Ep 3: Once the deal is done... growing a $650m business through mergers and acquisitions | How to Win
Nov 20, 2024
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Gareth Balch, CEO of Two Circles, a global sports marketing agency, delves into the intricacies of post-acquisition growth. He discusses the recent acquisitions of KORE and Spring Media, emphasizing the importance of strategic alignment and effective communication during integration. Balch highlights data-driven strategies for enhancing audience engagement and revenue in sports, and the transformative impact of personalized fan experiences. He also explores the delicate balance between strategy and execution, stressing the need for a strong corporate culture to achieve lasting success.
Two Circles emphasizes a data-driven approach to understand fan behavior, allowing them to enhance audience engagement and revenue growth.
The podcast discusses the evolving landscape of fandom, highlighting the importance of personalized experiences for increased fan interaction.
Leadership underscores a people-first philosophy during mergers, prioritizing clear communication and cultural alignment for successful integration of new teams.
Deep dives
Two Circles: A Growing Force in Sports Marketing
Two Circles, co-founded by Gareth Belch and Matt Rogan, has established itself as a prominent global sports marketing agency, dedicated to increasing audiences and revenue for various sports organizations. The company has expanded its services over 13 years, currently partnering with over 900 organizations in the sports and entertainment sectors. Their success reflects a commitment to understanding fan engagement through data-driven strategies, processing a significant volume of transactions and campaign data in the sports ecosystem. This focus on data not only enables them to drive ticket sales and sponsorships but also positions them as leaders in leveraging insights to maximize commercial opportunities.
Understanding Fan Engagement through Data
The core of Two Circles' methodology revolves around a profound understanding of fan behavior and preferences, which they call 'knowing fans best.' By processing two-thirds of transactions within the sports ecosystem, they have developed a sophisticated data-driven approach to enhance audience engagement. This capability allows them to identify and monetize fan segments effectively, contributing to revenue growth for their clients. Notably, partnerships with organizations like World Rugby have empowered Two Circles to redefine their marketing strategies and increase global fan engagement significantly.
Adapting to the Changing Landscape of Fandom
The podcast highlights that the concept of fandom is evolving, with a continual effort to define different fan personas and levels of engagement. Two Circles has been proactive in documenting these changes, understanding that the shift to personalized experiences is essential in the current sports landscape. Central to their philosophy is the belief that traditional business models must evolve to remain relevant, especially as fans seek direct engagement with sports properties. This evolution showcases their commitment to redefining how organizations connect with and serve their audiences.
Future Growth and Innovation in the Sports Industry
Despite concerns around declining media rights, the podcast discusses positive indicators for future growth in the sports industry, projected to reach $260 billion. The growth is attributed to increased fan consumption and the availability of new monetization avenues, driven by innovative strategies and the demand for personalization. Two Circles asserts that while some parts of the market may flatten, substantial opportunities lie in direct-to-consumer relationships and diversification of sports experiences. As industries adapt to changes, they believe that embracing innovation will set their clients up for success.
Navigating Acquisitions and Integration
Two Circles has been on an acquisition spree to enhance their service offerings, including recent acquisitions like Core and Spring Media, which add critical technology and capability to their portfolio. The leadership emphasizes the importance of a people-first philosophy during integration, ensuring that new team members feel valued and aligned with the company culture. To facilitate seamless integration, they focus on shared ambitions and clear communication, ultimately aiming to combine strengths in a cohesive manner. By fostering a unity of purpose, they strive to create a more robust organization that can effectively respond to the complexities of the sports marketing landscape.
Two Circles has been on a buying spree this year, recently snapping up KORE and Spring Media in a pair of moves that significantly grew the sports marketing agency's global footprint.
For the latest episode of How to Win, Two Circles CEO Gareth Balch joins SportsPro CEO Nick Meacham and Chris Collins, president and CEO of NorthStar Solutions Group, to forensically examine how to make a success of an acquisition.
Over six instalments of this special series from SportsPro and strategy realisation specialist NorthStar, we'll be hearing from top leaders across the sports industry with the primary objective of uncovering what it really takes to win in their field. Subscribe to the SportsPro Podcast feed to make sure you don't miss an episode.
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