video consumption and consumer attitudes...
TRANSCRIPT
Video Consumption and Consumer Attitudes 2016
1. Optimizing the Power of Golf Video: A Consumer Perspective 2. Golfer Perspectives on 2016: Expectations and Impact
AGENDA
2
3
OPTIMIZING THE POWER OF GOLF VIDEO: A CONSUMER PERSPECTIVE
4
OVERVIEW • MEDIA-AGNOSTIC STUDY OF NEARLY 4,300 GOLFERS (AVID,
CORE AND CASUAL) SURVEYED
o ANALYSIS INCLUDES:
» TOTAL GOLF MARKET
» PARTICIPATION (AVIDITY AND COMMITMENT)
» GOLF-RELATED SPENDING
» ABILITY
• MULTI-MODAL APPROACH TO COMBINE QUALITATIVE AND QUANTITATIVE RESEARCH PHASES
• FORCED CHOICE OPTIMIZATION AND CONJOINT ANALYSIS TO ASSESS THE OPTIMAL CONFIGURATION OF GOLF-RELATED ONLINE VIDEOS
A VIEW FROM 30,000 FEET
5
PERVASIVE. Golf online video viewership has become a welcome element of the golf media mix, with particular resonance among golf’s most coveted and valuable customers.
CREDIBLE, OBJECTIVE AND AUTHENTIC. Golfers value the measured evaluations of well known, endemic third party brands when watching videos on new golf equipment and travel destinations. They do not want to be overtly sold to.
PERSONALIZED. Golfers are particular in sourcing content that they find to be personally relevant, through varied gateways, often through search-related or known golf-specific media brands.
SYNERGISTIC AND COMPLIMENTERY. While a third of the total golf market, and nearly 2 in 3 of golf’s best customers, actively consume golf-related video, they perceive these as another component of their golf media content mix, that works in lockstep as an augment to First Tier media such as television and print.
BITE-SIZED. While golfers are particular about specific content, they subscribe to the K.I.S.S. method when seeking out the optimal golf-related online videos.
6
NEARLY A THIRD OF THE GOLFER MARKET HAS ACCESSED GOLF-RELATED CONTENT THROUGH ONLINE VIDEOS OVER THE PAST SIX MONTHS
Q: You indicated that you participate in golf. Please indicate which, if any, of the following media sources, you have used to learn more about or follow golf content over the past six months.
32%
68%
Watched golf-related online
videos
7
Avid Golfers: Estimated size:
6.4 Million (26%)
Core Golfers: 7.2 Million (29%)
Occasional Golfers: Estimated Size: 11.1 Million (45%)
Total 8+ Rounds: 13.6 Million
Note: Includes women and juniors. Source National Golf Foundation, Golf Participation in the U.S. 2014
2.3 Million Online Video Watchers (21%)
2.6 Million Online Video Watchers (36%)
2.7 Million Online Video Watchers (42%)
5.3 Million Online Video Watchers
(40%)
A LOOK AT THE GOLF VIDEO MARKET BY AVIDITY
• Golf’s 5.1 million Best Customers, make up 30% of the male market, 75% of the spending and two-thirds of the rounds played
• An estimated 3.2 million of these best customers (63%) have watched golf-related online videos within the past six months
8
WHO’S WATCHING?
153
146
133
125
115
66
Generation Next
Golf Publication Readers
Avid Players
Mid Level Handicappers
Core Players
Casual Players
Index
+Denotes INDEX vs. Total Golf Market
9
WHAT ARE THEY WATCHING?
78%
77%
77%
69%
58%
55%
53%
51%
51%
48%
45%
44%
Golf-Related News
Golf Equipment
Golf Tournament Coverage
Golf Instruction
Golf Personalities
The Rules of Golf
Golf Trick Shots
Golf History
Golf-Related Travel
Golf-Related Physical Fitness or Conditioning
The Mental Side of Golf
Other Golf Lifestyle Content
10
MULTIPLE POINTS OF ACCESS DRIVE GOLFERS TO VIDEO Q: From which of the following sources have you accessed or received golf-related video
content?
Searched on YouTube or a similar video site; Search Engines such as Google
Golf publications or digital magazines; Directly visited OEM or Golf Retailer Website; Social Media
platforms such as Twitter or Facebook; Online newsletters received via email
Direct emails
• Equipment Junkies are particularly more likely to access golf videos from multiple sources
• Third Parties are just as important as direct OEM or Travel Provider Gateways
11
GOLF VIDEO IN CONTEXT-- COMPLEMENTARY, NOT DISRUPTIVE TO FIRST TIER GOLF MEDIA CONSUMPTION
32%
36%
46%
Golfers overall
Who also watch golf on television
Who also read golf magazines
Incidence of those accessing golf video content over the past six
months…
Top three box agreement
“Golf Videos are a complement to the golf publications that I read” (Indices relative to golfers overall)
q Highest Spenders (Index 151)
“I find golf-related videos to be additive to golf content that I read about”
q Golfers <35 (Index 114)
q Highest Spenders (Index 113)
v Magazine readers are more likely to also watch golf video
12
v Golfers are More Likely to be Increasing Their Time Spent with First Tier Golf Media (Print and TV) Than They Are to be Increasing their Time Watching Golf Videos
MORE IS STILL MORE
Q: Compared to a year ago, would you say you are spending more time, less time or about the same amount of time doing each of the following activities?
49% 52% 51% 53%
34% 34% 41% 38%
Total Golfers Avids/Core Golfers <35 Highest Spenders
First Tier Media
Golf Videos
MORE TIME
13
CREDIBILITY, TRUST, OBJECTIVITY AND UTILITY TIP TO 3RD PARTY BRANDING AND GATEWAYS Golf Videos on a
golf manufacturer’s
website %
Golf Videos on a third party golf media website
%
Golf videos found through
a search engine
%
Golf videos found through YouTube
%
Golf videos on social media
%
Most Informative 33 32 15 13 8
Most Useful 23 34 18 16 10
Most Believable/ Credible 22 39 16 14 8
Most Entertaining 17 23 13 30 17
Most Memorable 19 24 15 26 16
Most likely to make me want to learn more about a product or service
29 31 16 14 11
Contains most information I can’t find elsewhere
26 28 19 16 11
Most Trustworthy 24 40 16 14 7
Most Objective & Unbiased 17 42 14 15 11
14
• “I’m looking for a credible person…one of the top instructors, who can relate to my game. I want to see videos that are tailored for me. I’m never going to swing like Rory McIlroy.”
• “Any kind of third party that has credibility and has conducted their own
tests and independent observation. I want to know which product is really going to make a difference for me.”
• “If it’s travel, I’m looking to get a feel for the place. I like videos that show
you more of the course. But I’m also looking for data. I want specifics on cost and which courses I can play.”
• “I want something short and general that reminds me of the basics. It’s
important to know who it’s from.” • “I’m looking to solve a specific problem. I don’t care about Paulina
Gretzky.”
GOLF VIDEO IN CONTEXT: WHAT MAKES FOR AN ENGAGING VIDEO
15
Host/Narrator of the video Source or Origin of the
video
Length of the video
Delivery
Context or Presentation Format
Quantity of Products Shown
Tone
CONJOINT ANALYSIS LEADS TO OPTIMAL EQUIPMENT VIDEO CONFIGURATION Key Findings: The Optimal Combination:
PGA Tour Pro OR Top Teacher
A known media brand such as a golf magazine/television network or OEM
Under 3 minutes
One needs to click ‘play’ to watch the video
Featured as a product demonstration
Multiple new models of golf equipment
The new golf equipment is discussed or featured in a non-promotional format
Golfer Perspectives on Retail, The Sport and The Economy
The TOURs continue to resonate with the PGA TOUR returning to its 2014 popularity after a slight dip in 2015. Golfers’ insatiable appetite for tournament coverage shows no end in sight. Participation—A nice uptick to those playing more in 2015 is accompanied by typically bullish forward attitudes. 2015’s strong concerns about participation growth recede. Consumers are still buying into the promise of technological equipment innovation, but confidence in equipment’s ability to bring about immediate game improvement slides to a four year low. Conditioning towards Equipment Deals has diminished somewhat though golfer spending expectations rise, as more consumers flock to mainline sporting goods retail.
TWO MINUTE TAKE-AWAYS
17
TWO MINUTE TAKE-AWAYS
18
Consumers clearly anticipate spending more for their golf equipment in 2016 than they did a year ago. However, expectations to buy remain flat to directionally up in most categories. This suggests no abatement in the fierce and tightening battles for market share that we’ve seen suggested, and the market has shown for equipment over the past several years. Continued stability for private club membership, as the attrition seen through 2013 looks distant. Slight return to discounting as clubs increase the push to attract younger members and ramp up Junior Programs.
Surge in new non-golf family programming of a year ago, returns to 2014 levels. Golfer concerns about the labor market shift consumer confidence to four-year lows. The game is still an oasis, but greater concerns on the macro economy and stresses on resources suggest potential challenges. Golfers still work to manage information overload and time pressures, but the game is a needed escape valve.
BACKGROUND, OBJECTIVES AND METHODOLOGY
19
Winter 2016 SLRG Sports Omnibus
• Assess the attitudes and perceptions of golfers
Initiated by Sports and Leisure Research Group in 2009
2016 online survey of over 1,000 golfer respondents
• Fielded Jan 4-10, 2016
• All golfers played a minimum of twice per month, in season
13%
64%
16%
68%
14%
72%
12%
64%
LPGA
PGA TOUR
TOUR POPULARITY AND FANS: BACK TO THE FUTURE
20
19%
42%
29%
30%
19%
43%
14%
43%
LPGA TOUR
PGA TOUR 2013
2014
2015
2016
I Watch and Follow Closely
PGA TOUR shows particular strength in the Southern U.S.
% Indicating More Popular
THE YEAR AHEAD ON TOUR
21
The Tiger era is over, yet the appetite for tournament coverage couldn’t be better
TOP 3 BOX AGREEMENT
41%
17%
2%
18%
13%
2%
4%
11%
1%
I expect Tiger Woods to win a Major in 2016
The inclusion of golf in the Olympics will diminish
excitement surrounding the Ryder Cup and President's
Cup
There's too much golf on television
2014
2015
2016
PARTICIPATION/SPENDING TRENDS: AN UPTICK IN STORE?
22
Expectations Remain High With Slight Spike In Those Playing and Spending More
95% 96% 97% 97%
79% 81% 81%
2013 2014 2015 2016
Expected Actual
Do you expect to/Did you actually play the same amount or more in…?
77% 78% 78% 80%
2013 2014 2015 2016
Do you expect to spend the same amount or more next year?
MORE 32% 28% 27%
More 24% More
33%
Same 56% Same
48%
33%
43%
31%
12%
44%
28% 34%
9%
43%
33% 29%
8%
36%
23%
31%
3%
I have more golf partners to play with
Family obligations have decreased
My game has improved
I'm playing more business golf
2013 2014 2015 2016
WHY GOLFERS ARE PLAYING MORE
23
Playing Partners and Game Improvement Still Drive One's Ability to "Find Time,” Though Meaningful Drops Among 2015’s Top Two
Modest increase in those who are playing more with
their families in 2016
STEMMING THE TIDE IN CONFIDENCE REGARDING PARTICIPATION GROWTH
24
Agreement with statement: “The game of golf is facing major challenges in regards to growing overall participation”
Strongly Agree 40%
Agree 27%
Neutral 18%
Disagree 15%
Strongly Agree 44%
Agree 27%
Neutral 15%
Disagree 15%
Strongly Agree 50% Agree
26%
Neutral 14%
Disagree 11%
Agreement: 76%
Median Agreement:
7 of 10
2016
Strongly Agree 57% Agree
19%
Neutral 13%
Disagree 11%
Agreement: 76%
Median Agreement:
8 of 10
2015
PERCEPTIONS ON NEW EQUIPMENT PURCHASING
25
Consistency Rules The Day, but Does 2016 Need A Jolt In Fulfilled Game Improvement Through Innovation?
AGREEMENT WITH FOLLOWING STATEMENTS: 2013 %
2014 %
2015 %
2016 %
New golf equipment continues to become more technologically innovative every year 59 54 52 53
Buying new golf equipment has become a more complicated process in recent years 35 37 36 36
Buying the right new golf equipment can help me to immediately improve my game 29 27 27 25
I've found one brand of golf equipment that I plan to stick with, when I make my next purchase 26 24 24 23
I won't buy new golf equipment without trying it out first on the golf course 22 24 22 22
TOP THREE BOX AGREEMENT
GOLF PURCHASING TRENDS
26
As evidenced elsewhere in this year’s study, consumers clearly recognized less rampant discounting. This may have held many back from the market in 2015.
Consumers clearly anticipate spending more for their golf equipment in 2016 than they did a year ago. However, expectations to buy remain flat to directionally up in most categories.
Higher per capita spending anticipated in 10 of 11 categories would be a welcome sign after actual 2015 reported spending was up relative to reported pre-season expectations in only golf bags.
This suggests continued battles for market share, as we’ve seen over the past several years.
Combining the above trends with a reported increase in shopping activity at sporting goods retail, and macro economic concerns points to a heightened premium placed on brands that can evoke value in the year ahead.
KEY YEAR-OVER-YEAR TRENDS
27
Category Purchasing:
2015 vs. 2014 Decreases in % Actually Purchasing • Drivers
• Golf Bags
• Fairway metals/hybrids
• Irons
2016 vs. 2015 Directional Purchase Expectation Increases • Irons
• Drivers
• Fairway metals
• Wedges
KEY YEAR-OVER-YEAR TRENDS
28
Per Cap Price Achievement: Reported 2015 Per Cap Dollars spent higher than expected for 2015
• Golf Bags
Reported 2015 Per Cap Price Achievement Increases Over YAG
• Hybrids (+10%)
• Golf Bags (+13%)
Expected 2016 Per Cap Spending up over Actual 2015 Per Cap Spending in 10 of 11 Measured Categories
Up >5%: • Drivers • Fairways • Hybrids • Irons • Wedges • Putters
Up 3-5%: • Golf Balls • Replacement Grips • Golf Bags • Golf Shoes
Only Apparel sees expected 2016 spending decrease relative to reported 2015 per cap spending
OVERALL SPENDING EXPECTATIONS ON GOLF EQUIPMENT SHOW PROMISE
29
Overall, compared to 2015 do you expect that your 2016 total golf-related spending for equipment and apparel will be…?
Q
More 33%
The Same Amount
48%
Less 20%
Same/More 81%
RETAIL DECISION DRIVERS REMAIN FOCUSED ON SERVICE AND
PRODUCT QUALITY, WHILE THE “DEAL CULTURE” HAS DIMINISHED
30
67% 63% 62% 61%
19% 20% 20% 20%
Quality service can make the ultimate difference in
what I buy
If I see something I like, I don't worry about the price
TOP 3 BOX AGREEMENT
65% 67% 66% 68%
37% 41% 39% 35%
2013 2014 2015 2016
Purchase decisions for me are more about substance
than about style
There are so many good deals these days, that I
rarely ever pay full price anymore
RETAIL PREFERENCE: GROWTH IN SPORTING GOODS CHANNEL
31
38% 39% 37% 37%
23% 21% 21% 25%
14% 13% 15%
13%
17% 20% 21% 17%
Winter 2013 Winter 2014 Winter 2015 Winter 2016
Off-Course Specialty Sporting Goods Retail Over the Internet Green Grass
► Off-Course specialty is particularly resonant with the under age 35 set and mid level handicappers, while Green Grass shops remain mainstays of private club golfers.
Where are you most likely to make your next golf equipment purchase? Q
SOME SKITTISHNESS ABOUT THE ECONOMY RETURNS IN AN ELECTION YEAR
32
Fall in short term optimism, throws caution at other indicators that continue to show strength
TOP 3 BOX AGREEMENT
33% 33%
53% 51%
30%
44%
58% 56%
29%
47% 51% 55%
29%
44% 46% 46%
I plan to continue working even in retirement
I invest so I can retire early This year will be a better year for me than last year
I plan to spend actively on useful pastimes, in my
retirement
2013 2014 2015 2016
GOLFERS’ OVERALL ECONOMIC OUTLOOK TURNS CAUTIOUS
33
Labor market concerns shift golfer attitudes to four year lows.
60%
16%
34%
5%
61%
27%
40%
8%
56%
30% 35%
8%
58%
18%
31%
5%
There's really no such thing as job security any more
We have seen the U.S. unemployment rate reach bottom, and it will add jobs
this year
I feel better about my financial situation today
than I did a year ago
People will go back to spending freely on luxuries
again this year
2013 2014 2015 2016
TOP 3 BOX AGREEMENT
Report a gain in membership
PRIVATE CLUB MEMBER RETENTION VS. ATTRITION HAS STABILIZED
34
36% 31% 33%
Base: National Sample of Private Club Members
Lost Membership Flat or Consistent Gained Membership
MEMBERSHIP LEVELS OVER THE PAST 3 YEARS
2013 Report a loss in membership
27% 22% 45% 2015
Report a gain in membership
26% 35% 39% 2014
Report a loss in membership
Report a gain in membership Report a loss in
membership
27% 26% 42% 2016
Report a gain in membership Report a loss in
membership
PRIVATE CLUBS: PUSH TOWARDS YOUNGER MEMBERS AND JUNIOR GOLF PROGRAMS
35
After one year spike, new non-golf family programming returns to 2014 levels, with slight uptick in discounting.
Base: National Sample of Private Club Members
Mean: 10 point scale
TOP 3 BOX AGREEMENT
53%
42% 39%
34% 31%
57%
35% 40%
27% 24%
55%
26%
39% 38%
24%
56%
28%
41%
26% 26%
My club has made concerted efforts to attract younger members in the past few
years
My club has aggressively reduced the cost of
membership to attract new members over recent years
My club has been putting more emphasis on junior golf
programs recently
My club recently instituted a variety of new non-golf
programs to attract families
My club has been putting more emphasis on women's
golf programs recently
2013 2014 2015 2016
27%
39%
57%
26%
40%
60%
31%
40%
56%
36%
39%
58%
I'm concerned about the financial stability of my club
My club must make aggressive changes to remain viable in the coming years
Private clubs in general, need to make aggressive changes to remain relevant in the
coming years
2013
2014
2015
2016
THE STATE OF PRIVATE CLUBS: THE FINANCIAL HOUSE REMAINS IN ORDER
36
Focus on Evolution has created stability
Base: Private Club Members 2016
Top Three Box on 10 point scale
TOP 3 BOX AGREEMENT
24-7 DEMANDS AND NEWS CYCLE POSE CHALLENGES
37
Golf is still an oasis, but increased strain on resources and economic cautiousness greet the new year
82%
36% 42%
33%
64%
81%
37% 40% 31%
59%
79%
40% 42% 32%
59%
78%
36% 38% 32%
63%
We live in an age of constant updates
Golf is my personal "oasis" from day-to-day chaos
There's too much new technology to keep up
with
I'm spending more time these days with friends and
family, than I did in the past
Today there is more of a priority on getting things done more quickly with
less resources
2013 2014 2015 2016
TOP 3 BOX AGREEMENT
Still the strongest overall agreement among 44
statements
Golfers in 2016 are significantly less likely than a year ago to:
• Believe that the year ahead will be better than the previous year
• Feel bullish about their retirement prospects
FINAL THOUGHTS
38
The Market:
Micro-Economic Concern Coupled with Higher Expectations for Equipment Pricing: 2016 will continue to be about perceived value as consumers look for a spark in equipment innovation to justify perceived retrenchment from the discounting of recent seasons.
Yet Cautious Optimism Rules on the Participation Side: Private Clubs continue to focus on attracting younger members and targeting junior programs, while golfers seek to increase their play amidst heightened insecurity.
Online Video Captivates Golf’s Best Customers:
Objective Content is King: Third party endorsement sparks the legitimacy of popular instruction, equipment and travel video.
The Magic Formula: Golfers seek short, simple and customized content, replete with multiple offerings and expert evaluations too.