May 2024 Newsletter

I hope you are well and looking forward to a summer filled with sport.

We are looking forward to all the usual suspects but most of all the Euros and Paris games!

Beyond watching sport, summertime at The Value Xchange will be busy as usual with the addition of exciting new projects.

First up is a thought piece from Oliver on the Marketers bias in marketing decisions and the effect this has on properties like Rugby League. 

The Marketers bias and Rugby League

A company’s sponsorship (and wider marketing) strategy should be developed with the perspective of the target audience and overall objectives in mind. Data and insights should inform the decision-making process on where a marketer deployed their investment. Unfortunately, we see all too often key partnerships and marketing decisions made by central marketing teams or senior executives who don’t put themselves in their target customers’ shoes and let their personal preferences cloud their judgement. Personal bias exists in all of us but it’s the job of the marketer to put that bias to one side and assess all the partnership opportunities that are put in front of them based on a property’s suitability to align with the brands target customers, objectives, and brand values.  

Admittedly the sponsorship industry does not do themselves any favours when there those that spray and pray with their outreach to any email address, they can get their hands on in the hopes of a few positive responses. Instead of sifting through the hundreds of proposals to find the few that are insight led with consideration for the brands objectives decision makers choose familiar properties. Brands should review any potential partner by immersing themselves in the property and I don’t mean enjoying the hospitality perks! They should sit among the spectators and engage with the community level of the sport to understand their passions and ensure they represent the target audience.

We work with Rugby League Commercial who have the rights to all things Rugby League in this country and despite presenting the compelling evidence of the sports suitability to reach and engage with their target audience, it gets ignored. A few months ago, I had a brief conversation with a brand in the construction industry with insights about Rugby League fans. According to YouGov, Rugby League fans are 48% more likely to work in construction than the UK average, higher than football and motorsport. The brand politely said they only partner with football and motorsport properties to reach their target audience. While I was pleased to hear they had a framework for analysing opportunities, I found they have high-profile motorsport partnerships. Given the premium price tags in motorsport now, there's significant wastage in those sponsorships and less return on investment. The data we have suggests the sport is not particularly suitable and given its inflated cost of rights, it suggested there were other reasons that were driving (pun intended) their decision-making decision in this case.   

Rugby League undoubtedly has a northern focus, but for those that are not aware, it is a religion of the north. Some key stats about Rugby League to give a brief overview of its fanbase:

- Over 13.3 million people in the UK are interested in Rugby League (GWI)

- 31% of Super League fans are aged between 16-29 compared to 25% of Premiership Rugby Union fans and 24% of The Hundred fans. (Nielsen)

- 1.54 million fans attended Super League matches in 2023, almost 3x The Hundred, and just shy of Premiership Rugby’s 1.6 million.

Rugby League rivals The Hundred in younger audiences, reach and impact, yet has a more challenging time attracting partner, why? We would surmise it’s the marketer’s bias and personal interests are driving their decision making. They know Cricket better than they know Rugby League, they feel more “comfortable” with it, but they are not the target audience, it’s their target customers they want to engage with.

The strong community feel of Rugby League has stood out to me while working with the sport. I attended the Challenge Cup finals last year and to my surprise I saw hundreds of jerseys from teams not featuring on the day, something I have only seen before in baseball in the United States. These fans made the trek to London to experience the Wembley atmosphere and celebrate the sport. Few other sports have this level of communal sport. Ironically, I may be biased but I cannot seem to understand why brands overlook Rugby League given its unique selling points that could support numerous brands deliver their marketing objectives. We have the data and insights to back this up.