Sports: the perfect business
What is an industry that receives free advertising every day in every newspaper in the country? Still thinking? Here is another clue: are there websites, radio shows, TV shows and cable channels dedicated to talking about them and their products? Give up? The answer is sport.
What an amazing industry. Every morning, Jerry Jones’ team writes articles about it. Free color photos on the first page promoting your brand. Radio programs only talk about your product for hours.
More than 30 million people practice fantastic sports. The average fantasy sports player spends around $ 110 a year on his fantasy teams, mainly for bragging rights. Some of us can remember in the 1990s when people played “grill leagues.” Today, ESPN, Yahoo, Sports Illustrated, CBS Sportsline and others have sophisticated online systems to manage leagues and provide you with information about the ranking of your team, players and league.
They make a fortune on these sites through advertising, knowing that they have a market for men between the ages of 18 and 50 who earn more than $ 50,000 a year and spend more than two hours a week playing these games. , to read ads and inform your friends about sports articles. Why are fantasy sports games so popular? Because we love sports and fantasy games feed love.
In 2004, CBS and Fox jointly spent $ 8 billion transmitting NFL games for six years. In 1999, CBS spent $ 6 billion on the broadcasting rights of the NCAA basketball tournament for 11 years. In 2006, Fox and TBS signed a combined $ 3 billion deal with MLB for the broadcast of some games a week and the postseason. In 2001, the NBA signed a six-year contract for $ 3.4 billion with Time Warner. Why spend billions of dollars to broadcast sporting events? Because we love sports, they earn money to fulfill that love.
You had the idea. Sport is part of our lives. We have an insatiable appetite for sport. We connect emotionally with players and teams. They are our models. Entire cities close when a league game is played or for the victory parade. Companies invest millions and billions of dollars in sports-related media because they can get a return on their investment.
Sports Marketing: Tiger Woods, James Lebron, Michael Jordan and many others are not only great talents, but also the flagship of carefully crafted marketing plans. These marketing plans are designed to raise your profile, create an interest in the fan base and expand this fan base. This doesn’t happen just because Tiger is a good guy. This happens because there are millions of dollars to win. Thousands of hours are devoted to these marketing plans: image creation, exact words, the appropriate message and adapted media.
Marketing 101: After reading the countless books on sales and marketing, we learned that the best way to sell a person is to take advantage of their emotions. The ability to create an emotional connection between the buyer and your product is priceless. Everyone remembers the advertising on the tires where the baby was sitting on the tire, laughing and looking cute. Do not buy radials with white walls, buy protection for your children. No price is too high for that.
For market research, all you have to do is go to eBay and see some publications.
The ideal company will take advantage of people’s emotions to eliminate the price of the equation as much as possible. The sport has achieved this goal. Anything related to sports will invoke passion in people. Too often, people’s ups and downs coincide with their favorite team. We leave the social commentary on this topic to other publications. For us entrepreneurs, understanding this emotional connection allows us to find opportunities to take advantage of these markets.