March 09, 2018, Taipei

�Running events changing with the times–

Challenges and consequences for therunning market on the example of the

BMW BERLIN-MARATHON“

TaiSPO 2018

Marathon and Sports Marketing Forum

IMPRESSIONS

FACTS/ ABOUT US

CHALLENGES FOR RUNNINGEVENTS

THE RUNNING MARKET

CONSEQUENCES FOR RUNNINGEVENTS

OVERVIEW

1

2

3

4

5

2

IMPRESSIONS

IMPRESSIONS

FILM

5

IMPRESSIONS

FACTS/ ABOUT US

CHALLENGES FOR RUNNINGEVENTS

THE RUNNING MARKET

CONSEQUENCES FOR RUNNINGEVENTS

OVERVIEW

1

2

3

4

5

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The World‘s fastest course

Ten world records, seven since 2001.

WORLD RECORDS

7

In 2009 the BMW BERLIN-MARATHON receivedthe AIMS* award “Marathon of the decade“.

*Association of International Marathons and Distance Races

MARATHON OF THE DECADE

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One million spectators and more than 80 music bandsalong the course.

The BMW BERLIN-MARATHON is under thepatronage of the German Federal Chancellor.

LARGEST MARATHON IN GERMANY

9

BMW BERLIN-MARATHON COURSE

• Course through the city of

Berlin

• Highly attractive and passing

all significant places of interest

• Inner city closed to traffic for

almost 8 hours

10

The BMW BERLIN-MARATHON is a four-dayevent featuring multiple competitions and supportingprograms.

THE BMW BERLIN-MARATHON WEEK

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OVER 58,000 PARTICIPANTS FROM 122 COUNTRIESABOUT 1 MILLION SPECTATORS ALONG THE COURSE

Runners

Inline Skaters

mini-MARATHON

Bambini

SCC-Skating Kids Cup

Breakfast Run

Handbiker

Wheelchairs

41,283

5,445

1,836

10,010

107

approx. 11,000

185

37

SCC EVENTS 201612

SCC EVENTS GMBHWE MOVE MORE THAN 185,000 PARTICIPANTS EVERY YEAR!

Organisation and execution of 20 events in the field of running, skating, swimming andcycling in Berlin and Brandenburg

Comprehensive services: e.g. sports medicine services, corporate healthmanagement, training groups.

57 permanent employees, 3 student assistants, 2 trainees, interns and many volunteers

13

EVENT CALENDER SCC EVENTS 20181ST HALF YEAR

Event Date

Berlin New Year‘s Run 01 January

BERLIN VITAL expo 06 – 07 April

Berlin Half Marathon 08 April

Airfield Run 22 April

AVON Women‘s Run 26 May

GERMAN MANAGEMENT RUN 07 June

Berliner Wasserbetriebe 5 x 5 km TEAM-Relay 06 – 08 June

AOK TEAM-Relay Brandenburg 28 June

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EVENT CALENDER SCC EVENTS 20182ND HALF YEAR

Other events as co-organiser or service providers: Velothon Berlin 13-05-2018 / BARMER Women‘s Run 23-06-2018 / SportScheck RUN BLN 26-08-2018

Event Date

SwimRun Rheinsberg 01 July

adidas Runners City-Night 28 July

BERLIN VITAL expo 13 – 15 September

BMW BERLIN-MARATHON 15/16 September

Cross Days 27/28 October

New Year‘s Eve Run Berlin 31 December

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ABBOTT WORLD MARATHON MAJORSIN ICONIC CITIES

CHICAGO

NEW YORK

BOSTON

LONDON BERLIN

TOKYO

16

ABBOTT WORLD MARATHON MAJORSMISSION

• ABBOTT World Marathon Majors is a series of six of the largest city

marathons in the world: Tokyo, Boston, London, Berlin, Chicago and New

York

• ABBOTT World Marathon Majors has a total of about 200,000 participants

and 800,000 registrations annually

• The races are broadcasted on TV to international spectators in over 150

countries

• ABBOTT World Marathon Majors has set its goal to be a leader in the area

of professional and amateur sports worldwide and considers itself to the

Grand Slam of amateur running17

ABBOTT WORLD MARATHON MAJORSMISSION

• “The organizers of these six events are united in their effort to advance the

sport, raise awareness of its elite athletes, and increase the level of

interest in elite racing among running enthusiasts.”

• Under the theme “Life. To the fullest” Abbott attempts to build a bridge

– from a healthier life through every day exercise, to the “queen of the

distances”: the marathon.

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ABBOTT WORLD MARATHON MAJORSMISSION

• The AWMM is not just about elite athletes

but also honors non-elite runners who

complete all six of the AWMM races in Tokyo,

Boston, London, Berlin, Chicago and

New York City

• Medal introduced in 2016

• No. of current 6-star-finishers: about 2,700

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Anti-Doping: - dealing with WADA/ NADA/IAAF- new technologies, endeavours- laws, own responsibilities, “blood pass“

Standards that go beyond the AIMS and IAAF gold labelsSecurity:- new technologies- new demands since 2013, administrative requirements, athletes & spectators

Costs / Setting Pricing / Investments / Innovations: - different models of financing the events- visibility of the costs

Creating a brand:- marketing - charity- reputation - global communication

ABBOTT WORLD MARATHON MAJORSKEY TOPICS

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IMPRESSIONS

FACTS/ ABOUT US

CHALLENGES FOR RUNNINGEVENTS

THE RUNNING MARKET

CONSEQUENCES FOR RUNNINGEVENTS

OVERVIEW

1

2

3

4

5

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CHALLENGESSECURITY CONCEPTS FOR LARGE EVENTS

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TEMPORARY ON-SITE COORDINATION POINTSBERLIN HALFMARATHON, CHICAGO MARATHON

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UTILISATION OF TECHNOLOGY – REAL TIME MANAGEMENT

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SCC EVENTS hasindependently

developed its ownsecurity concept for

many years

The Berlin Marathon security concept is

over 120 pages long

Gold Standard in Berlin

SECURITY CONCEPTS FOR LARGE EVENTSSECURITY CONCEPT IN BERLIN

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SECURITY CONCEPTS FOR LARGE EVENTSBMW BERLIN-MARATHON

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IMPRESSIONS

FACTS/ ABOUT US

CHALLENGES FOR RUNNINGEVENTS

THE RUNNING MARKET

CONSEQUENCES FOR RUNNINGEVENTS

OVERVIEW

1

2

3

4

5

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MARKETING AND COMMUNICATION

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MEDIA COVERAGETV

TV national Broadcasting Time(h:mm:ss)

Number ofprogrammes

Range (million)

Total of spectators 16:08:01 139 59,98 Live-Coverage3 hours

Live -Coverage5 hours

TV International: Coverage and recaps in over 140 countries worldwide. ValuMedia Report 201629

Comprehensive coverage in regional, national and international print media.• Total number of publications: 6,750 (national)• Total circulation of copies: 128.74 M.

(national)

MEDIA COVERAGEPRINT

ValuMedia Report 201630

Cover, special inserts, result listCirculation on weekends: 107,000+ copiesReach 238,000+ readers in Berlin/Brandenburg

MEDIA COVERAGEMEDIA PARTNER

mediaimpact31

Main target group: age 40 to 59Listeners per hour ø Mon-Sat 6 am - 6 pm: 113,000

MEDIA COVERAGERADIO

Main target group: from age 40Listeners per hour ø Mon-Sat 6 am - 6 pm: 176,000

Main target group: age 20 to 49Listeners per hour ø Mon-Sat 6 am - 6 pm: 109,000

Main target group: age 30 to 59Listeners per hour ø Mon-Sat 6 am - 6 pm: 52,000

media sales and services32

2,400,000+SESSIONS

1,500,000+USERS

9,400,000+IMPRESSION

S

88,500+ LIKES ON

FACEBOOK

MEDIA COVERAGEINTERNET & SOCIAL MEDIA

Google AnalyticsOct 1, 2015 – Sept 27, 2016

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Start/ leading cars, hot spots, finish carpet, split time pylon, endless banners

EFFECTIVE SPONSORSHIPBRANDING ALONG THE COURSE

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EFFECTIVE MARKETING

• Viral Marketing – Authenticity is important

• Emotional Marketing – It is key to transmit information in a positive way

- for both sides: particpants and the sponsors/partners

• Example: online pop-ups (advertising, spam) on an internet page while you

read an article versus hindersome advertising along the course while the

crowd is cheering

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Logo integration on all event relevant printmaterial

EFFECTIVE SPONSORSHIPPRINT

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Logo integration on website, internet banner, newsletter, social media

EFFECTIVE SPONSORSHIPONLINE

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Participant bag, clappers, expo, promotion, VIP tickets

EFFECTIVE MARKETINGPROMOTION

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Participant bag, clappers, expo, promotion, VIP tickets

EFFECTIVE MARKETINGEXPO

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EFFECTIVE MARKETINGINFLUENCER MARKETING

• Influencers already play a major role in helping form opinions

– for everyone

• By using the networks of influencers, one can greatly increase the marketing

reach of a brand or a company in a short time

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EFFECTIVE MARKETINGADVANTAGES OF INFLUENCER MARKETING

Advantages:

• Cost-effective advertising options

• Transfer of marketing messages through a level of trust

• Great effect through multipliers

• Better networking by taking advantage of the influencers‘ followers

• Increased reach of the marketing efforts

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EFFECTIVE MARKETINGCUSTOMER MONITORING

• The BMW BERLIN MARATHON has a new motto for the runners every year

(2018= #berlin42)

• Every marathon in the AWMM still has its own unique profile

(e.g. Berlin:“flat, fast, unforgettable“)

• This unique profile is essensial for

customer retention and

successful marketing

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EFFECTIVE MARKETINGCUSTOMER MONITORING

• Databanks are essential not only as an administrative tool, but also to gain

information about the participants

• In addition, solid and continuous market research is necessary

• The goal is to have frequent contact with the customers, before, during

and after the event (from A-Z)

• Examples: Newsletters, prize drawings/competitions, campaigns,

websites, social media, app, charity

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EFFECTIVE MARKETINGCUSTOMER MONITORING

• Every year, a detailed survey is conducted among the participants and

spectators

• The goal is to steadily increase the reach of the brand

• There are benefits from the global effects and from the cooperation

within the AWMM

• There is already clear interaction between the measures taken by the

individual 6 marathons and the measures taken by the AWMM as an

association

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EFFECTIVE MARKETINGCUSTOMER MONITORING

• Berlin has by far the highest number of participants from abroad

• The smartphone app is now being utilized by every second visitor, and

more frequently by foreign visitors

• The social media buzz about the BERLIN MARATHON has almost tripled

compared to the previous year

• This strong growth is mainly due to Instagram posts

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1%

2%

2%

2%

2%

2%

3%

6%

6%

57%

0 5,000 10,000 15,000 20,000 25,000 30,000

Sweden

Denmark

Spain

Italy

Netherlands

France

USA

Switzerland

UK

Germany

TOP-10-NATIONALITIESINCLUDING SKATERS

SCC EVENTS 2017

• Location of the events is crucial for marketing

• Connection to public transport and

international airports

• Berlin is waiting for the completion of the BER

(new and larger international airport)

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DEMOGRAPHICSPARTICIPANTS

Male74%

Female26%

GENDER

14%

30%

35%

18%

3%

U29 y.o. 30-39y.o.

40-49y.o.

50-59y.o.

60+ y.o.

AGEØ-Age: 42.5 years old

SCC EVENTS 201747

• Quota of women

participants slightly

increases

• The shorter the courses,

the more women do take

part

• After experiencing two decades of increasing numbers of finishers, in 2013

a peak was reached on the US market

(overall)

• In 2015, there was a decrease of 9% in the number of finishers

(Source: USA research running group, Sports one source )

RUNNING MARKET 3.0

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• More than ever, well-established marathon events have experienced a

drastic reduction of finishers or stagnation for years

• More than ever, marathons like Abbott World Marathon Majors, but also the

Paris Marathon, are still in high demand, and when possible from an

organisational standpoint, increase their numbers of finishers

• Marathon as the „supreme discipline“ should be highlighted as such,

also from the marketing point of view

RUNNING MARKET 3.0

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RUNNING MARKET 3.0CHANGING WITH THE TIMES

Inspiration

Inspiration

FitnessFitness

Healthiness

Healthiness

Charity

Charity

Emotion

EmotionCompetitio

nCompetitio

n

IndividualityIndividuality

Men/ WomenMen/ Women

Goals

Goals

ClubClubExpectation

sExpectation

s

Religion

Religion Entertainmen

tEntertainmen

t

The Extraordinar

y

The Extraordinar

y

Self-Awareness

Self-Awareness

TimeTimePassionPassion

MythMyth

Community

Community

LifestyleLifestyle

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"I don't run 5Ks because I'm a runner. I run 5Ks because I like to be fit. "

"The fun-running space is going througha little bit of an identity crisis,"

„HUNGER FOR VARIETY“ -MULTISPORTS VS. TRADITIONAL RUNNERS

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• The participants‘ demands are changing

• Running market is dwindling and becoming harder to monitor

• More and more “players“ in the game: independent running communities,

employers, sporting goods companies, gyms, etc. provide services and offers

• What role do clubs and associations play now and in the future?

• The running scene is creating more and more networks of information

(newspapers, online), health, fitness

• The focus is changing from a “race for a personal best“ to an “active lifestyle“

RUNNING MARKET 3.0CHANGES IN THE RUNNING MARKET

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The health and fitness expo BERLIN VITAL at the STATION Berlin: On three days more than160 national and international exhibitorswelcome more than 95,000 visitors

BERLIN VITAL FALL EXPOSTATION BERLIN

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• The entertainment-factor is playing an increasing role

• This requires a new approach

• Berlin is offering participants and spectators more experiences outside of the

race itself:

Expo, merchandising, child care, professional warm-up at the start, monitors

throughout the entire pre-start and starting area, starting block entertainment

with several moderators and fan TV

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RUNNING MARKET 3.0CHANGES IN THE RUNNING MARKET

RUNNING MARKET 3.0ENTERTAINMENT

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• The race as an “all-around“ experience(=activities before andafter the race)

• Sport as a part of a lifestyle

• High technical expect-ations (= Simultaneousbroadcasting on socialmedia and other online media)

• Entertainment at thestart, finish and alongthe course

RUNNING MARKET 3.0PARTICIPANT EXPECTATIONS

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INNOVATION3D COURSE ANIMATION

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IMPRESSIONS

FACTS/ ABOUT US

CHALLENGES FOR RUNNINGEVENTS

THE RUNNING MARKET

CONSEQUENCES FOR RUNNINGEVENTS

OVERVIEW

1

2

3

4

5

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• 3 large marathon races in the top 50 in the world: Hamburg, Frankfurt a.M., Berlin

• Marathon events are subject to the temporary implementation of more difficult

conditions and prerequisites than indoor events (including stadiums), which must

heed the general regulations for large gatherings

• The requirements presented by local administrations are becoming increasingly

greater (and even within Germany the requirements differ)

CONSEQUENCES FOR THE RUNNING MARKETORGANISATION OF RUNNING EVENTS

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• The form of organisation of events will change in the future

Specialisation and implementation of multiple areas of expertise

• Marketing: “Everyone is cooking his own little soup“ (A German phrase)

• Drastic changes in the world political situation

• Internationally, hardly anyone (only Berlin) puts on a “pure“ marathon

Tendency to include other distances in addition to the marathon

CONSEQUENCES FOR THE RUNNING MARKETORGANISATION OF RUNNING EVENTS

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• In the future, regulations (especially regarding safely and liability) will increase

nationwide in conjunction with the size of the event

• The danger of an event having to be cancelled entirely or in part will increase =

added costs

• There is a great responsibility for event organisers to support young talents and

top athletes from the national pool

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CONSEQUENCES FOR THE RUNNING MARKETORGANISATION OF RUNNING EVENTS

• Young talents from the national pool are currently being neglected, but it is a big

reason that events are attractive to sponsors, spectators, media and reporting –

a “norm discussion“ is counterproductive

• “Myth of the Marathon“: It is an obligation of event organisers to further the

development of the idea that the marathon is the king of popular running sports

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CONSEQUENCES FOR THE RUNNING MARKETORGANISATION OF RUNNING EVENTS

• The Asian market is just forming, and there is more potential for expansion and

growth there

• International elite sports

• Marketing and financing will become increasingly more difficult

GOAL: events should be able to pay for themselves through the participant

fees, the sponsor money should be “on top“

• Running series/partnerships = create and profit from synergies

• Asian marathon league, IAAF marathon league and more running series are

counterproductive as they dilute the market

RUNNING MARKET 3.0CHANGES IN THE RUNNING MARKET

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RUNNING MARKET 3.0

The 25 largest marathons in 2016

DATE VENUE Finisher

06 NOV TCS New York City 51360 03 APR Schneider Electric Paris 4170809 OCT Bank of America Chicago 4060824 APR Virgin Money London 3907228 FEB Tokyo International 3615025 SEP BMW Berlin* 3599930 OCT Osaka 2943118 APR Boston 2660628 AUG Ciudad de Mexico 2274813 MAR Yokohama 2259414 FEB Skechers Performance LA 2061711 DEC Honolulu 20222

*39.101 finisher in 201789.

02 JAN Xiamen International 1998010 JAN Walt Disney World 1983830 OCT Marine Corps 1972413 MAR Nagoya Women's 1911220 NOV Kobe 1881413 MAR Zurich Barcelona 1692030 OCT SSE Airtricity Dublin 1681220 NOV Valencia Trinidad Alfonso 1583207 DEC Shonan International 1566710 JAN Nanohana 1492721 FEB Kyoto 1486904 DEC Naha 1413820 MAR Itabashi City 13935

18 DEC Taipei 5560

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• New AWMM age group ranking installed starting in 2018

• Within the AWMM series, participants in the mass races can now earn points

throughout the year

• Within each appropriate age group, points are collected for every run;

the age-group winners are determined after the last run of the series

• This creates another incentive to be part of the AWMM family

RUNNING MARKET 3.0AWMM AGE GROUP RANKING

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• The percentage of women participants is growing

• Lists of best times no longer play a role

• Multisports will become a key element over the next few years of sporting

events

OUTLOOK AND CONCLUSION

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• There is a tendency for people to now avoid large events

• Consequence: only safe events will be successful in the long run

• What we have learned from the Abbott WMM: It is good for top athletes,

amateurs, sponsors and spectators when elite sport and sport for the general

public are combined

• In the future, it will be essential for a successful event to have:

1. International top athletes

2. A “national colour“

3. An interesting, moving, and well-told story relating to the race

OUTLOOK AND CONCLUSIONS

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Building blocksfor a successful

event

Community

Emotional ConnectionCommunication

ChannelsAdditional Offers

Series Marketing

Associations betweenrunning event

organisers, creatingsynergies

Standards

Anti-DopingSecurity

Markting / Costs

RunningExperience

Event CharacterAdditional Distances

Innovations

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OUTLOOK AND CONCLUSIONS

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