How We Drove $38 Million in Ticketmaster Revenue for the Golden State Warriors
I got a lot of hate because we ran ads for the Golden State Warriors for five and a half years. I had all these “friends” saying, “You know I’d love a ticket,” and I said no. Then they would say, “But I’m a millionaire.” No. Why would I give a random dude tickets? In the first year we ran ads, they hired a new head of marketing named Kenny Lauer, who was the new CMO. He said, “Dennis, I’m starting this new job and you’re the first person I’m calling because a lot of other marketing people have tried to do social media and run ads but couldn’t get it to work. I’m staking my reputation on this, so I’m really counting on you, buddy, to come in and work some magic here.” I said, “I don’t promise magic, but I promise we do what we do really well, which is find what’s working and amplify it. By looking at the analytics and setting up what we call digital plumbing, we figured out who was buying tickets and who the best fans were. If you build lookalike audiences, even a 1% lookalike audience based on people who buy, provided you have a custom audience pool of at least 200 really high-quality people—not just people who visited the website, but people who’ve actually bought tickets—the work has been done for you because you started with the right initial ingredients.” In that first year, we spent a million dollars and drove $38 million in Ticketmaster revenue, provable in the system. We didn’t care about how many fans, likes, or followers we had. We cared about revenue measurable inside the Ticketmaster system. Ticketmaster had to make several changes to their system because they didn’t have the kind of tracking we were looking for. For example, Ticketmaster had to implement secondary revenue tracking because of us. This meant distinguishing between resale tickets and those sold for the first time. Our games were all sold out, but tickets can be resold multiple times. We tracked the revenue from resale tickets, making significant money. We earned 15 cents on every dollar of resale revenue and remained profitable. We simply amplified what was already working, partly because the team was doing really well, winning NBA championships and similar achievements. I got hate from other agencies saying, “It’s easy for Dennis to be a successful social media agency because he has the Golden State Warriors as a client.” I would respond that we show incremental revenue because of our efforts. The revenue is going up because the team is winning and ticket prices are increasing—which makes it harder for us to sell tickets since the revenue team is raising the prices. When you have a lot of attention, and we had the winning team, the cheerleaders were making videos for us. We got sponsors like WingStop, United Airlines, and Uber; they did all kinds of unique things. I was hoping for Buffalo Wild Wings, but we got WingStop. They initially gave us terrible creatives: coupons like “buy 10 wings, get four free,” and wanted us to run them on our site, Facebook, and other social media channels. I told them it wasn’t going to work. The first year, we did it their way because their brand team wanted to use us like a commercial—we just pushed it out there. The click-through rate was about 0.2%. I said, “You know what we should do? We should have each of the players say what their favorite flavor is—zesty garlic, habanero chili, or honey mustard. Just have each of the players hold up a wing with their favorite flavor, and then you can run your coupon: buy 10 wings, get four free.” It took me two years, but finally, I got them to agree because I showed them the results of the stuff they put out there. I ran it their way because I didn’t want to argue, and we had a contract with them. Then we ran it my way. We got a 2% click-through rate, which was 10 times higher. We were also able to measure how many more people went into the store because we had digital plumbing set up. With Google and Facebook, you can measure how many store visits you have when you run ads, which we were able to tie back to the point of sale. This allows us to see how many repeat customers they are able to get, not just people who came in for the coupon, but also how many people continued to come back. We were running a quasi-agency for several big brands sponsoring the sports team. This was great because I had access to some huge companies’ databases. I got access to them because they wanted to match their CRM, which is called a custom audience, also known as offline conversions, which Facebook and Google still have. For some reason, no one seems to know about this but in retail it’s huge. We did it for Ashley Furniture, the world’s largest furniture manufacturer. We matched these custom audiences and ran offline audiences, measuring store visits. We found that every dollar spent on ads drove $28 million of revenue for Ashley Furniture. And we’re tying to their goals, which is revenue. In the first year of their reports, the Facebook reps said that “you will need to spend $1.5 million – $2 million,” and they did. They ran a bunch of 4th of July blowout sale furniture ads like “come in for free hot dogs’ ‘ and RC Willey kinds of ads. I said those are terrible ads. I even went to RC Willey one time. I’m sure the meat they were using is not even real meat. I told them the reason people buy at Ashley is not because there’s a blowout sale; they buy because of the stories. All of these furniture stores jack up their prices and then offer big discounts, pretending it’s a sale. So,
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