Challenges and Solutions for Growing the Game of Golf

2. Challenges Persist to Grow the Game • According to the National Golf Foundation (NGF), 24.2 million people play traditional golf, fueling an $84-billion industry; however, it still faces many of the same challenges of the past decade and more. • Many golfers still think the game is too expensive, which relates to less value from the experience, and their game is not improving despite significant money spent on lessons and equipment. • Not having enough time to play is the other major challenge for the average golfer. He or she is dissatisfied with the pace of play and crowded courses. Nonetheless, 2019 is the 10th consecutive year 95% of golfers say they expect to play the same or more.

3. Solutions Are Being Explored and Implemented • The option of playing a 9-hole round is now appealing to 60% of golfers with a 20+ handicap, but 70% would like more tee boxes, so courses would be shorter. • Golfers are more optimistic about the game being more inclusive and welcoming, as those who agree has increased from 36% for 2017 to 38% for 2018 to 41% for 2019. • The pace of play is a major issue and solutions are being applied, such as a GPS device on golf carts that indicates to groups if they are playing too slow and many courses are widening fairways, shortening the rough and creating easier hole locations.

4. The Industry Continues to Target Millennial Men • According to Sports & Leisure Research Group, golf’s most coveted target audience consists of 5.1 million adult male golfers and Millennials, or what Sports & Leisure’s defines as “Generation Next,” are 475,000 of that target audience. • The profile of this group is an average age of 29; with 73% professionals/executives; 24% a business owner, partner or a C-suite title; and a median household income of $87,000. They play 21 rounds of golf/year and 50% are private club members. • Almost 100% (98%) of Generation Next golfers spent more or the same time as a year ago consuming first-tier golf media (TV, magazines and desktop/laptop); 93% new media (smartphone, tablet and social media); and 77% online golf videos.

5. Equipment Sales Improved Significantly • The NPD Group reports golf sales at mass merchandisers/retail sporting goods stores increased 8% for the 12 months ending November 2018, as all categories increased: golf clubs, 7%; balls, 6%; gloves, 7%; accessories, 21%; and training aids, 13%. • Sports & Leisure Research Group estimates per capita equipment spending will increase 25% during 2019, although fewer golfers (70%) said they plan to spend the same or more, compared to 78% during 2018. • More golfers, especially those defined as “engaged” by Sports & Leisure Research Group, insist on the assistance of a custom-fitting studio before buying new equipment.

6. The Pace of Course Closures Declines as Facilities Continue to Evolve • According to the NGF, there were 14,613 golf facilities with 16,693 courses in the US at the end of 2018, with both categories decreasing by 1.2%. Public courses totaled 12,354; private courses, 4,339; resort courses, 1,537; and real estate courses, 3,925. • Golf course closures continue to improve, with 198.5 (based on an 18-hole equivalent) closures during 2018, compared to 12.5 opening. Since 2006, the net closures have decreased 8%, compared to a 44% increase from 1986 to 2005. • Private-club memberships continue to decline slightly from 2017, with a 22% decrease during 2018 and a 25% decrease during 2019, with increases also declining: 2017, 39%; 2018, 37%; and 2019, 36%.

7. Off-Course Play Drives More Traditional Play • Topgolf, BigShots Golf, Drive Shack, Flying Tee and other off-course golf facilities experienced an almost 10% increase in 2018 participation, or 23 million people, following a 7% increase during 2017. • A positive for the off-course phenomenon is an NGF study that revealed 75% of off-course participants now want to play on a traditional course and 29% of regular golfers said their off-course experience results in them playing more golf. • NRF research also found 26% of kids, 6–17, have been exposed to golf in the school environment, 13 million have played golf in school, 73% enjoyed learning about or trying golf and 58% are now more interested in playing golf outside school.

8. Advertising Strategies • Golf courses, equipment retailers and instructors have a great opportunity to strengthen their brand with TV spots during PGA tournaments and major championships specifically, as Tiger Woods and younger pros are making the game more competitive and interesting. • Golf courses that include TV in their ad media mix must focus their messages more on course enhancements and improvements and new facility amenities than just courses’ natural beauty and challenging layouts. • Suggest off-course facilities and traditional courses form advertising partnerships since each drives increased participation at the other. Offer combo discounts for play at both facilities within one-week, two-week or a one-month period.

9. New Media Strategies • If pro shops at traditional golf courses expect to compete with online purchasing, then they must create and promote proactively an online presence, with a possible buy online/pickup at pro shop program similar to many major retailers. • Traditional courses, both public and private, can forge partnerships with local schools/systems to provide access to the facilities for instruction for school-age children, especially those not from typical families that can’t afford private-club memberships. • Influencer marketing can be a beneficial opportunity for courses that want to maximize their engagement with Millennial men. Offer one or more “Generation Next” members various discounts or other perks to share regularly their course experiences on social media.