People who love sports...

In Memory of Our Great Partner and Friend, Adam Jacobs

Sportgenic is deeply saddened to hear about the tragic loss of our friend and longtime partner Adam Jacobs.  Adam was the CEO and Founder of the TFS Network which included TheFinalSprint.com, HerActiveLife.com, and several other online properties aimed at supporting the passionate runner, fitness enthusiast and athlete.

Adam Jacobs was a strong supporter of Sportgenic and our mission to connect communities, like the ones he created and nurtured, with brands seeking to participate and give a little back.  We are forever grateful for his contributions to us and his friendship.  The Sportgenic team will always remember him as a capable, dedicated, passionate and enthusiastic, driven young man with a great sense of humor. 

May all our hearts be eased by knowing that he has made such a positive impact on so many people.   

Our sincere condolences go out to his family, friends, and all those fortunate enough to have known him.

Condolences and remembrances can be sent to Jodi L. Jacobs, 22 Longbow Drive, Englishtown, NJ 07726. Mrs. Jacobs encouraged mourners to make a donation in Adam’s name to their favorite running organization.

A Big Day for Sportgenic - Torque Unveiled

Today is a big day at Sportgenic – we’re opening the Torque beta to the public.    I can’t think of one easy day leading to today (all those jobs were taken), and I know the Sportgenic team and our loved ones will agree.  However, showcasing Torque in action is a not unlike the feeling of finishing my first triathlon.    It’s knowing that the hard work (those early mornings, regimented training, discipline, among the many others) is paying off – there’s proof.  

The consistent feedback I’ve been receiving from my days on the road validate Torque’s force and potential in the marketplace:  disparate research sources, fragmented sports media, asset management, necessity to simplify, the list goes on...  

Our centralized approach demands evolution of the process for both marketers and media partners – from monetizing assets to creating authentic value for sport enthusiasts to new buying models for marketers and agencies.  I know that Torque’s full-transparency, market-ready integrated packages and commitment to performance will set a new standard in sports marketing.

 

Some argue the market isn’t ready for Torque.  I disagree.   The shift is already happening (IBM Study, Agency Collaboration, Integrated Planning & Tools)– and our most recent media integrated partnerships with IMG, GolfWeek, TetonGravity as well as long-standing partners Ironman, Tour de France (ASO) and Loop’d are proof.   Our model is relatively straightforward, and will continue to evolve in through future releases:

It’s been an amazing journey to get to this important milestone: from the tireless nights, many sacrifices, skeptics and tough decisions.  But an unyielding commitment to our mission of connecting marketers to passionate sport enthusiasts with a game-changing new technology has come to fruition, and the road ahead is bright. 

There are a lot of people who supported me along the way and some who challenged me – each person made the end result even better.  I’d be remiss if I didn’t give kudos to my passionate and dedicated team, partners and supporters that helped Sportgenic reach the public release of Torque.  Thank You!  Your passion, precision, ongoing commitment to performance have allowed us to continue to break down barriers.  

We’ve come a long way and we’re pumped about the road ahead. 

Sports Marketing: Heading in a new direction

Today it was reported that Wells Fargo is removing the Wachovia name from one the most successful golf tournaments on the PGA tour as a result of today’s economic climate. 

Wells Fargo acquired the tournament when it bought Wachovia. In an attempt quell negative press and address public perception, Wells Fargo will not host any clients or activate this in any manner. Similarly, last week, Northern Trust received criticism for its sponsorship of the Northern Trust Open. Both Wells Fargo and Northern Trust have received funds from the US government. 

The big question is why is Sports Marketing being called out? It’s about public perception and the media. What’s being lost in these events is critical to the economy on both sides of the equation. The brands that sponsor these events use these vehicles to engage and connect with relevant audiences. Connect in people’s passion. Sports is still one of the few events that touch our lives and that we watch (or do) live. These sponsors also create jobs, support local communities and charities. What is the message we are sending here? There are so many things to pick on in tough times, from guys taking private jets to meet government officials to wasted in-efficiencies within these large companies trying to service their customers.

Where does this leave us? In these tough times we in the sports marketing world will now be required to be more “effective” and “measurable”. We must use all technology to provide efficiency, scale and accountability to our partners. This is an opportunity to raise our game to prove the value we all know is there. Working openly and together we can all help make our businesses stronger.

 

Introducing Sportgenic Torque

As I look back 3 ½ years ago to when I started Sportgenic, we’ve certainly changed a little – our size, the sports we cover, the types of advertising and media solutions we offer.  However, our mission of connecting marketers to passionate sport enthusiasts has not changed.  When I first started talking to people about a vertical media company everyone shot it down. “Why does the market need vertical solutions?  You can’t scale to compete with the portals!”  Over time the market saw the value of vertical domain expertise and that we could achieve higher volumes. We’ve often been asked if we are going to expand into other categories such as finance, health or entertainment.  I’ve always said that our value is in being the best at sports. It’s core to our expertise and our passion and we transfer that to our clients in everything we do. 

The “vertical ad network” introduced enormous efficiencies to online advertising.  As a passionate sport enthusiast, I certainly use the internet very regularly, but I also watch TV, go to sporting events, participate in events (not as much as I used too) and read magazines (yes, I still do). The internet is only one way to connect with people like me.  There is an opportunity to challenge the limitations of the traditional ad network model in favor of more open and dynamic approach to reaching people where ever they are – at work, at home and at play.

I am very excited to announce that Sportgenic is launching a technology platform called Torque™. It is a media buying and selling platform for all sports media. Yes, all. For us to be vertical experts, we need to provide holistic media solutions to our clients.  Clients like Nike, Gatorade, Toyota and Secret utilize multiple types of media to reach their target audience.  They should be able to manage it all from one source and benefit from a streamlined planning and buying process.

The team has been working around the clock to get Torque ready for our beta launch. Our aim is to provide an open and transparent platform that makes it easy for clients to find the right solutions for their brand and do it efficiently. This is big endeavor for us, but one we’ve planning for awhile.  The system is in private beta and we are working with a number of you to get ready for public availability soon. Your input and contribution is critical for our mutual success. For our media partners this is an opportunity to showcase your stuff. The system will give you great control and provide you with market insights to better run your business.  Our self-service, branded storefront product, Torque Connect ™, will allow you to power your commerce and leverage the power of the Sportgenic right from your website.

Our goal with Torque is simple - connecting marketers to passionate sport enthusiasts.  It’s been our mission since we started and we remain committed to providing solutions that benefit our clients and media partners.

Thank you all for your continued support.

Advertising industry predictions: What to expect in 2009

As the end of the year approaches, I’ve been doing a lot of thinking about where we’ll be at this time next year.  Here are my thoughts. Comments welcome.

 

1. Audience rules. Brands want to connect with the right users at the right time in the right place.  It is about speaking to the niche audience that will help grow your brand through influence and purchase.

 

2. Engagement will be the new metric. Cost per million, cost per click, cost per acquisition will become less important. It's about the connection a brand can make with consumers.

 

3. Video is hot. Video engagement and distribution will continue to grow. Good content (safe) will be rewarded.

 

4. Mobile is not. Apps will start to emerge, but won't become fully mainstream until 2010.

 

5. Integrated Solutions will dominate.Buyers want a 360 connection with their audience.  Commoditization, pork bellies, ad networks...the bottom line is that there is a lot of inventory out there and, although budgets are shifting online, they are not growing at the same rate as the inventory.  Publishers that want to differentiate will have to find additional ways to drive value.  While low prices are always attractive in a down market, it is up to marketers to take a close look at what types of conversions they are looking for and who they want them from.  Publishers that offer marketers the ability to connect with their audience are the ones who will prevail.

 

6. Cream rises. In a tough economy, marketers will push media partners for value and those without will die.

 

7. Digital Out of Home. Emerges as the hot new media.  Deliver the right message to the right person in the right place.

 

8. Online advertising is resilient.

 

9. Yahoo! gets acquired - shocking.

 

10. The U.S. Government opens an ad network. (kidding.)

 

Do you agree? Post your comments. Let me know what you think.

 

 

 

 

Your toughest competitor is yourself

I saw this story on ESPN about a golfer who called a penalty on himself.  In doing so, he cost himself his PGA Tour Card.  This is significant because that’s how he makes his living.  Getting the card is hard.  Hard enough without policing yourself.

 

But that’s why I love golf. It’s about honor and playing against yourself. The truth is, I am ok if my opponent beats me, but not ok if I lose to myself. When I see people cheat, even if it is the smallest thing, it bugs me. Too often, we only hear about the dark side of sports - the violence, the misbehavior, the steroids...  And that's why when I see a guy like J.P. Hayes doing the right thing, I love it. 

What blew me away was the ESPN poll that reported 50% of the audience wouldn’t have called the penalty in that situation. Wow! What does that say about our culture?  

 

For me, sport is about the personal challenge.  It is about pushing yourself to the next milestone.  Like running a business, it is about getting up every day and figuring out what you can do better than the day before.  That's what keeps me going and I applaud J.P. Hayes for doing the same.

The art and science of media planning

I read an interesting article in Ad Age yesterday about Yahoo! and its value to advertisers. 

 

One quote jumped out at me.  Rob Norman, CEO, Group M Interaction said “The dominant gene in Yahoo is to think of advertising as a math problem -- machines talking to machines," he said. "If you reduce it to a math problem, we go to Ad.com."

 

As a vertical network, I think there is a tendency to assume that we treat our campaigns similarly.  Of course, every campaign is built around the idea of efficiently reaching a target audience.  Media planning, however, is both an art and a science.  As a vertical, we have domain expertise and knowledge that helps us put together unique campaigns for our clients. 

 

I was at the OMMA Ad Nets a couple weeks ago and there was a lot of discussion over the value of networks – both vertical and horizontal.  Many of the panel participants were buyers and spoke about the value that a vertical network can bring because of its relationships with mid to long tail sites with niche content and a passionate following.  That was good to hear – we need to continue to evangelize our value and provide marketers with programs that enhance their overall campaigns and drive value for their brands.

Branding with vertical ad networks

John Battelle posted something yesterday that I think is somewhat short sighted.  He writes that vertical ad networks do not provide a solution for branded advertisers and are just a slightly more targeted version of the horizontal model.

I disagree.

Vertical Networks can help brands connect better with users. Our audience does not visit the sites in our network by accident.  They make a choice to seek out and engage with the content.  We aggregate these audiences and offer brands the ability to connect via multiple media products. As an example, we can create programs around a specific audience, such as “active women”, for a brand like Advil. The program we create will  provide numerous high impact opportunities to help Advil tap into the passion of this valuable target audience.

Yes, there are a lot of ad networks who work with only DR clients, but most verticals like Sportgenic, Jumpstart or Halogen Guides, offer intimate knowledge to help brands be more relevant and effective.

A different take...

It seems like everywhere I look lately, there is a story about Ad Networks and how they’re going to either (depending on who you listen to) contribute to the decline of online advertising revenue or feel the impact of the decline in online ad spending.

 I have a different point of view. 

Ad networks help buyers buy more efficiently.  It’s not just about low-cost reach anymore.  It’s about working with a network that can package targeted opportunities for brand advertisers across a variety of sites.  This isn’t commoditizing the inventory – it’s actually making it more valuable as it becomes a part of a larger program.  Many networks, just like stand-alone publishers, are pushing the envelope in terms of targeting and custom opportunities. 

Ad networks continue to evolve (we covered this in our white paper). They are now highly-focused and offer  extremely targeted reach.  Sportgenic is an example of this vertical focus, as is Jumpstart Automotive Media and Go Fish.  Quality has improved tremendously and advertisers are receiving even higher ROI – and, all this will only get better. 

 With the current bleak economic outlook, agencies will probably be stretching their resources across more clients.  As a network, we have an opportunity to add tremendous value to the media plan and take some of the work off the buyer’s plate – all in an efficient and effective manner.  

There is still room for growth in our business.  With so much unchartered territory and now isn’t a time to pull back, it’s a time to move forward.

 

On the right path

As many of you probably read, Sequoia Capital called a meeting of 100 CEOs last week to discuss the economic climate and what that means for start ups.  The message was a warning.  The outlook on the economy is grim, but, unlike the bubble burst in 2000, this was not our fault.  They advised us to keep spending down, be conservative in earnings and growth assumptions and focus on quality. 

The message was clear, but not a shock to us.  We’ve always run a lean ship and have worked to build a small team whose energy and passion has helped build Sportgenic into what it is today.  This isn’t to say we’re not immune to the current economic climate.  We know that there are hard decisions we’ll have to make in the upcoming months.  We’ve always stayed true to our fundamental business plan to connect marketers to passionate sports enthusiasts.  While the decisions may be hard, they will not be surprising to the people who work here or with us. 

These are not easy times, but we’re excited.  We have a great team, a strong product and a lasting vision.  We look forward to carrying it out in the years to come.