Everything Is Digital

I've recently set myself a bit of a project to learn more about digital, realising that my current knowledge is probably ok I'm keen to learn more. I really wanted to focus on how digital can help brands and find some great examples of digital marketing plus a look at what the future holds.

So, what even is digital?
'Involving or relating to the use of electronic technology'. This can cover a lot of categories including everything from social channels (Facebook, Twitter, Linkedin, Instagram etc) to websites, blogs, mobile, message boards, video, messaging, location, events, music, pictures and a whole host more.

If you really think about it, everything is digital and digital is everywhere. Whether you're watching videos, or listening to music, messaging friends, shopping, displaying photos, reading or playing games - there is an entire digital world. Even things that we do in the real world; eat, catch the bus or go for a run are often supported by things in the digital world. Instagram (those people who like to photo food), online timetables and Nike+ in the case of those examples. It seems that all our lives have a digital link (no pun intended) and brands have been taking advantage of this via digital marketing.

However, not all brands are too good at digital marketing. Some 16% of companies describe themselves as 'digitally inactive' and I've read a blog from one Head of Digital who claims that digital is the least understood word in business today.

How and why is digital useful to brands?
A few stats:
- 13% - Higher lead conversation rate through social media.
- 67% - Users who would recommend a brand who they follow.
- 75% - Users more likely to purchase from a brand they follow.
- x2 - The number of leads developed from social media compared with direct mail/telemarketing campaigns.

It's becoming more common that instead of thinking B2B or B2C brands are now looking at B&B (clue: not bed and breakfast) and B&C. Consumer created content is now forming part of what brands are, the consumer has more of a voice than they have ever had - allowing them to build a brand with you is key in any companies strategy. Focusing on understanding, engaging and staying relevant to customers is allowing brands to develop their reputations.

Purchasing has changed. If I'm going to buy something I do a quick Google search to see what people are saying about the product. This is true for over 66% of global consumers - hence why websites like TripAdvisor are huge, and let's be honest we've all been put off by that one bad review. The ability to engage with customers one on one, particularly after purchases is vital to long term success. Doing this adds value, generates revenue and, most importantly builds brand loyalty.

Astonishingly 25% of companies don't solicit post-purchase feedback. The way Amazon use feedback to engage customers is brilliant - how many times do you find yourself reading reviews on products that you've never even heard of?!

Many businesses use digital media as a self promotion device, which is a mistake. Make digital your focal point, centre stage, it forms an intrinsic part of your consumers interactions and is central to building relationships with your customers. Tesco have produced a fantastic example of this in South Korea, where they created adverts at subway stations with an interactive QR code.

There is a growing disconnect between the flexible social networks and the rigid structures in which most of us work. IBM identified that to keep up with the face paced industry it is in a digitally based culture would allow them to develop ideas faster. They developed something called 'Beehive' which is a way employees can network and idea share.

It wouldn't be a blog post on digital if I didn't share some of the (for want of a better expression) cool projects at the moment. I've chosen my two favourites:

1) Adidas: The New Speed of Light - Using LEDs placed on Leo Messi Adidas have shown the intricate detail and skill that goes into being the best footballer in the world. Filmed at 1000 frames per second, giving some great visuals.

2) Ayrton Senna - The Sound of Honda - Honda's engine telemetry system has allowed them to recreate Ayrton Senna's world record lap of the Japanese F1 circuit......... Using speakers and lights. Amazing.

Where is Digital Marketing going?
 Not to state the obvious but expect digital marketing budgets to go up, a lot.

I've been looking around and found out what a few of the industry leaders think will happen in the future:

- Email is different - Expect the static, print inspired email to die. Email is not going to look the same in every email client. Content and design will be tailored to the subscribers.

- Mobile takes hold (even more) - ROI from mobile has never been so easy to analyse, through clicks, opens, mCommerce, voucher codes and in-app conversions. In 2013 we're on target to download 45 billion smartphone apps and the industry is expected to grow from $6 billion to $55 billion by 2015. This will lead to a much more strategic approach to mobile from organisations.

- Social media - Fans and followers will become more about quality than quantity, and it's expected that savvy marketers will find ever more ways to engage their audiences.

- Content - Brands will be focusing content towards 'help'. Google research shows that in 2010 consumers required 5.3 sources of information before making a purchase, in 2011 that rose to 10.4 sources. Brands are expected to follow this lead.

I for one look forward to watching the developments!

JL

Fergie Time (is up)

Sir Alex Ferguson is to step down as Manchester United manager at the end of the season, following 26 years at the helm.

Sir Alex, who took up the Manchester side when they had not won a Premier League title for 26 years, has transformed the club into a trophy winning machine. During his time he has won an unrivaled 38 trophies including: 13 League Titles, 2 Champions League Crowns, 5 FA Cups and 4 League Cups.

Ferguson's finest hour came in 1999 when he won the treble, and masterminded the most successful season in the history of Manchester United. The treble included The Premier League, The FA Cup and the dramatic UEFA Champions League. The Reds only lost 5 games during the campaign.

Manchester United will now see a different benefit from Ferguson as a Director and Ambassador of the club, a club which is now the most valuable on the planet, consistent title winner and Champions League contender - It's safe to say that the red side of Manchester have a lot to be thankful for.

Ferguson commented, "The decision to retire is one that I have thought a great deal about. It is the right time."

The Scot went on, "It was important to me to leave an organisation in the strongest possible shape and I believe I have done so. The quality of this league winning squad, and the balance of ages within it, bodes well for continued success at the highest level whilst the structure of the youth set-up will ensure that the long-term future of the club remains a bright one."

Sir Alex thanked his players and staff, highlighting their professionalism and dedication - "Without their contribution the history of this great club would not be as rich." He added, "My wife Cathy has been the key figure throughout my career, providing a bedrock of both stability and encouragement. Words are not enough to express what this has meant to me."

Ferguson thanked further, "To the fans, thank you. The support you have provided over the years has been truly humbling. It has been an honour and an enormous privilege to have had the opportunity to lead your club and I have treasured my time as manager of Manchester United."

Naturally the speculation to who will be the next manager has already begun, with David Moyes being odds on with many book makers to take the position. Jose Mourinho is also in the running, along with Jurgen Klopp of Dortmund. Coral have placed Howard Webb at 1000/1 (very good) for those who are interested!

Needless to say, whoever takes over has extremely large boots to fill - my opinion, for what it's worth, anyone other than Mourinho is a mistake.

JL

No Way Jose

After dropping out of the Champions League on Tuesday night, losing 4-3 on aggregate against Borussia Dortmund. The self proclaimed 'Special one' has hinted towards a summer exit and speculation has begun as to where he'll be moving.

Mourinho explained that he wants to sit down with his friend (and president) Florentino Perez at the end of the season to discuss the future. The 50 year-old finds himself 11 points adrift of rivals Barcelona in La Liga, with his best chance of silverware being The Spanish Cup - the final for which is against Atletico Madrid in May.

In his press conference Jose spoke of how he is loved by fans and media in England, something which is not the case in Spain, the Portuguese manager highlighted the hatred towards him - particularly from Spanish journalists.

"I know I am loved by some clubs, especially one" Jose's not so cryptic clue about his thoughts on English clubs, and Chelsea. It seems that the manager will certainly be considering a move back to the English capital, and with Rafa Benitez on his way out in the summer the door seems half open (or is that half shut) for Jose to step in for the 2013/2014 season.

Of course this is a possibility, but I wouldn't count out Manchester United - Sir Alex Ferguson has indicated that as long as his health allows he will remain the Reds manager next season, however following the Champions League tie at Old Trafford Jose Mourinho more than indicated his respect for the club and its manager. I personally think that the Manchester United job is the one Jose wants, and if Ferguson was to retire he would be the favourite to take over at the helm - but he's in a tricky spot with timing as his stint at Real Madrid seems to be coming to a natural end for both, yet the vacancy he wants (Man Utd) may not be there.

Wherever Mourinho goes (or stays) next season will be big news, with 20 trophies and counting to his name I don't think he'll be struggling for offers.

JL

The World's Highest Earning Footballers

Here are the top 10 highest earning footballers in the world. I will be using the Castrol Football rating to show how these players stack up in terms of performance.

10) Fernando Torres - Chelsea - £13.8m
-  The £50m record British transfer makes it into the top 10. Although he's not exactly setting the world alight on the pitch, I'm pretty sure his agent won't be too bothered.
- Castrol Football Rating - 113.


9) Yaya Toure - Manchester City - £14.1m
- The former Barcelona man is reported to be on £220,000 per week, this is despite his agent claiming that he is 'unloved' at Man City. Say no more.
- Castrol Football Rating - 55.





 8) Zlatan Ibrahimovic - PSG - £14.9m
- Another former Barcelona man in at 8. The self titled 'living legend' probably doesn't feel his earning is a reflection of just how good his is. The Swedish international said that his move to PSG was to win trophies, he left out the bit about £14.9m...
- Castrol Football Rating - 19.

7) Wayne Rooney - Manchester United - £15.3m
- Though the arrival of Robin Van Persie may have seen Rooney lose some of the limelight, his bank balance is still doing ok. The England striker is the highest paid player at Manchester United, and with various sponsorship deals to supplement his income - Rooney has earned over £15m.
- Castrol Football Rating - 49.


6) Sergio Aguero - Manchester City - £15.3m
- The man who scored perhaps the most famous goal in Manchester City's history is in a 6. The Argentine is paid a little over £15.3m and following his goal the club's owners could (maybe) justify the spend!
- Castrol Football Rating - 31.

 5) Neymar - Santos - £17m
- Arguably Brazil's biggest star (and drama queen?), Neymar cracks the top 5. His income is subsidised by various sponsors and he also has various endorsements.
- Castrol Football Rating - N/A





4) Samuel Eto'o - Anzhi Makhachkala - £20.4m
- Shamelessly cashing in on a superb playing career, the former Barcelona and Inter Milan striker is the highest paid player in Russia.
- Castrol Football Rating - N/A


3) Cristiano Ronaldo - Real Madrid - £25.5m
- Money well spent in my eyes. On salary alone Ronaldo earns more than Lionel Messi, but can't match the Argentine with endorsements (or on the pitch for that matter).
- Castrol Football Rating - 2.





2) Lionel Messi - Barcelona - £29.7m (18.7m endorsements)
- If Cristiano Ronaldo is money well spent, then Lionel Messi must be some kind of bargain at just shy of £30m. The little Argentine according to some experts is the best player to have ever lived - his brief yet crucial performance mid week may be proof of this.
- Castrol Football Rating - 1, obviously.


1) David Beckham - LA Galaxy/PSG - £30.6m
- Of the £30.6m a staggering £28m comes from endorsements, that's a lot of after shave and boxer shorts that Beckham is shifting! Currently not receiving a salary from PSG, Beckham has to be one of the most loved footballers ever.
- Castrol Football Rating - 2129.






In summary, the better you are at football the more you get paid..... Unless you're David Beckham.

JL

Manchester City - Commercial Catch-up

Since Sheikh Mansour took over Manchester City in 2009 a lot has changed. The club had a debt of £305m, which was wiped clean. Investment has also gone into the playing squad, which experts now value at around £345m - resulting in winning The Premier League last season in the most dramatic of circumstances. The Manchester side are now 7th in the Deloitte Money League, surrounded by all the big boys and household names.

Manchester City find themselves in a unique position where significant investment has launched them (on the pitch) to the highest level, but the commercial arm is still playing catchup when compared to the top of the top in world football - which is no doubt where this club aim to go.

The Deloitte Money League provides an outline of the revenue streams of major football clubs on a global scale. The revenue is broken down into match-day, broadcasting and commercial, the top 5 for commercial are:

1. Bayern Munich - £171m (naming rights £32m = £139m)
2. Real Madrid - £159m
3. Barcelona - £158m
4. Manchester United - £123m
5. Manchester City - £117m (naming rights £40m = £77m)

To make this a level playing field it should be noted that the only two clubs to sell stadium naming rights are Bayern Munich, Allianz Arena and Manchester City, Etihad Stadium. This puts Bayern back into 'the pack' and leaves Manchester City someway short on where they want to be.

So the question is, why? Well the first thing to point out is the illustrious history of the top 4 clubs, which means a bigger fan base and therefore larger merchandise sales. Bayern Munich have a revenue of almost £50m from merchandise alone. If you look into the Facebook 'Likes' of each clubs fan bases become evident:

1. Barcelona - 41m likes
2. Real Madrid - 37m likes
3. Manchester United - 32m likes
4. Bayern Munich - 6.4m likes
5. Manchester City - 5m likes

So this is the first hurdle for the City commercial department to jump - ultimately a larger following will arise from more success.

Further to this the top 4 clubs are not resting on their laurels, with numerous extensions and new deals recently signed. Most notable Manchester United have a 7 year shirt sponsorship deal with General Motors worth a considerable £357m, Real Madrid have extended their partnership with Adidas until 2020, Barcelona shirt sponsorship is worth £30m per year with Qatar Sports Investments and Bayern Munich have also announced a £30m per year shirt sponsorship with Deutsche Telecom.

At the moment Manchester City breakdown their sponsorship partners into categories; title sponsor, kit supplier, telecoms, betting, beer etc - all reasonably standard categories that you would expect to find at most football clubs. Where other clubs have seen commercial success, and in particular Manchester United is breaking down these categories or even stepping away from the standard. For example under the beer category Manchester United have expanded to a Lager (Singha), a Wine (Casillero del Diablo) and a Spirit (Smirnoff) - all of a sudden one partner becomes three, which of course leads to more revenue. The Reds aren't just stopping with alcohol, they have 14 telecoms partners covering various regions, they have a savoury snack partner, an Indonesian Tyre partner, Chinese soft drinks, Malaysian noodles and a Japanese paint partner (cue something about painting the town red...).

Now it's fair to say that Manchester United are ahead of the curve here, and you can expect a lot of clubs to be changing their strategies to somewhat replicate this model.

So, back to Manchester City, what can they do to reduce the gap between themselves and the top 4? The first thing is to continue winning, which will increase support and therefore merchandise sales. The second thing to look into is expanding categories, at the moment City have 15 partners, United have 33 partners - I think that says it all.

City should also look how they can differentiate themselves from the competition and the one thing that stands out for me is the flexibility they can and should offer, City can alter their approach to fit in with sponsors marketing objectives. Manchester City also have what I think of as an 'excited' fan base, by this I refer to the attitude of the fans that are now experiencing success - this certainly differs from the top 4 who expect success.

It will certainly be interesting to see how/if Manchester City alter there commercial strategy for next season and onwards. If they get things right we could be seeing a top 5 ranking for the 2012/2013 Deloitte Money League.

JL

Change in Athlete Endorsements

If you're an athlete at the top of your sport endorsements are a given, over time athletes have been used to endorse all sorts of products - everything from running shoes to credit cards. Following recent events with various athletes including Lance Armstrong, Tiger Woods and Oscar Pistorius questions have been asked regarding the risk/value to brands.

Athlete endorsements are certainly not a new run thing, Honus Wagner (baseball hall of fame) is cited as the first ever athlete endorsement deal in 1905, his deal with Hillerich & Bradsby Co. called for them to supply Wagner with bats to his specifications - a deal most manufacturers would snap your hand off for these days, when you consider that David Beckham receives around £28m in endorsements per annum (that's a lot of boxer shorts). Here are the 5 biggest athlete endorsements as of now:

- Tiger Woods, Nike - £68m
- George Foreman, The George Foreman Grill - £90m
- David Beckham, Multiple including Adidas - £105m
- Rory McIlroy, Nike - £165m
- Derrick Rose, Adidas - £171m

These deals have varying contract lengths, Rory McIlroy's deal with Nike spans ten years.

Endorsements aren't rocket science, in essence an athlete is paid to represent a brand. In return for payment athletes may take part in commercials or product launches, they may put their name to a product range I.e. Jordan basketball shoes. Probably goes without saying but the athletes also use/wear the products themselves. Brands may select athletes for a variety of reasons, but ultimately brands like Nike or Adidas gain from creating the impression that their products play a role in the success of the athlete.

As I mentioned previously the times when athlete endorsements go wrong are well documented. Lance Armstrong was dropped by Nike amongst other brands following the doping scandal spanning at least nine years, Armstrong was stripped of his seven Tour de France titles. Tiger Woods adultery on a huge scale saw him dropped by many brands, however Nike decided against dropping the golf star. Most recently Oscar Pistorius was dropped by Nike, of course when the loss of someones life is involved this put things into perspective.

Having done some research around this topic I began to wonder just how damaging actually is this for brands. There were plenty of so called 'endorsements gone wrong' that I couldn't even remember, see if you can:

- O.J Simpson, Hertz Cars 1992 - Dropped for domestic abuse.
- John Terry, Umbro 2012 - Dropped for racist allegations.
- Michael Phelps, Kellogg's 2009 - Dropped for smoking cannabis.
- Kobe Bryant, Nutella & McDonald's 2003/04 - Dropped for sexual assault allegations.
- Marion Jones, Nike early 2000's - Dropped for use of performance enhancing drugs.

The list could go on, but my point is that sports fans have short term memories and ultimately the negative effect on the brand is short lived - this can be seen by the brands used in these examples, it's not like they have a tainted image after dropping each of these athletes.

In the future I think we will see a shift in how athlete endorsements are run, with a less risk strategy being implemented. A clever, yet simple way to do this is to spread the risk across more than one athlete. For example Gillette used Tiger Woods, Roger Federer and Thierry Henry to great effect in their commercials - perhaps they are ahead of their time?

JL

Top 10 Highest Earning Football Managers

Here are the top 10 highest paid football managers and my brief thoughts on each...


10) Jose Antonio Camacho, China National Team - £5.2m
- The former Real Madrid manager now finds himself managing the Chinese national team. Following huge investment and growth in the sport, Jose is 'cashing in' much in the same way we saw with Didier Drogba.
- Win 37.81%
- Draw 24.88%
- Loss 37.31%


9) Sir Alex Ferguson, Manchester United - £6.4m
- The Man Utd legend in my view is the biggest bargain (if you can call £6.4m a bargain) in the top 10. On course for a record 20th Premier League title - seen it all, done it all, I'm not sure they make managers like Sir Alex anymore.
- Win 63.19%
- Draw 20.68%
- Loss 16.13%


8) Roberto Mancini, Manchester City - £6.5m
- Interesting that the blue side of Manchester decided to slightly pip the reds for manager wages, seems quite a coincidence. Mancini had great success last season with winning the Premier League, but struggled this year after marking no marquee signings. Europe remains a question mark.
- Win 54.85%
- Draw 25.15%
- Loss 20.00%


7) Fabio Capello, Russia - £7.9m
- This is what you get for being a failed England manager, hard to imagine how his Russian compares to his grasp of the English language. Credit where it's due, this is good work if you can get it!
- Win 57.09%
- Draw 29.23%
- Loss 13.68%


6) Arsene Wenger, Arsenal - £8m
- The arsenal great comes in at six, this salary could have been justified during the 'invincibles' when Arsene brought together a superb Arsenal team. Much credit can also be given to his development of the French great Thierry Henry. With eight years without a trophy, I think Wenger is batting above his average with his salary!
- Win 55.86%
- Draw 23.87%
- Loss 20.27%


5) Kenny Dalglish, Liverpool - £8.5m (pay-off)
- The still Liverpool legend, but ex-Liverpool boss received a huge pay-off after seeing him sacked from the managers position.
- Win 48.86%
- Draw 24.24%
- Loss 26.89%


4) Guus Hiddink, Anzhi Makhachkala - £9.2m
- The former Real Madrid, Chelsea and Russia National Team manager (used to big salaries then) is currently sat second in the Russian domestic league. The Dutchman in my view is one of the top managers in the world and wasted in what is considered one of the more minor European leagues. After this year surely he has enough cash to come back to top level football?!
- Win 60.75%
- Draw 19.00%
- Loss 20.25%


3) Marcello Lippi, Guangzhou Evergrande - £9.4m
- Italian World Cup winning hero, now in charge of the Chinese Super League side Guangzhou Evergrande. Much the same to Hiddink I can't help but feel this mans talents are only surpassed by his greed. Should be involved in top flight European/International football.
- Win 50.66%
- Draw 27.75%
- Loss 21.59%


2) Carlo Ancelotti, PSG - £10.25m
- Another former Chelsea manager, currently in charge of French football heavyweights PSG. Currently enjoying Champions League success, Qatari funding and his new best friend David Beckham.
- Win 57.94%
- Draw 23.57%
- Loss 18.49%


1) Jose Mourinho, Real Madrid - £12m
- 'The special one' is of course another ex-Chelsea boss and currently manager of Real Madrid. Much speculation surrounding his next move, and he is making no secret of his admiration of Sir Alex Ferguson and Manchester United. The Reds may have to double their current managers wage to see Mourinho join. Jose has a simple formula to get to the top, win everywhere you go - and do it with charisma and charm. A fascinating man.
- Win 67.21%
- Draw 19.88%
- Loss 12.91%

So there you have it the top 10 highest paid managers in the World. Interestingly the manager with the highest win % is No.1 and the manager with the lowest win % is No.10. Stats do count for something I guess.

JL

Michael Owen - The Career Of.

Michael Owen has today announced that he will be retiring from football at the age of 33. I have taken a look over the career of a man who was one of the most promising and talented English players ever.

Born 14th December 1979 in Chester, Michael was the son of Terry Owen (formerly of Everton FC). Owen was destined for great things from a young age when he was reported to have scored 97 goals in a season (yes that says 97) at the age of 10. At 12 Owen signed a contract with Liverpool FC and his goal scoring record continued - he played for England U15's/16's which included a record breaking 28 goals in 20 games. During the 1995-96 season Owen played for Liverpool in the FA Youth Cup in which he scored eleven times in five games guiding Liverpool to their first ever victory in the competition. At this early age Owen was making even the most experienced scouts stand up and take notice, so it was of little surprise when he signed a professional contract with Liverpool aged 17.

6 May 1997 saw Michael Owen's debut for Liverpool against Wimbledon, and true to form, he scored. 1997-98 season saw Owen become the first choice striker for Liverpool, replacing none less than Robbie Fowler, the decision was justified with a PL Golden Boot, PFA Young Player of the Year and third place in the PFA Player of the Year awards. Owen was also pipped by Zinedine Zidane to the World Player of the Year. The young striker, 18 at the time, was hailed Liverpool's saviour.

England vs Argentina 1998 World Cup produced one of Owen's most magical moments with a spine tingling run past an Argentine defense (making them look like they were standing still) and a perfect finish. It was this moment when many watching realised, 'this bloke is something special'.

Owen continued his goalscoring form in 1998-99 retaining his golden boot award, this was despite a telling hamstring injury which brought his season to an end on 12th April. An injury which was not surprising for many experts due to his blistering acceleration. Little did he know at the time but this injury would impact on his career forever.

The 1999-00 season was frustratingly hampered with injury, with Owen only completing the full 90 minutes on three occasions. This was a stark contrast to the 2000-01 season which saw Owen help Liverpool to a treble winning season and Owen was rewarded with both the World Player of the Year and European Player of the Year - the latter he was the first English winner since his birth year 1979, when Kevin Keegan took the award.

In 2004 Owen made the move to Real Madrid for £8million, where his transfer wasn't viewed as a huge success scoring 14 goals in 40 games - having said that he had the best goals for minutes played ratio in La Liga. However following Spanish press criticism and two big Real signings, Owen transferred to Newcastle United for £16million (healthy profit!) this move saw 30 goals from 79 games and critics pointed out his lack of sharpness, which was ultimately hindered from his hamstring problems.

Manchester United took a risk free approach to Michael Owen with a pay as you play two year contract initiated in 2009 and Owen was mainly used as a substitute. Manager Alex Ferguson looked like a genius when Owen scored on his (non competitive) debut. The move involved a 'nice touch' with Owen been given the number 7 shirt - previously worn by Cristiano Ronaldo, David Beckham, Eric Cantona and George Best.

Owen played a total of 475 games for his five professional clubs, scoring a combined 220 goals. His international career boasts 40 goals from 89 caps.

For me (I'm 25) Michael Owen is the first great player I have seen from the start of his career to the end, and I would like to say what a privilege it was. God only knows how good this bloke could have been with two good hamstrings on him!

JL

Innovation in Sports Advertising - Exclusive Interview

We have all seen LEDs used in sporting venues around the globe, but now a revolutionary technology is going to change the industry forever.

Guy Hollis - Supponor

In an exclusive interview with Guy Hollis, Head of Production at Supponor, I learned a little bit more about this innovative company.

Let's get the most important stuff out of the way first:

Favourite colour? Green
Favourite Car?  DB9
Favourite Food? Steak
Who's your Football team? Leeds Utd (although I use the word Football loosely)

- When and how did Supponor start out?

The man who founded Supponor was Erkki Rantalainen. He was inspired to produce virtual advertising for sports while watching the Millennium celebrations in New York’s Times Square. He saw adverts projected onto a blue wall and reasoned that it must therefore be possible to project virtual advertising onto any background and it all stemmed from there.

- Can you explain how the technology works? In basic terms.

I’ll try. The technology is based on marking the billboards with surfaces whose radiation differs from the surrounding radiation. This is done through a special film or by special LED light sources that emit a light that is not visible to the human eye. The fans inside the stadium will see billboards that appear to be perfectly natural - only the fans at home will get a different view.

 

We add additional hardware on the broadcaster’s camera that recognise the marking radiation and based on this information the system knows the location, position and size of the billboard. If there are obstructions between the camera and the billboard, such as players, the system recognises this and manages the inclusion of the obstruction in the overall image. This makes the replacement billboards appear real to viewers.

Once the billboard location is identified the insertion of replacement billboards is straight forward.  We load up brands artwork onto the system and let them play throughout the game.  We can manage this across multiple feeds, with each feed showing different brands specific to the region the TV output is being shown.  It allows Brands to tailor their messages accordingly and opens the opportunity to target particular markets while ignoring markets and have no value.  Unlike existing perimeter advertising you're seen where you want and need to be.

- What are the advantages to i) Sponsors? ii) Rights holders?

 i) Global brands with regional variations in their products have traditionally been unable to use in-stadium perimeter billboards to tailor their message to specific markets. Our technology has transformed that position so all brands can match the requirements of their regional marketing teams when planning their marketing campaigns around major sports broadcasts. Brand managers can use local language or variations in their own brand to maximum effect. They can take completely different approaches to suit specific audiences and use any form of digital media including animation and video to get their message across.

Brands eager to be seen by millions at home but unable to afford a global advertising spend can now get a foothold in advertising via sports and leagues previously inaccessible to them.

Advertisers can invest in platforms on a regional basis and deliver back real value in terms of a targeted message.

ii) Billboard rights holders’ potential revenue is multiplied by the technology which offers unprecedented flexibility in terms of market reach.

Sports federations, leagues, competitions and clubs are seeking to maximise the value of their commercial assets when negotiating with broadcasters, sponsors and brands. The value of in-stadium perimeter billboards is integral to this as advertisers and sponsors recognise the increasing importance of in-event advertising over traditional commercial breaks.

Our technologies ability to digitally insert replacement billboard images to the live feed of a match or event revolutionises the revenue model by allowing tailored advertising in different territories.

Sports rights holders can:

• Offer high-value advertising to global brands who wish to regionalise their message by language or brand name.
• Segment the market by region and license the same billboard rights in multiple broadcast territories.

Such is the revenue potential of the technology for the sports rights holder that it is destined to be an essential part of their commercial proposal.

- As Head of Production what day to day challenges do you face?  

Every day is different at Supponor which is equally frustrating and very rewarding.  We are working with a technology that no one has been able to do before so there is a real excitement to be leading the way with something that we believe will revolutionise advertising at live sporting events. We not only create the software to run this system but we have with our partner’s developed new hardware without which none of it would be possible. I guess the single most challenging aspect right now is, dealing with all the people who want to use the system.

- How successful was your recent game at Wembley for Brazil vs Eng?

This was a very good game for Supponor. We produced feeds for Brazilian TV and a separate feed for the international viewers.

- Is it fair to say that your focus is mainly in football? Is it likely that this will expand to other sports?  

Football is the biggest sport in world and has massive global TV audiences. We do focus on opportunities in football and have deployed the system at many games throughout Europe, but we have also used our technology at other events. For example in 2012 we were present at the European Water polo Championships and placed virtual advertising for over 60 hours of live coverage from the event. We have also completed basketball events with the NBA and undergone offline showcases with major motor sports.

- You received 13.7mil investment, how did this change the organisation?

From a day-to-day point of view it didn’t really, it added a few new faces to the board. It hasn’t changed our plan significantly but it has given us the funding to deliver that plan and has added expertise and high-level contacts in the sports industry which is always welcome. All our investors are very supportive and continue to back the strategy set out by the management team.by the management team.

- What does the future hold for Supponor? American market?

We will continue to explore opportunities in the sports and events that command a global audience or massive local audiences. US sports fit both categories. The likes of the NBA has a global reach on par with the Premier League and obviously has vast support within the US, which in itself has regional opportunities.   

No doubt the technology will continue to develop and hopefully you’ll see more of our work on Live sport around the world.
 

Guy, thank you for your time and a very interesting insight - I will be watching Supponor's development with a keen eye, as I am sure much of the sports world will be!

JL

The Premier League - An Overview

Since it's creation in 1992 The Premier League has been an extraordinary success, the league can now be viewed in 212 territories and is shown in 643 million homes. I have had a look at various details about the league to give an overview.

First let's take a look at the product itself, much debate has been held recently comparing the Premier League to La Liga and whether our Spanish rivals have over taken us in recent years. In comparison the Premier League has more shots, more goals, more goals from outside the box (including more free kicks) and a higher average attendance than La Liga. Though the Premier League does marginally lose out to The Bundesliga in terms of attendances.

The Premier League has enormous commercial value to clubs, estimates are that promotion to the league is worth around £90 million. This is largely due to the distribution of broadcasting revenue, with 50% being shared equally, 25% through facility fees (live games) and 25% based on the finishing place. To compare ratios for revenue distribution across Europe the Premier League comes in at 1.54:1 which is vastly different to La Liga at 12:1 and Serie A at 10:1. Perhaps this smaller difference in distribution accounts for the increased competitiveness of the Premier League.

With a significant amount of viewers for the league, this has meant sponsorship is a very attractive proposition. The league has seen title sponsors of Carling, 1993-2001 - Barclaycard, 2001-2004 - Barclays, 2004-Present. The current sponsor Barclays has just agreed to a contract extension until 2016, increasing the fee from £27.5 million to £40 million per season. The league is the 4th highest in terms of revenue behind NFL, Major League Baseball and The NBA.


If you weren't already impressed with the league, this is where it gets good. With 600+ million viewers the broadcasting rights for The Premier League are huge. The TV rights have increased in value with every contract:

1) £304 million - BskyB, 5 year term.
2) £670 million - BskyB, 4 year term.
3) £1.024 billion - BskyB, 3 year term.
4) £1.7 billion - BskyB and Setanta, 3 year term.
5) £3.018 billion - BskyB and BT, 3 year term.

In total The Premier League has 36 different broadcasting deals, resulting in a total revenue from this area in excess of £5 billion. To put that into context that is more than the TV rights are sold for a Football World Cup or The Olympic Games.

The continued success is largely dependent on the ever growing Asian market, which currently contributes around 300 million viewers. However one can't help but think that the glass ceiling isn't far away.

JL

Stadium Naming Rights - Are They All That?

Old Trafford, or The Emirates(?) is the newest addition to an ever growing list of stadiums to have sold naming rights. In the current age commercial executives must be licking their lips at the figures achievable from selling these rights.

Emirates have added Old Trafford to Arsenal and Durham CCC in a move which will see two of the ashes test matches this summer played at Emirates named stadiums. Other well known examples include:

- The Etihad Stadium, Manchester City.
- The Reebok, Bolton Wanderers.
- Sports Direct Arena, Newcastle United.
- Ricoh Arena, Coventry.
- Wembley, EE to be incorporated (it should be called 'WemblEE', but I doubt that!).

Naming rights have been selling for astonishing figures, with The Etihad Stadium selling for £400 million over a ten year period - albeit with some questions from UEFA over the fairness of the agreement in relation to financial fair play. Further to this The Emirates deal with Arsenal will generate a not too shabby £150 million for the North London club.

Are these enormous fees justified? Let's take a look at some of the Pros vs Cons:

PROS
1) Naming rights create brand awareness - they are not necessarily meant to convince people to buy more products, rather create a 'top of mind' awareness and needless to say this is a valuable asset to Global brands.
2) Cheaper than TV? - If we jump into the American market where Met Life having the naming rights for the NYC stadium. In 2014 the stadium will hold the SuperBowl, an event where a 30 second advert would cost in the region of $2.5 million. With Met Life paying $200 million over 20 years, and of course more events to take place, you can soon begin to see the value.
3) Fans - There are an estimated 4-5 million Manchester City fans worldwide, once naming rights are confirmed the sponsor will be on the lips and minds in a matter of hours.

CONS
1) Negativity - Perhaps the Sports Direct Arena in Newcastle is the best example of this, with extreme negativity been shown towards the company as the club stripper away St James' Park.
2) Shock value being lost? - With the ever increasing list of stadiums to sell naming rights, the initial press coverage over agreements such as the Etihad's is becoming lower. Brands won't gain the initial exposure levels that we seen 10-15 years ago.
3) Not always a good match! - To jump over to the US market again and news of GEO Group (a prison company) confirming the naming rights of the FAU Football Stadium. The GEO Group have come under fire for bad treatment of inmates, which has presented ethical questions for the FAU. With protests already begun is this a deal with longevity?

I guess the summary should be centered around the fact that brands seem to be going this way, so they must be realising value somehow.

What does the future hold? Sadly this is the way the market is going and will continue as long as brands can get value and clubs need revenue. I predict that even those who have the view that this is like 'selling your soul' will eventually come round to the concept.

JL

The Football League - Sponsor Hunt

With around 170 days to go until the start of the new Championship season the Football League will be on the hunt for a new title sponsor.

Current sponsor Npower announced that,

'We can confirm that we will not renew our sponsorship of the Football League when the current season ends at the end of May'.

Npower paid £21 million over three years for the property and have left the Football League with plenty to do to replicate this level of sponsorship, especially when you consider that the BBC are no longer covering live games.

The Football League have no current announcement planned for who will be the principal sponsor replacement. However speculation around what sector the sponsor is going to come from has centered around the Betting, Alcohol and Energy industries. Although with the Bet Butler sponsorship only starting in October 2012, I find it unlikely that a betting company will be announced come mid August.

The man charged with finding a sponsor is the Chief Commercial Officer, Richard Heaselgrave, and judging from his past experience Richard is more than capable of doing so. Previously Head of European Sponsorship at Anheuser-Busch (Brewery for Budweiser, Becks etc) which included properties such as FIFA World Cup, Ryder Cup and Manchester United. Heaselgrave was then Head of Sponsorship Sales at UEFA for the European Championships. Richard's last role before joining the Football League was Vice President of Business Development at the NBA.

So where is Richard likely to look? If his experience is anything to go by, I would be inclined to say an Alcohol brand is the most likely. Needless to say his time at Anheuser-Busch will have thickened his contact book in that industry. Furthermore the 2008 Euro's saw four title sponsors of McDonald's, MasterCard, Coca Cola and Carslberg.

Nothing is ever a certainty with sponsorship, and of course much depends on who is in the market at the moment, I can't help but feel that the betters out there shouldn't be betting on betting.

JL

Gareth Bale - A Comparison

Gareth Bale, the world is his proverbial oyster right now but what does the future hold?

From his beginning at Southampton at the tender age of nine Bale has been on the path to greatness, albeit with some bumps in the road along the way.

When the promising Welshman moved to Tottenham Hotspur for a fee potentially reaching £10 million, his first 24 appearances didn't result with one victory a feat which saw him labelled as a jinx. Although manager at the time, Harry Redknapp, had every faith in Bale - who was a left back at the time.

Bale had knee surgery in 2009 and returned to the Tottenham side for his 25th appearance which put an end to the 'jinx' with a 5-0 drumming of Burnley. It was around this time that Bale made the shift to left midfield and it's fair to say he hasn't looked back since. A huge point of recognition came from Bale's second half hat-trick against Inter Milan in 2010.

This season Bale has had 23 appearances, with 15 goals and an astonishing 9 MOM awards. With 8 goals in his last 6 appearances Bale is on fire at the moment, terrorising Premier League defenders week after week.

Understandably his performances have attracted attention from Europe's biggest names, with reports that both Barcelona and Real Madrid are interested up to the value of £50 million.

Many reports have compared Bale to the two best around, Messi and Cristiano Ronaldo. To compare let's take a look at this seasons stats:

Player	Apps	Goals	Assists	Shots	Dribbles	Avg. Passes	Pass Suc%	Crosses
Messi	24(1)	38	9	5.5	4	61.4	85.2	0.2
Ronaldo	23(1)	24	5	7.1	1.6	31.9	77	0.3
Bale	23	15	1	4.9	2.2	34.4	78.4	2.1

The first thing to notice is that Messi is unreal.

Now moving on to the comparison, Bale is a distance behind both with goals and assists - which in my view is what an attacking midfield player should be judged on. Note the crossing statistics which indicate that Bale is playing in a wider role, which may explain his lack of goals. This is supported by his lower shooting statistics, suggesting that he may not be in a scoring position as often as the Argentine and Portuguese. Looking deeper Bale has played centre attacking midfield on three occasions this season scoring 5 goals, could this be his next position?

The improvement area for Bale has to be his assists, with only one in 23 appearances this is something he is no doubt looking at. On the face of it the statistics offer no obvious justification, but looking at the top two assist leaders in the Premier League perhaps passing is his weakness. Juan Mata and Steven Gerrard both have 9 assists this season, with 1308 (85%) and 1810 (86%) passes completed with % success. This is compared with 791 (78%) for Bale, a considerable difference.

On recent form it's certainly fair that Bale gets a mention with the very best, but I believe he is still some way off the likes of Messi and Ronaldo. At 23 he still has time on his side and it will be very interesting to see what bids come in at the end of the season. I doubt he'll be a Tottenham player for the 2013/14 Premier League season and keep your eyes peeled for another change in playing position.

JL

The World of 3D Advertising

If you're a sports fan you will have seen 3D advertising at some stage, by this I mean logos that look as though they are standing up when you see them on TV.

This weekend alone hundreds of 3D logos have been used in various sports. To name a few:

- Capital One Cup Final, Wembley.
- RBS Six Nations, Twickenham, Murrayfield and Stadio Olimpico.
- Npower Football League.
- Spanish La Liga.
- German Bundesliga
- ANZ ODI New Zealand vs England.

The scope of 3D advertising spreads across many sports. All in all 3D advertising has been used in around 15 different sports ranging from the most popular such as Football (Soccer) and Rugby Union right down to Table Tennis and Handball.

Ok, so we know that 3D is used widely in today's sporting world - but where and when did this unique type of advertising originate? The answer lies in Northern Europe where the Danish company Logopaint first developed and patented the 3D method. From here the first 3D logos were painted in the mid 1990's and the industry expanded to what is now over 50 countries utilising 3D advertising technology in one way or another.

As with most great ideas the premise of the technology is relatively simple, take a logo and manipulate the artwork in relation to the angle, height and distance of the TV camera. To do this you need to survey the stadium to get exact measurements. It is important to consider that the logo will need to be placed in a precise location to gain the maximum 3D effect. Let me use a couple of images to illustrate my point:


To the left you can see an image of a coffee glass (I don't know who that chap is), a 3D vinyl has been used to make this look as though it is standing up.

If you were to take a few steps to the side and take a photo this is the image you get i.e. it becomes distorted because the 3D effect is location specific.

The materials used for 3D advertising can vary and are dependent on what is the best solution in each instance. In Football carpets and mats (PVC Mesh) are used, however in Rugby logos are painted onto the field of play. This is labour intensive however, carpets and mats present an obvious trip hazard! Indoor sports such as basketball use vinyl stickers like the coffee glass example above.

The valuations on this technology are considerable, providing exposure increases of up to 400% - mainly due to the positioning of the logos. As the advertising is lying flat on the floor, space that couldn't previously be used now becomes available - a new first tier of advertising.

The cost to rights holders to use the technology is typically calculated by viewing audiences of the event. In other words, the more people who are going to see it, the more expensive it becomes. Clever. As you would expect Football is the natural home for this product due to the huge commercial partnerships and values involved.

What does the future hold for 3D advertising? With Europe (minus the Premier League) conquered the next stop for 3D is America. Currently only one NBA team, Toronto Raptors, has used 3D. Trials have also been carried out in the NHL and NASCAR. Judging by the extent of advertising in events such as the Super Bowl, I can't help but feel once our friends over the other side of the pond get hold of this technology 3D advertising will well and truly become an integral part of everyday sports viewing.

JL

Super League, not so super?

In the UK we are blessed with great sport all around us, great sport typically leads to brand interest - a few examples:

Premier League - Barclays, Nike, Lucozade, EA Sports.
Premiership Rugby - Aviva, Guinness, QBE, Land Rover, J.P. Morgan, Gatorade.
Cricket - Friends Life T20, Yorkshire Bank Pro40, LVE County Championship

You get the picture, in fact, even the relatively small sport of Netball has gained FIAT as the title sponsor.

However Rugby Leagues premier competition, the Super League, is yet to find a title sponsor.... Why? Well lets take a look at the product first. From today onwards Sky Sports have 34 live games scheduled for the Super League and according to viewing figures last season we can expect around 250,000 viewers per fixture, that's 8.5million.

There is also a highlights/discussion program called 'Boots n All' which had viewing figures of 79,000 per week in 2012, with around 20 showings throughout the season - 1.5million. Furthermore attendances last season were just shy of 1.75million (up 11.2% on the previous season).

It would seem to me that viewing figures alone should present a valuable proposition for many brands, which in the past has rung true with long standing sponsor Engage. The insurance company sponsored Super League from 2005-2011, since which the RFL have struggled with the title sponsorship.

I think it's reasonable to say that the Super League is a good product, though this doesn't really help explain the difficulty that the league seem to be having in attracting a sponsor. I have a few inside sources who maintain that the league is holding out for a 'big name', and that title offers from secondary sponsors have been turned down.

Tonight is the World Club Challenge between Leeds Rhinos and Melbourne Storm, which has seen last minute sponsorship from Probiz. I am aware that Heinz, the sponsor of 2012 Club Challenge, decided against doing so again due to an increased valuation from the league.

The league commercial director James Mercer, in my opinion is running a risky strategy holding back the title sponsorship. I understand that the league want achieve a reasonable fee, though could this be perceived as greed?     

In tough financial times for all including sports clubs, we don't have to stray far to see Bradford Bull and Salford Reds. I believe a league should be doing everything it can to support its clubs, and turning down offers for sponsorship seems like madness. Furthermore I am aware that the league prohibit clubs from advertising on the centre of the pitch - a space with significant commercial value. Why should this be the case if the space is not in use? Surely this would help attract sponsors? Heineken, RBS and Aviva all utilise this space - as did the previous Super League sponsor Engage.

With the Big Weekend coming up this summer and the World Cup starting at the end of October, I would suggest that the RFL move quickly before a further two sponsorship properties are lost to a seemingly stubborn and greedy attitude.

JL

Rooted In England's Future

For a man who looks 15 years old Joe Root is showing a lot of maturity. Entering the England side in arguably the toughest of conditions; a test match in India.

What has followed has caused much excitement in and around the England cricket side with Alastair Cook the most recent to praise the Yorkshire lad.

 "He keeps his feet on the ground, works very hard and has the right temperament for international cricket" A statement which could equally have been about the England captain himself.

Comparisons are already been made with the most obvious being that of Michael Vaughan. Both are from Sheffield, both are technically great batsmen, both bowl a bit of off spin!

From a batting perspective I see nothing but great things for Root, who is already averaging 93.00 in tests and 74.50 in ODIs. Further to this Root is the first batsman in history to score over 30 or more in his first 6 ODI games.

I have some insight into Root's early career as he played extensively with my brother going through the Yorkshire age groups and into the academy. My brother mentioned an innings of 235*, in one day, chance less, and told me that he had a great future ahead - at this moment he doesn't seem far wrong. I also had the chance to play against Root for his club side, Sheffield Collegiate, and I imagine I felt like the NZ players 'who is this kid smashing me to all parts?!'.

Is it too early to predict Root will be one of England's all time greats? Probably. Is it too early to say he'll be at the center of England's plans and teams for many years to come? I think not.
JL

Brain Blogged

Hello! I'm James Lilley, I'm 25, I live in London (originally from Harrogate), I'm a Sales Manager for 3 different companies, Manchester University Graduate (Psychology), have an amazing girlfriend and lead a busy life!

I've been thinking about writing a blog for what feels like ages - in reality it's probably only 3 months. Now that I've managed to get the chance to start writing, I didn't know what to write about!

I thought, as with most things in life, it makes sense to focus on something that I am interested in but to also try to keep the blog enjoyable to read. So as the title suggests I expect this blog to focus on:

- Sports (Football, Cricket, Rugby, Cycling)
- Business (Sponsorship, New Technology, Entrepreneurship)
- Fun (Music, Food, Photography)

Wide spectrum I know, but most posts will be interlinked.

That's all for now.
JL