How to Mobilize a Less Interested, More Budget-Conscious Generation of Fans

GETTING MILLENNIALS TO THE GAME

How to mobilize a less interested, more budget-conscious generation of fans

SKIDMORE STUDIO - 2016 EXECUTIVE SUMMARY

For many professional sports teams, leagues, and ticket sellers, the millennial audience is both difficult to court and impossible to ignore. They’re the largest generation in the U.S., whose oldest subset is entering their peak earning years and youngest is entering adulthood. They’ll soon make up the majority of the industry’s target audience, as baby boomers decline in number and Generation X ages.1

The challenge: Millennials appear to have far less interest in attending professional sporting events than their older counterparts. In fact, the greatest decline in avid sports fans in the last decade has come among 12- to 34-year-olds.2 In our own research for this white paper, we found that fewer than half of millennials have purchased tickets to a professional sporting event in the last year.

So, what will get millennials to the game?

To tackle this question, we surveyed over 500 millennials across the U.S., researched industry trends, and analyzed recent success stories. Our findings reveal a need to rework the value equation to give millennials more (perceived) bang for their buck. In this white paper, we narrow in on three specific strategies to achieve this aim: experiment with ticket-selling methods, foster a fan-centric experience, and create new reasons to care.

WHY THE MILLENNIAL AUDIENCE MATTERS

When it comes to getting millennials to the game, it’s not just about money made from ticket sales and concessions. Seats need to be filled to provide the right backdrop for broadcast TV, and attendance has a big affect on advertising dollars – both in stadium and out.

There’s also the fact that, in addition to this generation’s size and increasing purchasing power, millennials have a significant influence on the interests and spending habits of their parents, friends, and children. Millennial fans are more likely to share their game-day experiences, which can help teams grow their following and activate the next generation of fans.

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 2 THE CHALLENGE

According to sports demographer Richard Luker, the greatest decline in avid sports fans in the last decade has come among millennials and younger generations.3 This drop correlates to pro sports ticket sales, which are also decreasing or leveling off.4 Our study revealed that less than half of millennials bought tickets in the last year – and only 16 percent were repeat buyers.

53%

HOW MANY PROFESSIONAL SPORTING EVENTS 29% HAVE YOU PURCHASED TICKETS TO WITHIN THE LAST YEAR? 11% 3%

0 1-2 3-5 5+

These numbers should not be surprising. With so much competing for millennials’ time and attention, teams and stadiums have to work harder for this generation’s dollar than any before it. Even in the NCAA, where student engagement is usually taken for granted, athletic departments are struggling to keep attendance up. At the University of Georgia, students left 39 percent of the school’s student section empty over the last four years.5

Experts connect the decline in millennial attendance to everything from the proliferation of high-def TVs to readily available post-game recaps in the form of tweets, Vines, highlight videos, and more. No longer does one have to be in the stadium to feel a part of the action. And as Georgia president emeritus Michael Adams said, “Big-screen TVs close to your own refrigerator are pretty compelling.”

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 3 Beyond the lure of their big screens, our survey revealed two main impediments to millennials’ purchase of tickets.

TOO EXPENSIVE 53% WHAT PREVENTS YOU FROM I JUST DON'T CARE 16%

BUYING TICKETS TOO FAR OF A DRIVE 10% TO YOUR HOME TEAM'S GAMES? THEY'RE LOSING MORE OFTEN THAN WINNING 7%

PARKING 5%

GAMES JUST AREN'T FUN 3%

1 // THE PRICE OF TICKETS

Cost is by far the chief barrier to millennials’ purchase of tickets. This generation is more budget conscious than their parents were at their age, and for good reason: they are straddled with debt, unemployment, and earn the lowest median income (in inflation-adjusted terms) since 1995.6

2 // APATHY OR LACK OF ENTHUSIASM

When it comes to millennials’ interest in professional sporting events, 16 percent listed “just don’t care” as the reason they don’t purchase tickets, and another three percent answered the same question with “games just aren’t fun.” This disinterested group comprises nearly a fifth (19 percent) of the millennials we surveyed.

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 4 THE OPPORTUNITY

Despite the major challenges facing marketers who want to reach this audience, there is some good news: 70 percent of millennial fans prefer to watch live events from the stands rather than at home.7 The question is: What will compel them enough to actually buy a ticket?

The key opportunity we discovered is that millennials are more focused on the overall experience than the team, sport, or game itself. In fact, the vast majority of respondents (79 percent) say a team’s record has no impact on their desire to purchase tickets. And when planning to attend a game, 56 percent of millennials are looking for the “full night out experience” vs. just attending the game.

Millennials are more focused on the overall experience than the team, sport, or game itself.

Here’s a breakdown of the reasons millennials purchase tickets. Note that 54 percent of the answers have nothing to do with the team or sport.

11% I LOVE THE SPORT

I LOVE GOING 27% WHY DO WITH FRIENDS 35% I LOVE MY TEAM YOU BUY TICKETS TO THE TICKET PRICE IS 8% YOUR HOME REASONABLE TEAM'S

I LOVE THE 3% GAMES? FOOD + DRINKS

I LOVE 3% THE VENUE

OTHER 13%

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 5 That’s not to say millennials don’t care about an exciting game – they do. But while it’s impossible to control the outcome of a game, there’s plenty of opportunity for stadiums and arenas to capitalize on the other things millennials want from their experience – things like great food and drinks, entertainment, and camaraderie with other fans. As marketers, we need to align these opportunities with marketing strategies.

WHAT DO YOU CARE MOST ABOUT WHEN YOU GET TO THE GAME? CHOOSE YOUR TOP THREE.

GREAT FOOD 43%

GREAT DRINKS 33%

ENTERTAINMENT 27%

CAMARADERIE WITH OTHER FANS 26%

GIVEAWAYS + AUDIENCE 22% GAMES

AN EXCITING GAME 72%

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 6 KEY INSIGHT: REWORK THE VALUE EQUATION Offer millennials an experience worth the ticket price

By and large, ticket price appears to be the biggest hang-up for this audience. But because millennials actually prefer to spend money on experiences rather than things,8 we suspect the hang-up has more to do with perceived value than actual affordability.

In other words, lowering ticket prices alone will not win over this audience. Teams and stadiums need to make full-scale changes to their game-day experiences to rework the value equation for millennials. If the experience is great, millennials will become repeat buyers and powerful brand advocates who draw fans to the stadium and advertisers to the table.

To help teams rework the value equation, we explored various strategies aimed at capturing the attention of this hard-to- attract audience. Three key strategies rose to the top:

1 2 3

EXPERIMENT WITH FOSTER A FAN-CENTRIC CREATE NEW TICKET-SELLING EXPERIENCE REASONS TO CARE METHODS

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 7 STRATEGY 1 EXPERIMENT WITH TICKET- SELLING METHODS STRATEGY 1 Experiment with ticket-selling methods

While lowering all ticket prices may not be an option, teams who want to attract the millennial audience should test new methods of selling tickets. Millennials are famously open to trying new things, and quick to respond when they like something. Why not switch things up? In fact, innovative pricing and packages may attract millennial fans who identify as early adopters (as many in this generation do) just by virtue of being innovative.

OFFER A TRADE-OFF

From fluid seat programs to discount prices for standing-room only, providing alternative ticketing options at cheaper prices will lower the barrier to entry for budget-conscious millennials – or those who are simply more interested in socializing than watching the game. Lower prices offset the less appealing aspects of the tickets (e.g. last-minute seat assignments or no seat at all), but the setup gives millennials the power to decide if the trade off is worth it.

NBA teams – who arguably have the strongest millennial fan base in professional sports9 – are ruling at this. Last season the Phoenix Suns rolled out the College Pass, a mobile-based program offering last-minute tickets to local college students for as low as $5. Four other teams also experimented with fluid seat programs to maximize ticket revenue and build a stronger following among younger fans.10 On some nights, these programs sold as many as 500 tickets – filling seats that would have otherwise sat empty.

Millennial-geared packages can ease value concerns and position the game as a fun night out.

PROMOTE MILLENNIAL-GEARED PACKAGES

Because millennials are looking for a complete experience, teams should partner with popular local establishments, beloved brands, or their own concession stands to develop special packages. These millennial-geared packages can ease value concerns and position the game as a fun night out for a group.

Last November, the Jacksonville Jaguars teamed up with Uber to offer discounted game-day tickets via the app along with rides to the stadium. The Boston Celtics have also been successful in reaching millennials with their Girls/Guys Night Out Pack, which includes four seats at a special price plus food and drink vouchers.

In fact, offering any sort of complimentary food or drink with tickets would be extremely effective in winning over this audience: Our survey revealed that, next to ticket deals, the top thing millennials want from their stadium is concession deals.

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 9 STRATEGY 2 FOSTER A FAN-CENTRIC EXPERIENCE STRATEGY 2 Foster a fan-centric experience

Millennials are notorious lovers of connectivity, but their love transcends the caricature of iPhone-tethered hipsters. Whether it’s on Instagram or in a stadium of 60,000 people, they’re looking for community, belonging, and for their voice to be heard and valued. This is especially true when it comes to an experience with a price tag. If teams want to be successful with millennials, they need to create an ultra-connected, fans-first experience.

EMPOWER YOUR FAN BASE

For the ultimate fan-centric experience, take a cue from the world’s most popular sport. Soccer games have a rich history of rituals, chants, songs, and an overall ecstatic participation by fans – leading it to attract the youngest and fastest growing fan base in U.S. professional sports.11

The highly participatory, fan-centric nature of soccer games has strong appeal for socially oriented millennials. Best of all, it requires their physical attendance – and makes for some great on-screen visuals.

MEMBERS OF THE PORTLAND TIMBERS ARMY (MLSSOCCER.COM)

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 11 STRATEGY 2 Foster a fan-centric experience

Major League Soccer teams the Seattle Sounders, Portland Timbers, and Sporting KC have all done especially well in recruiting millennial fans. Each boasts enviably long season ticket waiting lists, sold out stadiums, and strong fan culture. To foster this type of community, club owners partner with their core fan base, giving them standing meetings with staff members and agreeing to keep fan sections at general admission prices.12

All pro teams want to generate this level of engagement, but it works best as a grassroots movement. Teams need to empower superfans, providing them the status and resources required to bolster attendance and grow an infectious fan community from the inside out. Once this happens, marketers can help capture and perpetuate this culture as a part of the team’s brand.

LET THEM HAVE WI-FI

Whether it’s sweeping mountain views, a jersey-clad selfie, or a helmet full of nachos, millennials want to share their experiences in real time. Which leads us to the elephant in the room: the fact that many teams do not have the infrastructure needed to support millennials’ demand for connectivity.

Wi-fi may not lure millennial fans in and of itself, but it’s an important vehicle for Snapchats, Instagrams, and tweets shared by millennials to their networks. Sharing enriches their experience and activates other millennials’ FOMO (“Fear of Missing Out”), a form of self-perpetuating advertising that’s especially effective among this audience.13

It’s time for stadiums to invest in technology.

Connectivity is also essential to expanding in-stadium digital experiences that appeal to millennials, such as instant replays, mobile concessions, or last-minute seat upgrades. And once big data can be collected during games, these experiences will only become better tailored to fans’ wants and needs.

MAKE THEM PART OF YOUR BRAND

Another way to elevate the role of the fan is to highlight user-generated content (UGC), whether on a dedicated page of a team’s website (like the New Jersey Devil’s fan-curated Mission Control Center) or by featuring timely Instagrams or tweets on the stadium’s Jumbotron. When UGC is featured, fans feel like an integral part of the team’s identity. And, if given the chance to help shape a brand, millennial loyalty surges.

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 12 STRATEGY 3 CREATE NEW REASONS TO CARE STRATEGY 3 Create new reasons to care

Teams, stadiums, and ticket sellers can no longer rely on the automatic loyalty and participation they received from older sports fans. Instead, they need to ignite support from lukewarm fans and appeal to those who aren’t yet fans by providing new reasons to care – reasons that reflect millennial interests and desires.

APPEAL TO HOMETOWN TASTES

One way to win over disinterested millennials is by appealing to their sense of city or state pride. Millennials have the highest affinity for shopping local of all age cohorts14 – what culinary staples, breweries, or other regional favorites can be used to tap into this type of loyalty?

Take the Seattle Mariners’ recent menu revamp. Last year, Safeco Field called upon local celebrity chef Ethan Stowell to develop new concessions featuring local favorites. With items like Dungeness crab sandwiches and craft beer floats, the new menu enjoyed significant buzz and earned Safeco a reputation as a foodie’s paradise.15 And we all know millennials care about their food – 35 percent of our survey respondents placed “better food” at the top of their stadium wish list.

THE MARINERS "FIVE TIMES THE MUDD" BEER FLOAT (SEATTLE P-I)

CALL IN CELEBRITY BACKUP

Millennials also respond favorably to celebrity spokespeople – so long as their support is authentic. Teams lucky enough to have celebrity fans – especially those popular among millennials – should find ways to strengthen ties, whether it’s a formal partnership or a simple mention on social. The once-struggling Toronto Raptors have experienced increasing popularity since hiring Canadian rapper Drake as the team’s “global ambassador” in 2013.16

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 14 STRATEGY 3 Create new reasons to care

DESIGN A STYLISH IN-STADIUM DESTINATION

From our survey we know that most millennial fans attend pro games for the complete social experience and not merely the game itself. That’s why it’s important to design areas for millennials to kick back and hang out away from their seats. Stadiums have begun to add lounge-like spaces to their layouts, such as the Colorado Rockies’ The Rooftop and the Detroit Tiger’s New Amsterdam 416 Bar. These spaces have been wildly popular because, where there’s a laid-back, well-designed (read: Instagram-worthy) place to socialize and recharge, millennials will flock.

(COLORADO ROCKIES MLB.COM) (CRAIN'S DETROIT BUSINESS)

“If we expect this group to just go to a game, sit down and watch, we’re really missing the boat.” 17

DAVE BUTLER, CEO OF TICKET COMPANY PACIOLAN

Additionally, these in-stadium lounges can provide meeting places for pre- or post-game fare, so that teams can better facilitate – and capitalize on – millennials’ desire for a “full night out.” For some millennials, the meeting place may even become the primary destination – one that just so happens to be tucked inside a pro sports arena.

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 15 THE BOTTOM LINE

Professional teams, stadiums, and ticket sellers can no longer rely on the automatic loyalty and participation provided by older sports fans. Millennials aren’t attending games with the same frequency as previous generations, nor are they as interested in sports.

Marketers must find creative ways to rework the value equation and offer millennials experiences they’re willing to pay for – experiences that are custom-tailored to their lifestyle, tastes, and penchant for unique, sharable experiences. If you experiment with ticket-selling methods, foster a fan-centric experience, and create new reasons to care, you’ll be able to get millennials to the game.

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 16 NEED HELP FIGURING OUT HOW TO BRING IT ALL TOGETHER? GET IN TOUCH!

Skidmore is a boutique creative studio with a unique expertise. We help entertainment brands engage millennials through results-driven creative. With a specialized focus in entertainment and a deep understanding of Generation Y, we connect industry leaders with the largest and most influential consumer generation of our time: millennials. The research that went into this white paper is just one example of our mission to better understand our clients’ audience in order to provide value and expertise that drives results. View more insights as well as samples of Skidmore’s award-winning creative work at skidmorestudio.com.

CONTACT: TIM SMITH • 313-446-8200 • [email protected]

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 17 RESOURCES

Unless otherwise noted, all statistics are from Skidmore Studio’s 2015 Millennial Sports Survey http://www.skidmorestudio.com/millennial-sports-survey/

1 Pew Research Center: This year, Millennials will overtake Baby Boomers http://www.pewresearch.org/fact-tank/2015/01/16/this-year-millennials-will-overtake-baby-boomers/

2 Sports Business Daily: Industry looks for right recipe to attract fans among millennials http://www.sportsbusinessdaily.com/Journal/Issues/2014/03/24/Events-and-Attractions/WCOS-main.aspx

3 Sports Business Daily: Fan Demographics Among Major North American Sports Leagues http://www.sportsbusinessdaily.com/Daily/Issues/2010/06/Issue-185/The-Back-Of-The-Book/Fan-Demographics-Among-Major- North-American-Sports-Leagues.aspx

4 Yahoo Sports: Keeping fans in the stands is getting harder to do http://sports.yahoo.com/news/nba--keeping-fans-in-the-stands-is-getting-harder-to-do-005355696.html

5 The Wall Street Journal: Declining Student Attendance Hits Georgia http://www.wsj.com/articles/SB10001424052702304795804579097223907738780

6 Slate: How Broke Are Millennials? This Broke. http://www.slate.com/blogs/moneybox/2014/12/08/broke_millennials_the_decline_of_young_adult_incomes_since_the_ recession.html

7 Fuse: Live Event Attendance & The Contradiction of Digital http://www.fusemarketing.com/live-event-attendance-contradiction-digital

8 Forbes: NOwnership, No Problem: Why Millennials Value Experiences Over Owning Things http://www.forbes.com/sites/blakemorgan/2015/06/01/nownershipnoproblem-nowners-millennials-value-experiences-over- ownership/#1267dd561759

9 The Washington Post: What the NBA gets that the other big sports leagues don’t https://www.washingtonpost.com/news/wonk/wp/2015/04/06/what-the-nba-gets-that-the-other-big-sports-leagues-dont/

10 Phoenix Business Journal: Ticketing tools pay off for Phoenix Suns, other NBA teams http://www.bizjournals.com/phoenix/blog/business/2015/04/ticketing-tools-pay-off-for-phoenix-suns-other.html

11 Populous: Designing for the MLS’ Growing Fan Base http://populous.com/posts/designing-for-the-mls-growing-fan-base/

GETTING MILLENNIALS TO THE GAME SKIDMORE STUDIO - APRIL 2016 18 RESOURCES

12 Fast Company: How A Risky Ad Campaign Turned The Portland Timbers Into One Of Pro Sports' Hottest Startups http://www.fastcompany.com/3026949/marketing-with-a-kick-portland-timbers

13 Ticketing Today: Selling to Millennials: Building Social Media-Worthy In-Venue Experiences http://ticketingtoday.com/selling-to-millennials-building-social-media-worthy-in-venue-experiences/

14 Inland Institutional Capital Partners Corporation: Shopping Patterns of Millennials http://www.nareim.org/wp-content/uploads/2015/03/Shopping-Patterns-of-Millennials-ICAP-2-15.pdf

15 MyNorthwest.com: Ethan Stowell ups the ante for Mariners Safeco Field food offerings http://mynorthwest.com/11/2740450/Ethan-Stowell-ups-the-ante-for-Mariners-Safeco-Field-food-offerings

16 Toronto Star: Drake joins the Raptors: Whose brand benefits most? http://www.thestar.com/business/2013/09/30/drake_joins_the_raptors_whose_brand_benefits_most.html

17 Sports Business Daily: Millennials put ticket strategies to test http://www.sportsbusinessdaily.com/Journal/Issues/2015/06/08/In-Depth/Ticketing-main.aspx

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