Chapter 4 – Market Research in the Sport Industry
Market research – the provision of insight and information about sports fans.
Sources of Information
Two general categories of data sources: syndicated data and custom research.
Syndicated Data
Syndicated data – data that have been collected, organized and repackaged for consumption.
Syndicated data suppliers typically monetize their businesses by selling subscriptions to their
data sources. The ongoing subscriber fees cover the investment required to accumulate and
process the data.
Since multiple clients purchase the data, the company can charge a lower price.
Examples: NPD, Nielsen, IRI and the U.S. Government.
U.S. Census
Provides information about the demographic makeup of the U.S. population.
Enumerate the U.S. population every 10 years.
Identifies trends in the evolving makeup of the U.S. population both for the country as a whole
and by state, county, city and zip code.
Available online free of charge.
Demographic Profiling
Syndicated research companies such as Scarborough and Simmons provide a more detailed
of the U.S. population than the U.S. Census, and tailor their offerings to specific clients by
looking at the population as sets of customers.
They conduct phone interviews, survey booklets, television diaries, and internet surveys that
detail their consumer habits across leading product categories.
In the sport and live entertainment industry, Scarborough has higher penetration among the
rights holders.
The ESPN Sports Poll profiles sports fans in the United States on their interests, behaviors,
and preferences.
Audience Measurement
Media rights fees have escalated to be the sport properties’ biggest source of revenue.
A sport marketer must have a basic understanding of audience ratings.
Nielsen is the most used source of television metrics, such as total viewers and their own
“Nielsen ratings”.
In each country in which the operate, they recruit a large sample of households,
representative of all households in that country who own a television.
They generally use devices called “People Meters”, which are attached to the TV sets, and
then the panelists indicate who watched the respective programming.
Nielsen monetizes the business through paid subscriptions for its services.
Properties want to know how to price advertising slots for sponsors and brands that buy ad
space during related programming.
The rise in importance of digital media has created a marketplace for measurement of
online behavior.