How to capitalize on the technological bridge between sponsorship, media content and fan engagement in sports

In a sports landscape with an evident and widespread globalization pattern, it is as if this sports context is galvanized back to the era in which Da Vinci and Newton made their first discoveries. When analyzing the current sports business agenda, there are many opportunities that go beyond the mix of traditional fan engagement and marketable offerings while stimulating the business momentum of sports rights holders and their commercial stakeholders. The smartest corporate sponsors, media properties and other commercial stakeholders form a relevant junction in the sports business context that has recognized that fans are vital in this very dynamic sphere in which sports fans act as the customers that fuel the business models of these commercial stakeholders. In this postmodern sports business ecosystem filled with new technology, fans are more powerful than ever. Thus, knowing about the consumption patterns of fans is a valuable asset for any sports rights holder and its commercial stakeholders.

The viral effect of digitization

Over the years, the amount of digital consumption in sports has grown exponentially. This has brought about more digitalized paths to fan engagement, which may revolutionize the commercialization settings in the business of sports and may continue to do so in the years to come as this trend seems to have spread contagiously within the industry. The willingness to exploit these paths does not have to involve rocket science for sports business operators, as there are many established organizations, which have specialized their business solutions in providing means to take advantage of the above-mentioned junction. They are ‘early risers’ with an understanding that fans and customers provide the foundation for commercial vitality with the meaning that future growth is a function of preserving existing fans and customers and doing business with new ones.

There is no doubt that ‘the digital highway’ with its derived and growing digital commercial spending will turn business models in sports upside down.

Photo: Fan engagement and sponsorship integration from Fanpictor during an ice hockey event.

With this in mind, there is no doubt that ‘the digital highway’ with its derived and growing digital commercial spending will turn business models in sports upside down. To push relevant sports content over the counter across traditional market boundaries at rapid pace, the digital platform seems to be a perfect match. Digital platforms comprise the offering of over-the-top content and integration of direct B2B and B2C relationships without disturbing intermediaries but in consideration of fan interests. However, the interactions between rights holders in sports and their commercial stakeholders must acknowledge the strength of balancing the digitalized promotional activities and content with the need satisfaction of those segments that crave the analogue and authentic approach (see more information about this balance here).

Photo: Fanpictor showcasing the logos of Real Madrid and Chelsea.

The case of Fanpictor

I recently read an article via SportTechie about the Swiss company Fanpictor. The Zürich-based brand (with an office in NYC to cover the highly sports consuming North American market) represents an interesting tendency in the sports industry in which new technology embraces the capability to influence the profitability of sports rights holders and their commercial stakeholders positively. Fan engagement mixed with commercial value creation is at the core of Fanpictor’s DNA. Thus, Fanpictor’s solutions reach B2B and B2C stakeholders in sports beyond exposure. Brand recognition must be transformed to solid brand recall and must build emotional equity among audiences through positive brand interactions and Fanpictor seems to understand that.

As listed in the SportsTechie article, Fanpictor’s ‘acoustic network’ applies ultra sonic sound waves to send data directly to smart phones. The solution of utilizing fans’ personal devices (e.g. mobile phones) to produce uniquely branded experiences works in combination with existing venue audio systems and that allows sports rights holders to engage and communicate in different scales with fans without being dependent on Bluetooth, WiFi or mobile phone coverage. For the price of a one-time integration fee and a monthly license fee, Fanpictor installs the technology in the team venue or brand app and tests the audio quality. This may be done via revenue sharing agreements to provide room for the co-branding and co-creation initiatives that will add to the commercialization value for all involved parties and to adapt to the business models of the specific sports market. Fanpictor has already worked with high-profile brands associated with the sports and entertainment industry like WME/IMG, the Carolina Panthers, Porsche, Roger Federer Foundation, the Spengler Cup, UBS and the NHL. The technology is very flexible as it allows teams and related commercial stakeholders to engage with fans via personal devices although these devices are turned on flight mode or in locations with bad cell phone connectivity as the technology uses the venue’s PA system. The technology can also be incorporated into team apps or other digital platforms, which emphasizes the importance of uniquely branded experiences provided by sponsors. Fanpictor’s solution is a good match to drive commercialization rates across various sports and entertainment markets, e.g. the growth of e-sports is a natural fit.

Creating points of differentiation through innovative technology

Infographic: In the traditional sports sponsorship model, sponsors paid rights holders to be able to engage with fans. However, the arrow in the middle must be ‘two-way’ as new technologies enable fans to engage with sponsors more easily (and vice versa) and without rights holders as a disturbing but rather as a facilitating intermediary.

Why and how does Fanpictor stand out in a crowded sports business marketplace? Sports sponsorship is a powerful and effective marketing vehicle. However, the co-creation and co-branding opportunity attached to incorporating the technology platforms of Fanpictor enhances the ROI, ROO and ROE potential of sports sponsorships as more width and depth will be added to the sponsorship agreement through the positive engagement from relevant B2C and B2B audiences (including fans, other sponsors and the media). The potential to drive innovative commercialization efforts while increasing the live fan and sponsor experience is very valuable to sports rights holders and this can be wrapped in strong and experiential narratives to be articulated by media stakeholders and through social media platforms. This will create a positive viral effect on all commercialization touch points, which should be cherished by sports rights holders at a time where the impact of exposure is debatable due to the inflation of information that people are exposed to. Sponsorship inventories must show the ability to get under the skin of audiences while being supported by business analytics that offer sports rights holders and commercial stakeholders the opportunity to make precise decisions supported by data. Therefore, sports rights holders will improve the capacity to go from explanation to actually understanding the foundation behind its different revenue streams. For instance, Coca-Cola is interested in generating positive attention about its brand while offering unique and memorable brand experiences that are associated with data driven fan comprehensions, i.e. with the help of Fanpictor’s technology, the sports rights holders pitching to Coca-Cola go from knowing the amount of people that saw Coca-Cola’s logo and other commercial messages to understanding why why fans are driven to engage with Coca-Cola and how that can be orchestrated to drive commercial value.

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