The sports industry has seen a profound transformation in its fan base, driven primarily by technological evolution and changes in consumer behaviorspartly influenced by Covid 19. In the past, the bond between fans and teams depended exclusively on a physical presence in stadiums and on the use of events via traditional means of communication. However, with the advent of social media, streaming platforms and new immersive technologies, the interaction between fans and sports is changed radically.
The result emerges from a study carried out exclusively for Football and Finance from AlixPartners, a global management consultancy company that supports companies in the most complex challenges: from improving economic and financial performance to holistic transformation and restructuring programs.
According to the analysis, more than 95% of fans belonging to the GenZthose born between 1997 and 2012, use social media to interact with sports content, while more than 60% of young people under 24 prefer to play video games rather than watch videos. Additionally, the majority of GenZ fans are more likely to play video games while watching sports than fans of previous generations.
«Generation Z uses social media and streaming platforms such as YouTube, Twitch, and Instagram to view sports content, including live broadcasts, interviews and match highlights. The growing interest of fans in the world of video games, even in conjunction with a sporting event, and the increasingly limited attention of new generations, represents a new challenge for leagues, sports clubs and traditional media“, explains Edoardo PersendaSenior Vice President of TMT Practice at AlixPartners. «Today’s fans expect increasingly personalized and interactive experiences, similar to those offered by social media or video games, and are looking for more realistic, immersive and surprising gaming experiences».
How cheering is changing in sport – Challenges and risks
This evolution of the fan base brings with it a series of risks for those companies that will not be able to adapt to the new needs and dynamics of the market.
«One of the most obvious dangers is the loss of fans to other sports or entertainment, which in turn would pose significant economic risks, including reduced ticketing, merchandising and sponsorship revenue, as well as less profitable television rights revenue. The impact is also reflected in the ability to attract new investors and talent, weakening the bargaining power with partners and suppliers», he highlights Roberto JonaConsultant di AlixPartners.
A reduced fan base not only translates into a loss of revenue from the physical channel (ticketing and merchandising) but, more importantly, leads to a significant decrease in traffic and digital interactions, impacting the value of the brand for sponsors, who seek visibility and interactions to repay the huge investments.
Another challenge for “traditional” stakeholders in the sector – such as leagues, clubs, traditional media, and betting agencies – is represented by the proliferation of new technologies, platforms and communication channels. The development of new “actors” in the sector is leading to intermediation with one’s fan base, risking compromising the direct relationship with one’s fans and customers, which is fundamental for monetizing the data and information coming from them in the best possible way.
How support is changing in sport – Opportunities and transformation roadmap
Second AlixPartners the evolution of fan characteristics instead represents an opportunity for companies that will be able to understand and ride the change. «To avoid the contraction and intermediation of their fan base, and to try to maximize the creation of value through the monetization of data, companies operating in the sector will have to protect and develop the direct relationship with fans, necessary to understand and profile their characteristics. They will have to develop a new multi-channel, physical, digital and multimedia strategy, through the creation of new content enabled by new emerging technologies. For the success of the strategy it will be important to first capture the facets and desires of the fans, and then the coherence and complementarity of the channels», he highlights Joke.
With this in mind, some companies, teams and sports organizations are investing more and more in proprietary digital content to establish a direct relationship with their fans and obtain first-hand data, essential for the profiling and personalization of the offer necessary to maximize revenues. From interactive engagement programs on social media and streaming platforms, to exclusive fan events, organizations are redefining how they interact with their audiences.
Sports leagues e clubs from all over the world are evolving their strategies to adapt to new fan behaviors and expectations, taking advantage of the spread of immersive technologies, such as virtual reality, digital assets, such as NFTs, and new interaction platforms, which are revolutionizing the way in which fans interact with the sport and their teams.
Many of the new initiatives undertaken by clubs to strengthen the bond with fans exploit the physical channel, enriched by digital and multimedia experiences, such as the “Total Xperience” of the Barcelonaa physical tour that includes various multimedia experiences, including access to the immersive “Spotify Camp Nou Live” room and the “Barça Virtual Dream”, where it is possible to immerse yourself in the virtual universe of Barça, experiencing the real sensation of being one of players.
In addition to stadium entertainment, some sports clubs are looking to expand their audiences through immersive experiences outside sports venues, thus reaching more fans. An example is the NBA Housea four-day pop-up experience taking place in cities like New York, Paris and Beijing. This event offers interactive games, gaming spaces, meetings with NBA legends and contests with official prizes, attracting thousands of fans. These initiatives, designed for urban centres, allow clubs to engage people even away from the stadiums, offering unique and accessible experiences to a much wider audience.
Social media content created by athletes is also a major driver of engagement for younger audiences. This generation follows athletes not only for their performances, but also for their personalities, values and activities off the field. Sports leagues are recognizing this potential, as demonstrated byNFL who hired over 1,000 influencers to promote the league, and the MLB who collaborates with stars like “Ambassadors” on social media. Behind-the-scenes content, moments of daily life and exclusive broadcasts, such as those produced by some football teams or the Netflix series “Formula 1: Drive to survive” or the one on Juventus produced by Amazon, have become fundamental tools for building loyalty and transforming casual viewers into devoted fans.
A further opportunity is the expansion into parallel markets such as that of e-sports and of gaming. This fast-growing sector offers new avenues for fan engagement and diversification of revenue sources through sponsorships, merchandise sales and digital content. Some significant examples are that of the Philadelphia 76ers, the famous NBA team, which acquired Team Dignitas, a professional e-sports organization, and the NFL which was one of the first sports leagues to offer a game in “virtual reality”, betting on the future adoption of RV devices.
