Impact of COVID-19 on Sports Marketing
Holding over 17 years of understanding consumers and markets, Amit is an expert in converting those insights into marketing strategies backed with his drive for excellence. With restrictions imposed by spread of pandemic and subsequent lockdown in response, a number of sports events are getting postponed or canceled. Suspension of sports is not only disappointing the fans, it’s also a disruption to businesses. More than 40 percent of marketers named live events as the most important marketing channel (source: Bizzabo marketing report), it’s a ~ $50 billion industry now, ~$17 billion (37 percent) tied to deals in the U.S. alone.
Digital Sports Marketing During COVID-19 Pandemic: Key Trends
While COVID-19 has been an extremely dangerous thread to the world, it also offers some hidden opportunities for Digital sports marketing to help digital marketers attract and engage with sports fans, from merchandising and gaming to virtual events and competitions. Let’s take a look at some of the trends that can play an important role in the future, beyond the pandemic.
• Diversifying Sports-Related Content and Channels
o Even before the pandemic, the sports market and broadcasting landscape was shifting. With so many people cutting the cord on cable, broadcasters were slowly moving to other online environments to reach people who consume content on channels such as Facebook, YouTube, etc.
o Instead of live sporting events, Sports Networks are running alternative programming, including archived content and docuseries (e.g. The Last Dance @ ESPN).
• Exploring More Strategic Sponsorships and Partnerships
o Allocating advertising budgets to create tailored content, promotions and a more targeted ad spend. Advertisers looking at exploring new partnerships and deals with sponsored content.
• Affiliate marketing: Brands working with online gaming businesses e.g. Nike with Fortnite
• Adoption of Virtual and Immersive Technologies: Getting in on eSports & Video Games
o ‘ESPN eSports Day’ 12-hour of eSports, featuring live & recorded events, including Rocket League, Madden, NBA 2K, featuring pro-basketball players competing in video game. NBA had 10-day gaming tournament with 16 of league’s sharpest video gamers participating in eSports competition for $100k & title of NBA 2K20 Players Champion.
o Meanwhile, NASCAR and Fox Sports hosted an eNASCAR iRacing Pro Invitational Series featuring stars racing in digital vehicles, drawing 1.33mn viewers, making it highest-rated televised eSports.
o Virtual technologies and e-sports: Opportunities to reach fans in new ways. Immersive technologies helps fans replicate experience of live games without actually being there.
• Sponsored Hashtags on Social Media
o Stuck inside their homes, sports stars are becoming social media stars. Athletes from the NBA, NFL, and NBL have joined various short video sharing platforms to participate in viral challenges, keeping their fans entertained (e.g. Yuvraj challenging with his batting skill using and Sachin replying with a tougher challenge)
o NBA has been pushing hard on TikTok, to fill the void due to suspended basketball season, TikTokers are posting their favorite #NBAMoments to fill the gap, and the hashtag currently has over a billion views. Kicking things off by posting 7 videos of classic NBA moments (Lebron James, Kobe Bryant, other athletes) and encouraged TikTok users to imitate the feats and duet the original videos. Following it up with HoopsAtHome, encouraging users to share their trick shots, which currently has 2.4 billion views.
o NFL too leaned into TikTok, a live sports event that drew record viewers (showing how hungry fans are for content). They also started sponsored hashtag #GoingPro, which currently has 2.5 billion views, as well as broadcasting a live Draft-A-Thon hosted by celebrities, athletes, and gamers.
• Developing Streaming Platforms
o To prepare for the future of broadcasting sports, the NBA has teamed up with Microsoft for a gamified streaming platform that’s projected to be an enhanced version of the NBA app to transform the digital fan experience. A new Microsoft Azure-powered, DTC streaming platform is going to be launched that will deliver personalized game broadcasts, including range of reward opportunities.
COVID-19 Impact
• Live sporting events thrives on fans traveling from multiple regions, congregate in large groups, stay in close quarters for extended periods of time – all of it is strictly prohibited right now.
• Brands that rely on sports events for advertising, it is a devastating situation. According to Statista’s analysis of the sports industry, a loss of approximately $2.2 billion of national TV revenue is expected, in addition to around $3.5 billion in fan spending on professional sports:
• Changing the Ways World Functions
o Sports are a popular form of entertainment. People like sports as it's aesthetically pleasing, it is a venue for emotional expression; it also gives escape from real-world, sports provide a sense of belonging, a connection with fellow fans.
• Impact on the World of Sports
o Major sports leagues across the world including EPL, La Liga, Seria A, NBA, Champions League, bilateral cricket tournaments are suspended as governments scramble to contain spread of Corona virus, declared a global pandemic by WHO.
o UEFA EURO 2020 and COPA America 2020, the two major football events scheduled to take place this year in June have also been pushed to 2021.
o Even the Olympics 2020, scheduled to be held in Japan has been postponed. More recently, the Indian Super League finals between ATK & Chennaiyin FC was played behind closed doors.
o The main income streams for sports leagues are broadcasting (sales of media rights), commercial (sponsorship and advertising partnerships) and match day revenue (ticketing and hospitality)
US Sports Marketing Market (A Nielsen reports)
o Nine percent of U.S. adults’ overall time spent on viewing was towards sports events; for Heavy sports viewers the number is 26 percent. During Lockdown growth is happening mainly on connected devices.
o Connected devices usage grew by 20 minutes a day among Heavy Sports Viewers, more than 50 percent increase.
o Sports fans are heavier mobile app users. As COVID-19 was declared a pandemic, all mobile users increased time spent with their devices, up nearly 20 minutes per day.
o Usage of sports-related mobile apps declined since lockdowns by about 40 percent, with betting and fantasy apps experiencing the largest decline.
So just What are Heavy Sports Viewers Watching these days?
o News: Making up a larger share of consumers’ viewing time as they seek to stay up to date.
o Movies: More time is spent on films, even more prominent among Heavy Sports Viewers.
o SVOD (Subscription based Video on Demand): Heavy Sports Viewers nearly doubled their viewing to SVOD programming -> nine percent of their time.
o Heavy Sports Viewers are not so quick to give up on live sports!
o Among them, sports programming still accounts for about one-tenth of their time on Sundays despite suspension of live sports.
o Re-runs/highlights of previous games - Despite cancellation of live sports, passionate viewers continue to find sports content to watch; Brands should consider this viewing before going dark on them, otherwise they would potentially undermine their long term equity.
Story from India: Cricket - IPL
• BCCI decided to postpone IPL 2020, until further notice – the most significant sporting event of the year for millions of Indians, and cricket fans across the globe. In the IPL, brand value is derived from a wider variety of factors keeping in mind the Indian viewer’s association preference for vernacular proclivities, cricketing knowledge and celebrity influence.
• For STAR India, it’s a loss of opportunity. It was building the India launch of its Disney+ OTT around the IPL. A truncated tournament would necessitate renegotiation with Disney-owned STAR India. Chinese smartphone maker Vivo, bagged 2018-22 title rights for 219 million rupees, it is yet to be seen how this deal gets impacted by current scenario (Covid-19 and India-China border situation).
How Indian Cricket Fans are Reacting?
• Postponement of IPL 2020 is not a surprise but still it has caused great disappointment among millions of cricket fans in India. Study conducted by Hansa Research capture this disappointment. This study was conducted online using Hansa Cheetah panel during March 18-20, repeated on May 17-18, covering 34 cities across India.
• Fans said they did not want event to start without Covid-19 pandemic under control completely. This showcased Indian fans’ sensibility of putting the crisis ahead of sporting entertainment. Majority of fans are willing to accept unavailability of foreign players, with only 20 percent claiming they would not watch IPL if it is played without the participation of foreign players. Reflecting on the tough condition under which cricket is being played in India - air pollution, extreme heat, and others. Lockdown has given them time to reflect and accept changes in the future. Amid all the monetary erosions and risks involved fans have realized that health is more important than the entertainment.
“Lockdown will help admins to learn how to rise above monetary greed, respect ecosystem surrounding it?”
“They will realize that forcing cricket to be played in polluted air is not necessary at all?”
“As climate change grips the world, cricket needs to adapt too?”
Conclusion/Way Forward
Current global health crisis is bringing uncertainty and complications for businesses around the world. Until restrictions are lifted, it’s important that marketers in the sports industry allocate their budgets accordingly, with a particular emphasis on exploring new types of content and channels, diversifying investment and partnership opportunities, and adopting immersive and virtual technologies.
• Live sporting events thrives on fans traveling from multiple regions, congregate in large groups, stay in close quarters for extended periods of time – all of it is strictly prohibited right now.
• Brands that rely on sports events for advertising, it is a devastating situation. According to Statista’s analysis of the sports industry, a loss of approximately $2.2 billion of national TV revenue is expected, in addition to around $3.5 billion in fan spending on professional sports:
• Changing the Ways World Functions
o Sports are a popular form of entertainment. People like sports as it's aesthetically pleasing, it is a venue for emotional expression; it also gives escape from real-world, sports provide a sense of belonging, a connection with fellow fans.
• Impact on the World of Sports
o Major sports leagues across the world including EPL, La Liga, Seria A, NBA, Champions League, bilateral cricket tournaments are suspended as governments scramble to contain spread of Corona virus, declared a global pandemic by WHO.
While COVID-19 has been an extremely dangerous thread to the world, it also offers some hidden opportunities for Digital sports marketing to help digital marketers attract and engage with sports fans, from merchandising and gaming to virtual events and competitions
o UEFA EURO 2020 and COPA America 2020, the two major football events scheduled to take place this year in June have also been pushed to 2021.
o Even the Olympics 2020, scheduled to be held in Japan has been postponed. More recently, the Indian Super League finals between ATK & Chennaiyin FC was played behind closed doors.
o The main income streams for sports leagues are broadcasting (sales of media rights), commercial (sponsorship and advertising partnerships) and match day revenue (ticketing and hospitality)
US Sports Marketing Market (A Nielsen reports)
o Nine percent of U.S. adults’ overall time spent on viewing was towards sports events; for Heavy sports viewers the number is 26 percent. During Lockdown growth is happening mainly on connected devices.
o Connected devices usage grew by 20 minutes a day among Heavy Sports Viewers, more than 50 percent increase.
o Sports fans are heavier mobile app users. As COVID-19 was declared a pandemic, all mobile users increased time spent with their devices, up nearly 20 minutes per day.
o Usage of sports-related mobile apps declined since lockdowns by about 40 percent, with betting and fantasy apps experiencing the largest decline.
So just What are Heavy Sports Viewers Watching these days?
o News: Making up a larger share of consumers’ viewing time as they seek to stay up to date.
o Movies: More time is spent on films, even more prominent among Heavy Sports Viewers.
o SVOD (Subscription based Video on Demand): Heavy Sports Viewers nearly doubled their viewing to SVOD programming -> nine percent of their time.
o Heavy Sports Viewers are not so quick to give up on live sports!
o Among them, sports programming still accounts for about one-tenth of their time on Sundays despite suspension of live sports.
o Re-runs/highlights of previous games - Despite cancellation of live sports, passionate viewers continue to find sports content to watch; Brands should consider this viewing before going dark on them, otherwise they would potentially undermine their long term equity.
Story from India: Cricket - IPL
• BCCI decided to postpone IPL 2020, until further notice – the most significant sporting event of the year for millions of Indians, and cricket fans across the globe. In the IPL, brand value is derived from a wider variety of factors keeping in mind the Indian viewer’s association preference for vernacular proclivities, cricketing knowledge and celebrity influence.
• For STAR India, it’s a loss of opportunity. It was building the India launch of its Disney+ OTT around the IPL. A truncated tournament would necessitate renegotiation with Disney-owned STAR India. Chinese smartphone maker Vivo, bagged 2018-22 title rights for 219 million rupees, it is yet to be seen how this deal gets impacted by current scenario (Covid-19 and India-China border situation).
How Indian Cricket Fans are Reacting?
• Postponement of IPL 2020 is not a surprise but still it has caused great disappointment among millions of cricket fans in India. Study conducted by Hansa Research capture this disappointment. This study was conducted online using Hansa Cheetah panel during March 18-20, repeated on May 17-18, covering 34 cities across India.
• Fans said they did not want event to start without Covid-19 pandemic under control completely. This showcased Indian fans’ sensibility of putting the crisis ahead of sporting entertainment. Majority of fans are willing to accept unavailability of foreign players, with only 20 percent claiming they would not watch IPL if it is played without the participation of foreign players. Reflecting on the tough condition under which cricket is being played in India - air pollution, extreme heat, and others. Lockdown has given them time to reflect and accept changes in the future. Amid all the monetary erosions and risks involved fans have realized that health is more important than the entertainment.
“Lockdown will help admins to learn how to rise above monetary greed, respect ecosystem surrounding it?”
“They will realize that forcing cricket to be played in polluted air is not necessary at all?”
“As climate change grips the world, cricket needs to adapt too?”
Conclusion/Way Forward
Current global health crisis is bringing uncertainty and complications for businesses around the world. Until restrictions are lifted, it’s important that marketers in the sports industry allocate their budgets accordingly, with a particular emphasis on exploring new types of content and channels, diversifying investment and partnership opportunities, and adopting immersive and virtual technologies.
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