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Introduction
The Rite Aid Cleveland Marathon & 10K continues its 27 year tradition as a
dominant road racing event in the mid-west. Started in 1977, the race has placed _
million runners on the streets of Cleveland and given back more than $1,000,000
dollars to charity.
The response from the running community is that Cleveland’s Marathon & 10K is a
“must do” event. It’s a running tradition for many athletes. A quarter of the runners
have participated in seven or more marathons hosted by the City of Cleveland. This
year, nearly 6,000 participants took part in five marathon events- marathon,
marathon relay, 10K, wheelchair challenge and kid’s run. An estimated 30,000
spectators cheered the runners as they trekked through the streets of a world-class
City. The 27th running of the Rite Aid Cleveland Marathon & 10K is taking on a
new look for both runners and spectators with the unveiling of newly-designed
courses entirely within the city of Cleveland, highlighting the City’s landmarks and
neighborhoods.
Each unique aspect of the race and its host City attracts new runners and fosters
sincere loyalty to the ever-growing ritual. Nearly every state and more than a half
dozen countries were represented in the 2004 Rite Aid Cleveland Marathon &10K.
The presence of these world class athletes who come to challenge the courses each
spring creates a significant economic impact for the City of Cleveland and
Cuyahoga County.
Purpose of Study
Forward Analytics™ was hired by Cleveland Marathon, Inc. to measure the
economic impact of the 2004 Rite Aid Cleveland Marathon & 10K. Such
information is crucial to analyze the return on investment (ROI) for sponsors, local
government, and the business community. Second, the study measures participant
satisfaction with the event. Other goals of the study are to assess participant
awareness of, as well as their attitude toward, sponsors of the Rite Aid Cleveland
Marathon & 10K. These broader questions serve to further develop the annual
event, thereby enhancing the social and economic benefits to Cleveland and the
region.
The following study utilized post-event surveys to collect data on the runners,
accompanying friends and family, Expo vendors, and event management. The first
data set required the design of a custom survey instrument. Forward Analytics and
Cleveland Marathon, Inc. collaborated on a 4-page questionnaire (see Appendix A.)
An email version of the survey was distributed to each runner providing an email
address during the registration process (3,718 runners.) A mail version of the
survey was sent to a random sample of 800 runners for whom email addresses were
not available.
A total of 1,169 completed surveys were submitted by the designated return date.
These results represent a statistical significance of +/-2.4% margin at the 95%
confidence interval. This means that the results reflect the answers of between
92.6% and 97.4% of the total population. Generally, a +/-5% margin of error at a
95% confidence level is considered significant for making business decisions.
F|A Forward Analytics, 2004
In addition, a 2-page vendor survey (Appendix B) was distributed to all Rite Aid
Cleveland Marathon & 10K Expo vendors and event affiliates. More than 45 Health
& Fitness vendors participated in the Expo and spent money in the Cleveland area
while doing so. The survey measured the costs to partake or do business at the
Expo and evaluate the amount of new money spent in the community attributable to
the Cleveland Marathon & 10K.
Lastly, the methodology incorporates detailed information supplied by Cleveland
Marathon, Inc. The event planners reported back the expenditure levels and spatial
distribution, together with staffing and other related economic information.
It should be noted that because there is no “admissions gate” to determine the full
number of spectators, or how many of those in attendance came from outside of
Cleveland and Cuyahoga County, the economic impact study herein does not
measure the impact of general spectators (those persons watching the event who are
not friends and family of runners.) As such, the impact findings reported herein
constitute only part of the total impact the Rite Aid Cleveland Marathon & 10K has
on the City and County and should be considered a conservative measure.
The Economic Impact Assessment
This economic impact study employs a linear cash flow methodology first
developed by Cafferty & Isaacs for the American Council on Education. The
Cafferty & Isaacs methodology is the most widely used impact study tool and has
been used throughout the United States in impact analyses for both for-profit and
not-for-profit organizations, corporations, institutions, and events.
The impact study is conducted in two parts. The first part is designed to measure
the economic impact of non-local spending in the local economy attributable to the
Cleveland Marathon & 10K. This is known as the “fresh dollar” approach.
The second part of the study is designed to measure the effect of having a local
venue available for local road racers. Known as import substitution, this spending
can be counted toward the economic impact of an event when it replaces spending
that otherwise would have occurred outside of the area. For example, when
Pittsburgh cancelled its marathon, it lost its ability to capture local road racing
dollars. The dollars remaining in the Cleveland economy as a result of a local
participant’s decision to run locally can be counted toward the marathon’s total
impact.
The linear cash flow model also takes into account the re-spending of money within
the economy as a result of what professional economists term "the multiplier effect".
The multiplier effect measures the circulation of dollars originally attributable to the
Cleveland Marathon & 10K, and tracks their spending by successive recipients until
the funds eventually leak out of the economy.
The following report focuses on these impact categories:
• Business Volume Impacts, and
• Government Revenues Impacts.
F|A Forward Analytics, 2004
Business Volume Impact
Direct and Indirect Expansion of the Cleveland Economy
Attributable to the Rite Aid Cleveland Marathon & 10K.
Spending by Cleveland Marathon & 10K runners and their accompanying friends
and family benefits a broad range of businesses in the City of Cleveland and
Cuyahoga County. The annual race is a major contributor to the success of local
hotels, motels, eating and drinking establishments, retail operators and other area
businesses.
As an organization, the Cleveland Marathon, Inc. also contributes to local business
revenue. One aspect that sets organizational spending apart is that purchases (i.e.,
marketing, insurance, etc.) occur year round.
The Expo, now formally a part of the Rite Aid Cleveland Marathon & 10K, creates
a business impact as it extends the Marathon’s accessibility to a mass audience.
Additionally, these "direct" expenditures are re-circulated in the City and County
economies as recipients of the first-round income re-spend a portion of this income
with other businesses within the local area. This re-spending is often termed the
"multiplier" or "indirect" effect. The sum of these direct and indirect expenditures
represents the total impact of the Cleveland Marathon & 10K on the local business
volume.
Business Volume Impact Map
Local spending by non-local runners,
their friends and families
Local spending by local runners, their
friends and families (import substitution)
Total
Business Volume multiplier Direct
Local spending by non-local
Impact Impact Marathon &10K vendors/partners
Local spending by local
Marathon &10K vendors/partners
Organization spending for
goods and services
F|A Forward Analytics, 2004
The 2004 Rite Aid Cleveland Marathon & 10K has a total economic impact on the
City of Cleveland’s business volume of $6,834,526, comprised of $2,531,306 in
direct impact and a further $4,303,220 in indirect impacts.
The total economic impact of an event is largely a function of the spending made by
the attendees. Our analysis first examines the direct and indirect spending of
Cleveland Marathon & 10K runners (non-local then local) and the spending of other
individuals in their party. In 2004, the Marathon & 10K attracted an estimated
6,000 runners. A total of 5,568 runners (92.8%) who reside outside of the City of
Cleveland came into the City to run the Marathon. Market research determined that
each runner was accompanied by a mean 2.45 friends and/or family. (The impact of
all race spectators has not been included in this study.)
The direct impact of non-local participants in the Cleveland Marathon & 10k is
$2,024,498, while an additional $3,441,647 is generated through re-spending of
these dollars (what is known as the multiplier effect.) Non-local runners and their
accompanying parties have a total
economic impact on Cleveland’s economy of $5,466,145.
Economic Impact of Non-local Participants
Direct Spending Category Spending by
non-local participants
Restaurants $887,754
Entertainment $196,015
Retail $218,211
Ground transportation $54,448
Parking $78,498
Gasoline purchases $67,943
Marathon Expo $202,177
Lodging $252,706
Misc. $66,746
Direct Impact $2,024,498
multiplier 1.7
Indirect Impact $3,441,647
Per runner spending levels (including spending by accompanying party) varied by
geographic spatial scale. Runners residing outside of Cuyahoga County were found
to spend $419.07 per visiting group. Runners residing in Cuyahoga County, but
outside of the City of Cleveland spent $270.71 per group.
F|A Forward Analytics, 2004
Locals (those residing in the City of Cleveland) spent $144 per runner, a total of
$62,394 in direct impact. The indirect impact generated from local runners and
their accompanying friends and family is $106,068. Known as import substitution,
this spending is included in the total economic impact of the Cleveland Marathon &
10K since it is spending that would have occurred outside of the area of impact. In
total, local runners spent $168,462 in the Cleveland economy attributable to the
race.
Economic Impact of Local Participants
Direct Spending Category Spending by
local participants
Restaurants $16,610
Entertainment $8,899
Retail $5,236
Ground transportation $1,866
Parking $4,463
Gasoline purchases $2,108
Marathon Expo $19,967
Misc. $3,244
Direct Impact $62,393
multiplier 1.7
Indirect Impact $106,068
F|A Forward Analytics, 2004
Spending by Cleveland Marathon, Inc.
In 2004, Cleveland Marathon, Inc. contributed an estimated $175,700 in direct
impact to the City of Cleveland, and contributed $153,800 in direct impact to
Cuyahoga County. These direct expenditures move through the local economy and
generate an additional $560,150 in indirect impact.
This category of economic impact includes the purchase of goods professional
services from local businesses with money from the organization’s operating
budget. For example, Cleveland Marathon’s budget includes advertising, equipment
rentals, direct mail, entertainment, policing, etc. (The study accounts for leakage
that occurs when expenditures are made outside of the regional economy.)
The Cleveland Marathon’s operating budget is largely comprised of sponsor dollars,
much of which comes from corporations and organizations headquartered outside of
the Cleveland area. The Marathon’s operating budget also includes registration
fees, which 93% comes from out-of-area runners. This represents fresh dollars that,
in turn, generate direct and indirect revenue for the Cleveland area.
Spending by Expo Vendors
The Cleveland Marathon & 10K Expo provides the opportunity for health and
fitness related businesses to promote their products and services. With an
attendance of over 20,000 sports-minded people, the Expo generates an extended
sales channel for these local and non-local vendors.
Expo vendors also generate money for the local economy. In taking part in the
Cleveland Marathon & 10K Expo, vendors purchase materials and giveaways, booth
equipment, advertising, and printing. Non-local vendors, while in Cleveland, spend
additional dollars on food, retail, entertainment, hotel accommodations, etc.
Non-local Expo vendors have a direct impact of $92,521 on the City of Cleveland
and Cuyahoga County. Local vendors generated $22,394 in the local economy
attributable to the Marathon & 10K Expo. A further $195,355 impacts the local
economy via the re-spending of these dollars.
Government Revenue Impact
When an event such as the Cleveland Marathon & 10K brings people and money
into the area, tax revenues are generated for local and state governments. Tax
revenues are paid directly by the race participants, event management, and Expo
vendors on purchases such as food and drinks, overnight lodging, advertising,
products and services, etc.
The state of Ohio received an estimated $139,010 in tax revenue from the economic
activity generated by the Marathon. Cuyahoga County gained $43,945 in tax
revenues and the City of Cleveland gained $17,220. The government revenue
impacts comprise the following:
Sales Tax
F|A Forward Analytics, 2004
As previously detailed, the Marathon & 10K generates substantial revenue for
businesses in the Cleveland area. Marathon-related direct spending generates
$109,862 in sales tax revenues for the state of Ohio and $43,945 for Cuyahoga
County.
Hotel Tax
As noted earlier, the Cleveland Marathon & 10K draws a significant percentage
(92.8%) of their attendees from outside of the area. These ‘tourists’ generate
income for the hotel community and also generate hotel room tax revenues for the
local and state governments.
Looking strictly at the respondents non-local participants, 32.8% stayed locally in
paid accommodations while participating in the Marathon. Measured by the
average cost of hotel accommodations per group, and group size, hotel fees generate
a direct impact of $252,706 in the local economy. Vendors spent an additional
$12,228 at area hotels.
Based on these figures, hotel spending attributable to the Cleveland Marathon &
10K generated an estimated $21,194 in state tax revenues. The City of Cleveland
gained $17,220 in hotel tax.
State Gasoline Excise Tax
Participants of the Marathon & 10K spent an estimated $71,227 in gasoline
revenues while in the City of Cleveland. A gasoline excise tax of $.22 per gallon
generates $7,954 for the State of Ohio.
F|A Forward Analytics, 2004
Summary
The Rite Aid Cleveland Marathon & 10K not only enriches regional quality of life,
it draws national attention to the City of Cleveland triggering a positive economic
impact for the region. The 2004 Marathon & 10K attracted nearly 40,000
participants, both racers and spectators, to the downtown Cleveland area.
While the heart of the action on Rite Aid Cleveland Marathon weekend takes place
on Sunday, the festivities begin on Friday with a health and fitness Expo. This year
20,000 people attended the Expo which showcased national brands and state of the
art footwear and training technology.
For each runner, 2.45 additional friends and family participate in the weekend’s
activities. Other activities included admission to the Rock and Roll Hall of Fame, a
pre-race pasta party, as well as the post-race awards ceremony and entertainment.
The Cleveland Marathon & 10K generated $2.5 million in direct spending over race
weekend. The re-spending of these dollars generated an additional $4.3 million in
the local economy (indirect impact.) The Marathon & 10K also generates an
estimated $200,175 in government tax revenues of the local and state governments.
Economic Impact Summary
Local spending by non-local runners,
their friends and families
$2,024,498
Local spending by local runners, their
friends and families (import substitution)
Total $62,393
Business Volume Direct
Impact multiplier Impact
Local spending by non-local
Marathon &10K vendors/partners
$6,834,526 $2,531,306 $92,521
Local spending by local
Marathon &10K vendors/partners
The direct business volume attributable $22,394
to the Cleveland Marathon & 10K
generated significant tax revenues for Organization spending for
the local economy: goods and services
$329,500
• The state of Ohio $139,010
• Cuyahoga County $43,945
• City of Cleveland $17,220
F|A Forward Analytics, 2004
Sponsorship Awareness
The importance of sponsorship support is paramount to the event. Sponsors of the
Cleveland Marathon & 10K have always been vital to the event’s financial health.
This year the Marathon & 10K attracted almost $300,000 in sponsorship.
Is there good news for sponsors? Clearly!
• Over fifty percent of runners agree that they are more likely to purchase
brands from Rite Aid Cleveland Marathon & 10K sponsors over similar
products and brands who are not sponsors.
• 83.7% of runners indicate having a positive attitude toward Cleveland
Marathon & 10K sponsors because of their association.
• The majority of runners (90.1%) agree that corporate sponsorship makes the
Cleveland Marathon & 10K possible.
Did any of the sponsors stand out? There is no doubt that Rite Aid, the title sponsor
receives publicity and brand recognition with 92% of runners recognizing them as a
sponsor of Cleveland’s Marathon & 10K. Additionally, 68% of runners were able
to confirm American Greetings as a sponsor. Panera was recognized by 64.6% of
runners with much acclaim for the post-race pastries. An equally high number of
runners identified Galleria of Erieview as a Marathon & 10K sponsor and just over
half (54.0%) recognized Powerade as a sponsor.
Which of the following do you recognize
as sponsors of this years Marathon & 10K?
Rite Aid 92.0%
American
68.6%
Greetings
Panera 64.8%
Galleria of
61.7%
Erieview
Powerade 54.0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
With the proper marketing and public relation efforts of Cleveland Marathon, Inc., it
is hardly surprising that 74% of runners are able to list five or more sponsors of the
running event. And, 91% are able to recall three sponsors of the Marathon & 10K.
F|A Forward Analytics, 2004
Which of the following do you recognize
as sponsors of this years Marathon & 10K?
Alpine Springs 14.4%
Anthem 30.4%
Carborite/Kashi /
22.6%
ZONE Perfect
Coca-Cola 20.3%
Hershey's 24.4%
Miller High Life 16.3%
Mix 106.5 13.6%
PENSKE 9.7%
Plain Dealer 29.6%
RTA 13.0%
Sports Health 47.4%
Cleveland Clinic
WMMS 100.7 FM 16.9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Cleveland Marathon & 10K provides bottom line benefits to its sponsors. The
marathon is associated with a positive experience and provides a strong opportunity
for co-branding and cause related marketing. The Rite Aid Cleveland Marathon & 10K
satisfaction is rated at 96%.
What is your overall level of satisfaction
with the 2004 Cleveland Marathon & 10K?
Very Satisfied
53.3%
Satisfied
36.1%
Not Satisfied Somewhat
at All Unsatisfied Satisfied
0.0% 3.7% 6.9%
F|A Forward Analytics, 2004
Event Satisfaction
Participants were asked to indicate their level of satisfaction with various features of
this year’s Cleveland Marathon & 10K. The following table itemizes the features in
order of their satisfaction rating. While satisfaction overall is high, the list provides
insight into areas that may be opportunities for improvement:
Marathon & 10K Feature Percent Very Satisfied
or Satisfied
Starting procedures 91.3%
Participants amenities (T-shirt) 88.4%
First aid stations on course 86.0%
Crowd control 85.3%
The finish - thirst quenchers 85.2%
Goodie Bag 84.6%
Post-race activities/party 84.5%
NEW course 82.6%
Pre-registration procedures 81.4%
Medical care at the finish 81.0%
Water stations 79.9%
Restrooms 79.1%
The finish- food 78.9%
Split times called out 78.7%
Finisher’s medallion 77.5%
Having elite runners in the field 75.5%
Late registration 74.7%
Registration fee 74.4%
Number of runners 73.1%
Start/Finish location 73.0%
NEW Expo location 71.7%
Pre-race fitness expo 68.5%
Mailing out results 68.0%
Pre-race pasta party 57.6%
Traffic control 54.1%
Distances marked 40.2%
F|A Forward Analytics, 2004
In planning future races, participants were asked if they would prefer a half
marathon or two-person relay (as an alternative event.) The results favor a half
marathon-
• 81.5% prefer the half marathon
• 14.8% prefer the two person relay
• 3.7% are unsure.
The Rite Aid Cleveland Marathon & 10K offers multiple activities throughout the
weekend. The following data illustrates the attendance levels and factors that most
likely caused non-participation.
It is estimated that 20,000 people attended the Marathon & 10K Expo which was
held at a new location- the Galleria at Erieview Mall. Surveys data indicates that
72.8% of runners were in attendance. Of those runners who did not attend the Expo
(27.2%), fifty percent reside outside of Cuyahoga County. In fact, 12.7% did not
attend because they did not arrive in town in time, 49.0% indicated that someone
else picked up their bag, and 23% said that the Expo was not at a convenient time.
A significant number did not know about Expo location or times (23.0%). A few
participants considered the Expo to be at an inconvenient location (8.5%) or parking
to be unavailable (3.5%). See graph below.
72.8% of Marathon & 10K Participants attended the Expo
Why did participants not attend the Expo?
someone else
49.0%
picked up my bag
not at convenient
23.0%
times
did not know about
21.4%
location or time
did not arrive in
12.7%
town in time
inconvenient
8.5%
location
parking was not
3.5%
available
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Respondents were asked to check all that apply.
The Cleveland Marathon hosts a pre-race pasta party where all racers, their friends,
and family enjoy all-you-can-eat pasta, salad and desserts. This year’s pasta party
was held at the Marathon host hotel, the Hyatt Regency Cleveland at the Arcade.
The event is great time to load up on carbs and meet and mingle with other runners.
Survey data revealed that just 4.2% of marathon participants attended the pasta
party. The main reason participants did not attend was simply that they like to eat at
home or a favorite restaurant (62.4%). Five percent had a pre-race meal at their
F|A Forward Analytics, 2004
hotel. Other participants indicated that the pre-race pasta party was at an
inconvenient time- too early (25.7%) or too late (7.1%) in the evening. Some
participants thought the pre-race pasta party was priced too high (16.5%).
4.2% of Marathon & 10K Participants attended the Pre -race Pasta Party
Why did participants not attend the Pasta Party?
Like to eat at home/restaurant 62.4%
too early 25.7%
price too high 16.5%
inconvenient location 12.0%
fee for parking 7.9%
too late 7.1%
didn't know about it 5.9%
had pre-race meal in hotel 5.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Respondents were asked to check all that apply.
While Cleveland typically “Rocks ‘n Runs” after its Marathon &10K, this year’s
finish line party was a bit damp. Wet weather sent many participants home after the
race, but 13.6% of survey respondents couldn’t miss the post-race party.
Participants who did not attend the post-race party provided the following reasons;
they needed to get home (53.5%), were too tired (26.0%), didn’t know about the
party (24.5%), considered it an inconvenient time (14.1%), or could not find the
location (3.9%).
F|A Forward Analytics, 2004
13.6% of Marathon & 10K Participants attended the Post -race Party
-
Why did participants not attend the Postrace Party?
needed to get
53.5%
home
too tired 26.0%
didn't know about
24.5%
the party
time not
14.1%
convenient
could not find the
3.9%
location
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Respondents were asked to check all that apply.
Conclusion
The data collected, and impact modeling performed, indicates that the
Rite Aid Cleveland Marathon & 10K is a valuable contributor to the
Cleveland economy. The event has a particularly strong impact – an
impact, for example, that compares favorably to local public shows and
conventions. The large majority of runners, teams, sponsors, vendors
and associated friends and family come from outside of the City and
County, and bring with them an influx of fresh dollars to the local
economy. The event also adds to the vitality and image of the
Cleveland region with press coverage and publications that extend
beyond the local area.
The Marathon garners a high level of runner satisfaction and as a result
of this study, has detailed information that can help improve the event
even further. Furthermore, by commissioning this study, Cleveland
Marathon, Inc. has demonstrated their commitment to Cleveland and
the long-term success of this event.
F|A Forward Analytics, 2004
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