Investment in sports media is increasing as the fragmented media landscape forces agencies and advertisers to rethink their content strategies.
As WARC noted in its sports media report this month, global advertising spending on sports media rights across major live events is expected to reach $61 billion in 2024 (up 18.9% from pre-pandemic levels). as streamers and social media attract a wider audience through different channels.
“Sport is the most important thing [content] We’re stopping people from cutting the cord completely,” said Darwin Aguinaldo, linear media director at Media Culture. However, the elimination of cable channels has resulted in the disappearance of some regional sports networks, despite once being a bastion of relatively inexpensive advertising inventory for regional advertisers.
The sports content landscape is changing
“It has become increasingly important for marketers to consider when and in what format people watch sports, and on which devices and screens,” said Kevin Collins, vice president of strategic sports investments at IPG’s Magna. For example, NFL games are on broadcast and cable, OTT platforms and mobile devices, while college football is more fragmented across conferences. Networks move different packages across multiple platforms, Collins said.
The resulting impact on pricing is keeping sports buyers on their toes. “It is fragmented as certain sports and teams are available on different platforms, resulting in CPMs being higher on non-linear TV platforms than on linear TV platforms,” Aguinaldo said.
“Empower Media guides brands through their sports content based on budgets and customer base, whether that's strategizing by consumer type, geography or sports fandom,” said Alexander James Marshall, president and chief growth officer of Empower Media. The increasing fragmentation in sport means customers may not always be able to invest in everything. Nevertheless, depending on your media budget and taking into account sometimes higher prices for events such as the Olympic Games or March Madness, there are different ways to delight fans with sports content.
“If you want a spot in the championship game, you may have to invest in other properties that you’re not as interested in,” Marshall said. “[With clients,] We can offer different options, such as advertising in the big game, or lower cost options that can reach the same audience but in more creative, out-of-the-box ways that maximize limited budgets while respecting the sports ecosystem.”
Joanna Ruttner, vice president of strategy and planning at Involved Media, also pointed out that agencies need to know which sports fans are using which platforms – and where they will receive post-game content. Football and martial arts, for example, could mean acquiring viewers with a streaming-first approach, while the NBA would focus more on linear streaming and post-game social highlights.
“This means our customers’ brands are better integrated into the conversation… [As] Sports rights and distribution are changing – we are adapting our activation partners and purchasing strategies to effectively reach our sports fan audience,” said Ruttner.
Involved Media's sports fan study also found that 46% of sports viewers watch highlights, while 29% watch live via social media.
Expanded offerings in emerging sports
Given the complicated sports ecosystem, some agencies rely on a dedicated media sports team focused on understanding changing rights, emerging platforms and new partnerships. Dentsu has tried to work with customers to balance traditional linear sports and new streaming partners' offerings, said Jimmy Spano, VP and head of Dentsu Media Sports.
The rise in streaming deals has created fragmentation but also opened up more opportunities that “previously prevented many leagues, athletes and fans from connecting with each other,” Spano noted. Platforms were introduced for more women's sports and niche sports that had limited airtime on traditional linear platforms – from sports documentaries to talk shows and series.
Additionally, the growing sports space could benefit some smaller advertisers, provided they are able to work with agencies on their cross-platform and data strategies, said Dave Leitner, chief media and acquisition officer at financial app MoneyGram. This allows advertisers with smaller budgets to find additional opportunities to become part of the sports ecosystem.
“A key benefit of fragmentation is that there are more opportunities than ever to use sports media to build a brand,” Leitner said. “Agencies and buyers use advanced data analytics and audience segmentation techniques to identify and target specific audiences across different platforms.”
“For example, there are more opportunities to create cross-platform campaigns to engage diverse audiences in local teams, youth sports and popular sports like pickleball,” said Nicole McCormack, SVP and GM of sports management platform TeamSnap Brand Solutions.
“Brands looking to navigate the increasingly fragmented sports media landscape must recognize that audience attention has shifted somewhat away from men’s professional leagues,” McCormack said.
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