Innovating outside the lines

Play is how we connect — and disconnect. How we let loose in a stadium shaking with energy. And how we zone out on a Sunday afternoon to the tune of whistles and color commentary. Customers in this arena desire the freedom to switch on and switch off as they need. To play the way they want to play. 

The freedom of play takes many forms. Freedom to create, to discover, to express ourselves. It’s a multi-faceted desire, met today by a wealth of new forms of content. With more outlets to play their own way, customers are not the same captive audience they used to be for sports brands. The 2021 Super Bowl hit a fifteen-year low in terms of television viewers. NFL ratings have experienced 12.5% decline since the 2014 season¹. In a Morning Consult survey, 53% Gen Zers considered themselves sports fans, compared with 63% of U.S. adults and 69% of millennials². The line between distraction and disinterest is blurry. Both can be remedied, but the latter requires a stronger medicine. For sports brands, staying responsive and engaging amidst the noise is more than just a way to stop the bleeding, it’s an opportunity to find fans and revenue in new places. 

Radical technological change is both the cause of distraction, and a solution. Ellie Norman, the CMO of F1, told Interbrand, “One of the true benefits of digital is actually the ability to meet audiences on their level, in a way that works for them.” The F1 Virtual Grand Prix and their Drive to Survive on Netflix exemplify the F1 brand extending across the arena, into gaming and the arts, to expand their reach and acquire new fans. You never needed season tickets to be a die hard. Now, you don’t even need to watch live. Race day, matchday, or gameday — rituals are changing. Brands need to look beyond their marquee days to a more wholistic customer experience. More than 60% of fans say a great “year-round experience” would make them more likely to be more engaged in the coming season. 55% say it would make them more likely to purchase a ticket in the future³. Brands who rebalance their investment in different fan experiences now will be better equipped for engagement and retention in the future.  

Reliance on proximity is fading. Not just for the fans, but for the competitors as well. Accentuated by COVID, eSports has ridden a wave of growth that highlights the dotted line between gaming and sports. The industry is growing rapidly, from $691.6m in 2019 to an estimated $1.86b in 2026⁴, driven by an audience that is young, hyper-connected, and profoundly global. 35% of Gen Zers identify as fans of eSports compared to 19% of all adults⁵. Brands like NASCAR are pushing into eSports to find new customers on the margins. As CMO Jill Gregory explained, the NASCAR partnership with FOX to broadcast its virtual eNASCAR iRacing Pro Invitational Series resulted in the most-watched eSports event in TV history. Moving forward, brands would be wise to ensure that their investment in eSports is not only a short-term response to COVID-19, but rather a core component of their engagement strategy.