BEYOND MILLENNIALS - COMING TOWARDS NEXT GENERATION (TREND #1)
Dear Sports Business Community,
Amidst these unusual times affecting each and every industry, sports business is no outlier. The industry is ever-changing, and we at Nielsen Sports & Entertainment always strive to identify changes and trends at their early stage and help our clients and community unlock new potentials and turn opportunities into good account even in the present situation. With that in mind, we have identified the following topic as one of five key Commercial Trends in 2020.
The key demographic for the foreseeable future in the sports business is Generation Z (born between 1995 and 2012). Observing this generation’s behaviour and understanding the underlying wants and needs – as well as reacting and adapting swiftly – will set some sports-properties apart from others.
There are a number of key differences with this new generation which stem from the environment they’ve grown up in. They have higher expectations for entertainment experiences than their elders and use new ways of discovering and consuming content.
Data from the Nielsen Fan Insights study across eight different markets (China, France, Germany, Italy, Japan, Spain, the UK and the US) reveals that those aged 16-24 prefer shorter, “snackable” content and, from a sporting standpoint, are less inclined to watch entire games. This doesn’t mean that their attention spans are shorter – if the content is sufficiently engaging and provides regular opportunities to interact, they are still ready to invest meaningful time. Fans of watching online video gaming in the US provide a case in point – 29% under the age of 25 state that they watch online games continuously for one to two hours, whilst 14% watch them for three to four hours at a time.
Gen Z is interested more heavily than previous generations in a number of sports. Most often, these sports and their rights holders have already engaged with the millennial generation.
Another myth worth busting is that this generation has no money or is unwilling to pay for content. Our research shows Gen Z consumers are not averse to paying for premium content, but they are increasingly expecting a tailored value proposition – that is, they prefer to be able to pay purely for what they want, where and when they want, and without any long-term contractual commitment.
Largely for these reasons, they are helping to drive the increasing tendency among consumers to ‘cut the cord’ on traditional pay TV subscriptions. And what they want to watch is also shifting towards a larger share of more authentic original content, for example behind-the-scenes, documentaries, etc. They want to be closer to their favorite sports and players beyond just watching a game or a sporting event.
Overall, engaging with the fans of Gen Z will become a necessity sooner or later. Sports business players and properties who actively pursue this earlier than others will gain a lasting advantage and prosper. And then another time will come when we shall meet the Generation Alpha (born 2010 and later). And so on and so on.
Are you interested in further expertise?
Join Nielsen Sports WEBINAR series: State of the Sponsorship Landscape.
7th of April 2020 – 4pm CEST, we'll focus on Generation Z and how they will impact the sports world in 2020 and beyond. We'll uncover insights to successfully attract and engage fans in this changing generation.
During this session, we'll review:
- How generation Z is coming of age, who they are and what type of content they really want
- How sport must evolve to meet their needs
- Where they spend their money
- How brands and rights holders can bridge the gap between casual and avid fans
Please PM me if you are keen to participate.
Lastly, in the wake and havoc of the coronavirus I want to extend my best wishes to all of you – stay healthy, we stand strong together.
Lars Stegelmann | +49 171 645 3311| [email protected]