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247Sports

May 9

2013

247Sports, a provider of premium content covering high school

recruitment for dozens of schools through team sites, provides a well-

rounded service through staff, site, and mobile technology. This paper will

analyze their current marketing mix and offer a pair of goals to accomplish

moving forward.

Jeff Mason

Retail

Management

Doug Clopton

Final Paper


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Established in 2010, 247Sports.com is self-described as an independent digital sports

media company made up of a network of team sites. 247Sports focuses primarily on the

analysis, ranking, and reporting of high school athletes and college teams. Every year, thousands

of high school seniors decide where they will play their particular sport at the next level.

247Sports, focusing primarily on football recruiting, covers many aspects of the recruitment of

these athletes culminating in their final product: Premium content.

To consumers of 247Sports content, the material is a step above what they can find in

their local paper. Rather than just familiarize themselves with the players who make the

difference on game day, these fans are interested in where the effort beginsthe recruitment of

the players. 247Sports fills this need by evaluating the athlete and assigning a rating based on

physical attributes, level of competition, and a variety of other factors. The players information

is recorded on the players profile, which will be detailed at a later point. 247Sports rankings,

recruit profiles, and team rankings of recruiting efforts are all considered free contenta person

does not have to be a subscriber of 247Sports to access the information.

247Sportspremium information, the material for which the company charges, is the

reporting the network does on the recruits, their recruitment process, and team coverage.

Subscribers of the network, who pay monthly ($9.99) or annually ($107.40 at a cost of $8.99 per

month), have access to articles, commentary, photos, and videos that make up the networks

content. The premium material can range from an article with an interview of a prospect to

coverage of a recent practice. Though the focus of the network sites is generally football and

football recruiting, individual sites are best suited to cover multiple sports and major stories of

the team-specific athletic department to reach a larger customer base.

Whereas competitors in the industry largely operate on affiliate relationships between themain network and the team sites, 247Sports is more focused on an owned-and-operated format.

The difference is reflected in the day-to-day operations of the various sites. For example, an

employee who writes an article about a recruit for the Michigan site will also likely post it to the

Nebraska site if both schools are pursuing the athlete. The format has suited the business well, as

247Sports is estimated to have 45,000 subscribers just three years after launch (Ledger, 2013).

Identifying the Consumer

In an industry lead by a small handful, the target market for 247Sports is best defined

through the use of web site analytics. For the purpose of data collection, the analytics of major

competitors Rivals.com and Scout.com were also used to develop the description of 247 Sports

likely consumer. Breaking down the average visitor of these sites, the target market can best be

described as a white male between the ages of 22 and 44. In addition, the consumer is likely

college educated and comes from a household with an above average income. The following

breakdown from Quantcast is for 247Sports.com specifically:


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As stated, the demographic numbers were gathered from 247 Sports, Rivals, and Scout.

In determining the target market, its important to note which characteristics were similar among

the three competitors. The market is overwhelmingly male, and the largest age segment is 35-44

accounting for 24.33% of the three sites traffic. However, it should be noted that the 25-34

segment is very close behind at 22.67% of the traffic.

Acknowledging these characteristics is important when considering the economic indicators of

the consumer. Most important among the noted characteristics are age and education. First,

consider the breakdown of age groups and how it relates to income. As of 2009, the medianincome for a person in the 35-44 range was $61,083 which is topped only by the 45-54 segment

at $64,235 (Bureau, Money Income of HouseholdsDistribution by Income Level, 2009). With

overall spending on sports and recreation expected to grow 5.62% and sports subscriptions

expected to grow 3.57% in the next five years, 247 Sports is situated with a product popular

among a group with a higher level of disposable income (Nielsen, March).

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%


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The second consideration for economic indicators is the education level of the typical

consumer. Averaging the traffic of 247 Sports, Rivals, and Scout it can be determined

approximately two thirds of the sites traffic comes from individuals with some college

education. This demographic is another significant piece to thoroughly identifying the potential

consumer. Statistically, individuals with higher levels of education have a larger average income

and more disposable income.

High School Degree $39,647

Some College Education $48,413

Associates Degree $56,789

Bachelors (+) Degree $82,722

Bachelors $75,518

Masters $91,660

Professional $123,784

Doctoral $120,873

(Bureau, 2009)

These numbers are important when considering 247Sports product a luxury. The

product isnt a necessity, even for those who do pay for it. As such a product, a consumers

disposable income becomes a factor in the purchasing decision. Disposable income is considered

the money an individual has after taxes. An individual making $100,000 and paying a 35% tax

rate would have $65,000 in disposable income. With two major demographicsage and

educationdefining 247Sports target market as an affluent group, the company is situated to

grow their business within the established market.

The final factor to consider in analyzing economic factors of 247Sports is the overall

amount of wealth poured into college football. In their annual list valuing college football

programs, Forbes listed the Texas Longhorns as the most valuable program at $133 million. The

University of Texas football program profited $78 million in 2012 a 3% increase despite

playing one less home game. The remainder of the top five (Michigan, Notre Dame, Louisiana

State, and Georgia) all made at least $52 million in profit last year. Simply put: College football

is an area with an incredible amount of spending, with team allegiance driving the numbers up

daily.

The Industry Competition

Though recruiting services have existed for many years, dating back to services thatprovided information on a call-in basis, the landscape of the industry present today is best

connected to the launch of Rivals in 1998. At the time, Rivals.com was the dominant site of its

kind with over 200 employees and over 600 affiliate sites. Today, Rivals is still a major presence

in the industry but Scout.com, ESPN, and 247Sports have joined as the major players.


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In addition to the four primary services, outlets ranging from major papers to local blogs

have taken an interest to providing recruiting information. Rather than just compete with three

other services on a national basis, 247Sports must also contend with competition on local, state,

and regional levels. Though these tend to be individual sites, there are networks like SBNation

and Bleacher Report which also compete for views and ad revenue.

Recognizing the Products

The main focus on 247Sports product has been discussed: Premium content. With that

said, there are a couple other aspects to what the company offers. From the consumer standpoint,

the ability to interact with the staff and other subscribers is a major draw to a site like

247Sports.com. In fact, the draw is large enough that the site offers free account allowing users

to post on non-subscription boards.

The message boards of 247Sports is a defining aspect of the company, as the technology

was built from the ground up rather than use an existing message board technology. Thoughdevelopment is ongoing, the appearance and functionality of 247Sports boards largely surpass

that of its competition. Below is an image illustrating the various features:

1. Rating Posts: The green and red arrows below the Quote feature allow other users torate a post.

2. User Rating: The five stars next to a users name are the users rating, as determined bythe ratings of the posts.

3. Social Media Connection: The Tweet button across the top of the thread allows a userto instantly share the message of a post to social media. Almost all of 247Sports features

are connected to social media.

In addition to the features offered to the reader of the messages, 247Sports has a streamlined

interface for a user posting a message. Below, note the tools to upload a picture. A simple link


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can be inserted or uploaded straight from a users computer. Though this image only shows the

interface for a photo to be uploaded, the screen is almost identical for videos from YouTube and

links to other sites.

The other product to note is the database of players that 247Sports provides. The

profiles of recruits, various listings, and rankings are free to access but retain their value to the

company and consumers. First, its important to note that this information is the backbone of the

premium content that 247Sports sites provide. These rankings and profiles provide significant

context to the interviews, analysis, and articles that are produced. Without them, a story lacks thedepth of detail that these particular consumers seek.

In addition, the profiles and rankings are crucial to site traffic which drive advertisement

revenue. By maintaining these records, they become a source of information for outlets who

lack the resources. A story by a Kansas City paper, for instance, may cite 247Sports when

discussing the athletes physical attributes, schools who have offered scholarships, and more.

Though the product would be described as free, the various pieces are crucial to the structure of

the site.

Beyond having the necessary information, 247Sports has identified the need to presentthe material well. Whereas their main competitors have maintained a relatively dated look for

some time, 247Sports built their recruit profiles from the ground up to integrate social media, the

network of sites, and a new level of detail.

Each profile of an athlete is linked to Google+, Facebook, and Twitter to allow seamless

sharing of information across multiple platforms. Further, the profiles link to a recruits highlight

film on YouTube if available. In an interesting personal touch, the profiles are also linked


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directly to an athletes Twitter account which provides a live stream of comments from the

athlete. 247Sports decision to keep pace with social media is apparent in many aspects of the

business, but the profiles may be the most evident of the thought process.

As discussed earlier, the owned-and-operated structure of 247Sports and the team sites

brings an interesting component to the business: It encourages team sites to share informationwith one another. Rather than a Wisconsin team site competing with an Arkansas team site, the

two share information on the network. The approach is apparent in the profiles of recruits as

stories from across the network are all listed chronologically with no preference given to one site

over another. Its an important feature allowing customers of 247Sports to access information

across the network easily. Another feature the team approach impacts is the display of photos

on each profile.

The final aspect of the profile to be discussed is the level of detail. This is about creating

something that as a fan I would want to consume myself, Shannon Terry once told Sports

Business Daily. In the same interview, Terry talks of 247Sports being a very different editorialand technology platform, and an evolution of where I believe the industry should be going. No

part of 247Sports demonstrates Terrys line of thinking better than 247Composite.

The 247Composite is described by the company as the most comprehensive and unbiased

prospect ranking. The system does so by incorporating the ratings of the other major recruiting

services into a proprietary algorithm. The companys desire to have strong information that they

not only acknowledge the competition, they integrate the work of their competitors into their

product.

Beyond the rankings of the prospect, the profiles list a staggering amount of detail. Onany recruit, the profile will list the athletes rank nationally, in their state, and in their position. In

addition, the pages note the schools the athlete is interested with varying degrees of interest that

range from None to Committed. The list of schools arent just there with a notation as to

whether or not theyve offered the analysts at 247Sports can identify an interest as Warm,

with another listed as Warmer to give a customer a better-defined idea on the athletes

recruitment.

One last aspect of the recruiting profile to note is the Timeline. The recruits timeline

identifies when a school offers, a coachs visit to the high school, a certain achievement of the

athletes, and more. Those who access a profile on 247Sports can easily sort through achronological series to note major events rather than sort through a number of articles and

attempting to establish the series of events themselves. The Timeline is yet another consumer-

oriented feature of 247Sports that places it in a new class of recruiting coverage.


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Pricing

For years, the pricing within the industry of online recruiting coverage has remained

relatively constant around $9.99 monthly. As of April 31, 2013, the three main sites were

charging the following:

Company Monthly Subscription Annual Subscription

247Sports $9.95 $107.40 ($8.95/month)

Rivals $9.95 $99.95 ($8.33/month)

Scout $9.95 $99.95 ($8.33/month)

Given the consistentprice of the product, the markets pricing strategy would be best

described as competition-based. Though each major company does run promotions based at

further market penetration (7 day free trial, 30 day free trial, etc.), indicating the pricing strategy

may lean towards loss leader, none of the companies rely on the strategy as a long term effort.

The market served is well-defined by the website analytics discussed earlier. The average

consumer for 247Sports, and the industry, is a white male between the ages of 22 and 44 and

college educated from a household with an above average income. These demographic pieces,

paired with the economic insight, suggest that 247Sports could explore the option of a higher

price. With that said, this is an industry largely built on site allegiance and a price increase would

likely do more harm in scaring off potential new customers than it would benefit in overall

profit.

Distribution Mix

The two main channels through which 247Sports distribute their product is desktop andmobile internet access. 247Sports has placed an extreme emphasis on their mobile website,

acknowledging the shift in American internet access. According to Cisco, the average amount of

data used by a smartphone grew 81% from 2011 to 2012. In the same report, Cisco notes that

mobile data traffic as a wholetraffic that includes tablets and basic handsetsgrew 70% in

2012. The company readily creates content with the mobile user in mind, stating editorial

products are inspired by the demand for quick-hitting and easy-to-access social and editorial

content.

In examining the mobile site for 247Sports, few features of the full site are inaccessible

from the mobile platform. The recruiting profiles, from which everything on the site builds on,are streamlined for mobile access along with player, state, and team rankings. In terms of the

information a consumer pays for, there is no limit to the 247Sports content accessible on various

devicesAndroid phones, iPhones, and tablets. Though some customers have sought out

information regarding a potential smartphone app for 247Sports, the company remains adamant:

With such a strong mobile site, there is no need. Beyond the functionality, the amount of people

who use their smartphones to browse online (84%) is second only to text messaging (92%) in


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terms of daily use. The use of downloaded apps is a distance fifth at 69% behind e-mailing and

the use of games.

When it comes to dispersing a product, the general thought is of a wholesaler making

their product available through retail locations. In 247Sports case, there is no intermediate

between the company and the direct consumer because it is an online service. The only venuesthat could be characterized as channels of distribution are CBS and the U.S. Army All-American

Bowl, which features a game involving the best high schools players from across the nation.

247Sports recently forged these partnerships, establishing two methods of further pushing their

product. CBS Sports now uses 247Sports as their primary source for high school recruiting

information, and the U.S. Army All-American Bowl is now selected by the company. Though

neither is a retailer selling 247Sports premium content, each provide a reach necessary to grow

the companys customer base.

Promotion

As it stands, 247Sports does not advertise on any major traditional method. The company

does not run television or radio advertisements, and theyve largely stayed away from print ads

as well. Rather, their strategy has largely relied on ties to events and simple word-of-mouth. In a

niche community like that of Rivals, Scout, and 247Sportsthe power of a referral is incredibly

strong. Thats why the company focused on signing a few major publishers like Ohio States

Bucknuts and Alabamas BamaOnline: It was an effort to draw large fan bases, knowing they

would communicate the new sites assets.

The newly forged relationships with CBS Sports and the U.S. Army All-American Bowl

will provide more exposure in an avenue they would prefer to emphasize: Partnerships. In doingso, they advertise to a very select consumer rather than all college football fans as a whole.

247Sports understands a commercial during one of the hundreds of football games isnt a viable

option for themthe consumer who wants the companys premium material is likely seeking out

some sort of information elsewhere. 247Sports is concentrating on finding where their untapped

market is currently browsing, on a site like CBS Sports, and what specific events theyre

watching and following, like the U.S. Army All-American Bowl.


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Moving Forward: The Recommended Strategy

As has been discussed, the pricing and distribution of 247Sports content is largely

established. The pricing structure for the industry has largely remained unchanged and

consumers are content with the format. Though there is always room for experimentation with

the pricing strategy, the emphasis on a marketing plan moving forward should be thepromotional side. In considering that, there are two primary goals to set:

1. Expand 247Sports network further into West Coast market;2. Further penetrate existing markets through concentrated offers and advertisement

The first of the goals is important for long term viability. The state of California is second only

to Texas in terms of Division 1 athletes produced by high schools on an annual basis. In terms of

recruiting the state is a wealth of talent and, in turn, an incredible opportunity to further the

network.

Currently, 247Sports has affiliate sites for seven of the twelve Pac-12 Conference

football teams. Of those, only the sites for the University of Southern California and the

University of Oregon are major drivers of site traffic. The traffic can undoubtedly be tied to the

success of the programs, but its important to note that fans of the remaining schools are still

seeking the information 247Sports provides.

Expansion further into the west coast market benefits the company in a number of ways.

First and foremost, more sites opens up the company to a larger target market through fan

affiliation. The second may be more important for the network coverage as a whole: It would

allow for more journalists and analysts in the area. If the company can strengthen their west

coast coverage to match that of their midwest and southeast regions, the company will see

returns on their investment immediately.

The second objective is to move 247Sports further into their existing markets. As

discussed in the competitive environment, there are only a few other major industry competitors

but they hold the lions share of the market. For a team like the Nebraska Cornhuskers, there

are sites for Rivals, Scout, and 247Sports but also through blog-based sites like Bleacher Report

and SBNation. With competition at each corner, its important 247Sports capitalize on their

customers allegiance.

One way to capitalize would be offering incentives for referrals. The company alreadyoffers a 30 day free trial to new members, but an offer to existing customers could prove more

beneficial. If 247Sports were to offer a free month to an existing member for every 5 annual

subscription referrals, the five subscriptions (totaling almost $540) would more than compensate

for a months subscription. In an industry that relies so heavily on word-of-mouth, the chance to

capitalize is there.


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An alternative to further penetrating existing markets is finally utilizing print

advertisements. In an area like Kansas City, Missouri, 247Sports could reach fans of Kansas,

Kansas State, Missouri, and more with a series of ads in the Kansas City Star. Identifying and

executing advertisements in channels reaching more than one major base would be the most

beneficial move for a company just beginning to advertise. The ad would maximize the reach of

the companys message while limiting the need to advertise through a number of channels. The

same could be said for a number of radio shows, though more geographic-specific television

advertisements wouldnt prove a strong option at this point.

Conclusion

247Sports as a whole is still relatively new to the industry, but more than compensates

through experienced leadership and staff. While theyve experienced tremendous growth in their

early stages, the industrys complacency provides the company an opportunity to surpass

competition in the immediate future. 247Sports content, coverage, staff, and technological

forward-thinking provide an excellent service to a target market ripe for further monetization.


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Works Cited

Bureau, U. C. (2009). Money Income of HouseholdsDistribution by Income Level.

Cisco. (2013). Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 20122017.

Cisco.

Ledger, N. (2013, January 25). Recruiting Sites By The Numbers. Nashville Ledger.

Nielsen. (March, 14 2013). Nielsen Consumer Buying Power. Retrieved March 22, 2013, from Tetrad:

http://www.tetrad.com/pub/documents/cbpsample.pdf

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