer and Adidas x Jeremy Scott.
Red Bull
Red Bull creates the best spectacles marketing through sports
Although, Red Bull sells expensive energy drinks but in practice with an entire lifestyle brand of its own media.
GoPro
GoPro makes the customer the hero of the story gopro marketing
Before GoPro has had competitors that were more technically as good if not better. But none of them came close to appreciating their customers’ wants like they do.
GoPro focused on how to make its users look as cool as possible, and allowed them to show off to their friends and to the world. With time, it became the obvious choice for high-performance athletes, and the obvious gift equally for hobbyists and adventurers.
The North Face
North Face uses an editorial strategy to win over would-be explorers north face marketing.
The “Never Stop Exploring” blog shows TNF athletes on their adventures and expeditions. Including everything from free big wall climbs around the world to the 3,000 El Cap summits in Yosemite.
These athletes record videos and write blog posts about their experiences. Thus, inspiring millions of fans and new customers to participate in the extreme outdoor lifestyle that this company promotes.
Ways to start a sports marketing agency
Knowledge
There is a need for you to have knowledge about the industry you are venturing in and it cannot be overstated. In light of sports agency, client management is very necessary. University courses like public relations, finance, and business administration are good options for any prospective agents.
While in sports agency, you will certainly handle contracts, endorsements, and settlements. Being knowledgeable in the law is vital. Contracts may be cumbersome and complicated; therefore, you must know a lot about laws. With these certifications, your agency will be trusted to transact business with legal issues.
Branding
You need an office space that will pass the idea of your success and confidence to potential clients. These to-be customers will come to a conclusion on your abilities based on the appearance of your office.
Secondly, you must choose a suitable business name that will attract customers. Always post the company name and its website online. Taking these actions, interested customers will easily find your company. Also consider advertisements as a means of creating awareness among your target market.
Attend games
Before you open a sports agency, it is a wise idea for you to assess competitors and possible clients. Use of established competition will do a good job. Through games, you will get to understand the competitor’s and potential player’s strengths and weaknesses. Such knowledge is very crucial to know how you will be able to approach both the competitors and potential clients.
Frequenting amateur matches will also help you as an agent to take notice of up-coming athletes who show abilities to become professionals soon. This offers you an excellent platform to introduce your company and express your interest in representing them.
Business plan
To prosper in the highly competitive field, you must have an accurate and sustainable business plan.
According to Forbes, agency owners must have a long-term plan explaining how the company intends to generate revenue and bookkeeping policies.
When calculating the agency’s finances, you must incorporate licensing fees and professional fees because they are needed to incorporate your organization. All expenses ranging from travel costs, event details, and upkeep fees should will be included in the plan.
Sports agency exam
You must become qualified by passing the sports agency exam. Passing this exams will be of great importance in attracting professional clients to your agency. Passing this particular exam is a clear indication to potential customers that you can handle all business requirements efficiently.
What do sports marketing agencies do?
Sports marketing agencies are known for their well-defined role in the scenario of sports marketing. They do not seek sponsorships, but instead they offer consulting services and support to businesses that want to use sports as a means of communication. With a view to increase their sales and their positioning, as well as getting new customers.
Certain things that will enable us have a deep understanding of the things required of a sports marketing agency such as Urbizboost Sports Marketing.
The big question!
What is a sports marketing agency involved in?
The world of marketing is full of many and each individual activity, an agency may need calls for its own particular consultants.
Here are the options:
- Conventional advertising agencies
- PR agencies
- Agencies specialising in social media
- Product placement
- Media centres
- Reputation agencies
- Lastly, crisis management agencies.
When we discuss about sports and investments in sponsorships, we feel like we find ourselves “in a dark zone” and more confuse.
Are sponsorships a PR agencies or media centres’ business?
Who then should we turn to for advice?
Most times, the answer we get from an agency is: “We can handle it”, though in many cases it is not their business sector. After all, it will only take a phone call to a friend’s friend who will contact you to the athlete’s agent who, in turn, will then introduce you to the business or the team.
Honestly, with this kind of approach. It clearly shows that sports is often underestimated. As it is considered basically “fun” and “entertainment” sector. In fact, when a company chooses to invest in sports. They should do it with the same level of deep understanding as to when they negotiate a traditional ADV budget. Here in USA, sports marketing agencies are long-string entities, actual consultants on which businesses rely upon when they select sports as their marketing tool.
Where are sports marketing agencies good at?
Well, because sports marketing agencies are experts in only one sector.
Gess what: sports!
Let’s look at it
People who work in the agency have deep knowledge of sports or the specific sports they handle. They understand the market value and the discussion in the market, and they understand perfectly well what to offer based on the particular needs of the company/customer.
Here at Urbizboost, we often receive calls from potential customers asking us for information on investments in particular disciplines. Most frequently, the disciplines their bosses have shown interest because they are fans. And eventually, we do convince them that another sports will be a better solution for their brand on the basis of actual data.
Competences of a sports marketing agency
Thanks to the data it has at hand, a sports marketing agency has the capacity to suggest the best strategy. To identify the best sports sector and, within the sector, the best player. The agency will also evaluate and define the stage of investment and the marketing services included for each individual business.
Sports marketing agencies know the market and the values; they know and have the right contacts to access to the right data. As well as the strategic understanding required to maximise investments. They do offer multiple alternatives to their customers, given different investment options. This depends on their objectives, targets, investment type and territory.
How much do sports marketing jobs pay?
A specialization within this realm of marketing, sports marketing experts work to promoter sporting events, teams, and players. As well as different services and products connected to those teams. In sports marketing brand loyalty plays a big role and sports marketers often create campaigns based upon signature players. Including sports franchises that will inspire fans to use particular products as well as support sporting events.
Bureau of Labor Statistics (BLS)
The sporting world is an exceptionally big and dynamic industry. Marketing offers experts the opportunity to earn high income after gaining years of work experience. The Bureau of Labor Statistics (BLS) suggests that median pay for advertising, promotions, and marketing managers is within $115,750 per year.
Further statistics
Further BLS data on salaries for marketing managers connected to audience sports suggest annual mean wages that vary from $115,000 to $117,000. Meaning marketers who specialize in sports may earn even higher income at the management level.
Individuals who are lucky enough to gain employment at the executive level might enjoy even higher salaries. Usually, the amount of money earned depends upon the popularity of the sports area in which a person works. Deals with multimillion dollar sports stars might equally result in lucrative bonuses and valuable professional relationships.