Generative AI in Sports Events: A Game Changer in Ticketing, Marketing, and More

Generative AI (Gen AI) and LLM's are rapidly transforming how businesses operate, and the sports industry is no exception. It's not just about "keeping up". It's about leveraging this technology to redefine the industry standards. McKinsey's recent insights suggest that generative AI could automate up to 70% of business activities by 2030.

So what does this mean for sports events?

Ticketing and Pricing: Dynamic and Personalized

“Gate revenues are a $45bn segment for sports businesses, and we are all making decisions with less data and discipline than we apply to $1m decisions in other aspects of the business. AI can change that” Mark Alexander, CEO YEG! MENA

As governments pour billions into modern sports facilities to support their major event strategies sponsorship and media have challenged the traditional powerhouse of gate revenues to become the main engines of growth in the sports marketplace. But sponsorship and media revenues are (largely) captured by rights holders so it is ticket revenues that must support the capital investment into sports infrastructure.

Yet management’s skills base, systems and the available technology for ticketing have not kept pace. This crucial sector is not (again largely) applying sophisticated acquisition, segmentation and optimisation techniques. Generative AI can revolutionize ticketing by rapidly analyzing multiple variables like team performance, player popularity, and even weather conditions to adjust ticket prices dynamically. This ensures maximum attendance and revenue. Imagine an AI system that can predict a sellout game weeks in advance and adjust prices to meet demand. Previously we only had the significant resources required to analyse pricing and segmentation on the biggest projects we worked on - London2012 , Singapore GP Pte Ltd and INDYCAR or when we were in control and captured the upside ourselves as was the case in MotoGP? . When we did have resources the results were great. There were both significant financial and customer satisfaction upsides available when demand and pricing were effectively matched.

Now, with AI, what took weeks of Rolls Royce brain power from 3 or 4 PhD Quants can now be done in days by someone who knows the questions to ask, is ordered, and has a basic understanding of statistical maths or scientific process.

Marketing: Hyper-targeted Campaigns

When you lay this pricing/product/demand insight over an upskilled and AI-democratised sports event team that can run hyper-targeted campaigns based on fan demographics, preferences, and past behaviours there is another real win. Personalized marketing enhances fan engagement and ensures a full house, whether a local game or an international championship.

We used a Hyper-targeted approach to marketing a Tier One Motorsport event. Half the tickets were sold in the traditional way. Big-name ticket agencies, Email lists, a ticket launch, PR and social media marketing.

The other 50% were sold by applying our scientific approach pulling people in with fresh, focused content on a daily basis using the most advanced digital marketing techniques to turn visitors into customers and upselling them. The result was a 17% increase in yield in the 50% we targeted. In cash terms that was €2m plus in tickets, hospitality, and ancillaries.

Packaging of Travel and Incentives: Streamlining and coordination

YEG! genesis was in travel at the Torino Olympic Game TOROC YEG! as a DMC and event planner we're really excited about the opportunity to use generative AI, to create customized travel and incentive packages for fans.

AI Coordination and optimization is perhaps going to be most fruitful when considering stakeholders such as national tourism, national flag carrier airlines and local DMCs, in the area of load balancing, yield management and personalisation. Major sports events are complex ecosystems that require meticulous planning and coordination among stakeholders with different data standards and systems- AI offers the opportunity for major events authorities to coordinate and optimise many aspects of the supply chain. Hospitality and catering, power, water, refrigeration, parking, taxi drivers, hotel operators, and airlines all afford NOCs an unprecedented opportunity to raise the bar for national tourism boards, flag carrier airlines, and local DMCs working together more effectively. Major sports events are the ideal breeding ground for this cooperation.

Unified Load Balancing and Yield Management

The true potential of AI emerges when these stakeholders work in unison. AI can balance the load of incoming tourists by coordinating flight schedules with hotel bookings and local transportation. This kind of seamless integration can significantly enhance the attendee experience while maximizing revenue for all parties involved.

Personalized Experience

Finally, the cherry on top is personalization. By sharing data and insights, these stakeholders can create highly personalized travel and event experiences. Imagine a scenario where your flight, hotel, local transportation, and even event seating are all optimized to your preferences. That's the power of AI when multiple stakeholders collaborate.

Winners and Losers: The Shifting Sports Ecosystem

Generative AI isn't a rising tide that lifts all boats; its impact will vary across the sports ecosystem. Let's take a look at the potential winners and losers as this technology becomes increasingly integrated into the industry.

Winners:

Fans: Personalized experiences, dynamic ticket pricing, and enhanced engagement will make being a sports fan more exciting than ever.

Event Organizers: The ability to dynamically adjust ticket prices, optimize procurement, and improve security measures will enhance profitability and efficiency.

Advertisers and Sponsors: Advanced analytics and targeting capabilities will allow advertisers to reach their desired audience more effectively, increasing ROI.

Data and Tech Companies: Firms providing AI services or analytics tools will find a booming market as sports entities look to leverage generative AI.

Teams and Athletes: AI can provide advanced analytics for performance improvement, injury prevention, and tactical planning, giving a competitive edge.

Losers:

Traditional Marketing Agencies: Those who fail to adapt to AI-driven strategies may find themselves out of sync with market demands.

Secondary Ticket Markets: Dynamic pricing could make secondary ticketing less profitable as primary sellers can adjust prices to meet real-time demand.

Unskilled Labor: Automation of certain roles, especially in logistics and customer service, could lead to job losses.

Privacy Advocates: The increased use of data analytics might raise concerns about consumer privacy and data security.

The Future is Now

As generative AI continues to evolve, the impact on the sports industry will only grow. Now is the time to think strategically about how to integrate this technology into your business model. Start small, with one or two high-impact applications, and scale up as you learn. After all, those who fail to adapt will be left behind. Generative AI is not just a tool; it's a game-changer that is set to redefine the landscape of sports events. Embracing it is not an option but a necessity for staying ahead in this competitive market.