The experience economy is growing. We’re increasingly spending more on ‘doing things’ than ‘buying things’. Consumers also know and expect more than ever and are becoming more demanding. As a result, rights holders and brands have to work hard than ever to engage people on a deeper level to foster long-term loyalty.
According to PwC’s latest report the North American sports media market is set to grow at a compound annual rate of 3%, from $69.3 billion this year to $78.5 billion in 2021, across media rights, gate revenues, sponsorships and merchandise.
Media rights are expected to be the fastest of the 4 segments and 2018 will likely be the first year where sports media rights revenue outpaces gate revenues, with broadcast and digital spend adding up to more than $20 billion.
This creates huge opportunity for the rights holders to make huge gains through digital activations, engagements and brand development for their key partners. As technologies advance and present new opportunities for activations the fundamental question always comes back to ROI. So we find ourselves addressing a new digital landscape which requires disruption and innovation yet simultaneously trying to find immediate returns on investment without inhibiting creativity!
There is no golden rule for measuring return on experiential activity or barometers for human emotive responses to multiple interactions. There is however a common intuition that we have to move and operate differently to be successful in an evolving sports market.
Here at the Sports Innovation Network we speak about ROX (return on experience) and the ability to quantify the small steps that lead to bigger change. As the ability to understand, improve and then monetise the fan experience becomes increasingly key, rights holders and brands must focus more on the incremental impact and less on attribution.
Media rights, broadcast and digital spending will continue to grow so the ability to operate at the intersection of digital and real world experiences that go deeper whilst retaining authenticity and core values are essential. In today’s customer-centric world, it’s invaluable to build loyalty and advocacy through the new social currency of ROX.