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Lesson 1.1 Genesis of SEM

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

What is SEM?

Acronym for:

Sports and Entertainment Marketing

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

The Evolution of SEM

SEM is a relatively new concept

➢ Forms of sports marketing started as early as
1858 (first known athletic event to charge admission took place at a baseball game)

➢ Entertainment as we know it today (movies, radio, television, music) exploded from 1900 on, and as technology improved, so did the products being offered

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

The Evolution of SEM

SEM is a relatively new concept

➢ The 1900’s also brought the advent of carnivals, amusement parks, and theme parks which evolved from (but did not completely replace) fairs, circuses and festivals

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

The Evolution of SEM

Many events influenced growth

➢ Evolved as fan support grew with willingness to spend discretionary income on sports

➢ Emergence of radio and television increase exposure to sports.

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

The Evolution of SEM

➢ Corporations began to see the benefit with sports affiliations, resulting in a sponsorship boom

➢ Celebrity endorsements and naming rights deals became common industry practice

➢ Advancement of technologies making it easier to consume sports and entertainment while more sports and entertainment properties are introduced

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

Industry Size & Scope

➢ The sports business industry is one of the

largest and fastest growing industries in

the US
➢Overall size of the entire sports industry in the
U.S. is around $485 billion

(global, the sports industry is estimated to be around $1.5 trillion)

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

Industry Size & Scope

How does the sports industry stack up against other industries?

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

2014 Sports Industry Revenue Streams

Sports goods equipment

(retailers)

Racetracks, sports teams & other spectator sports

“Big 4” U.S. sports leagues
Fitness and recreation

NCAA sports
NASCAR

  • 0 5 10 15 20 25 30 35 40 60
  • 80

Source: Plunkett's Sports Industry Almanac

Overall Spending (In Billions)

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

Industry Size & Scope

➢ Entertainment industry extends from movies, television and radio, to theatre, home entertainment, amusement/theme parks, gaming and much more

➢ Consumers have shown an insatiable appetite for entertainment resulting in an industry boom

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

Broadly measured, the entertainment and media industry spans multiple sectors

➢ 9,566 FM radio stations in the US ➢ Over 1.4 billion movie tickets are sold each year in U.S. theaters

➢U.S. communications and media spending:
● $891.5 billion in 2008 ● $1.12 trillion in 2012 ● $1.416 trillion in 2016 (estimated)

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

Broadly measured, the entertainment and media industry spans multiple sectors

➢ Of the 50 billion+ downloads sold in the history of the iTunes store, 15 of the 25 most downloaded apps ever are games

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

Lesson 1.1

Entertainment Industry Revenue Streams

Film/theatrical/DVD TV broadcast and cable

Music industry

Electronic gaming Amusement/theme park

Theatrical productions

0 10 20 30 40 50 60 70 80 90

Source: U.S. Census

Overall Revenue (In Billions)

Copyright © 2016 by Sports Career Consulting, LLC

Lesson 1.2 Factors Contributing to Industry Growth

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

LESSON 1.2

Factors Influencing Industry Growth

➢ Increase in participation

➢ More people following sports and entertainment ➢ Increase in sports/entertainment offerings ➢ Attendance boom ➢ Media coverage ➢ Global products

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

LESSON 1.2

Evidence of Increased Participation Rates

Soccer: 1974 - 100,000 registered players Today - 3.2 million registered players
& over 800,000 coaches and volunteers

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

LESSON 1.2

Evidence of Increased Participation Rates

Golf: 50 years ago - 3.5% of population Today - 12.6% of population

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

LESSON 1.2

Evidence of Increased Participation Rates

Lacrosse: 280% increase in the last decade

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

LESSON 1.2

Evidence of Increased Participation Rates

Skateboarding: 74.1% growth in the last decade

Why? X-Games

Copyright © 2016 by Sports Career Consulting, LLC

History of SEM

LESSON 1.2

Evidence of Increased Participation Rates

Hockey:
● 2014   - 519,547 register amateur hockey players in the US
● 8,000 more players than any other year

Copyright © 2016 by Sports Career Consulting, LLC

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